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UB NUMBER: 10006436

UB NUMBER: MODULE: ATTENDANCE MODE: TUTORIAL GROUP: MODULE LEADER: PROGRAMME: MANAGEMENT DATE OF SUBMISSION:

10006436 MANAGEMENT IN CONTEXT FULL TIME A4 PROFESSOR NANCY HARDING INTERNATIONAL BUSINESS 18th NOV 2010

I certify that this assignment is the result of my own work and does not exceed the word count noted below.

983
Number of words (excluding references)

1

Hartungi (2006) argues that globalisation should favour both developing and developed countries but this isn’t the case. Effort was made to also identify points of congruence between the two articles as well as different views on globalisation trends experienced in developing countries. A holistic unbiased approach is thus encouraged in the understanding of globalisation as there is the tendency to get carried away with theoretical approaches while ignoring practical implications. unbiased favour of industrialised countries and multi-national corporations by international organisations such as the World Trade Organisation (WTO) at the expense of the domestic economies of the developing countries as further hindering the ability to gain from globalisation. The article goes on to identify the concept of protectionism as a panacea for developing countries in their bid to control and manage globalisation 2 . brain drain. Hartungi (2006) describes the various concepts of globalisation and how it has affected developing countries. It’s a comparative review of two articles. It identifies the dependency of economic development not only on domestic policies but on market forces and global influences of international trade. the author cited under-development.UB NUMBER: 10006436 Globalisation has had adverse effects and implications and this paper examines as it affects developing countries. The benefits of globalisation to developing countries are examined under the following classification. The general consensus is that globalisation theories reflecting economic growth and development are not a true representation of economic realities in developing countries. “The evolution of development economics and globalisation” by Piasecki and Wolnicki (2004) and “Could developing countries take the benefit of globalisation?” by Hartungi (2006). It is also clear that the articles do not identify the positive effects of globalisation. The author consistently used Indonesia as a reference point in examining the effects of globalisation on developing countries. The possible positives of globalisation to developing countries are briefly highlighted in the article but the author focused on the negative effects on developing countries. • • • • Trade and industry Labour and employment Intellectual property right Environment In each of the above listed instances. This isn’t totally representative of the existing scenario of globalisation in developing countries. The article is focused on the debate on whether developing countries can benefit from globalisation and the involvement of the domestic nation-state in maximising these benefits.

UB NUMBER: 10006436 and the influence of multinational corporations and industrialised countries on their domestic economies. They advocate the intervention of the state in economic development in limited proportion and only when market imperfections exist. focuses on the evolution of development economics and its failures. Development economics failed to address the growth needs of developing countries resulting in high poverty levels and inequality. Piasecki and Wolnicki (2004) insist on globalisation being the solution to economic development despite its negatives. The article attributes the failure of globalisation in developing countries to their excessive openness to the world economy and their inability to manage this openness. It becomes obvious that some form of protectionism is necessary for developing countries to harness the inherent benefits of globalisation. Hartungi (2006) encourages protection of domestic economies matched with the nation’s development level as the key to reaping the inherent benefits of globalisation. In conclusion. 3 . Piasecki and Wolnicki (2004) goes on to establish the paradigm shift to deregulated trade and the role of global corporations and inflow of foreign direct investment in developing countries to facilitate the development process. Piasecki and Wolnicki (2004) on the other hand. The trend of globalisation favouring industrialised countries at the expense of developing countries is highlighted in both articles. Inflow of foreign capital and western consumption of domestic resources only served to worsen the problem of poor development. both articles examine globalisation and its role in the economic growth and development in developing countries. identifying the World Trade Organisation (WTO) as formulating and enforcing international trade policies which marginalise developing countries in international trade activities and their efforts at economic development. The author concludes by accepting the inevitability of globalisation. A key point identified in the article is the need for development economics to accommodate “socio-cultural complexities” crucial in designing and developing models of economic growth. soliciting for developing countries to synchronize their domestic economic policies in line with the globalisation process so as to make the best use of it. As stated earlier. the intervention of globalisation as a solution and the experience of economic and social growth for developing countries. An important feature in critical literature review according to Kabilan (2007) involves the establishment of relationships between different studies on a particular topic.

UB NUMBER: 10006436 Both articles acknowledge the emergence of multinational companies (MNCs) with considerable power over nation-states and their control of their economies. An important point which Hartungi (2006) fails to address but which is stated clearly by Piasecki and Wolnicki (2004) is that the mismanagement of the globalisation process by politicians and leaders could be the reason for poor economic development in developing countries. 4 . Hartungi (2006) quotes Stiglitz (200) in arguing that “The impact of trade liberalisation caused trade liberalisation caused inefficient industries. which are mostly found in infant industry to close down as a result of pressure from international completion. This thus informs the opinion that globalisation is necessary and inevitable. but needs to be managed and implemented carefully to achieve its objectives of economic development. Hartungi (2006) blames globalisation for under-development without exploring how the process evolved in these countries and its implementation. Ability to benefit from globalisation by developing countries is dependent on how they adjust their policies to nurture the process domestically. The need to also view globalisation execution as country-specific as stated by Piasecki and Wolnicki (2004) is imperative with economic development models and protection efforts implemented with a conscious consideration of the maturity levels of individual economies. Piasecki and Wolnicki (2004) also agrees with this by citing “excessive openness to the world economy and the inability to manage this openness” as responsible for the ripple effects of under-development in developing countries.

pp. Scribd. Vol. M.xdocs.33. 300-314 5 .com/doc/267683/WritingCritical-Literature-Review Piasecki. R. No. 3. (2006) ”Could Developing Countries Take Benefit of Globalization?” International Journal of Economics.728-743 Kabilan.Vol. R. 11. and Wolnicki. (2004) “The evolution of development economics and globalization” International Journal of Social Economics. No. available at: www.UB NUMBER: 10006436 REFERENCES Hartungi. M. pp. 9 January.31. (2007) “Writing Critical Literature Review”.