Globalization
Africa the Second World War, a new kind of imperialism emerged. Multinational companies which are registered in a country and functioning in many countries began to interfere in the economic, social and cultural sectors of the developing countries for services the interests of capitalist countries. This is termed as neo imperialism.
The multinational companies competed with one another to control the resources and assets of third world countries. They promoted consumerism in third world countries to sell their products. Developing nations were considered as the markets for the multinational companies. Liberalisation, privatisation and globalisation were the concepts of neo imperialism.
Globalisation is the policy of transfer of products, services, raw materials, capital, latest technology and human resources across the borders of countries without any restriction.
Features of globalisation
- Economic system of the country linked to global economy.
- The interest and motives of multinational companies protected.
- Competition driven market came into existence.
- Trans-border flow of products, services, raw materials, capital, latest technology and human resources facilitated.
Impact of globalisation
Positive impacts of globalisation are:
- Globalisation opened up many opportunities and possibilities around the world.
- The transfer of goods, products and services beyond boundaries and the dissemination of information technology shaped the concept of global village. Globalisation posed challenges to developing countries:
- Due to pressure from multinational products and marketing strategies, the economy of developing countries started to collapse.
- The intervention of multinational companies challenged the concept of nation state.
- Led to the destruction of indigenous culture. Price of agricultural products plunged.
- Public sector undertakings were destroyed.
- Government withdrew from social service sectors.
- Natural resources were looted.
