Globalization has affected the world tremendously today, it is accelerating and changing as new ideas are introduced by people every second has the clock strikes. Economically, globalization has deepens and intensifies the scope of it, defenseless small economies had been affected, is affected and will be affected, whilst at the same time benefiting from the enormous benefits it brings. Economic globalization means economic transactions across the border or offshore in the form of trade, investment, migration and labour movement.
The impacts of globalization in the small pacific islands are inevitable. There are three points that will be specifically discussed to identify both the positive and negative impacts on Papua New Guinea under economic perspective. They are Privatization, Trade and Labour migration.
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More human capital can be transferred across the borders ( knowledge transfer) to boost the economy, for instance in the LNG project 6000 human capital were employed to bolster its development, the quality intelligent human capital are recruited to add value to the economy of offshore counties and PNG. Furthermore, it contributes to the national economy through remittance. In contrast to that transfer of human capital from either foreign or state can be a threat to the human health in terms of diseases brought offshore such as HIV and Aids which can decrease human capital. Human smuggling and illegal migration has occurred because PNG have a weak security system in the boarders.
In conclusion all these three points; Privatization, trade and labour migration are part of the economic globalization which either brings both good and bad impacts to the Small economic pacific islands, in this case specifically Papua New Guinea. In one way or another it boosts and or shrinks the economy of Papua New Guinea, it depends on how well PNG is capable of facing it and competing with the foreign