Question

1. Evaluate the extent to which globalisation inevitably leads to a rise in income and wealth inequality in one or more countries of your choice . Please Discuss in Detail

Answer 1

Soln

Globalization is the process by which countries, businesses, and peoples are formed through an increase in commodity trade and more inter-connected and inter-dependent services, cross-border investment, and migration of workers from one country to another. Income and wealth inequality can be measured in a variety of ways

One way globalization can increase inequality is by increasing the influence of specialization and trade. An increase in the trade-to-GDP ratio reflects these dimensions and the value of trade between countries and regions. Although trade-based comparative advantage is the stimulus of economic growth and the capacity per filter capita income, which can increase relative poverty. For example, if there is a country now if you can import cheap steel from elsewhere, there will be a contraction decline in domestic supply and employment and real income in that industry. It contributes to higher rates of structural unemployment and lower real living standards. Real wages come under pressure and inequality can increase. We see this In the UK provinces, for example, where industrialization has taken place Long-term unemployment rates much higher and the economy deteriorates Social deprivation. In the United States, it is claimed by a share of the national income1% of the population went from 11% in 1980 to 20% in 201413% for half of the total population.

However, it can be argued that the benefits of globalization can be used to offset this. If trade accelerates the growth of GDP, the government will see an increase in taxes Revenue used to fund public goods and capital investment goods and services, including finance and quality for retraining programs Improving infrastructure in an area of ​​economic depression. Much depends on whether a government has sufficient resources and political will to actively implement Regional and industrial policy to improve the employment opportunities of such negative people
Affected by globalization