The Success Factors of Developing Countries in Facing Globalization

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The Success Factors of Developing Countries in Facing Globalization

The question of whether globalization could give benefits for all countries in the world becomes an interesting issue. Rapid technological development in various fields and changes in global policies result globalization must be faced by develop countries and developing countries. The concept that globalization has caused negative impacts particularly for developing countries is not entirely correct. Globalization could bring many positive impacts on development if a country has prepared itself with all necessary infrastructures to cope with globalization. To support these opinions, this essay will describe case studies from some developing countries that suffer the negative impacts of globalization and case of successful countries that obtain benefit from globalization. The factors that support the success of a developing country in facing globalization and the strategies that developing countries can be done to achieve this will also be described in this essay.

The shift from labor-intensive industries to capital-intensive industries is one example of globalization that could have an impact on raising the rate of unemployment. Restructurisation of textile industry in Vietnam with the increasing use of modern technology, on the one hand have made Vietnam's textile industry products can compete with the imported products and meet the demand from other countries (Thoburn, Sutherland & Hoa, 2007). On the other hand, research conducted by Thoburn, Sutherland and Hoa (2007) showed that the implementation of modern technologies in the textile industry has stimulated the retrenchment of labors even though two third of the retrenched labors have managed to obtain another income from informal sector after they had been retrenched. This situation shows that the implementation of modern technologies in textile industries which could not be separated with a reduction of workers might increase the...
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