Effects of Globalization on South Africa Isa
Economics ISA Globalization and South Africa April 23, 2013
Globalization is the process of expanding social and economic ties between nations, and benefits each partner through enabling it to concentrate on its competencies (GPF). From thousands of years ago when Silk Road connected Asia, Africa and Europe to speed the transfer of goods, the idea of globalization fermented in the minds of every merchant. Heading towards the 19th century this idea progressed further as new ways of transportation and communication came to pass including railroads, steamships and telecommunication. In the 21th century this idea of globalization has increased tremendously with the addition of commercial vehicles, airplanes, cellular phones and most notably, the Internet. Organizations such as the World Trade Organization (WTO) and the International Monetary Fund (IMF) make it their mandate to give aid to developing countries as they strive to globalize. South Africa has been integrated in the movement of globalization as it re-entered the international economy in 1990 after being faced with trade sanctions. At that time emerging market economies were booming at a greater rate than the world economy (CIA). However the South African economy only began to show signs of benefit about four years later. Moreover with the addition of South Africa into the BRICS countries in 2010 (originally known as BRIC in 2001) brings opportunity to South Africans, who deal with the notion of globalization. (BRICS) South Africa has a tremendous amount of potential due to its abundance in natural resources such as gold, diamond, coal, natural gas and many other rare earth elements (CIA). Globalization has proven to be a positive development in South Africa because it has improved trade partners including China and India, brings potential foreign investors, and gives trade rights to South Africa.
Globalization makes it possible for countries to remove trade barriers, which benefits both the
Globalization is the process of expanding social and economic ties between nations, and benefits each partner through enabling it to concentrate on its competencies (GPF). From thousands of years ago when Silk Road connected Asia, Africa and Europe to speed the transfer of goods, the idea of globalization fermented in the minds of every merchant. Heading towards the 19th century this idea progressed further as new ways of transportation and communication came to pass including railroads, steamships and telecommunication. In the 21th century this idea of globalization has increased tremendously with the addition of commercial vehicles, airplanes, cellular phones and most notably, the Internet. Organizations such as the World Trade Organization (WTO) and the International Monetary Fund (IMF) make it their mandate to give aid to developing countries as they strive to globalize. South Africa has been integrated in the movement of globalization as it re-entered the international economy in 1990 after being faced with trade sanctions. At that time emerging market economies were booming at a greater rate than the world economy (CIA). However the South African economy only began to show signs of benefit about four years later. Moreover with the addition of South Africa into the BRICS countries in 2010 (originally known as BRIC in 2001) brings opportunity to South Africans, who deal with the notion of globalization. (BRICS) South Africa has a tremendous amount of potential due to its abundance in natural resources such as gold, diamond, coal, natural gas and many other rare earth elements (CIA). Globalization has proven to be a positive development in South Africa because it has improved trade partners including China and India, brings potential foreign investors, and gives trade rights to South Africa.
Globalization makes it possible for countries to remove trade barriers, which benefits both the
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