Globalization in Morocco

Submitted: Assaad Ferrougui

Name of Course: Communication in Global Business (Writing)

Submission Date: July 15, 2018

Table of Contents

I. Introduction.............................................................................................................3
1. Definition of Globalisation...................................................................................3
II. Globalisation in Morrocco.......................................................................................4
III. Interview..............................................................................................................8
IV. Conclusion............................................................................................................8
References...................................................................................................................10
Have you ever wondered how it feels to live without a phone? Or without a computer
or internet? How hard it will be to contact our families and friends. Its seems that we
got uses to our Gadgets that we forget that they didn’t exist 40 years ago. The
technological advancement accompanied with globalization unleashed forces and
opportunities, ushering to the Fourth Industrial Revolution. Making the world global
community as one village. So, what is globalization?

In this paper we will start by giving a general definition to globalization. Second, we

will discuss the effect of globalization on different country’s classes

As described in the Dictionary:

Globalization is the integration of national economies through

trade, investment , capital  flow, labor migration, and technology.
How It Works

Globalization results from the removal of barriers between national

economies to encourage the flow of goods, services,  capital , and labor. 
While the lowering or removal of tariffs and quotas (see General Agreement
on Trade and Tariffs, or GATT) that restrict free and open trade among
nations has helped globalize the world economy , transportation and
communication technologies have had the strongest impact on accelerating
the pace of globalization.
Thomas L. Friedman describes the "flattening" of the world economy through
globalized trade, outsourcing, supply-chaining and political liberalization.  
The use of technologies allows businesses, such as large multi-national
corporations, to maintain customers, suppliers and even competitors on a
world-wide basis .  The breakdown of businesses into components along its
value-chain creates opportunities for multiple  businesses located at various
spots on the globe to participate in the production of a single good or
service.  This global network, even for a single enterprise, is part of
globalization.”
[ CITATION Mer \l 1033 ]
 Since the father of the Modern economy Adam Smith states in book 1923 the
wealth of nations that a free market benefits all nations, by industry specialization
and the free trade. The world has come far since. The technological development
resulted in an interconnected world. Where the increase in the process of
globalization by removing barriers between national economies to increase the flow
of trade and cultural change resulted in a Global Economy.
The process as its self isn’t new of removing barriers between national economies
to increase the flow of trade and cultural change.
Globalization existed since the start of civilization from Babylon to the Roman empire.
Although, Globalization had a mostly positive effect on most countries, by
enabling companies to operate worldwide, and by simplifying the process free
movement of capital and goods, it had also negative effect.
In one hand the Cons give as argument that by entering the global economy, the
whole world is at the mercy of huge economies, as we saw in the 2008 crisis, and
that Globalization has also resulted in the increasing gap between the wealthiest
countries and the LEDCs “Less Economically Developed country”.
In the other Hand the Pros discus that Globalization is enabling countries to develop
in term of commerce and that possibility for labor to move and people to interact.
In my point of view, we cannot discuss the effects of Globalization positive or
negative by including all countries. If we want to discuss how globalization is affecting
the world, we need first to look at it in an individual country perspective. In Addition,
many variables shape the development of a country. More or less Globalization
played a big part. As a part of the Millennial Generation, I think that the latest has a
more positive effect on my country Morocco.

General Effect of globalization in Morocco

We will focus on the impact of globalization on the Moroccan economy during the
last decades since its choice toward economic liberalization.
Morocco didn’t enter the global economy until the 1994.
Since his coronation in 1999, King Mohammed 6 has prioritized poverty reduction
and job creation. To this end, the Moroccan authorities introduced wide-ranging
policy reform in 2005 and 2006 to diversify the economy and raise productivity.
Morocco has signed several Free Trade Agreements, including one with the
united states and one with Turkey, and Europe. Taking a positive approach toward
Globalization and market liberation, the Moroccan economy saw an increase in the
GPD growth since.
Morocco has become a major player in African economic Affairs and is the 4th
largest African economy by GPD. And the world economy forum placed Morocco as
the first competitive economy in Nord Africa.

The statistics in Figure 1 to 4 illustrate how Globalization influenced the country:

 GDP at purchasers prices is the sum of gross value added by all

resident producers in the economy plus any product taxes and minus
any subsidies not included in the value of the products. [CITATION the \l
1033 ]

Fig.1:Morocan Gross Domestic Product

Source: World Bank national Data. And OECD National Accounts Data files
[CITATION the \m dat18 \l 1033 ]

According to The World Bank Data, the Moroccan Gross Domestic Product knew a
stable increase of 52 Billion Dollar (us) from 2000 to 2008. Moroccan economy
wasn’t an exception, as the world crisis of 2008 has reached and affect the national
GDPs and resulted in a slower growth from 2008 to 2012.
Morocco’s economic growth grazed the 4 percent in the last quarter of 2017.
Supported by the healthy rebound in agricultural activities, the national economic
growth reached 3.8 percent in 2017, compared to 12 percent in 2016.
  GNI per capita, Atlas Method (current US$)
(formely GNP) is the gross national income, converted to U.S dollar
divided by midyear population.

Fig.2: Morocco Gross National Income

Source: World Bank national Data. And OECD National Accounts Data files
[CITATION the \l 1033 ]

According to the World bank national Data, the Morocco national income has
increased since 2002 at 1.4 thousand US $ To around 2.8 thousand by 2015 that
increase of 100% in just 13 years. Between 2010 and 2015 was and unstable slow
increase flowed with a decrease of 0.2 thousand $, due to exterior and interior
variables.[CITATION the \l 1033 ]

 Foreign direct investment (FDI) – developing countries

 Fig.3: Morocco Foreign Direct Investment
Source: Tradingeconomics.com[ CITATION tra18 \l 1033 ]

According to the statistics provided by morocan national statistics, Foreign Direct

Investment in Morocco increased by 6425 MAD Million in the fourth quarter of 2017.
Foreign Direct Investment in Morocco averaged 5324.17 MAD Million from 2004 until
2017, reaching an all time high of 11995 MAD Million in the fourth quarter of 2014
and a record low of -11002.20 MAD Million in the first quarter of
2010[ CITATION tra \l 1033 ]

 Morocco Export
Exports in Morocco increased to 23809 MAD Million in May from 23360 MAD Million
in April of 2018. Exports in Morocco averaged 11651.23 MAD Million from 1998 until
2018, reaching an all time high of 24309 MAD Million in March of 2018 and a record
low of 4878.90 MAD Million in April of 1998. [ CITATION tra18 \l 1033 ]

 Morocco Imports

Imports in Morocco increased to 41933 MAD Million in May from 40193 MAD Million
in April of 2018. Imports in Morocco averaged 21800.38 MAD Million from 1998 until
2018, reaching an all time high of 41933 MAD Million in May of 2018 and a record
low of 6424.40 MAD Million in January of 1999. [ CITATION tra18 \l 1033
]

 Poverty headcount ratio at national poverty lines (% of population)

National poverty headcount ratio is the percentage of the population living below the
national poverty lines. National estimates are based on population-weighted
subgroup estimates from household surveys.
 Fig.5:Poverty headcount Ratio at national poverty lines(% of population)

Source: World Bank national Data. And OECD National Accounts Data files
[ CITATION dat18 \l 1033 ]

According to the statistics recorded by the world bank, the poverty headcount
ratio at $1.90 a day (PPP 2011). In the year 2000, 15.3% of the Population was
living under the poverty line. And in 2007 an 8.9% of the population is still living
under the poverty line. (the World Bank, n.d.)

Globalization has an effect not just on the economic aspects of the country but
the cultural aspect of the society. As a result of, enabling cultural interaction and
the speeding the process of spreading ideas with other cultures around the globe.

Interview.

Interview with a 62-year-old man named Abdelhak Fakir, Summer 2018.

The interviewer asked, “How did globalization affect your personal life?”

Abdelhak Fakir said: “in the 20 years Globalization affected all aspect of my life,
you can feel the change that is happening in our society. As a result, people are
living a more comfortable than the preceding generations. Plus, the millennial
generation is gaining a different lifestyle, the cultural change that is happening
you can notice just from watching television, especially in a country that
recognizes that as a Muslim country we are getting more and more
“Americanized”.
What do you mean by just watching television? And getting more Americanized?
I mean today you can watch all kind of series from different countries and
cultures, this affects the mentality indirectly of the citizen. By intruding new ideas,
People need to be mentally strong and enough educated so they will not forget
their identity. Today you can watch in the street young children dressing and
singing and eating American food, or how I can say living the American style, that
what I meant with Americanized. The big companies are selling their product
internationally and influencing our psychology. As a consequence, we entered a
new era of consumerism.
The interviewer responded: “I understand your concern, but the change is going
to happen in one way or another, the human civilization has always evolved and
change to become something else. “

Conclusion.

In my opinion, Globalization had a positive effect on my country Morocco since

the Moroccan government opted for a liberal economy. The country has been in
development since.
In one hand the literacy rate had dropped since the last decade for about 50%,
the country is moving toward a more shining future. The society is involving as
more people are speaking an international language. Many students make the
choice to study abroad and get the possibility to interact with other culture.
On the other hand, globalization is not all shiny as it can have the negative
effect. As example globalization can have a negative impact on the environment,
the loss of biodiversity and the degradation. As Morocco start to notice the water
crisis that is the result of globalization and the global warming. It changed his
policies and opted for more green technology.
 Morocco is still a growing country, globalization is surely having a positive effect
and speeding to the pace of development in the short-term. But surely will have
negative consequence in the long-run.

Works Cited
/tradingeconomics.com. (2018). Retrieved from /tradingeconomics.com:
https://tradingeconomics.com/morocco

data world bank . (2018). Retrieved from the world bank :

https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=MA

investopedia. (n.d.). Retrieved from investopedia.com.

Merriam webster. (n.d.). Retrieved from https://www.merriam-webster.com/dictionary/globalization

the World Bank. (n.d.). Retrieved from https://www.worldbank.org/en/country/morocco/overview:

https://data.worldbank.org/indicator/NY.GNP.PCAP.CD?locations=MA

tradingeconomics.com. (n.d.). Retrieved from tradingeconomics.com: tradingeconomics.com