Globalization Worksheet #2

Developing Countries Concerns Emphasis is on development. Point out that the developed countries developed when there was no regard for labor standards or environmental concerns, so they can do the same. Asked international community to postpone or cancel their staggering debt. These debt payments are often higher than what the counties spend on necessities such as health and education. Financial assistance and technical assistance are both lacking, and have actually been dropping.

Developed Countries Concerns What is important is the foreign investment by the private sector. If developing countries want investment, they must adapt themselves to the global economy. Foreign investments benefits can be seen in the growth of the “Asian Tigers” such as Korea, Thailand, and China. The Asian Tigers have received a large amount of foreign investment and experienced rapid economic growth. The majority of the foreign investment in Asia has gone to China. In order to make a country attractive to foreign investors, a few things are needed such as governments that are stability, democratic, accountable, and transparency. Asia receives almost 20 times the amount of foreign investment that Sub-Sahara Africa does.

Role and Responsibility of Corporations With few international rules, companies have been able to do whatever they want to maximize profits. However even this has limitations, and they bear responsibility. Example: Exxon oil taker spilled oil into the Gulf of Alaska, ruining Exxon’s reputations and causing their sales to fall from $9.9 Billion to $4.8 Billion within 8 years. The UN has proposed a code of conduct for business which many companies have pledged to follow, such as Nike which has often been criticized. Nike manufactures products in 50 countries which means it must deal with many different legal, social, financial, and economic systems. One of Nike’s toughest tasks is to determine what is their global responsibility.

Developing Countries Weary Though developing countries are in favor of higher labor standards and environmental protection, they fear that will not be able to enforce the new rules and will then be sanctioned by other countries.

New Challenges With no world government, it is very difficult to manage globalizations and ensure everyone benefits from it. The Secretary-General of the UN believes the key to promoting economic growth is to eliminate Poverty with the following steps. Free access (tax free) to goods grown in one’s own country. Cancellation of debt in heavily indebted countries if those countries show serious commitment to poverty reduction. More development assistance. Develop an affordable vaccine to HIV, as well as any other problematic disease in developing countries. Make special provisions for the needs of African countries.