Risk and Benefits of Economic Globalisation to Less Developed Countries

Abstract

Economic globalization has both negative and positive impact to countries in terms of trade liberalization economic growth and development. Globalisation is free flow of goods and service between countries and their governments. Least developed countries have to embrace economic globalization as it must to all countries. Developed countries that owns most of  multinational corporations  whom where agent of globalization comes with risks that multinationals are depressing wages of local communities; disrupt local companies’ technological progress and process.  Also, imported technology can create crowd and obsolesces of domestic technology especially to least developed countries. The study uses secondary data from world-bank and United Nation Conference of Trade and Development (UNCTAD). The study finds that home countries of majority of Multinational Corporation have received up to hundred per cent foreign direct investments more than most of least developed countries. Too big to challenge Margin of European countries to formulate European Union serve as a detriment to least developed countries. While, Benefit yield from globalization is not shared equally; the developed economics dominates the global economy. Finally, the study recommends that least developed countries should restructure their countries in terms political, social, economic and technological in other to adapt to globalisation. Conclusively, tariffs should impose as to protect the existing companies from foreign companies’ unfair competition by encouraging production, since they have vast majority of land.