Impact Of Globalization On The World Economy

934 WordsNov 12, 20154 Pages
“Globalization refers to all those processes by which the people of the world are incorporated into a single world society, global society.” Definition by Martin AL brow, 1990, a British Sociologist. Globalization helps to under developed countries by increasing their economic. On the other side, researchers and experts are saying that, globalization helps in increasing gap between poor and rich people in all around the world. The impact of the globalization is so wide and board, it is difficult to solve, because every countries of the world are crying to develop their economy by globalization. As a result, the globalization increase the gap between rich and poor because of, improper wage system and insecurity of jobs, multinational companies, environment treaties, and technology. Unskilled worker are suffer in world economy. Firstly, reduction of bargaining power of skilled worker, due to more open trade and investment, and policies that make direct effect on standard of living and competition from imports product that makes increase in price of local product makes inequality. Government fails to do equality between these two groups, because of groundbreaking speed of technologies, transportation, and communication, which open every door to business. Secondly, extreme fall in the share of wages of national income that gives direct effect income gap within the countries. "In order to reap the benefits of globalization you have to move. Enterprises have to move into new
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