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Advantages and disadvantages of globalization
Negative impact of globalization on the economy
Introduction What is globalization
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Globalization is defined as the process of interaction and integration among the people, governments, and companies and among different nations. This process has effects on culture, environment, political system, trade system or economic system, human physical well-being, human’s development etc. Now I am trying to some find relationship between globalization, poverty and income inequality. Globalization is defined as an economic concept. Studies trying to relate globalization, measured in terms of economic openness, financial integration and trade policies and other policies, to poverty and income inequality. Various studies show that globalization helps the poor whereas others said opposite. So far, there is only one study on the discussion …show more content…
Many people in international Organizations says that globalization promotes economic growth and poverty reduction. On the other hand, there is other group of economists or we can say other people who criticize economic performance of globalization is not according to that but very disappointing. It is argued that the globalization growth effects are not evident but international trade may be better than financial globalization. Now a days, many researchers caught attention regarding reaction of globalization on income inequality. There is a growing concern that globalization may increases income inequality and giving lesser attention on poverty alleviation. It needs to develop more vast and analysis about the effects of globalization on income inequality and poverty. I am writing this short essay to how globalization affects income distribution and poverty. First, I am trying to seek out the globalization development and international trade and its diverse effects on poverty and …show more content…
We see the interregional globalization is also very large, which shows among the geographical regions do not full determine the effects of globalization. Various Income inequality and poverty measures are used to see how they relate to globalization. We know that poverty is measured in different ways for example percentage of people living below the threshold, a poverty line which is defined by world bank that population living below one dollar a day or two dollar a day and the percentage of people living under the national poverty level. Income inequality is measured by Kuznets ratio and Gini coefficient. Globalization income inequality and poverty is first time measure through linear regression (Globalization income inequality and poverty is first time measure through linear regression (Linear regression is the most basic and commonly used predictive analysis. Regression estimates are used to describe data and to explain the relationship between one dependent variable and one or more independent variables.) In which it show high level of poverty very low, in it finds out that globalization improves the situation of poor in developing countries. It also show that the income disparities/inequalities also reduced by
Mandle, J. R. (2003). Globalization and the poor. Cambridge: Cambridge University Press. Table 7.2, p. 108
Due to the phenomenon of globalization, a substantial part of manufacturing has been moved overseas and goods are constantly being shipped all over the world. These processes are contributing to the advancement of international trade and economic improvement of many lesser developed countries. Unfortunately, globalization has also led to a significant growth of worldwide inequality. While the Western world has largely benefited from the changes, many countries in the developing world are facing great troubles adjusting to the new reality of global interconnectedness. Economic constrictions, unemployment, the weakening of government, corruption, and military conflicts are pushing people to leave their homes and seek better lives elsewhere.
Globalization is a series of social, economical, technological, cultural, and political changes that promote interdependence and growth. Globalization raises the standard of living in developing countries, spreads technological knowledge, and increases political liberation. (Harris 5-23) The main cause of globalization is influence from other, more developed, countries. Globalization is a historical process that results from human innovation and technological progress. The social effects of globalization are clearly illustrated in Peru. Once a third-world country filled with poverty and oppression, Peru is now transitioning into a developed nation. In Peru, globalization has raised the human development index, empowered women, and created a stronger country. (Leon 90-91)
Caretto, Carlo and Crowl, Gillian. “Does Globalization Generate Poverty? DUH!”. February 21, 2014. 305 Ives Hall, Ithaca, NY 14850.
The last one is represented as the poorest in economic terms; it is therefore characterized by a high-income inequality between the two opposite classes. However, since the early 2000s, Developing countries like Asia, Latin America and Eastern Europe developed their economic resources by a me-dian of 14% every year. In comparison, developed countries including America and Eastern Europe made benefits of only 3% per year (Neiger, 2010). Nonetheless, the gap between the rich and the poor is still considerable and according to Amina Mohammed, evidence was given that the region which will be the most disturbed by the growing income inequality is Asia with 25% (Mohammed, 2014).
I would say that there exist a direct relation between global inequality and poverty. It is rightly said that global inequality creates poverty in three important ways. The three ways as highlighted in the presentation are:
Globalization is an important contemporary phenomenon and it is difficult to avoid the trend. Its development as well as make people recognize each other's lives in an interdependent global village. Therefore, globalization encourages people to care about many global equity issues such as peace, justice, environmental protection. Like many phenomena, there are both sides of pros and cons in globalization. Globalization can create new opportunities for the expansion of international trade, and enhance global commodity circulation and improve cultural exchange (Krier, 2001). It is beneficial to the development of integration with the global economy. Emphasizing efficiency in terms of globalization
The process of globalization has been spreading across the world during the last several decades, and as a result, the gap between developed and developing countries has become more noticeable and serious. The world includes nearly two hundred countries, only twenty of them are considered to be the most economically developed, and the rest of the nations have slow development or exist below the poverty line. In the world where every human should have the same rights as another, the great imbalance of incomes, education, medical care and even variety of food provision between different nations says about people’s inequality. That is why wealthy nations should be required to share their wealth among poorer nations in order to stop hunger, diseases,
For economic aspect, globalization has increased the rate of unemployment in developing countries. Many poorer countries have been struggling to accept globalization as a new development to improve their standard of living. Foreign investors especially from developed countries have to take the advantages of their natural resources and lower labour credits. Majority of developing countries focuses on exporting agricultural products abroad, but today, the developed countries have subsidize this advantage with the new genetic modified foods. With this kind of arrangement, the developing countries would have to remain poor due to inequalities of trade of goods and services. Nguyen manh tuan. (2010). this negative effect of globalization has been gradually increasing a huge difference between developed and developing countries. Take for instance, the gap between incomes of 20% of developed countries and developing countries as at 1960 to 1982 was from 1 to 30 percent. As at 1982 to 2014 the difference has grown to 60%. Increase in unemployment rate and poverty will be problematic to the world, if steps are not taken to tackle it. There will be increase in crimes like terrorism, armed robbery and many
Globalization is the integration not only in terms of economies, for example, goods and services, technology, financial flows but also of societies such as communication, ideas, information, and people (Wade and Robert, 2013). Although globalization brings some drawbacks to developing countries, it creates many advantages through multilateral trade agreements; non-tariff barrier; elimination of interest rate ceiling and the opening of capital markets. Some researchers argue that globalization is the main cause of any increase in poverty and inequality. This essay illustrates the opposite concept that global inequality no longer rising and world poverty may be declining.
According to J.H. Mittelman, globalization is "a historical transformation in economy and cultural diversity." Globalization is the idea of making the world act like one huge country. Globalization affects this world and the people in this world in many ways. Globalization affects the economic status of a country. It has indeed weakened the position of poor countries and exposed poor people to harmful competition.
Economic globalization is a phenomenon that countries in the world tend to connect to each other by trading products, technologies and capital. With information era coming, economic globalization is unavoidable of each country. It connects each country tightly on economics. People in many developing countries can get the products they never see in their countries; many techniques were imported by developing countries increased production efficiency. On the other side, economic globalization caused some problems to developing countries, such as the ecosystem was threatened by exporting too many resources to developed countries.
The definition of globalization is, “Globalization is the connection of different parts of the world. Globalization results in the expansion of international cultural, economic, and political activities. As people, ideas, knowledge, and goods move more easily around the globe, the experiences of people around the world become more
Globalization is the connection of different parts of the world. Globalization results in the expansion of international, cultural, economic, and political activities. As people, ideas, knowledge, and goods move easily around the globe, the experiences of people around the world become more similar. (“Definition of Globalization“, n.d., ¶ 1)
The new era witness the rapid development enables people to reach new limits away from the local space of knowledge and limitation of culture. International societies, international organization, new spaces of media has broken all borders and moved forward to scope of globalization. Apparently, not everyone agrees with that. Many people and countries look to globalization as threatening enemy to developing their countries, Kunnanatt (2013, p44). The recent situation shows that the world moving in confident steps to more of globalization in everything. Regardless the government opinion, people become aware more and more about the role that the globalization can play to developing their countries. The globalization seems to have converted the developing countries into real identical – advantaged nations that are positively participating in the planetary economic system, Kunnanatt (2013, p51). Moreover, this essay will argue that globalization has enabled countries to develop for the next three main reasons: it has a positive impact on education quality and education systems, it help develop the economic situation and extend the infrastructures for developing countries.