Globalization And Local Companies In Morocco

Nowadays, a growing interaction prevails between monetary systems in the world. This motion increased international trade, investment moves, and various capitals. This sensation is globalization, an economic, politics, and socio-cultural activity that has an increasing impact how businesses operate either locally or internationally. This issue animates the debates in Morocco as part of underdeveloped countries.

Globalization helps it be problematic for Morocco to improve and stretch its market. Being part of underdeveloped countries, Morocco slows to establish organizational constructions which represent the path to economical performance. The drawbacks of globalization affect various the different parts of the Moroccan economy related to local industries, employment, and GDP. Local business get weakened from this sensation while international businesses make the most from it. Globalization influences negatively employment causing changes in working pay out and labour skills. This motion has also an unfavorable effect on lowering the Moroccan GDP.

Globalization and local industries

International industries, which are generally very powerful companies in the global range, and own technologies that can achieve a high level of productivity, surpass broadly the local industries, weakened and with low factors of development. This large disparity between these two types of sectors creates a large space that globalization is exacerbating. Indeed, globalization gets the role of taking away barriers, which at first were representing an obstacle to the free movement and exchange of goods, services, capital and folks. This difficulty has been surpassed through the phenomenon of globalization. Globalization allows international market sectors to reap the benefits of various advantages that allow evolving and building up their economies (Africa and the New Globalization 20). Indeed, international organizations have powerful financial structure, thanks to highly advanced technology hired and the competence acquired over the years. These factors enable them to benefit from exceptional competitive advantages over local industries. These later, make the local market sectors in a sensitive position. In fact, local firms don't have the adequate technology and skilled labour. To illustrate more, Moroccan industries lack factors of productions which could enable them to reach the amount of development that international businesses have. All these factors make from local businesses losers in this warfare.

As we have mentioned in the last paragraph, the problem of the underdeveloped economies is their poor infrastructure, as well as their vulnerable level of production. These difficulties incapable them from achieving the basic level that could make from them competitive organizations. All that to say, globalization is making two unequal parts be competitive. The first category is the main one of local establishments being part of underdeveloped countries, and the second one concerns international organizations owned by developed countries. Local sectors which cannot match the competition, at least to meet up with the bare minimum requirements, find their products worthless compared to competitors. Because their product are valueless, these are non-marketed, which impact adversely their commercial activity. As a result of that, globalization weakens local organizations. Realizing that developed countries get stronger, and this underdeveloped countries get weaker anticipated to globalization, we expect that rich countries get richer and poor countries get poorer. To illustrate more, this negative result proves the Stiglitz assertion, "Today, few-apart from those with vested interests who benefit from keeping out the goods produced by the poor countries defend the hypocrisy of pretending to help producing countries by forcing those to start their markets to the goods of the advanced industrial countries while keeping their own market segments protected, policies that make the abundant richer and the indegent more impoverished-and ever more angry". (Stiglitz 2002).

The competitiveness between international and local products
Because the quality of international products is higher than the countrywide ones, customers hold the incentive to consume foreign products

International firms, as mentioned in the previous paragraphs, have very developed tools that produce their products reach an important quality level. On the other hand, local industries do not possess the needed resources that could make their products have similar quality. Because the quality of local businesses' products is lower than the one of the international firms, the customers have an all natural incentive to take the goods produced by the global business. Given that the products of the local industries are not sold, their trading activity falls. And this is actually the damage induced by globalization on the market of underdeveloped countries. Moreover, we can also discuss the effects of price on the choices made by customers. International businesses have advanced resources that help them to reduce their cost of creation, as a result, the amount of profit rises. In a nutshell, the foreign investment funds take advantage from this condition. These **demonstrate that industries in Morocco, are not only experiencing the lack of resources nevertheless they are also pulled down by the companies belonging to the developed countries. To become more explicit, because Morocco does not have the required requirements of development that will allow its products to hold on with international competition, it cannot increase its commercial activity to the global market. In brief, globalization worsens the economical situation of the Moroccan establishments.

II-The impact of globalization on employment:

Globalization has negative effects on the sector of career in Morocco. (Are Employees in the Growing World Winners or Losers in today's Age of Globalization? 2005) In fact, when this sensation came into Morocco, it made hazardous changes in its labour market. These harmful effects matter the labour skills. First, globalization evolved the working settlement deal of Moroccan labour. To clarify more, short-term and momentary contracts become more dominant in Morocco, knowing that it was inexistent before this motion. The damages of these changes cause different sorts of unemployment. The cyclical related to the reduction in demand labour, the frictional associated to the period of searching activity for another job, and the structural unemployment regarding the discordance between the abilities of staff and the labour market. (Maya Pillai)

Globalization leaves Moroccan staff without job. (Globalization, work and income circulation in growing countries 2007) The skills that these personnel have don't match with the demand of the international firms located in Morocco. The Moroccan workers who are being used to work in companies with a minimal or medium degree of technology, (few and aged computers, machines that contain a vintage technology) find themselves struggling to work in firms using modern techniques and contemporary machines.

III-Globalization results on GDP:

The international businesses are able to produce goods and services with high quality and sell them with low prices. This allures the Moroccan consumers, and pushes those to import foreign products. The decision made by the Moroccan consumers is harmful to the local economy. In fact, somewhat that promoting the countrywide products, globalization stimulates Morocco to increase its imports and because of this of this the GDP diminishes. Globalization is the accountable for the upsurge in imports which diminishes the Moroccan GDP.

In the economical world is present various organizations and industries that have highly respected products in the global market. The level of their economic composition enables their products to be demanded by a big amount of consumers from different parts of the globe. Morocco, one of the underdeveloped countries doesn't have this privilege. Meaning its products are not valued in the international market. As a result, Moroccan exports lower, resulting in the decrease in the GDP.

According to 2010 reports of Moroccan imports and exports (economywatch), the imports were $ 31. 83 billion whereas the exports $15. 61 billion. The ratio of the imports is practically the increase of the exports. This simple fact shows the negative effect of globalization on the Moroccan current economic climate.


Moroccan economy as a part of underdeveloped economies is influenced adversely by globalization. Global sectors that develop their economies and only the less developed ones, profit and take advantage from this happening. In addition, it includes caused bad outcomes in different areas. It includes weakened Moroccan business, because of their inability to be competitive foreign firms, avoided them from producing their economic composition and expands their site of activity. Globalization in Morocco in addition has affected the field of occupation by creating changes that concern working pay out and labor skills. Another important sphere that was harmed by globalization is the Moroccan GDP, which has decreased resulting from an increase in imports and a decrease in exports. With this fierce race of globalization, "We've moved from a world where in fact the big eat the tiny to a world where the fast eat the slow". (Klaus Schwab).

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