Example Of Economic Globalization In The Middle East Research Paper

Globalization is one of the major influential forces that shape the future of the world. It manifests itself in different dimension, for example, sphere. Economic globalization refers to the rising interdependence of global economies due to the increasing level of the cross-border in the business of goods and services, an increase of technologies and flow of worldwide capital.
Economic globalization played a key role in the development of the Middle East countries. The introduction of the transportation system was a major contribution to the development. These systems enabled the countries to trade with other countries efficiently. They provided means of ensuring the process of imports and exports are carried out with ease. The improved communication system was another positive impact of economic globalization in the Middle East countries. Countries were able to trade with other countries especially the European countries without necessarily having an actual meeting. Globalization came with the establishment of financial institutions such International Monetary Fund. These institutions offered a solution to the Middle East countries in times of economic crisis. This in return ensured that the development of the country did not stop at any given time. These financial institutions also fund some of the country's developmental projects. They also give member countries loans and grants.
Economic globalization leads to the creation of the job. This led to high employment rates among the people in the Middle East countries. This translated to the decrease in the number of people living below the poverty line which can be termed as development in a country. Economic globalization gave rise to the development of new technologies. These technologies ensured that they cost of production of goods and services were reduced hence leading to high profits that would be a benefit to the country. In the process of globalization, multinational corporations established their branch companies in the Middle East countries. This helped in the development of the countries through increased taxes received from the companies.
Middle East countries have faced several challenges in their economies. These challenges affect their competitive advantage due to the presence of economic instability. The presence unstable economic reforms lead to a weak national economy. Political instability is another challenge of a countries economy. Most of the Middle East countries have ongoing wars that are affecting their trade within and without the country. This discourages multinational companies and other investors from investing in the countries. The wars also affect the international relations of the country hence the countries find it hard to identify countries they can trade with. Social instability is another cause economic instability. Societies of Middle East countries have social infrastructures and cultural ideas that do not allow globalization. Globalization is a key element in the economic growth. The presence of high population in the countries has negatively affected the economy of the country. This is because a country with high population leads to overutilization of resources which if otherwise used would lead to the development of country's economy. The high population also leads to high rates of dependency due to high number of people been unemployed.
In conclusion, for the economy of Middle East countries to grow, they should be ready to embrace the idea of globalization. Since there is no single state can rely on itself to ensure economic growth. This means that countries are dependent to develop their economy.