Chan and Scarritt (2001) noted that the large capital inflows were caused by the appreciation of exchange rates and inflationary pressures that impact on the country's current account. This means that globalisation in improving the countries' economy could actually stop the progress of the economy unless the host countries' balance of payment focuses on the foreign plant where the export is more than import.
The adjustment in trade barriers has lead to the promotion of specialisation to developing countries because they are able to concentrate on the production of commodities which can be produced at the least cost (Aurifeille, 2006). Developing countries fully use the advantage of globalisation to enhance their income through trading goods which they can produce most effectively.
Such development is giving developing countries an opportunity to obtain goods that prove expensive to produce in their own countries. Corsi (2009) saying that, competition is always an effective way of enhancing innovation to produce better quality goods. Thus, globalisation had enhanced competition as the flow of goods and services between countries has becomes easier.
Globalisation impacts on economic and environment 全球化对经济和环境的影响
Negative Impact 负面影响
Economic and environmental problems show few signs of improvement for a large share of the world's people but when comes to external debt levels, weak export and real income growth, it often enter a mutually destructive relationship with environmental and resource degradation which linked to the agriculture and urban activity. The important connection between economic and environmental problems can be clearly seen in the widespread social and economic impacts towards soil erosion, deforestation, urban congestion, unmanaged chemical such as heavy metals, air pollutants, solid and liquid industrial and residential waste (Long, 1990).
According to Huber (1982) and Simonis (1989), ecological modernisation was one of the primary modes of sustainable development which comprised both a theory and a policy or political programme based on the view that comprehensive political and economic change could be implemented to achieve a less material and energy-intensive economy through the application of integrated and preventive resource and pollution-reduction strategies.
This technologically-intensive mode of production would not be a viable option for lower income nations because the intensive technological basis of ecological modernization suggests that its effective operation and flow-on benefits are probably beyond the reach of poorer nations. Indeed, rapid global technological progress has often resulted in the Intensification of uneven development rather than enhanced opportunities for the poor (Freeman, 1987). The post-materialist solution for technologically advanced economies would(责任编辑：BUG)