Globalization can be defined as the mass movement of people, goods and services resulting in greater interaction of people. Globalisation has actually resulted in opening trade and less restriction on trade since it can be seen as though people are living in a borderless world. With globalization, you find that people are in a position to interact with each other freely and no restrictions to trade and hence. As a result, you find that people are in a position to exchange goods, ideas, cultures, among others. With globalization has resulted in market expansion leading to greater profits and hence. As a result, these economies are in a position to grow. (Daniel, 2001).We will write a custom Global Inequality and Less Developed Countries specifically for you
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Effects of globalization
Globalization has resulted in industrialization in the sense that people are in a position to access these industries. Industries have been in a position to grow hence leading to economic growth in nations. Financial markets have also grown, and people are in a position to access these markets for investment and access to loans. There is also a common market in the sense that since globalization has resulted in a borderless world, then you find that there is a common economy.
Poor countries are also disadvantaged in the sense that you find that most of the developing countries are not in a position to compete with the already developed countries since most of these countries normally produce agricultural products. Globalisation has also resulted in the migration of people since globalization has led to free hence people are in a position to trade freely, leading to people migrating from their countries to other countries, i.e. movement from led developed countries to the developed countries. Despite the advantages of globalization, it has led to inequalities. (Daniel, 2001).
It was during the 20th century when the whole world experienced an increase in per capita income, and it was during the same time when the rich countries benefited from a large proportion of the per capita income, unlike the poor countries leading to the worsening of the global inequality. Inequality has increased in many countries, including the largest countries like the United States of America, India and Russia. Most of the national income with globalization has led to inequality implications.
Globalisation has actually worsened national distribution since you find that with globalization, it’s only the rich countries that actually benefit from it. Inequality has also resulted in an increased population of people since with globalization, you find that there is free movement of goods and services, and hence this has resulted in the constraint of resources. At the country level, inequality is linked with conflict in the sense that globalization leads to the free movement of goods and services, and then you find that people compete over the scarce resources leading to conflict. You find that international trading is biased on the developing countries in the sense that globalization encourages free trade and hence.
As a result, you find that the developing countries are cut down from participating in these markets hence the issue of global inequality. In order to reduce global inequality, there is a need to reduce mean income between countries, taxpayers should be richer than beneficiaries, and nationally, in rich countries, taxpayers should be rich in order to reduce rich country inequality and in the poor countries, the beneficiaries should be poor in order to reduce poor countries in global equality.
Globalisation has resulted in many inequalities between countries and even in the whole world. You find that it’s only the poor countries that lose from globalization due to the unequal distribution of income. You find that most of the rich countries benefit more at the expense of the poor countries. (Daniel, 2001).Get your
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Measuring global inequality
It was during the 20th century when the whole world experienced an increase in per capita income, and it was during the same time when the rich countries benefited from a large proportion of the per capita income, unlike the poor countries leading to the worsening of the global inequality. Due to the common market as a result of globalization, you find that it has resulted in inequalities in income distribution. You find that the richer countries have grown faster, but the poor countries have remained poor. Traditionally, the distribution of income was actually reduced by change of exchange rates which made inequality to change.
Global inequality can be measured by between nation’s inequality and this is done by calculating the population weights and it’s through this method that one is in a position to estimate inequality among persons. Another method is by between country inequality which is done by calculating the countries involved in order to estimate inequality in nations measuring global inequality is also by the volume of goods and services. You find that most of the rich countries have high volumes of goods and services unlike the poor countries since they have the high technology needed to produce these goods unlike in the poor countries that normally rely of agricultural products.
Another way of measuring inequality is by capital. You find that most of the rich countries have high capital inform of high investments unlike the poor countries. You find that most of the rich countries invest on the poor countries and at they end they tend to plough the profits back to their countries. Inequality can also be measured through technology in the sense that you find most of the rich countries have high inventions and innovations and it’s through this that they are in a position to have the largest share of the market unlike the poor countries. (Michael and Stephen 2001).
Impact of globalization on global inequality
Globalization has led to inequalities between nations in the sense that it has caused financial markets to deteriorate. Also most of the developing countries are actually removed from the globalization process since globalization results to free trade and hence you find that most of the developing countries are not in a position to compete with the foreign investors and to them it becomes a threat since most of the developing countries depend on agricultural products unlike the developed countries which depend on manufacturing products. As a result, you find that the developing countries are not in a position to compete with these countries. (Abhijit, and Ester, 2007).
Global inequality has had many impacts on the developing countries. With inequality, you find that the rich countries benefit at the expense of the poor countries. The rich countries tend to get the largest share of the income per capita unlike the poor countries. During the distribution of resources and income due to globalization; you find that the developed countries usually dominate the market because they have the required technology unlike the poor countries that actually depend on agriculture. As a result, you find that more income go to the developed countries leaving the poor countries to suffer. Due to this, globalization has come with many problems which actually affect the poor countries despite the advantages it has come with.
Abhijit, B and Ester, D (2007).The economic lives of the poor. Journal of economic perspectives 21 (1): 141-167.We will write a custom
Global Inequality and Less Developed Countries
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Michael P and Stephen C (2001).Economic Development. Journal of African Economies.
Paul C. (2001). African growth: Why a big push. Journal of African Economies, AERC Supplement, 188-211.
Daniel, N. (2001) Economic growth. Journal of African Economies.
Weil, chapter 1.