Despite the benefits of globalisation in regard to the expansion of the financial resource to the lower end, researchers have increasingly acknowledged that the globalization process involves remarkable risks and indirect socio-economic costs. Liberalised capital markets in the world, according to Machiko and Erik (2006, pp1338-1360), have triggered immense volatility in local financial sector, especially in poor economies that lacked effective financial structures. Substantial reversals in immediate capital flows usually touched off by contagion factors or fluctuations of commodity costs in the global market have impacted harsh financial slumps and sharp rises in joblessness and poverty.
Some of these cases have had lasting effects, with the economically weak segments of the community being forced to bear the brunt of such challenges. In light of this, trade openness has impacted a major reduction in demand for casual labour and meagre pay as in the immediate context (Asiedu, Gyimah-Brempong 2008, pp49-66). The aggravation of the situation by a low level of inter-sectoral movement of the workforce, redundancies and low incomes has often resulted in higher poverty levels in society. Impact of technology According to Šliburytė and Masteikienė (2011, pp404-410), new technologies and the development of conventional innovations happen across the world each passing day.
Nonetheless, it is costly to swiftly innovate and implement these developments for use by the entire world. This high cost of production results in the rise of the inflation of technology products, beyond the reach of the common man. Today, many of the world’s poor economies that purchase install and maintain the latest technology, continue to lag behind economically, even as more advanced innovations of technology grow. The liberalization of technology works to the advantage of mainly the richer economies.
In light of this, wealthier companies also stand to gain from the innovations. Technological advancements enable nations and their firms across the world to reach consumers across the world, thus more revenue. These increases of revenue are brought about by the ability of the investors to cash in on the Internet tool, telephony projects, and in facsimile machines. Currency traders across the world have also found it easier to update changes in the stock market and inform the common man of the developments more swiftly.
This has impacted more need to finalize agreements, because firms are confident that they will not lose in business deals (Machiko, & Erik 2006, pp1338-1360).
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