Agricultural Household Model Essay -- Globalization, Open Economy

Nowadays, the world is being globalized. Globalized or open frugality is the one which has liberalized the trade and swell movement (Thorbecke et al 2003, p.154). Thorbecke et al as well as noted that openness through trade, foreign direct investment and pecuniary market increase the flow of good and capital across the internal borders (ibid. p.156). Consequently, most countries participate in international trade as their economies argon opened to compete with other(a)s. The most affected by this competition are the emerging industries. Emergent or babe industry is a specter of industries in their earliest stage of development/growth (Tribe 2000, p.31). Emergent industries bed be divided into two groups absolute emergent is a new-sprung(prenominal) industry which does not exist elsewhere, usually is technology intensive and are predominant in highly-developed countries (Castel-Branco 2002, p.46) and relative emergent industries are practically new in the countries of or igin, usually developing countries, but in other countries, such as industrialized world, they are already mature or develop (Castel-Branco 2002, p.48). The termsDefinitions of developing economy, under developed or less developed are used to describe countries that are economically backward and that necessitate enhancement of living condition (Sen 1988 p.11).The essay go forth analyze the challenges of emergent firms in a context of globalized and underdeveloped world. Because of the narrow scope, the essay will only be discussing three challenges, namely, technology capability, industries reputation and availability capital for investment. Firstly, it will discuss the problems related to technology capability. Secondly, it will examine the fictional character of reputation for emergent industries in national and internati... ...ty of the firms to provide stronger credibility and the efficiency of the countries to create a good environment to develop these industries throughou t meliorate infrastructures. The solution of these problems is the intervention of the State by selecting some potential infant industries to protect. This intervention is necessary because the market per se can notcannot manage to choose with these issues. This must be done by taking into account stolon of all the domestic market so that it may well gain openness to foreign trade (UNIDO 1997, p.27). Therefore, the Government must formulate policies in order to protect the new industries to guide them to the right direction for competing in international market otherwise the industries alone can not fall upon this stage of mature. This means the infant industries in developing countries can break off before achieve its mature.