Globalization Creates Inequality Essay - 1764 Words

Globalization is a complex phenomenon which has positive and negative implications. In one of the report by World Commission on the Social Dimension of Globalization, globalization is explained as â€Å"there is no point to globalization that reduces the price of a child’s shoes, but costs the father his job†. The chief characteristics of globalisation as explained by World Commission on the Social Dimension of Globalization are international trade, foreign direct investment, financial flows, technology and policy environment. International free trade has become the foundation of neoliberal globalization. The main aim was to promote development and trade. During the 1870s the gold standard was adopted which enabled the capital to move freely†¦show more content†¦But Paul Krugman states that this relationship cannot be quantified. Trade and income distribution Income redistribution is one of the gains from trade. But are the gains from the trade too small when compared to the losses suffered by the low income or disadvantaged groups that have little resources or savings with them. Thus distributional effects prove that technological change alone fails to support free trade. The trade causes some activities to shrink and some activities to contract. The whole notion of free trade is not clear since some people gain and some people lose. Redistribution is often the necessary handmaiden of the gains from trade. Due to a fall in demand for exports from the south, industries associated with the export industries will suffer a permanent fall in employment and even if people find other jobs there will be a fall in the income earnings. Advocates of free trade put forward the argument that some people will get hurt in the short run but in the long run everyone will be better off. This has proved to be wrong when we compare our self in the present scenario. The social impact of globalization is not confined to the marginalized countries alone even the developed countries are sufferingShow MoreRelatedThe Effects of Globalization1678 Words   |  7 PagesEffects of Globalization Globalization involves shrinking or reduction of the world as well as an increased consciousness in regards to the world as a whole. Globalization is a term which is used in the description of changes in societies and the economy of the world which results in a dramatic increase in investment, cross border trade s well as cultural exchange. Globalization is dominated by nation states, economies of national and the cultural identities of nations. Globalization creates an interconnectedRead MoreThe Problem Of Extreme Poverty1297 Words   |  6 PagesIn the last 10 years, the end of extreme poverty has been a top priority in the inequality equation. A report by the World Economic Forum s Global Risk states that inequality in 2013 is a big global risk. The world should immediately put in place objectives that abolish extreme inequality around the globe. The net income of 2012 from the 100 richest billionaires was $240 billion, which could end extreme poverty 4 times over. Having so much money and power in such few hands, causes depressed demandRead MoreImpact Of Globalization On The World Economy934 Words   |  4 Pagesâ€Å"Globalization refers to all those processes by which the people of the world are incorporated into a single world society, global society.† Definition by Martin AL brow, 1990, a British Sociologist. Globalization helps to under developed countries by increasing their economic. On the other side, researchers and experts are saying that, globalization helps in increasing gap between poor and rich people in all around the world. The impact of the globalization is so wide and board, it is difficultRead MoreGlobalization Has Brought New Opportunities For Equitable Health1560 Words   |  7 Pagesadvantage or disadvantage†¦ (Braveman and Gruskin, 2002, p. 254). While many factors influence health equity, one of the largest today is globalization; in fact, The World Health Organization claims, â€Å"globalization has brought new opportunities for equitable health. But it has also brought threats and risks,† (WHO Commission on Social Determinants). While globalization has benefited some countries in regards to economic growth, opening of markets, the spread of new information and technology (Huynen etRead MoreEssay about Marxs Theory of Alienation1087 Words   |  5 Pagesindividuality through a production system that is not communally, but privately owned (Marx, 2007). When applying Marx’s theory of alienation to the current issue of income inequality in the global world one can see how it is possible that capitalism has led to the issues at hand. Although not a new phenomenon, globalization is on the rise, and with that, the concentration of authority among few multinationals. By the early 1990’s, the world market share of the top five companies in each industryRead MoreGlobalization Effect on Pakistan1531 Words   |  7 PagesAffect of Globalization on Pakistan The word Globalization refers to â€Å"the growing integration of economies and societies around the world† (World Bank 2010). There has been an increasing amount of connection between various economies and one of the greatest challenges we face is to make this connection a positive one. Globalization certainly has the greatest influence on developing nations around the world. Countries such as India, China and Russia have been positively affected by globalization sinceRead MoreImpact Of Globalization On The Social Consciousness Of The Late 20th Century Essay1667 Words   |  7 PagesIntroduction Globalization is a term that profoundly characterized the social consciousness of the late 20th century, and still continues to shape 21st century social discourse. But what exactly does globalization imply? Unfortunately, despite being referred to almost incessantly, the true meaning of globalization is often obscure (Reich, 1998). However, according to Griswold (2000), the term globalization simply refers to the liberalization of international trade that effectively promotes the integrationRead MoreWe Can Not Succeed When Half Of Us Are Held Back879 Words   |  4 Pagesheld back†. Malala Yousafzai. This is the way that feels a young girl in a globalized world today. There is not clear when Globalization starts, but some people believe that it begins with the end of the Cold War and the separation of the Soviet Union, others along with the arrival of man on the moon or with the development of telecommunications. As a matter of fact, Globalization is not always a synonymous o f progress; however, the process of people’s interaction and their desire of succeed along withRead MoreGlobalization And Its Discontents : The Promise Of Global Institutions Essay874 Words   |  4 Pages Globalization is the integration among nations of political views, products, ideas, and cultures. It helps by stimulating innovation, communication, and offers developing countries to catch up to industrialized countries. With the use of advanced technologies, large corporations can supply the world populous with consumer goods that would only be available in 1st world countries. Despite the numerous contributions that globalization has brought, it also carries with it disadvantages. Large corporationsRead MoreGlobal Inequality And Its Impact On The World s Population1429 Words   |  6 Pagespolitically. What is at the forefront of this volatility? Global inequality. For many decades, groups of the world’s population, particularly in the poorest areas, are contin uing to get squeezed by the weight by the radically uneven distribution of income. When this problem extends to globalization, it is heavily ambiguous in terms of its long-term implications, socially and politically as well. When one explores the fascinating limits of globalization, it is possible to consider why many in the world’s population