The two phases of globalisation have shown a significant difference with regard to the spatial and sectoral scattering of foreign direct investment. The distribution in the second phase was much more uneven than in the first phase with respect to the developing and developed nations. The early stage of the 1990 decade saw an increase in the FDI flows from developing countries (Dicken, 2007:211-213). During the last quarter of the 19th century, capital flows were used as a mode to transfer investible resources to infantile nations that had high interest rates and high deficits. The intention of financial flows in the first phase of globalisation was finding opportunities for long-term investments that resulted in profit, while in the second phase the constitution of financial flows by characterised by short-term capital movement.
ECONOMIC SIGNIFICANCE OF GLOBALISATION
Globalisation has advanced largely in many forms like industrial and financial and is in the process of developing new avenues for developing nations, especially those that are industrialised (Ohmae, 1990:111-117). The greatest economic significance of globalisation has been on the developing nations as they have begun to attract foreign capital and investment into their countries which has had its own share of positive and negative outcomes. The increased living standards, accessibility to new markets, widening disparity in income levels and decrease in employment opportunities are the profound effects of globalisation. The first two are positive in nature while the other two has had negative outcomes. Economic globalisation results in more foreign lending and alongside infrastructural development and free trade between nations (Nayyar, 2005:137-159). The largest benefit of globalisation has been the access to new markets that allows the advent of new technologies, services and products. This has however led to substantial gaps in employment and poverty.