- Published: September 17, 2022
- Updated: September 17, 2022
- University / College: Babson College, F.W. Olin Graduate School of Business
- Language: English
- Downloads: 21
Globalization refers to the increased relations between distant nations such that the activities in one nation have a profound effect on the other. It has occurred due to reduction in hindrances to international trade. New technology has led to faster communication and exchange of information, hence enhancing globalization. Globalization has led to a higher level of accountability on the part of African leaders since they are under scrutiny most of the time. It has helped promote urbanization in these developing countries as foreign firm invest and set up industries in African countries. This has played a vital role in improving African countries’ infrastructure. It has created many job opportunities through outsourcing and acquisition of contracts in developed countries. However, globalization has led increased competition on most of Africa’s exports. This has a ripple effect, leading to a decline in sales of local industries (including agriculture), consequently lowering GDP, and increasing unemployment rates in an effort to cut costs.
Some areas of Africa experience adverse climatic conditions thus discouraging agricultural activities, foreign investment, and other advantages of globalization. African countries have a small diversity of exports, relying on agricultural goods. Adverse weather conditions can easily affect these agricultural goods. African economies have weakened due to deterioration of foreign exchange, adoption of obsolete and inappropriate technologies, corruption and poor governance, and high inflation rates (African Forum on Urban Poverty 116). Because of the weak economies, majority of the population in Africa are poor and cannot meet their basic needs as they lack adequate buying power. Many people are hungry because of civil wars, which, usually arise due to political strife and military coups. Climate change has limited people’s ability to fend for themselves through arable farming.
Work Cited
African Forum on Urban Poverty. Urban poverty in Africa: Selected Countries Experiences.
Nairobi: UN-HABITAT, 1999. Print.
