Globalization And The Global Economy

1720 Words7 Pages
For many of the world’s population, the growing integration of the global economy has provided the opportunity for substantial income growth. This is reflected not only in higher incomes, but also in the improved availability of better quality and increasingly differentiated final products. However, at the same time, globalization has had its dark side. There has been an increasing tendency towards growing equalization within and between countries and a stubborn incidence in the absolute levels of poverty, not just in poor countries. These positive and negative attributes of globalization have been experienced at a number of different levels – the individual, the household, the firm, the town, the region, the sector and the nation. The distributional pattern emerging in recent decades of globalization is thus simultaneously heterogeneous and complex. If those who had lost from globalization had been confined to the non-participants, the policy implications would be clear – take every step to be an active participant in global production and trade. However, the challenge is much more daunting than this, since the losers include many of those who have participated actively in the process of global integration. Hence, there is a need to manage the mode of insertion into the global economy, to ensure that incomes are not reduced or further polarized. Many factors associated with globalization will affect the distribution returns. For example, macro-economic disturbances
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