ALEX ELLISMANAGEMENT OF BUSINESGRADE 13

QUESTION: What are the benefits of globalization to Jamaica economy?

Globalization can be defined as the process by which regional economies, societies, and cultures

have become integrated through a global network of communication, transportation, and trade.

The Jamaican economy is a mixed developing economy in located in the Caribbean. Jamaica

being a globalised economy has benefit from this process.

Some general benefits of globalization to countries includes; countries are able to gain

comparative advantage where they specialize in producing goods at a lower opportunity cost,

lower prices for consumers, bigger export markets, greater competition, higher economic growth,

increased investment and greater efficiency.

Jamaica being a globalized economy has benefited from bigger export markets from its local

produced especially bauxite where it is a leading producer of the product. Jamaica has being able

to export bauxite a number of countries world through globalization. Without globalization this

wouldn’t have made possible because their will be barriers to communication and trade. Jamaica

been able to export bauxite has benefits the Jamaican Gross Domestic Product (GDP) where it

makes up a portion of the countries GDP. This in turn increases the capita per head of the

country. The country is also able to export other goods such as banana, citrus, cocoa and labour.

Also through globalization the country is able to export workers to work on farms in the United

States of America, Canada, United Kingdom and other countries through a program known as

the “Farm work Program” which is set up by the government and some private individuals. The

exportation of these people has increased the foreign earnings for the country over the years,

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these foreign earnings is known as remittances, remittance today has make up a lager amount of

the foreign earnings for the country. This movement only could make possible through

globalization because here we have seen communication, trade and transportation taking place

between several countries.

Jamaican consumers are able to enjoy a variety of products through globalization. They are able

to consume goods that are not able to produce locally such as machinery, transport equipment

and some food items. Consumers are also able to get competitive prices for goods and services

thus increasing their purchasing power (the value of a particular monetary unit in terms of the

goods or services that can be purchased with it). This has benefited the Jamaican consumers

since through globalization they are now able increase the standard of living, since they can get

to purchase and use products just like how the industrialized countries such as the United States

of America.

The Jamaican economy has benefited from globalization via investments. Through globalization

the country has been able to increase the total investment in the country which will increase the

country’s gross domestic product as well. Through globalization and trade liberation

multinational companies such as KFC, Burger, Digicel and others come in and investment in the

country resources where by providing jobs for the unemployed and also help with the

development of the country, where they sponsor cultural events such as rising stars, all together

sing and the Digicel Premiere League. These investments by these individuals and companies

have also help the country to use up some of its resources that were laid idle. Example Digicel

employs over five hundred workers throughout the island wide to do various jobs; all those

persons that are employed by Digicel were previously idle resources or will be idle resources if

Digicel hadn’t come in with this investment.

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It can be concluded that globalization although has some negative impacts to society has benefit

the Jamaican economy in various ways such as a bigger export market for its product, wider

choice for its consumers and increase in investments in the country.

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