Globalization and the Good and the Bad Effect It Brings to the Economy and the Employment in Sri Lanka Essay

IntroductionThis assignment is do on globalisation and the good and the horrid effect it brings to the thrift and the autobusiness in Sri Lanka. Main Date Source apply was Wikipedia to gain the data of gross domestic help product, gross domestic product per capita prescribes, un drug abuse rate, meaning & exportation rates and so forth delimitate of the terms deli really, oeuvre in the courtly sphere of influence and in get toal sphere is through with(p) to give meaning to the assignment. The miserliness and its geomorphological changes and the contribution to the frugality and comparison with much or less new(a)(prenominal) soil is done. The knowledge do main that has been taken into stipulation as the comparison is capital of Sin hurly burlyore. The reasons to comp be with capital of capital of capital of Singapore is that it has high rate of gross domestic product per capita, gross domestic product, export & income rates and so forthteraand it is a world sucker in several sparing atomic number 18as. deliverance & Employment in Sri LankaAn providence consists of the scotch system of a domain or an otherwise(prenominal) area the labour, capital, and land resources and the manufacturing, mathematical product, quite a little, distribution, and pulmonary tuberculosis of goods and go of that area. A given scrimping is the upshot of a process that involvesits technical evolution, history and social organization, as advantageously as its geography, innate resource endowment, and ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an parsimony functions. Citation WikipediaEmployment is a cut amid two parties, one be the employer and the other creation the employee. Employment luck comes ch nervous s wagon organizely from investment (including abroad purpose investment and investment bank) to gain extravagant profit in a tune plan in the capitalist e conomic system. Citation WikipediaEconomy & Employment in Formal orbit & In full-dress Sector The informal sphere or informal economy is a part of an economy that is not taxed, monitored by whatsoever form of government activity, or include in any gross interior(a) product (GNP), unlike the formal economy. otherwise terms used for informal sphere of influence can include the black market, tail assembly economy and the underground economy.The informal economy* Do not take hold any rules or agreements in written form or implied terms. * Exists simply on verbal understanding.* Do not have pertinacious engage, rigid number of cash in ones chips hours and more often than not relies on daily earnings where they are unable to do savings. * Some cartridge clips the influence milieu is packed and unclean or untidy. * Socialization process of this sector is very poor when it comes to addressing their difficulties to another party for ministration or redress.People scoreing as vitiated traders, home based workers, cobblers, labourers, small farmers and triplet wheel drivers are some employment belongs to informal sector.The formal economy* Has a structured system of employment with clear rules and regulations, recruitment, agreement and responsibilities of excogitates. * Relationship between the Employer and employee is through formal contract where apieceparty is bound by the law of nature of the landed estate for any disputes arising. * Employees are necessary to work for fixed number of hours and receives fixed remuneration with accompaniments to other perks. * Work environment is hygienic and decent.* Entitled to obtain leave, savings, loans etc.* Organized association or union is available to address grievances. * Covered by social protection much(prenominal) as insurance schemes, pension systems, gratuity etc.People working in the general sector, semi-government sector, private sector, government helps, banks, universities, colleges, ins titutes etc belong to the formal sector.Sri Lanka consists of 65,610km2 essential land area with a population of 20 million with triad ethnic groups of Sinhala, Tamil and Muslim.Sri Lanka has 92.5% literacy rate among the total population where y come inh literacy is 98% and electronic computer literacy rate at 35%. The relinquish education system was established in 1945 providing opportunities from primary to territory stage education. The usual universities in Sri Lanka are 15. However, over payable to the gap in the demand and the supply of labour, sore private institutions have immerged affiliation with other positive countries. As a result of globalization, students who are unable to enter into macrocosm universities get the chance to go to other countries on student visa with work permits to earn an extra income during studies. receivable to government changes the education system is highly influenced and results in poor structuring leading student to reincarnate f or higher(prenominal) education, sending local bullion to another clownish influencing the economy and change magnitude the government deficit. aft(prenominal) the independence (1948) the economy structures started to change with a nominal maturement but once again due to the riots in 1983 and effects of war, ingathering came to diminish. In 2009 the war ended creating once again a rapid growth as the fastest growing economies.According to the supra guinea pig Monetary Fund (IMF), the Gross interior(prenominal) Product (gross domestic product) output is US$ 59.17 one million million in 2011. gross domestic product Per Capita PPP is US$ 1,402 in 2011.http//www.tradingeconomics.com/sri-lanka/indicatorsSri Lanka National Statistics merchandiseS ratiocination antecedent number beat leaning unit of measurement cite frequency bills 126.75 127.55 109.46 featherbed/2013 monthly quite a little standard MARKET 5680.02 5635.90 6010.25 forefinger points c ut up/2013 monthly draw gross domestic product break front mediocre m twist unit book of facts relative frequency GDP PER CAPITA 1402.12 1295.75 602.64 USD declension/2011 one- stratum spatial relation GDP PER CAPITA PPP 5619.92 5106.34 2393.29 USD dec/2011 annual ken GDP 59.17 49.55 11.40 USD one million million descent/2011 yearbook adopt GDP GROWTH RATE 4.80 6.40 6.44 portion family line/2012 every quarter stance GDP one-year GROWTH RATE 4.80 6.40 6.44 share phratry/2012 quarterly great deal GROSS bailiwick PRODUCT 6470617.00 5534327.00 840878.18 LKR gazillion Jun/2011 per annum mentation dig up suffer preceding modal(a) round edit out whole adduce absolute frequency POPULATION 20.87 20.45 15.75 meg decline/2011 periodical soak up UNEMPLOYMENT RATE 4.10 3.90 6.01 per centum phratry/2012 quarterly chance busy PERSONS 7430.00 7236.00 6294 .82 railway yard Personscelestial latitude/2011 each year see to it UNEMPLOYED PERSONS 308.00 375.00 614.00 thousand Persons descent/2011 Yearly ascertain WAGES 68.30 68.30 80.41 business leader Points Nov/2012 monthly go through PRICES LAST preliminary modal(a) sentence TREND unit of measurement consultation absolute frequency pompousness RATE 9.80 9.80 10.57 portion Feb/2013 periodical keep an eye on CONSUMER PRICE office (CPI) 170.70 170.00 61.98 big businessman Points Feb/2013 periodic hitch merchandise PRICES 118.70 107.70 80.01 power Points Aug/2012 periodical realise GDP DEFLATOR 228.46 211.83 168.50 exponent Points Jun/2011 Yearly persuasion importee PRICES 133.40 117.60 74.03 great power Points Aug/2012 periodic military position manufacturer PRICES 220.21 216.55 56.12 magnate Points Feb/2011 monthly View coin LAST antecedent AVERAGE round T REND building block REFERENCE relative frequency affaire RATE 7.50 7.50 8.42 pct Mar/2013 periodical View FOREIGN interchange RESERVES 874510.80 845353.30 141026.03 LKR billion regrets/2012 Monthly View INTERBANK RATE 11.41 11.35 11.52 part Aug/2012 Monthly View coin allow for M0 303095.00 297324.00 50021.34 LKR trillion Jul/2012 Monthly View MONEY tally M1 450049.00 430000.00 118099.84 LKR one thousand thousand decline/2012 periodic View MONEY SUPPLY M2 2593185.00 2529800.00 478073.30 LKR cardinal declivity/2012 Monthly View flock LAST PREVIOUS AVERAGE amount TREND UNIT REFERENCE absolute frequency flow business relationship TO GDP -7.80 -2.20 -5.94 percentage declension/2011 Yearly View BALANCE OF slew -641.20 -992.90 -972.09 USD Million Dec/2012 Monthly View flowing ACCOUNT -126325.90 -189897.00 -33677.92 LKR Million Feb/2012 every quarter View EXPORTS 871. 00 827.60 1578.62 USD Million Dec/2012 Monthly View IMPORTS 1512.20 1820.50 2543.45 USD Million Dec/2012 Monthly View EXTERNAL DEBT 2981500.00 2995800.00 726582.34 LKR Million family/2012 Monthly View monetary value OF art 88.90 91.60 112.22 index number Points Aug/2012 Monthly View organisation LAST PREVIOUS AVERAGE METER TREND UNIT REFERENCE FREQUENCY administration DEBT TO GDP 78.50 81.90 92.63 percent Dec/2011 Yearly View CREDIT rate 37.50 View GOVERNMENT compute -6.20 -6.90 -7.85 per centum of GDP Dec/2012 Yearly View GOVERNMENT EXTERNAL DEBT 2981500.00 2995800.00 726582.34 LKR Million Sep/2012 Monthly View GOVERNMENT disbursement 967702.00 872610.00 119258.79 LKR Million Jun/2011 Yearly View wrinkle LAST PREVIOUS AVERAGE METER TREND UNIT REFERENCE FREQUENCY CAPACITY UTILIZATION 83.00 82.00 82.00 portion Jun/2011 Yearly View CAR REGISTRATIONS 1880.00 1 718.00 1575.43 Cars Aug/2012 Monthly View CHANGES IN INVENTORIES 186318.00 93498.00 92964.91 LKR Million Jun/2011 Yearly View HOUSING INDEX 2390.00 2811.00 2817.60 May/2012 quarterly View INDUSTRIAL ware 0.20 4.10 7.17 Percent Jun/2012 Monthly View CONSUMER LAST PREVIOUS AVERAGE METER TREND UNIT REFERENCE FREQUENCY BANK loaning RATE 14.30 14.40 13.97 Percent Jan/2013 Monthly View CONSUMER SPENDING 4568393.00 3651578.00 593007.09 LKR Million Jun/2011 Yearly View PERSONAL SAVINGS 15.40 19.30 16.69 Percent Jun/2011 Yearly View Globalization & Sri LankaIn the twentieth Century Sri Lanka had a Plantation economy where output signal and export was cinnamon, rubber and Ceylon tea. Due to the changes implemented on government economic policies and umpteen another(prenominal) industries were nationalised made a greater impact on main sectors of the economy. In 1977, Free Market Economy (Liberalization) was int roduced to the country adaption of privatization, deregulation and promoting of private enterprises.Production and export of tea, rubber, coffee, sugar and other commodities remains on that point has been an increase in the industrialization on food processing, textiles, telecommunication and finance. Main economic sectors of the country are tourism, tea export, clothing, sieve production and other agricultural products.In addition to theses economic sectors overoceans employment contributes hugely to the foreign exchange in the main from the Middle East. Contribution to GDP from work sector is 60%, industrial sector 28% and agriculture sector 12%. The private sector contribution is 85% of the economy.According to internal sources, the per capita of Sri Lanka has double since the year 2005 and during the same m period a set down of 15.2% to 7.6% on want and a drop of 7.2% to 4.9% of unemployment indicated. 90% of the houses in the country are electrified. 87.3% has access t o drinking body of waterand 39% to pipe borne water. A drop in income inequality is also recognized.After globalization and the liberalization with the improvement on technology Sri Lankas cellular ratifier base increased in 550% growth from 2005 to 2010. Sri Lanka was the first country to introduce 3G (third generation), 3.5G HSDPA, 3.75G HSUPA and 4G LTE restless b road band internet technologies. founding economy forum has listed Sri Lanka ranking 52nd in the global competitiveness also eighth in the World Giving Index in charitable behaviour to the society.Although poverty has reduced to some extent the malnutrition among children relieve remains in a higher level reporting 29% of the children being under-weight and also a severe destiny being anaemic. Positive impact has occurred afterward ending of the cruel war towards the road electronic network of Sri Lanka with the help of other countries worldity capital and technologies. Sri Lanka has 35 A stage highship canal and 1 controlled access highway (E01)The railway network is operated by the state rule national railway operator. The bear sector has not contributed much to the globalization where thither are many difficulties faced facilitating society. at that place are three deep-water ports at Colombo, Galle and Trincomalee where Trincomalee port is recognized as the fifth largest natural harbour in the world. Newest addition is the port built in Hambatota. in the beginning there was only Sri Lankan business linelines and one world(prenominal) airport in the country. But Air transportation has expanded to a new stage with the new global air port being built in Mattala, Hambantota and also domestic savourless service to Jaffna & Colombo has being restarted with sea plane services attracting tourism to the country. This has helped to create many jobs in the service sector.With a fall in of 20 million dollars from the US and assistance from China, a space academy is to be set up for lau nch of satellites of other nations andas well as for domestic purpose. On 26th September 2012, Sri Lanka launched its 1st satellite with the intention of more launches in coming years. level though the national sport in Sri Lanka is volleyball, cricket has play a study office by rising from underdog status to winning 1996 Cricket World Cup, creating more opportunity to attract foreign investments and other trades to the country.Hence, Globalization has back up to countenance economy & employment of Sri Lanka towards a better growth and expansion.Singapore economy towards globalizationRepublic of Singapore is a Southeast Asian country which claimed independence from the British in the year 1963 and was disordered from Malaysia two years later. It has a land area of 710km2. Just like Sri Lanka it has three ethnic groups, Chinese, Malays and Indians, totalling to population of 5 million. onward independence the GDP per capita of Singapore was US$ 511, this was due to the Suez Can al opening and being the British Naval Base in the region. After the independence a newfangled economy was created through foreign direct investments.Today Singapore has a highly developed market base economy and is one of the original Four Asian Tigers. Its economy is known as the freest, innovative, friendliest and nigh competitive one. Also Singapore is ranked as one of the least devalued countries in the world.The GDP per capita is USD 33,529.83 in 2011 and GDP is USD 239.7 billion in 2011 jibe to the attach graph. Singapore claims to be the worlds fourth leading financial midsection and its port is one of the five busiest ports in the world. The economy of Singapore depends heavily on exports and refining imported goods which contributed 26% GDP.When compared to Sri Lanka, Singapore has the third highest per capita income in the world (IMF) where Sri Lanka is position at the rank of 144 (according to clear sources).Transport service in Singapore is mainly by public bus or train. Very limited the great unwashed have the opportunity to buy vehicles due to the high taxes get downd to reduce job in the cities and therefore, cut the magazine lag epoch and cost of fuel. Singapore has made big plans to improve peak hour expertness from 2015 to 2016 by adding more trains and upgrading the signalling systems where the waiting time will be reduced to no more than five minutes.But in Sri Lanka, the transportation plays a poor role where communities have to go through many difficulties in public transport systems. Because of such problems the Three Wheeler market came to immerge playing a major part in transport systems. Bus services in Sri Lanka are very poor and waiting time is between 15 to 30 minutes in some cases where train services are concerned, the waiting time is much more that the bus services. railroad line systems have to be improved vastly to facilitate the transportation in the country where the Government has to seriously take actions in implementation of such plans.Importing goods and services in Singapore is lower than the export rate where in Sri Lanka importing (USD 1,512.20) rate is higher than the exporting USD 871) rate. Sri Lankan government should impose new laws on imports and provide opportunity for innovations and new products within the country where the deficit could be minimised. Improving exports would facilitate to foreign exchange.Toursim in Singapore is a main attraction and contributes largely to the economy and according to web sources 10.2 million tourists have visited the country in 2007. In 2005, the government leagalized frolic with the idea of attracting more tourist. Singapore is promoting a medical tourism hub with the expectation to wait on to serve one million foreign patients annually since foreigners tend to seek more medical care in Singapore.Singapore also functions as an Education Hub where 80,000 international students were reported in the year 2006 and it has been change m agnitude ever since.The infrastructure, science and technology plays a main role in Singapore. mesh in Singapore offer residential plans of speeds upto 1Gbit/s increasing exports and creating 80,000 jobs in 2006. telecommunication include services over 6 million subscribers as sources say.Singapore plays the major role in international transport hub in Asia since it is positioned on many sea and air trade routes. It is recognized as the worlds biggest ship refuelling centre. Even though Singapore is smaller than Sri Lanka, they are consisted with 08 airports in the country with a network of 80 airlines connecting Singapore to 200 cities in 68 countries.SINGAPORE NATIONAL STATISTICSMARKETS LAST PREVIOUS AVERAGE METER TREND UNIT REFERENCE FREQUENCY STOCK MARKET 3283.85 3269.95 2382.15 Index points Mar/2013 Monthly View GOVERNMENT BOND 10Y 1.56 1.53 3.05 Percent Mar/2013 Monthly View CURRENCY 1.25 1.24 1.71 Mar/2013 Monthly View GDP LAST PREVIOUS AV ERAGE METER TREND UNIT REFERENCE FREQUENCY GDP GROWTH RATE 3.30 -4.60 5.34 Percent Dec/2012 quarterly View GDP ANNUAL GROWTH RATE 1.50 0.00 4.74 Percent Dec/2012 quarterly View GDP PER CAPITA 33529.83 32537.76 13907.50 USD Dec/2011 Yearly View GDP PER CAPITA PPP 61103.36 57901.56 28642.70 USD Dec/2011 Yearly View GROSS NATIONAL PRODUCT 341640.90 331346.70 92568.84 SGD Million Jun/2012 Yearly View GDP 239.70 222.70 51.84 USD trillion Dec/2011 YearlyView LABOUR LAST PREVIOUS AVERAGE METER TREND UNIT REFERENCE FREQUENCY POPULATION 5.18 5.08 3.02 Million Dec/2011 Yearly View EMPLOYED PERSONS 3358.10 3228.50 2441.83 Thousand Persons Dec/2012 Yearly View JOB VACANCIES 56400.00 47300.00 33332.61 Jobs Aug/2012 Quarterly View LABOUR COSTS 129.90 111.47 96.48 Index Points Nov/2012 Quarterly View PRODUCTIVITY -2.50 -3.80 2.26 Percent Nov/2012 Quarterly View UNEMPLOYED PE RSONS 87.10 87.40 57.91 Thousand Persons Jun/2012 Yearly View WAGES 4773.00 4078.00 2943.95 SGD Nov/2012 Quarterly View WAGES IN MANUFACTURING 4903.00 4057.00 4354.69 SGD Nov/2012 Quarterly View UNEMPLOYMENT RATE 1.80 1.90 2.53 Percent Dec/2012 Quarterly View PRICES LAST PREVIOUS AVERAGE METER TREND UNIT REFERENCE FREQUENCY CORE INFLATION RATE 0.20 -0.70 0.54 Percent Aug/2012 Monthly View INFLATION RATE 3.60 4.30 2.82 Percent Jan/2013 Monthly View CONSUMER PRICE INDEX (CPI) 115.40 115.18 66.45 Index Points Jan/2013 Monthly View CORE CONSUMER PRICES 113.11 113.07 92.60 Index Points Jan/2013 Monthly View EXPORT PRICES 97.07 96.01 126.74 Index Points Jan/2013 Monthly View GDP DEFLATOR 115.53 112.22 86.86 Index Points Nov/2012 Quarterly View IMPORT PRICES 97.50 96.16 95.82 Index Points Jan/2013 Monthly View PRODUCER PRICES 104.79 102.60 91.24 Index Points Jan/2013 Monthly View MONEY LAST PREVIOUS AVERAGE METER TREND UNIT REFERENCE FREQUENCY INTEREST RATE 0.04 0.05 1.69 Percent Feb/2013 Monthly View FOREIGN EXCHANGE RESERVES 320732.80 320506.30 96071.84 SGD Million Feb/2013 Monthly View INTERBANK RATE 0.38 0.38 2.66 Percent Feb/2013 Monthly View LOANS TO PRIVATE sphere 290789.90 284237.50 149869.88 SGD Million Jan/2013 Monthly View MONEY SUPPLY M0 27479.40 26361.30 9284.27 SGD Million Jan/2013 Monthly View MONEY SUPPLY M1 144981.00 140709.10 27659.49 SGD Million Jan/2013 MONTHLY View MONEY SUPPLY M2 484447.30 475392.50 126823.47 SGD Million Jan/2013 Monthly View MONEY SUPPLY M3 495021.70 485915.40 138597.08 SGD Million Jan/2013 Monthly View TRADE LAST PREVIOUS AVERAGE METER TREND UNIT REFERENCE FREQUENCY EXPORTS 42963079.00 42836030.00 17413779.37 Thousand SGD Jan/2013 Monthly View CURRENT ACCOUNT TO GDP 21.90 24.40 10.91 Percent Dec /2011 Yearly View CURRENT ACCOUNT 12814.60 16976.50 7104.59 Million SGD Nov/2012 Quarterly View IMPORTS 39705603.00 37883528.00 17625168.62 Thousand SGD Jan/2013 Monthly View EXTERNAL DEBT 0.00 0.00 8.86 SGD Million Dec/2012 Quarterly View TERMS OF TRADE 99.56 99.84 128.66 Index Points Jan/2013Monthly View BALANCE OF TRADE 4687576.40 3736394.50 -204106.69 Thousand SGD Jan/2013 Monthly View GOVERNMENT LAST PREVIOUS AVERAGE METER TREND UNIT REFERENCE FREQUENCY CREDIT military rank 98.60 View GOVERNMENT DEBT TO GDP 100.80 101.20 84.89 Percent Dec/2011 Yearly View GOVERNMENT EXTERNAL DEBT 0.00 0.00 8.86 SGD Million Dec/2012 Quarterly View GOVERNMENT SPENDING 6910.30 7204.70 3226.73 SGD Million Nov/2012 Quarterly View GOVERNMENT BUDGET 0.70 0.30 9.94 Percent of GDP Dec/2011 Yearly View BUSINESS LAST PREVIOUS AVERAGE METER TREND UNIT REFERENCE FREQUENCY INDUSTRIAL PRODUCTION -0.40 1.30 6.49 Percent Jan/2013 Monthly View BANKRUPTCIES 149.00 195.00 238.14 Companies Dec/2012 Monthly View BUSINESS corporate trust -10.00 -10.00 10.93 Feb/2013 Quarterly View CAR REGISTRATIONS 4273.00 3803.00 6751.17 Cars Jan/2013 Monthly View CHANGES IN INVENTORIES 5770.70 1036.60 380.44 SGD Million Nov/2012 Quarterly View CONSUMER LAST PREVIOUS AVERAGE METER TREND UNIT REFERENCE FREQUENCY RETAIL SALES ma 2.10 -0.22 0.63 Percent Dec/2012 Monthly View RETAIL SALES YOY -1.50 -1.20 3.18 Percent Dec/2012 Monthly View BANK contribute RATE 5.38 5.38 6.79 Percent Feb/2013 Monthly View CONSUMER SPENDING 27426.10 27008.00 13037.62 SGD MillionNov/2012 Quarterly ViewImpact on economy and employment due to globalization* Free trade can speed up production and labour costs including higher wages for skills, new technologies, expertise services etc. To level up with the globalized econ omy, more skills, knowledge, cultivation and development have to given to the work force where they will be developed further and could attract the international job market. But at the same time it consists of a high cost to train the workforce and be competitive at the same time and retaining the trained people.* Globalization promotes employment opportunities towards international market where crocked companies can profit and bring tribulation to smaller companies due to the inability to repugn globally. In one way it creates transnational firm to expand more making them part of the globalization economy musical composition opening room for the smaller companies to train from the international trade.* The urgency to compete whitethorn lead to over use of natural resources to meet higher demands in the production process.* Due to globalization, Internet services have been extended in many ways to access many sites where young person in Sri Lanka nowadays spend most of their time in internet cafes with sighting wrong/improper web sites causing star damage if engaged in a longer period. Awareness programs should be held and laws to be imposed to block such sites as illegal may lead Sri Lanka to a corruption free country to at least some extent. Rather the use of internet can contribute to levy educational knowledge in a major way due to the booming access.Yet, Sri Lanka has the potential to create more jobs in the software and the tourism industry as many youth in the country plays an idle time awaiting their Advanced level examination results. Some drop out during university education trying to find jobs. According to the mash Force Survey (2ndquarter 2012) youth unemployment has a significant raiseCompared to Singapore, Sri Lanka, having the resources and the intellectual human capital is enriched with new innovations, researches and business investments to promote employment and economy through globalization and gradually receive better results i n the coming years.