however as competition increases the small can not survive. Thirdly, expansion of the informal economy in many countries increased dramatically in recent years.
             As shown in the graph above the inequality in the world is becoming more. Increase in GDP per capita in many developing countries has been far less than the increase in the developed ones. Also per capita income in Sub-Saharan Africa has declined between 1975-2000. The in equal distribution may trigger the global tenseness of the nations and world may face a third-world war in a near future, the recent Iraq war is only a small indication for the trend, the expansionist strategies of developed countries lead to a chaos in middle-east so recently.
             The number of extremely poor people in the world fell slightly only during the 1990s. The number of people living on less than $1 per day in South Asia and Sub-Saharan Africa is much higher than other areas of the world.
             Repayments of external debt as a percentage of export of goods and services by developing countries have increased. Globalization causes developing countries to reduce their spending because of the debt to developed countries for loans made several years ago. Governments limit the amount of money they spend on health, education, research and development. Cutting government services creates poverty. While companies may earn money, the money is not equally distributed among all citizens. Instead, many poor citizens are forced to pay very high prices for services they need for their survival. In many African countries, education is becoming a luxury very few can afford and health care is almost completely inaccessible.
             The share world merchandise export of developing countries has been increasing, but they still have a far smaller proportion than developed ones. This graph shows developed countries have big portion in world export.
             Another effect of globalization on economy is the widespread of Foreign Direct I...