Influence often work as day laborers, harvesting bananas or

Influence

Of
Globalization

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Assignment (1)

ADMN 296 International Business

 

 

 

 

Name:                                                                   Simranjit Kaur

Student
No.:                                                                    (194978)

Section:                                                                              
    C02

INDEX

 

CONTENTS:                                                                    

1.    Introduction…………………………………………………

·       Geography……………………………………………….

·       Culture……………………………………………………

·       Government
System………………………………………

·       Economy…………………………………………………

·       Business
partners…………………………………………

·       Growth……………………………………………………

2. Positive and Negative Effects…………………………………

3. Business opportunity…………………………………………..

4. References……………………………………………………

 

 

 

 

 

 

 

Introduction:

Ecuador is one of the
smallest country in South America. Ecuador owns more variety than most countries in the world.
Ecuador has islands, rainforests, deserts, snowcapped mountains, and valleys within
its small territory. Ecuador is also home to several protected environmental
areas.

Geography: Ecuador is bounded on the
north by Colombia, on the east and south by Peru, and on the west by Pacific
Ocean and its area is 283,560 km². Ecuador has four topographical regions: the coastal lowland,
the Andes highland, the eastern lowland and the Galápagos. Population of Ecuador is 16,080,778. Approximately 63.7 percent of the
population lives in urban areas and near half of the population lived on the
coastal plains, and almost as many lived on the plateaus and in the valleys of
the Andes. About 600,000 people lived in the tropical rainforest to the east of
the mountains. Almost 27,000 Ecuadorians live in the Galapagos Island. The climate of Ecuador
depends largely on elevation. The lowlands are hot and humid, with average
temperatures of 23 to 26 degrees Celsius and Andes are cool, with temperatures
ranging between 13 and 18 degrees Celsius. The Galápagos Islands experience the greatest climatic
variation, with temperatures ranging from 22 to 32 degrees Celsius.

Culture: Pre-Columbian Ecuador
was home to many tribes and cultures, including the Valdivia, Machalilla,
Chorerra, Narrio, Tiaone, Jama-Coaque, La tolita, Bahia, and Guangala. Many types of objects made
by these peoples, including female figurines and ceramics, tools of stone and
quartz, and obsidian spears, survive today. People often work as day
laborers, harvesting bananas or cacao. Mestizos in the Andes often own their
land. Other work for hire as laborers, servants and shopkeepers. As the soil
wear out, they migrate. The black population lives mostly on the northern coastal
plain, fishing for a livelihood.                                                                 
                                                                         

Government System: Ecuador is a republic with universal suffrage at age
eighteen. Voting is compulsory for literate citizens between the ages of
eighteen and sixty-five. For others, voting is optional. The president is chief
of state and head of government and is directly elected by popular vote along
with the vice president.

Legal
system under civil law based on the Chilean civil code with modifications;
traditional law in indigenous communities.

Economy: More than half of the export income is coming from oil
accounts and it makes the economy vulnerable to fluctuations in the world
market. Ecuador uses American currency has
made the country a haven for money laundering by drug cartels. It uses American currency
has made the country a haven for money laundering by drug cartels.

The
unemployment rate in Ecuador is roughly 6.1 percent. In 2016, the per-capita
gross domestic product was estimated at US$11,000.

Business partner: The United States is Ecuador’s largest trading partner.
Ecuador’s export revenues amount to US$16.77 billion. Major exports include
petroleum and petroleum products, food, coffee, cut flowers, and wood.

Growth: 27.8% Ecuador’s workforce was employed in the
agricultural sector. The main crops are bananas, cacao, coffee, sugarcane,
plantains, rice, cassava, and potatoes. Moreover, Tourism, particularly ecotourism,
is growing in Ecuador. More than 1.56 million international tourists visited
the country in 2015. Travel and tourism contributed, in total, 5.1 percent of
GDP in 2016.

 

 

(Bailey, E. (2013). Ecuador. Our World,)

 

 

The positive and
negative effects of globalization on this country:

Positive effects: Globalization allows the countries to do
investment in international markets. There are so many countries in mid 80’s
which are in debt and their local markets went down but then many nations
starts investment in international markets starts import and export to other
countries for example: in 2008 Iceland banks went bankrupt due to their bad
policies but the government of Iceland invites investors to invest in their market
and now they have good GDP rate and the unemployment rate which was near about
8%,but after globalization that comes under 3%.the same thing happened with Ecuador
from 1980 to early 2000 the fish market of this country goes up and Ecuador’s
tuna fish has good demand in international market. Ecuador becomes the ninth
largest economy of Latin America it all because of rise in exports.

 

Negative
effects: To improve the growth rate and expand
the local market on international level nations formed globalization. There are
so many benefits of globalization as we discussed but Ecuador faced some
negative effects also. For example, in 1980, 41% people were under the poverty
line but after the one decade of globalization the figure increased to 46%. This
all happened because of the bad policies of government. Some local market
economies vanished because they could not competed with multinational
companies. It also increase the polarization which means majority part of
national income goes into the hands of few people and rest of people facing the
problems like low income and unemployment etc.

 

 

Business I would like
to invest in Ecuador :

As I mentioned earlier in
introduction that, more than 1.56 million
international tourists visited the country in 2015. Travel and tourism
contributed, in total, 5.1 percent of GDP in 2016. So, I would like to
invest in a hotel. According to me this is the best business in Ecuador and I
could make more money from this business tourism is increasing day by day in Ecuador.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References:

1.    
Bailey, E. (2013).
Ecuador. Our World,

 

http://eds.a.ebscohost.com.ezproxy.library.selkirk.ca/eds/detail/[email protected]1=JnNpdGU9ZWRzLWxpdmU=#AN=88391071=ers

2.     
Laurell,
Cristina Asa. “Structural Adjustment and the Globalization of Social Policy in
Latin America.” 2000: International Sociology. Vol. 15, No. 2 p 309

http://faustosicha.blogspot.ca/2008/12/negative-effects-of-globalization-in.html?m=1

3.     
Keeling,
David J. “Latin America Development and the Globalization Imperative.” New
Directions, Family Crisis 2004: Journal of Latin America Geography. p 3

http://faustosicha.blogspot.ca/2008/12/negative-effects-of-globalization-in.html?m=1