PREPARED BY : SHAKILA BINTI KHAMIS
TITLE : THE IMPACT OF TECHNOLOGY TRANSFERS ON THE
LEAST DEVELOPED COUNTRIES
Globalization can be defined in different perspectives but it is still in the same context. One might define globalization as an interaction of economics development and societies covering every region of the world. Globalization can be said as a bridge that connects technology, economic, political and cultural exchanges via several factors such as the movement of transportation, infrastructure and communication. Others can say that globalization is the increasing of linkages between the world in terms of cultures as well as disease and crimes. ...view middle of the document...
Some countries and regions have successfully integrated with the world economy more intense with growing enormity of inward and outward foreign direct investment flows and some other types of cross-border transactions while some other countries have been remain left behind. Today, so many new source of technology have come up with various types of product.
The geography of foreign direct investment and technology transfers that are originating in different source countries has changed from year to year. These changes have been caused greatly by alteration and changing of policies by home and host countries, the pattern of development and the growth prospects but in small measure by a changing of external environment (Kumar, 2003).
This study is aimed to review the impact of technology transfers in least developed countries.
2.0 LITERATURE REVIEW
According to United Nation (UN), a least developed country (LDC) is a country that manifests the lowest indicators of socioeconomic development, with the lowest Human Development Index (HDI) ratings of all countries in the world.
Forty-eight countries are currently designated by the UN as LDCs including Afghanistan, Bangladesh, Ethiopia, Myanmar, Nepal, Timor-Leste, Senegal and Uganda. There are criteria used to review the designated countries such as low income characteristics, human assets weakness characteristics and economic vulnerability characteristics (UNCTAD, 2011).
Presented in UNCTAD (2011), a low income characteristic is classified based on a three-year average estimate of the gross national income (GNI) per capita. A human assets weakness characteristic involved a composite index based on indicators regarding the nutrition, health, school enrolment and literacy. The last one is economic vulnerability criterion describing economic vulnerability index based on indicators of natural shocks, trade shocks, exposure to shocks, economic smallness and economic remoteness.
Over last thirty years, developments in international trade were the globalization of production of differentiated manufactured goods. The goods are emerged as a result of modern technology such as the invention of computer-related technology (Edwin, 2009). Policy changes and technological advancement especially in telecommunication has lead to globalization on least developed countries.
Technology transfer may be referred to the transfer of information, human skills, technical know-how and management techniques. The share of technology transfer is determined by the willingness of the industrial country to transfer technology to a developing country and the latter’s capacity to acquire and adapt imported technology (Anon, 2013).
Technological transfer has revolutionized world trade and dynamism of the global economy. The bargaining strength of LDCs is determined by the factors such as demand elasticity for the product reflects the significance of technology or producer to the...