Question

1- Does globalization bring more poverty and inequality? Explain two different views.

Answer 1

Globalization or globalisation is the process of interaction and integration among people, companies, and governments worldwide.Or in other words companies world wide can open their offices and operate anywhere in the world.There are many arguements 'for' and against globalisation and its relation with economic inequality.

arguements agains globalisation with respect to inequality

1. Globalization can increase wage inequality in a relatively rich country by increasing the imports of manufactured goods using predominantly low-skilled labor from developing countries.

2. Gains of Globalisation for Rich at the Cost of Poor:Under the process of Globalisation, big business has done well despite the slow productivity growth. Globalisation has helped the corporate elites to be more and more rich and wealthy. The poor continue to face poverty and exploitation

3. Globalisation as an Imposed Decision of the Rich:The critics of describe globalisation as an imposed decision. It has not been a democratic choice of the people of the world. It has been the brain child of the rich and wealthy

4. trade based on comparative advantage has the potential to stimulate economic growth and lift per capita incomes, it can also lead to a rise in relative poverty.

arguements in favour of globalisation with respect to inequality

1. Globalisation is expected to promote efficiency, productivity and, hence, higher economic growth rate.Liberalisation and the market principles improve the allocative efficiency of resources. This will increase export earnings, allow the inflow of foreign capital and technology.
2. globalisation can reduce global inequality through the transfer of income from rich to poor countries,

conclusion

Globalization is likely to reduce global inequality but to increase it locally. Globally, we can see that some countries that were poor are getting much more wealthy because they are more able to trade with the rich world at the same time, inequality is growing in many countries. This happens as some people get much wealthier through globalization than was possible previously. Meanwhile, those who do not have skills that are usable in the global market do not become richer. This increases the level of inequality within the country.