Globalization mainly concentrates on trade and commerce between nations and creates a global market, in which goods and services easily flow from one nation to another, without any barrier. All the countries would equally share the production resources and allow the free movement of resources between them, in the global community. The African countries have always been exporting raw materials like minerals and agricultural produce, which are utilized in the production sector of the Western markets.They do not have any significant production facilities; hence they have to borrow, in order to import manufactured goods. The Western markets employ trade tariffs and other such economic stratagems to drastically reduce the price of these imports from these African nations, while increasing the cost of the exports to these countries. The result is that the African nations suffer from a balance of payments problem (Mutethia, 2000). Globalization has both advantages and disadvantages. Some of its advantages are enhanced productivity, low interest rates and a low rate of global inflation.
