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

IntroductionThis assignment is d oneness on worldwideization and the good and the bad effect it brings to the miserliness and the avocation in Sri Lanka. of merchandise Date Source procedured was Wikipedia to recognize the data of gross domestic product, GDP per capita rates, unemployment rate, import & trade rates etc. Defining of the terms rescue, employment in the imposing arena and informal sector is done to soften inwardness to the assignment. The parsimoniousness and its structural changes and the contribution to the economy and comparison with an early(a) hoidenish is done. The plain that has been taken into consideration as the comparison is capital of capital of capital of capital of Singapore. The reasons to compare with Singapore is that it has mellow rate of GDP per capita, GDP, export & income rates etc and it is a conception leader in s of all timeal economic areas.Economy & Employment in Sri LankaAn Economy consists of the economic system of a unta ught or opposite area the labour, capital, and land resources and the manufacturing, production, trade, distribution, and consumption of goods and services of that area. A given economy is the result of a process that involvesits technological evolution, history and social organization, as well as its geography, natural resource endowment, and ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions. Citation WikipediaEmployment is a contract in the midst of two parties, one creation the employer and the other be the employee. Employment fortune comes directly from investment (including foreign direct investment and investment bank) to gain excessive profit in a Business plan in the capitalist economy. Citation WikipediaEconomy & Employment in Formal Sector & free Sector The informal sector or informal economy is a part of an economy that is non taxed, monitored by any form of government activity, or i ncluded in any gross national product (GNP), contrary the formal economy. Other terms used for informal sector atomic number 50 include the black market, shadow economy and the underground economy.The informal economy* Do non postulate any rules or agreements in written form or implied terms. * Exists simply on verbal understanding.* Do not have fixed wages, fixed number of reverse hours and virtuallyly relies on daily earnings where they are unable to do savings. * Sometimes the represent purlieu is packed and unclean or untidy. * Socialization process of this sector is very shortsighted when it comes to addressing their difficulties to another party for relief or redress. battalion ricking as small traders, home based buy the farmers, cobblers, labourers, small farmers and trine 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 responsibili ties of jobs. * race between the Employer and employee is through formal contract where eachparty is detain by the law of the country for any disputes arising. * Employees are required to work for fixed number of hours and receives fixed remuneration with additions 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 protective covering such as insurance schemes, pension systems, gratuity etc. plenty working in the globe sector, semi-government sector, offstage sector, government services, banks, universities, colleges, institutes etc belong to the formal sector.Sri Lanka consists of 65,610km2 total land area with a population of 20 zillion with three ethnic groups of Sinhala, Tamil and Muslim.Sri Lanka has 92.5% literacy rate among the total population where jejuneness literacy is 98% and computer literacy rate at 35%. The free knowledg e system was established in 1945 providing opportunities from primary to territory stage education. The state-supported universities in Sri Lanka are 15. However, due to the gap in the demand and the tote up of labour, unexampled private institutions have immerged affiliation with other developed countries. As a result of globalization, students who are unable to enter into public universities nonplus the opportunity to go to other countries on student visa with work permits to earn an extra income during studies. Due to government changes the education system is super influenced and results in poor structuring leading student to migrate for higher education, move local funds to another country influencing the economy and increasing the government dearth.After the independence (1948) the economy structures started to change with a nominal product but once again due to the riots in 1983 and effects of war, maturement came to diminish. In 2009 the war ended creating once aga in a speedy growth as the fastest growing economies.According to the International monetary Fund (IMF), the Gross Domestic Product (GDP) output is US$ 59.17 one one thousand thousand million in 2011. GDP Per Capita PPP is US$ 1,402 in 2011.http//www.tradingeconomics.com/sri-lanka/indicatorsSri Lanka National StatisticsMARKETS expiry former fairish step form social unit fibre absolute frequency CURRENCY 126.75 127.55 109.46 Mar/2013 periodical gather in fund MARKET 5680.02 5635.90 6010.25 proponent points Mar/2013 periodic determine GDP break front norm meter TREND unit of measurement REFERENCE frequence GDP PER CAPITA 1402.12 1295.75 602.64 USD celestial latitude/2011 every twelvemonth debate GDP PER CAPITA PPP 5619.92 5106.34 2393.29 USD Dec/2011 gradely check GDP 59.17 49.55 11.40 USD one thousand million Dec/2011 periodic cypher GDP egress lay 4.80 6.40 6.44 part family/2012 every quarter fascinate GDP one-year GROWTH come in 4.80 6.40 6.44 pct Sep/2012 Quarterly passel staring(a) NATIONAL PRODUCT 6470617.00 5534327.00 840878.18 LKR cardinal Jun/2011 annually setting LABOUR LAST PREVIOUS fair measure TREND UNIT REFERENCE FREQUENCY POPULATION 20.87 20.45 15.75 one thousand thousand Dec/2011 every year count on UNEMPLOYMENT tramp 4.10 3.90 6.01 share Sep/2012 Quarterly work out EMPLOYED PERSONS 7430.00 7236.00 6294.82 megabyte PersonsDec/2011 Yearly put on inactive PERSONS 308.00 375.00 614.00 Thousand Persons Dec/2011 Yearly bewitch payoff 68.30 68.30 80.41 king Points Nov/2012 periodic consume bellS LAST PREVIOUS ordinary METER TREND UNIT REFERENCE FREQUENCY INFLATION direct 9.80 9.80 10.57 percentage Feb/2013 monthly think CONSUMER PRICE INDEX (CPI) 170.70 170.00 61.98 force Points Feb/2013 periodical View EXPORT PRICES 118.70 107.70 80.01 force Points Aug/2012 Monthly View GDP DEFLATOR 228.46 211.83 168.50 forefinger Points Jun/2011 Yearly View IMPORT PRICES 133.40 117.60 74.03 Index Points Aug/2012 Monthly View producer PRICES 220.21 216.55 56.12 Index Points Feb/2011 Monthly View MONEY LAST PREVIOUS mean(a) METER TREND UNIT REFERENCE FREQUENCY INTEREST RATE 7.50 7.50 8.42 portion Mar/2013 Monthly View FOREIGN EXCHANGE RESERVES 874510.80 845353.30 141026.03 LKR one thousand million Dec/2012 Monthly View INTERBANK RATE 11.41 11.35 11.52 Percent Aug/2012 Monthly View MONEY translate M0 303095.00 297324.00 50021.34 LKR one thousand thousand Jul/2012 Monthly View MONEY write out M1 450049.00 430000.00 118099.84 LKR million Dec/2012 MONTHLY View MONEY SUPPLY M2 2593185.00 2529800.00 478073.30 LKR zillion Dec/2012 Monthly View mete out LAST PREVIOUS bonny METER TREND UNIT REFERENCE FREQUE NCY CURRENT business relationship TO GDP -7.80 -2.20 -5.94 Percent Dec/2011 Yearly View BALANCE OF occupation -641.20 -992.90 -972.09 USD cardinal Dec/2012 Monthly View CURRENT ACCOUNT -126325.90 -189897.00 -33677.92 LKR Million Feb/2012 Quarterly 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 Sep/2012 Monthly View TERMS OF TRADE 88.90 91.60 112.22 Index Points Aug/2012 Monthly View judicature LAST PREVIOUS just METER TREND UNIT REFERENCE FREQUENCY regimen DEBT TO GDP 78.50 81.90 92.63 Percent Dec/2011 Yearly View CREDIT evaluation 37.50 View GOVERNMENT BUDGET -6.20 -6.90 -7.85 Percent of GDP Dec/2012 Yearly View GOVERNMENT EXTERNAL DEBT 2981500.00 2995800.00 726582.34 LKR Million Sep/2012 Monthly View GOVERN MENT SPENDING 967702.00 872610.00 119258.79 LKR Million Jun/2011 Yearly View BUSINESS LAST PREVIOUS AVERAGE METER TREND UNIT REFERENCE FREQUENCY CAPACITY UTILIZATION 83.00 82.00 82.00 Percent Jun/2011 Yearly View CAR REGISTRATIONS 1880.00 1718.00 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/2012QUARTERLY View industrial takings 0.20 4.10 7.17 Percent Jun/2012 Monthly View CONSUMER LAST PREVIOUS AVERAGE METER TREND UNIT REFERENCE FREQUENCY BANK LENDING 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 20th Century Sri Lanka had a Plantation economy where production and export was cinnamon, rubber and Ceylon tea. Due to the changes implemented on government economic policies and some another(prenominal) industries were nationalised made a greater impact on main sectors of the economy. In 1977, drop out Market Economy (Liberalization) was introduced to the country adaption of privatization, deregulation and promoting of private enterprises. performance and export of tea, rubber, coffee, sugar and other commodities remains there 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, rice production and other agricultural products.In addition to theses economic sectors overseas employment contributes hugely to the foreign re-sentencing chiefly from the Middle East. Contribution to GDP from services 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 akin time period a drop of 15.2% to 7.6% on need and a drop of 7.2% to 4.9% of unemployment indicated. 90% of the houses in the country are electrified. 87.3% has memory access to drinking 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 subscriber base increased in 550% growth from 2005 to 2010. Sri Lanka was the 1st country to introduce 3G (third generation), 3.5G HSDPA, 3.75G HSUPA and 4G LTE mobile b avenue flock internet technologies.World economy forum has listed Sri Lanka set outing 52nd in the global competitiveness also 8th in the World Giving Index in charitable behaviour to the society.Although poverty has signd to some bound the malnutrition among children still remains in a higher level account 29% of the children organism under-weight and also a severe percent age being anaemic. Positive impact has occurred after ending of the cruel war towards the road network of Sri Lanka with the help of other countries human capital and technologies. Sri Lanka has 35 A grade highways and 1 controlled access highway (E01)The railway network is operated by the state run national railway operator. The transport sector has not contributed much to the globalization where there are many difficulties faced facilitating society. on that point are three deep-water ports at Colombo, Galle and Trincomalee where Trincomalee port is recognized as the 5th largest natural harbour in the world. Newest addition is the port reinforced in Hambatota.Earlier there was only Sri Lankan Airlines and one International aerodrome in the country. But Air transportation has goed to a modern stage with the new international air port being construct in Mattala, Hambantota and also domestic plane service to Jaffna & Colombo has being restarted with sea plane services attracting tourism to the country. This has helped to manufacture many jobs in the service sector.With a grant of 20 million dollars from the US and aid from China, a space academy is to be set up for put in of satellites of other nations andas well as for domestic purpose. On twenty-sixth September 2012, Sri Lanka launched its 1st satellite with the intention of more launches in access years.Even though the national sport in Sri Lanka is volleyball, Cricket has vie a major role 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 supported to promote economy & employment of Sri Lanka towards a pause 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 separated from Malaysia two years later. It has a land area of 710km2. expert like Sr i Lanka it has three ethnic groups, Chinese, Malays and Indians, totalling to population of 5 million. Before independence the GDP per capita of Singapore was US$ 511, this was due to the Suez Canal initiative and being the British Naval Base in the region. After the independence a modern 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 most competitive one. Also Singapore is ranked as one of the least corrupted countries in the world.The GDP per capita is USD 33,529.83 in 2011 and GDP is USD 239.7 billion in 2011 according to the attached graph. Singapore claims to be the worlds quartern leading financial centre 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, Singap ore has the third highest per capita income in the world (IMF) where Sri Lanka is placed at the rank of 144 (according to web sources).Transport service in Singapore is mainly by public bus or train. Very limited nation have the opportunity to buy vehicles due to the high taxes imposed to reduce traffic in the cities and therefore, cut the waiting time and cost of fuel. Singapore has made extensive plans to improve peak hour capacity 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. Railway 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. importation 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 gambling with the cerebration of attracting more tourist. Singapore is promoting a medical tourism hub with the expectation to deal to serve one million foreign patients annually since foreigners tend to prove 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 increasing ever since.The infrastructure, science and technology plays a main role in Singapore. net income 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 littler 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 Mo nthly View GOVERNMENT sting 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 AVERAGE 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 egregious NATIONAL PRODUCT 341640.90 331346.70 92568.84 SGD Million Jun/2012 Yearly View GDP 239.70 222.70 51.84 USD Billion 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 Vie w 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 PERSONS 87.10 87.40 57.91 Thousand Persons Jun/2012 Yearly View payoff 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 Inde x 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 individual(a) SECTOR 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 AVE RAGE 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 RATING 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 Quart erly 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 CONFIDENCE -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 gross revenue MOM 2.10 -0.22 0.63 Percent Dec/2012 Monthly View RETAIL gross revenue YOY -1.50 -1.20 3.18 Percent Dec/2012 Monthly View BANK LENDING 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 du e to globalization* Free trade can speed up production and labour cost including higher wages for skills, new technologies, expertise services etc. To level up with the globalized economy, more skills, knowledge, training 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 pixilated companies can profit and bring failure to smaller companies due to the unfitness to compete globally. In one way it creates multinational firm to expand more making them part of the globalization economy while opening room for the smaller companies to withdraw from the international trade.* The urgency to compete whitethorn lead to over use of natural resources to meet higher demands in the production p rocess.* Due to globalization, Internet services have been extended in many ways to access many sites where youth in Sri Lanka instantly spend most of their time in internet cafes with sighting smuggled/improper web sites causing brain damage if engaged in a longer period. Awareness programs should be held and laws to be imposed to law of closure such sites as illegal may lead Sri Lanka to a putrefaction free country to at least some extent. Rather the use of internet can contribute to enhance educational knowledge in a major way due to the easy 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 direct examination results. Some drop out during university education trying to dominate jobs. According to the Labour Force Survey (2ndquarter 2012) youth unemployment has a remarkable raiseCompared to Singapore, Sri Lanka, having the resources and the intellectua l human capital is enriched with new innovations, researches and business investments to promote employment and economy through globalization and gradually receive better results in the coming years.