ECONOMIC IMPACT OF GLOBALIZATION IN INDONESIA

ECONOMIC IMPACT OF GLOBALIZATION IN INDONESIA

Globalization is a natural process that is neutral. Economic globalization brings both positive and negative impacts.
The positive impact of globalization, among others:
1. The opening of the market for export products, with a record of Indonesian export products are able to compete in international markets. This opens up opportunities for entrepreneurs in Indonesia to deliver quality products, creative, and required by the world market.
2. The easier access to investment capital from abroad. If the investment is direct, for example with the establishment of a factory in Indonesia will create jobs. This could overcome the scarcity of capital in Indonesia.
3. The more easily obtain goods needed by the people and can not be produced in Indonesia.
4. The increasing tourism activities, so that job opportunities in the field of tourism as well as a promotional event for Indonesian products.

The negative impact of globalization of economic activities in Indonesia mainly from the unpreparedness of the Indonesian economy in an increasingly free competition.
Negative impacts as follows.
1. Possible loss of export market in Indonesia because of competition from other countries production cheaper and quality. For example, we lose much of agricultural products from Thailand.
2. The flood of imported products in the Indonesian market to shut down businesses in Indonesia. For example, the threat of Chinese products cheaper toys for the toy industry in the country.
3. The threat of the world's financial sector are increasingly free and become a means of speculation. Investments that have been planted in Indonesia could easily be withdrawn or revoked if deemed no longer profitable. This can affect the stability of the economy.
4. The threat of the entry of foreign workers (expats) in Indonesia are more professional HR management. Employment in Indonesia which has a narrow become increasingly narrow.
In conclusion, globalization can have an impact a positive or negative depending on the readiness we deal with it.
1.Globalisasi economics trade
The positive impact of globalization economics of trade sector:
ü  Liberalization of trade in goods, services, and other komodit provide an opportunity for Indonesia to compete mereput foreign trade markets, especially agricultural products, marine products, textiles, and minerals.
ü  In the field of our services attract foreign tourists have the opportunity to enjoy the natural beauty and traditional culture are diverse.
The negative impact of globalization economics of trade sector:
·        The inflow of foreign trade caused the national trade deficit.
·        Smuggling of goods to Indonesia.
·        The influx of tourists to Indonesia release the noble values ​​of the nation.

2.Globalisasi economics production sector
The positive impact of globalization economics of production sectors:
Ø  The tendency of foreign companies to move its production operations to developing countries with consideration of the geographical advantage (abundance of raw materials, large areas, and labor is still cheap) although still very limited and vulnerable to changes in socio-political conditions in the country or global changes, Indonesia has the opportunity to be elected as a new home for the company.
The negative impact of globalization economics of production sectors:
*      Domestic companies are more interested in partnering with companies from outside. As a result, the condition of the domestic industry to grow.
*      Environmental damage and pollution of industrial waste.
A foreign companies move their operations out of the country resulted in layoffs of domestic labor.

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