Tuesday, October 8, 2019

Globalization Consequancess on Jordan Case Study

Globalization Consequancess on Jordan - Case Study Example By 1994, participants to the Uruguay Round of the treaty have totalled 123 countries. By 1995, the World Trade Organization (WTO) was incepted, becoming the successor of the GATT. Currently with 153 countries as members of the WTO, the organisation embodies the implementations of the liberalisation of trade among nations, encouraging economies of its member nations to open up to global markets. Smaller and emerging economies of the 3rd world and developing countries have very often expressed dissent over issues on matters where the sheer size and volume of trade from the direction of the more developed economies have disadvantaged the former than worked fairly in everyone's favour. Jordan signed up with the WTO in April, 2000. "Small scale industries sector was a major contributor to the industrial economy of Jordan. It accounts for 50% of the total manufacturing sector, has 20% share in exports and provides 80% of employment in industrial sectors"(Lozi, p.98) On account of this economic reality in Jordan, the small scale industry (SSI) sector is a significant indicator of the effects of globalization of trade. Since the early 1990's, the SSI sector of Jordan has already found itself in the competitive situations induced by international trade's open market environments. In a study by Basem Mohammed Lozi of the Amman College for Administrative and Financial Sciences, Al Balga Applied University in Jordan, the effects of such pressures from international competition has actually favoured the SSI sector. He writes, "Liberalization have forced all industries to constantly upgrade their quality while cutting down the costs if they want to remain and retain their place and share in the global market. Small scale industries world over including Jordan were facing the on slight of the adverse effects of globalization in the stringent requirements of quality costs, tight delivery schedules and productivity."(Lozi, p.98) Apparently, like most, if not all small scale industry sectors the world over, globalisation has become challenge to shape up in the face of international competition and demand of stricter parameters of business and trade. Unlike many in the developing economies that merely suffered on account of their inability to cope, Jordan, however, rose to the challenge. Lozi concludes, "This has resulted in more growth in its contribution to national income and exports in the 1990s."(Lozi, p 102) Nevertheless, Lozi recommends strategic directions for Jordan: "Concerted efforts are needed both from the government and more importantly, from small scale industries themselves to imbibe technological dynamism into Jordanian small scale industries. Technological up gradation and in-house technological innovations and promotion of inter-firm linkages need to be encouraged consciously and consistently." (Lozi, p 102) Globalisation and the Jordanian Society Globalisation is not only the organised and structured pressures to open local trade and economic circumstances to international markets and

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