Globalisation is the process of economic integration in the trade, financial and labour markets leading to the emergence of a single world market. The establishment of globalisation has increasingly affected economic growth, quality of life and external stability.
Economic Growth occurs when there is a sustained increase in a country's productive capacity over time, and is measured by the % increase in real GDP. There are varied types of economies, and there are still types yet to be classified appropriately. The basic categories include LDC's, MDC's, NIC's and transition economies, and the economic growth of each is affected differently by globalisation. LDC's (Least Developed Countries) are a sub-group identified by the United Nations; these economies suffer from the lowest GDP per capita levels in the world - less than $US900 per year. 34 of the 49 labeled LDC's are located in sub-Saharan Africa, and include countries such as Sierra Leone and Mozambique.
MDC's (Most Developed Countries) are at the other end of the spectrum, having high levels of economic development, close economic ties with other MDC's and are comprised of liberal-democratic political institutions. MDC's include Australia, USA and Sweden. These are the countries who have benefited the most from globalisation's establishment, as they have the resources and the political backing to carry out policy favourable to their individual economy or economic agreement. For example, regional trading blocs such as the EU (European Union) have the power to exclude poorer nations from lucrative consumer markets.
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NIC's are countries which experience rapid economic change over the two decades, and are in transition from developing countries to high-income economies. NIC's are concentrated in the Asia-Pacific region and include South Korea and Singapore. This type of economy has actively pursued integration into the global economy, through export-led development strategies and encouragement of FDI inflow.
