Abstract
In this paper the author will provide an analysis on the mechanisms through which globalization has played a key role in increasing foreign trade. The paper will also reveal foreign trade and its high interdependence and increased capital flows that has resulted in affecting the development of the third world countries. The introduction in the dissertation will depict the major changes that have been adopted due to the globalization of markets. Thereafter, the target is shifted towards the predicament faced by the third world countries in their pace to strive to seek economic development. The author will reiterate the significance of globalization and its negative impact in terms of the many difficulties that the third world countries are prone to encounter. However, the positive impact from Globalization is that it may open up opportunities for these struggling third world countries. The advantages and opportunities are tremendous for the third world countries ranging from high commercial relations and links between nations and the creation and adoption of a variety of development policies across countries. Therefore, the author will discuss and discern the key steps that a country has to follow in order to promote economic growth and ensure sustainable development. Since a few decades, the world has moved at an alarming rate by implementing the great trend of globalization. The pace of change across all areas has moved faster than expected due to technological advancements in transportation services, broader and wider means of communication and innovative scientific technologies. Globalization has created an era wherein, the developing countries have chosen to increase their investment abroad and have opened up to foreign trade and direct investment. For the first time, less-developed countries have been able to exploit the potential of their abundant labor to break into global markets for manufactured goods and services.
