Globalization and the GCC
A) Free trade. It can be defined as the policy adopted in certain international markets whereby the governments would not restrict imports and exports from certain agreed nations.
B) An example of the free trade is GCC-EFTA FTA.
C) The free trade among the GCC countries is critical in opening the nations to bilateral and multi-agreements, which improves the free trade and economic success of all member states.
D) The free trade helps to improve the access of the GCC nations to the global economy. It is because the EU member states signed into the FTA are global economic superpowers with influence in the global economy.
The effects of the globalization on economic development in GCC nations includes some positive effects such growing economic trade activities in the GCC nations. For example, the GCC-EFTA FTA helps the GCC nations to sell their goods and services in the European nations without any trade restrictions. It also helps GCC nations to learn technological skills and expertise from other global partners such as the United States. Getting highly skilled labor would help in promoting productivity of organizations in GCC nations which translates into economic development.
However, it has some disadvantages such as it could kill the local industries. It is because the local industries in GCC economies will be exposed to stiff competition from the international companies. The exposure to stiff competition could kill the growth of local businesses and industries. The challenges presented by globalization include the threatening of the cultural and social lives of the people in GCC nations. However, it brings opportunity for technological advancement and improvement of productions to meet the international standards and provisions.
Based on the case study of South Korea, globalization could be beneficial and still detrimental to the success of an economy. Some arguing for globalization suggests that it would help in market expansion. It would also make the local firms more competitive due to the increased competition in the economies.
The disadvantages of globalization include hurting less competitive sectors in the economies such as farming. The civil servants in the services sector are concerned on the infiltration of their labor market by highly qualified immigrants. The overall view against globalization is that it would lead to the loss of jobs for the Koreans leading to low standards of living in the economy.
Globalization and the GCC