Does the process of Globalization help or hinder wealth creation in Essay

Does the process of Globalization help or hinder wealth creation in developing countries - Essay Example This is a group that favours activities of by such international institution as the World Bank, IMF and WTO that are seen as creating a level ground for all countries in the world to take part in international trade. However, there is an opposing group of critics of globalization that asserts developed countries have had an unprecedented benefits compared to developing countries. This essay explores how globalization has contributed to the process of wealth creation in developing world by analysis arguments by both proponents and opponents of globalization in order to determine whether globalization has helped or hindered wealth creation. There are a number of areas in which proponents of globalization argue that developing counties have benefited due to wealth creation accrued from doing business with other countries and multinationals. Due to the interconnectedness of the global economy, demand has been created for goods from developing countries therefore increasing the volume of trade. The increased trade has benefited the Newly Industrialized Economies from Asia that have been able to export their manufactured goods. These countries started off as developing countries but it is the access to international markets that resulted creation of wealth from capital inflow into their economies resulting in economic growth. The wealth created from international business has been used to reduce poverty levels by contributing to welfare state in these countries (Lechner, 2009). The level of knowledge and technological exchange that has been brought about by globalization is also an aspect emphasised by proponents of globalization. It is argued by proponents that the benefits of globalization to developing countries are not only in the area of direct foreign investments but the phenomenon has also led to the sharing of technical innovation between developed and