In What Way Has Globalization Impacted on the South African State?

In What Way Has Globalization Impacted on the South African State?

. In what way has globalisation impacted on the South African State?

Mass produced products from China are imported to South Africa and this erodes the local South African market, as Chinese goods are cheaper. As a result the South African State initiated an economic policy through the Proudly South African campaign. The aim of the campaign is to promote South African products, companies and service and therefore promote economic growth in the country.

Before Southern Africa became an independent country, South Africa was a colony of the British Empire. World countries have become more integrated through globalisation and more occupied by the development/improvement of their own countries. As a result the South African State has been awarded its sovereignty and is currently an independent and autonomous state.

In relation to trade agreements South Africa must adhere to, have been dictated by the global market forces and the powerful dominating institutions of the global economy. Such institutions include the Trans-national Corporations (TNCs), International Monetary Fund (IMF), World Bank and the World Trade Organisation (WTO). Trade agreements involve tariff reductions, privatisation, and the reduction of exchange controls. The government within the South African State therefore has less control over the South African trade market because of these world trade agreements and therefore has less control over the flow of capital within the South African economy. The power of the government over trade is decreasing. This decline is attributed also to TNCs that through their international company structures are active in national economic