ABSTRACT
Globalization has become one of the most politically charged issues in the world. To some it is an extension of the imperialist expansion of old, responsible for the increasing poverty, worsening income distribution and environmental degradation of developing countries. To others it is a panacea for economic development. What is needed for any poor country to attain a high growth of per capita income and join the convergence club is putting in place an institutional framework and adopting policies that promote free international trade and movement of capital. The world economy has experienced remarkable integration since 1950. The last two decades of the twentieth century have witnessed an acceleration of the process of globalization. The driving forces of globalization are technology, tastes and national and international policies (Mussa, 2001). The revolution in telecommunication and information technology has facilitated the globalization of the world economy in which integrated cross-border organization of economic activity, including production, trade, investment, financial flows, information flows and technology transfer is increasing and expanding. The tastes of consumers do not discriminate between goods and services of similar quality that are produced in foreign lands but are cheaper than local products. Government policies have facilitated the removal of barriers to international trade and foreign direct investment.
