Question

1). What is globalization and why is it taking place? Discuss some of the pros & cons from an economic standpoint. Which theory the Functionalist or Conflict theory, best explains the current worldwide economic situation? Why? What do you think will happen if the gap between the rich & poor continues to widen?

From Chapter 18 - Health, Health Care & Disability -

Answer 1

Globalisation means that the world is becoming interconnected by trade and culture exchange. There are several key factors which have influenced the process of globalisation. Improvement in transportation that is larger cargo ships means that the cost of transporting goods between the countries has decreased. Economies of the scale mean the cost per item can reduce when operating on a larger scale. Transport improvements also means that goods and people can travel more quickly. Freedom of trade means organisations like world trade organisation promote free trade between countries, which helps to remove barriers between countries. That is in short Globalisation has grown due to advances in communication and transportation. With the increased global interactions comes the growth of the international trade, ideas and culture. Globalisation is primarily an economic process of interaction and integration that's associated with social and cultural aspects. The functionalist theory of inequality holds that stratification exists because it is beneficial for society. The conflict theory of inequality holds that stratification exists because it benefits individuals and groups who have the power to dominate and exploit others. So Conflict theory, best explains the current worldwide economic situation. Where there is an appreciable gap between rich and poor, it simply means there is patent inequity in the distribution of wealth. There is inequality in the distribution of wealth when only a handful of ' vested and privileged few ' holds the purse of the nation and enjoys the gains of economic activity. As the gap widenes, the poor suffers deeper and longer deprivation because the range of goods and services available to them contracts. This is exactly the reason why more than one billion people lack the opportunity to consume in the quality and value that would allow them to satisfy their compelling basic needs.