Does Globalization Cause Inequity among Rich and Poor Nations?

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Critical analysis: Does Globalization Cause Inequity among Rich and Poor Nations?
Abstract
There has been a tremendous increase in the quantity of trade between different countries. This increase in trade activities involving different nations has led to allotment and redeployment of resources, goods and pricing with the intention of balancing the marketplace. Anti-globalists associate a number of factors related to globalization with the increase in inequality within countries and between nations. On the other hand, proponents of globalization argue that there has been a reduction in inequality. The paper critically looks at these points of view with regard to increase in trade activities, globalization and inequality. Issues such as international aid by rich nations, corruption, improved infrastructure, all associated with globalization, and are seen to be the causes of increased inequality.
Introduction
It has been shown in a number of literatures that globalization and international trade have existed for quite a long time. There has been a tremendous increase in the quantity of trade that has been crossing international borders. As a result of trade agreements between different nations, one’s resources become available to the citizens of another country. As a result, nations undergo inequality pains related to unemployment, lower living standards, and reduced prices for natural resources. Globalization has been referred to as the development of liberalization of worldwide investment and bisiness, and the ensuing enrichment of union of state economies. In view of the fact that the available resources in each country are scarce and limited, there exist four input factors of production that are catalysts for trade (Lucas 3). These are capital, labor, enterprise, and land. There has been a fierce discourse that has been going on between supporters and critics of globalization and its effects on inequality.
On the other hand, labor is a characteristic of the skill sets of the inhabitants of a nation. This is usually limited by the size of the nation’s population, and is divided into skilled and unskilled labor. Globalization has led to inequality in working hours of different nations. Some countries have 40-hour work weeks, while others have 35-hour work weeks (Lucas 3). If a nation has a large population, then the more it can produce and the more it consumes. Money that is invested in a business is known as capital. There is a variation in the wealth that has been accumulated from land and labor profits. As a result, profits from land, analogous to physical capital, and labor, as skilled workforce, could either be maximized or minimized, thus causing inequality. Globalization has led to inequality of wealth in both rich and poor countries since it has led to inconsistency in incomes, education, stable governments, infrastructure, corruption and standards of living between citizens and nations.
Globalization and Inequality
It is important to not only define inequality, but also to measure it with the intention of drawing comparisons between poor and rich families. After these causes have been determined, the results of globalization can be assessed and measured. This is ...