Is the market economy detrimental to developing countries

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The phenomenon of "globalization" has meanwhile been illuminated and analyzed from many directions. Above all, five dimensions of the globalization process play a prominent role.

1 Description and definition of the globalization process

The phenomenon of "globalization" has now been illuminated and analyzed from many directions. Above all, five dimensions of the globalization process play a prominent role: the political, the economic, the ecological, the social and the cultural. Although there are different perspectives and assessments, the observers agree on one point: globalization processes are not new. Economic history gives enough examples that there have always been spurts of globalization to implement innovations. They usually come as a surprise, run erratically and leave behind fundamentally changed structures.

Globalization is in the core interest of multinational companies, whose influence and control options are, however, to be assessed less than is often assumed; The direction and intensity of the globalization process are primarily determined by the decisions of influential national governments and international organizations, which through measures in the economic (liberalization and deregolation) as well as in the social? and environmental policy area (compliance with minimum standards) specify important framework conditions and try to control and shape the processes.

Market liberalization is complemented by advances in microelectronics, telecommunications and information processing. If, in addition to the technological possibilities, external economic liberalization and domestic economic deregolation, lower transport costs and the increasing standardization of technical standards are added, then the list of factors that determine and drive the process of globalization is complete. So globalization is a process of increasing integration of the markets for goods, services, capital and technology.

The social impacts as well as the reactions of those affected in the face of these processes are wide-ranging and contradictory. Some see unimagined opportunities, others feel at the mercy of a development in which the familiarity of the previous framework conditions and processes is lost.