Short Essay Topic:
Discuss the causes of financial globalisation and its positive and negative influences on the developing countries.
The aim of this essay is to examine the origins of financial globalisation and present the positive and negative effects that it illustrates on the developing countries. In addition to this arguments will be presented on whether or not the outcomes of financial globalisation are beneficial and if it accelerates growth, for the developing countries. "Economic globalisation is not a new phenomenon. Trade, capital and people have been flowing across borders for centuries, with the intensity of these flows growing significantly since the middle of the 19th century" (Denis, C. et al, 2006). Globalisation, with the assistance of innovation, is an epitome of transforming knowledge into money through the appliance of science, technology and expertise to optimise production. Some of the basic causes of globalisation are technological developments, the end of the Cold War, the transport costs and speed, global problems such as the climate changes and migration, and liberalisation.
The developed worlds in Europe, North America, and of some Asian countries, stand sufficient chances of beneficial outcomes as they are the attributed initiators and the first to embrace it. It has resulted in the massive creation of wealth which had to be disposed to the developing countries under the canopy of liberal global trade. Although developed countries are seen as the most active participants in the financial globalisation process, many developing countries are also participating. "Inequality has also decreased substantially in recent times as China and Japan have keenly competed with the industrial giant nations in the western world in the realms of innovation and technology drive to capture strategic markets across the globe" (Ghana, 2007).
"Financial globalisation is understood as the integration of a country's local financial system with...