Introduction:
The world has become a global village now. Diversity and Globalization in the new economy has affected every country but sometimes globalization is a hindrance rather than a blessing in the development and advancement of least developed countries. Globalization is the process of expanding global preferences in cultural, environmental, political, social and economical issues. The key economic characteristic of globalization is the free movement of goods throughout the world (Schaeffer, p.1). Globalization has affected every country but it particularly affected the Least Developed Countries in a negative way. It is the name of economic challenges like collapse of commodities market, debt crisis and structural adjustment policies for Least Developed Countries, which ultimately tightened the international poverty trap for them.
Summary:
The world is shrinking rapidly with the advent of faster communication, transportation, and financial flows. Products developed in one country are finding enthusiastic acceptance in other countries. International trade is booming. Since 1969, the number of multinational corporations in the world’s 14 richest countries has more than tripled, from 7,000 to 24,000. Imports of goods and services now account for 24 percent of gross domestic product worldwide, twice the level of 40 years ago. International trade now accounts for a quarter of the United States’ GDP, and between 1996 and 2006, United States exports are expected to increase 51 percent (Alden, 1998).
Today global competition is intensifying. Foreign firms are expanding aggressively into new international markets, and home markets are no longer as rich in opportunity. Few industries are now safe from foreign competition. Although some companies would like to stem the tide of foreign imports through protectionism, in the long run this would only raise the cost of living and protect inefficient domestic firms. The better way for companies to compete is to continuously improve their product at.......
