Answer to Question #295056 in English for dot

Question

1. Does economic globalization lift all boats, or is it a modern form of empire?

2. Do you think what factors might contribute to the global divides?

3. Has inequality risen or fallen around the world?

4. Identify existing company with different types of market integration. Provide a diagram of their existing company composition and provide a 3 to 5 sentences explanation.

Answer 1

1) No, It does not.

Economic globalization has lifted many people from poverty, especially in China. People on the bottom end of many, but not all, poorer countries from globalization’s beginning have flourished. Much more so, many investors, basically rich people, that have outsourced to countries with cheap labor have also flourished. However, in the developed world, the middle class and working class have stagnated or gone down, unless egalitarian policies were in place. In the US, during the last 35–40 years, median wages of the middle and working class have stayed virtually the same. Meanwhile, costs have grown and as a result, their purchasing capacity is lower and therefore the economic standard of living. This is one of the many causes of increased inequality on the national level in developed countries and also on the global level, as the richest people are gaining much more than the poorest.

2) There are many causes for these inequalities including the availability of natural resources; different levels of health and education; the nature of a country's economy and its industrial sectors; international trading policies and access to markets; how countries are governed and international relationships between them.

3) When measured in relative terms, global inequality has been decreasing. However, in absolute terms, it has been increasing. Large inequalities matter for economic development as they can slow economic growth, generate economic crises, and destabilize political systems.