Globalization can be defined as the system of interaction among the countries of the world in order to develop the world economy. It also refers to the integration of the economy and societies around the world (http://hotbabefatchicks.hubpages.com/hub/Definition-of-Globalization). Globalization can be both beneficial and detrimental to developing countries. Some of its advantages are increased external financing, improved technology and political conformity. The downsides of globalization include the death of small and medium-sized businesses, loss of cultural identity, and the effect of foreign policies on national economic development. Let's take a closer look at these consequences of globalization. Increased external financing: Globalization means that companies from other countries will come and invest in people and resources to produce their products. This type of investment means that they will bring in money from their country to buy or rent offices, purchase raw materials, hire staff, advertise, etc. (Stallings, 2000). These foreign companies generate a significant influx of external financing for developing economies. External financing helps developing countries improve areas where the government may not be doing well. For example, in Lagos, Nigeria, global companies like MTN, Chevron and Coke finance local transportation. They buy buses for the state government, pay for their maintenance and subsidize transportation fares. This has helped improve commuting in Lagos from the use of dilapidated buses to comfortable and functional vehicles that Nigerians can use. Improved technology: Allowing foreign companies to operate in developing countries provides these companies with the opportunity to introduce advanced technologies. .... middle of paper ......: http://hotbabefatchicks.hubpages.com/hub/Definition-of-Globalization. Accessed: December 1, 2011. Stallings, B. (2000), pp. 7-8, “Globalization and liberalization: perspectives from developing countries, United Nations Economic Commission for Latin America and the Caribbean.” Available at: http://www.mtholyoke.edu/acad/econ/stallings.pdf. Accessed November 30, 2011. Mostert, J. (2003), pp. 6-7, “The impact of globalization on developing countries: ESSA Conference”. Available at: http://www.essa.org.za/download/2003Conference/MostertJ_The%20Impact%20Of%20Globalisation%20On%20Developing%20Countries.pdf. . Accessed 30 November 2011. Balakrishnan, C. (2004), “Impact of globalization on developing countries and India: the Moffatt 2004 process in economics”. Available at: http://nomics.about.com/od/globalizationtrade/l/aaglobalization.htm. Accessed: December 2, 2011.