Answer to Question #109016 in Microeconomics for Ibrahim Ssemaganda

Question

Globalization has encouraged countries to specialize in the goods in which they have a comparative advantage. Discuss the implication of this principle of economics to a developing country

Answer 1

Globalization has benefited developing countries by providing jobs and capital investments that would not have otherwise been available. As a result, some developing countries have been able to progress more quickly in terms of job growth, educational attainment, and infrastructure improvements benefited from globalization by leveraging their comparative advantage in labor costs. Corporations have shifted manufacturing and other labor-intensive operations to these countries to take advantage of lower labor costs.