Economics(Paper-4) - Shivaji University

5) Banking and Financial Services :
Under Pre-globalization period people of developing countries were suffering from
poor facilities of banking and financial services. But, with the opening the gates economy
most of the countries banking and financial sectors have become efficient in their working.
6) Double standard policy :
Developed countries have adopted double standard. They demand many
concessious and reduction in tariffs from developing countries but have adopted
protectionist attitude for themselves.
7) Deteriorating Terms of Trade :
After 1995, trade agreement have worsen the trade structure of the poor countries.
Their terms of trade were deteriorated.
B
Demerits / disadvantages of Globalization in the way of economic
development :
The imperialist nations were strong supporters of free trade.
1) Developing countries were benefited :
As per would commission (2004) The group of 12 developing countries were
accounted lion’s share in world trade but sub-saharan Africa experienced in proportional
decline in their world markets.
2) Imports of developing countries were increased :
These countries were facing deficit in their trade.
3) FDI :
Flow of FDI have benefited developed countries.
4) No growth :
FDI inflows are not all growth oriented, this flows have destroyed the comparative
cost advantage of developing countries.
5) Employment :
According world commission world unemployment rates have increased since
1991 in latin America and the Caribbean and South East Asia, and since 1995 in East
Asia.
6) Income inequality :
Some people are benefited the environment of globalization which has resulted in
income inequalities.
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