Question

One argument in the debate surrounding globalization is about the inequality between developed and developing nations. Do you think the recent increase in barriers to trade is a help or a hindrance to reducing inequality? Why? (Please the answer should be 500+ words with reference)

Answer 1

Globalisation was introduced as a part of new economic reforms in 1991.The major idea behind the globalization is the economic integration of the countries or economies .There are mainly three categories of economies or countries1)Developing countries:These are the countries with lower industrial base and the productivity of these countries are low .These countries are also low income countries.2)Transitional Countries:These countries are on their path of development 3)Developed Countries:The countries which are fully developed and are high income countries.

Economic integration which is the major outcome of globalization has helped the less developing or transitional countries to have global access to the world resources.Thus the small business firms located in the less developing countries will have more access to the developed technology,more skilled labor,low cost imports and larger export markets.These results of globalization have to some extend reduced the inequalities between the developed and developing countries.
The recent increase in barriers to trade will act as a hindrance to reduce inequality .Because due to the trade barriers the imports will become costlier and the Balance Of Payment Position of the developing countries will suffer.
But some cross sectional studies have also proved that the globalization has increased disparities between the developing and developed countries.The growth of the developing country is at a greater pace than the developing countries.The competitions increased as the result of globalization and some of the small business firms are taken over by the large industrial firms of the developing countries which results in much wider disparity or greater inequality between the developing and developing countries.