Globalization Is Merely a Platform for the Multinationals to Expand Essay

Globalization Is Merely a Platform for the Multinationals to Expand Their Global Reach - Essay Example This paper stresses that free competition in developing countries is restricted, in the context of the multinationals. This is because there will be no legislation to prevent the practice of monopoly and oligopoly that are consequent to the trade agreements between the host nation and the multinational firms. Such monopolistic practices hinder the prosperity and growth of the third world countries. Small scale industries in the host countries are forced into liquidation, because they will find it difficult to compete with multinationals, which offer similar products at lower prices and of a better quality. This report makes a conclusion that Some people view globalization as economic terrorism, due to the fact that the socio economic and political avenues of the poor countries suffer further deterioration and subordination. Such adverse effects are due to globalization, which exists in order to promote the economic interests of the wealthy countries. The inequality in political, military and economic coordination between third world countries and the dominant superstructure economy compel the dependent third world countries to modify their economic interests in order to comply with the requirements of the dominant economy. Domestic requirements of third world countries are compromised in this fashion. The IMF and the World Bank require the countries seeking loans to fulfil certain conditions, which compromise the fundamental rights of citizens of those countries.