International Monetary Fund Globalization refers to the increasing global relationships of culture, people and economic activities and even the technological relations which aids the globalization as well.

Aspects of globalization

Trade; Globalization of trade entails that human beings have greater access to a variety of goods and services across the international borders .for example, cars from Germany, software from India, clothing from China, and coffee from Colombia etc. Therefore a country which exports more primary commodities such as food and raw materials gain a lot compared to ones which export less.

Movement of people; Globalization has enabled people to move from one country to another to look for better paying jobs and better employment opportunities, making most countries borderless and movement non-restrictive as before. Due to this movement, people are able to gain different skills and knowledge from the foreign country and implement it in their home countries hence increase in productivity and quality products.

Spread of knowledge and technology; Globalization has resulted to the spread of knowledge across the world since the world has become one global village where people can move from one country to...

This is of great importance because FDI in services affects the host country's competitiveness by raising the productivity of capital and enabling the host country to attract new capital on favorable terms. It also creates services that can be used as strategic inputs in the traditional export sector to expand the volume of trade and to upgrade production through product and process innovation.
Asian newly industrialized economies have been performing well since 1970 as shown in the chart. Per Capita incomes have been moving quickly towards the higher levels in the industrial companies.

Western hemisphere has been performing poorly since 1971. The per Capita GDP was high in 1971 but remained constant up to 1981 when it started dropping as shown on the chart.

Middle East; The per Capita income in the Middle East has been dropping drastically since 1971 up to 1999

Africa; The per Capita GDP in Africa…