Impact Of Globalisation On Wealth And Wealth

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In the 21st century we are living in a global village where trade, movement and communication are all participated in effortlessly. This period of globalisation, however, has not benefitted all realms of life and the gap between rich and poor countries is constantly growing larger. The objective of this essay is to assess the effect of globalisation on wealthy and developing countries and conclude whether it is to blame for the worldwide inequality of wealth.

Every society started off in the same way: poor. However, by now most countries have been able to shift from this economic status due to globalization. Globalisation and international trade are not new concepts and have been around for many years. Over recent years, countries have expanded the quantity of trade that is exported worldwide. Due to trade agreements being made among many countries, varied resources from some countries will become available to the individuals in another country. The amount of resources in every country is constantly getting reduced and there are scarcities of these resources. Every country has a policy to manage its resources to be able to exploit the benefits of trade for every citizen. Governments come up with these policies to monitor the degree to which the state is involved with trade in other countries.

Globalisation is not just the transfer of goods and services across the world. Globalisation can be defined as “the process of an increased relationship between national economies through international trade, foreign direct investments by multinational firms, and international financial investments”. With an increase in trade between nations, the distribution of resources will reallocate exports and pricing in a procedure to find stabilit...

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...onal trade inhibit their own ability to grow and become wealthy. As a result, these countries have not benefitted from globalization and are therefore seen as poorer countries with high poverty rates and low-income rates.

Migration of intellectuals has also prevented the developing nations from benefitting from globalization. People are voting with their feet and leaving the country for better opportunities, resulting in a brain drain. As the most educated people are leaving the country, financial sectors are being run by under qualified people who limit the country from ever gaining wealth and benefitting from globalization.

The developing nations have not benefitted from globalization, as their policies are not good enough to attract investments. However, if enough reform is introduced they can escape poverty and slowly break into the international market.

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