Final answer:
Globalization has helped underdeveloped nations by enabling international capital investment, promoting market-oriented economic reforms, and enhancing health and education through technological advancements that contribute to human capital development.
Step-by-step explanation:
Globalization has contributed to the improvement of economies in underdeveloped nations through various channels. First, it enhances the flow of international capital, allowing these economies to receive investments which can spur growth and development. It is crucial, however, for these nations to balance their trade and avoid sustained trade deficits that might lead to financial crises, as seen during the Asian Financial Crisis in the late 1990s.
Secondly, globalization has led to the spread of market-oriented economic reforms. These reforms often improve the business environment, making it more conducive to foreign investment and technology transfer. This influx of investment and technology can improve productivity and increase the standard of living in underdeveloped nations, contributing to economic growth.
Lastly, global interconnectedness has accelerated the development of health and education, which are vital for human capital development. Through modern technology, globalization has made it possible to access educational resources and health care innovations that were previously unavailable to underdeveloped nations, potentially lifting populations out of poverty traps.