Changes in Globalization Impact South Asia

Globalization has increasingly changed the development of global economy and decreased the numbers of poverty but at the same time it has lifted issues. The present global difficulty may give a change on globalization itself as two developed and growing nations adjust to changes in terms of financial instability that lead to financial crisis. The questions occurred whether these changes has a contribution or will just prevent the economic status and development of South Asia.

There are three representations of globalization. These are trade flows, capital flows and macroeconomic management. These three may differ from one another in the later time. The changes in globalization could change the formation of marketing, capital and the economic process which could either increase of decrease the development.

South Asian as district is not usual. Its marketing, capital and economic process varies from other areas in the way their area has globalized, even though it is described that there is a great range of different things within the area.

This global decline in economic and business activity called for the management of how economic quantity connects with economic fluctuations. South Asia has restricted room for increased government consumption, given high ratio between a country’s government debt and its gross domestic product.  Decreased product prices have created flexibility to government in its spending choices that has been useful for the development of facilities and safeguards against adversity. However, this can change faster as food and oil prices rapidly increasing. South Asia will not possibly sustain great food and fuel subsidies given high money owed by a government agency. South Asia would become powerless to global product prices except if its local product prices are parallel with global product prices as most East Asian did.

E. Ghani