ECONOMICS

Globalisation in Sri Lanka

Globalisation in Sri Lanka

Introduction

Globalisation - the process of global economic, political and cultural integration and unification. The main consequence of this is the global division of labor, migration across the planet's capital, human and production resources, the standardization of legislation, economic and technological processes, as well as the convergence of cultures of different countries. This is an objective process that is systemic, that is, covers all aspects of society.

Globalisation

Origins of Globalization

Some beginnings of globalization, we can trace already in antiquity. In particular, the Roman Empire was one of the first countries that adopted its rule over the Mediterranean and led to a profound interweaving of cultures and the emergence of the local division of labor in the Mediterranean.

The origins of globalisation are in the XVI and XVII centuries, when strong economic growth in Europe, combined with advances in navigation and geographic discoveries. As a result, Portuguese and Spanish traders spread around the world and engaged in the colonization of America. In the XVII century the Dutch East India Company, a seller with many Asian countries, was the first true multinational companies. In the XIX century, rapid industrialization has led to increased trade and investment between the European powers and their colonies and the United States. During this period, unfair trade with developing countries was in the nature of imperialist exploitation. In the first half of XX century, globalisation was interrupted by two world wars, and they divided the period of economic downturn.

After World War II, globalisation was resumed at an accelerated pace. She contributed to improvements in technology have led to rapid sea, rail and air transport, as well as access to international telephone services. Removal of barriers to international trade in 1947 was engaged in the General Agreement on Tariffs and Trade (GATT) - a series of agreements between the major capitalist countries and developing countries. In 1995, 75 participants formed the GATT World Trade Organization (WTO). Since then, 21 countries have acceded to the WTO, and 28 countries, including Russia, are in talks to join.

There are also large regional zones of economic integration. In 1992, the European Union became a common economic space after the Maastricht Treaty. This space provides for the abolition of customs duties, the free movement of labor and capital, as well as a unified monetary system based on the euro. Less tight integration observed among participants of the North American Free Trade Area: USA, Canada and Mexico. Most of the former Soviet republics came after the collapse of the Commonwealth of Independent States, providing elements of a common economic space (Rondinelli & Heffron, 2007).

Advantages of Globalisation in Sri Lanka

Although Some Sectors of the Economy Have Been Affected by civil war, especially the emerging tourism industry, Sri Lanka has adapted to particular to its circumstances and the progress of the economy has been good over the past five years, as data show GDP growth, 5% in 2004. During the first quarter of 2005 the GDP growth rate by 5% and inflation ...