Globalization and Poverty

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Globalization and Poverty

Introduction

In this essay, I am going to investigate the globalization and poverty in the world. Meanwhile, its impact on global marketing activities will also be addressed.

It is an interesting topic to study, as you will know the reason behind by the following quotes:

‘Over the past 20 years, the number of people living on less than $1 a day has fallen by 200 million, after rising steadily for 200 years’ (James Wolfenson, president of World Bank, World Bank Report, 2002)1

‘Globalization has dramatically increased inequality between and within nations.’ (Jay Mazur, US Union leader, 2000)2

So, who was telling us the truth?

Our main objective of writing this essay is
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However, how to reduce the negative impact and promote the positive impact brought by globalization should be something we need to focus. Therefore, I will introduce new market opportunities in poor countries to reduce poverty by foreign investment in the next part.

New market opportunities at the bottom of the economic pyramid

Introduction and Definition
Although consumers at the bottom of global economic pyramid (BOP) represent the majority of the global consumer market, they have so far largely overlooked. There are a growing number of international consumer goods companies which are tapping into the low-income markets to make large profits, as well as to help lift billions of people out of poverty.
In terms of income levels, there are around 4.0 billion people who have an annual income of less than International $3000 per capita at the bottom of the pyramid.16

Opportunities at the BOP market:

A. Food and consumer goods
Since the low-income class has huge demand for food and basic consumer goods (e.g. washing powder, shampoo and soaps), international consumer goods companies, such as P&G, can tap into the market. Even more, they can use this market as a testing ground for eco-friendly products. Because these products can reduce the use of resources such as water.17 B. Financial Service
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