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What are the advantages and disadvantages of globalization?
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Globalization fuels inequality

Globalization makes the rich richer and the poor poorer.
Economics Globalisation Politics

Context

Globalization leads to increased manufactured goods imports in developed countries with high-skilled labour and increased high-value tech and service exports. Therefore, it creates more opportunities in developed countries within the hi-tech, high-skilled sectors.[1]

The Argument

Through globalization, the wages of certain segments of the workforce increase. In highly developed nations, this occurs in the hi-tech manufacturing sector and the services sector. These industries are dominated by highly-skilled, college-educated workers. These workers are already drawn from the wealthiest segments of a population. Simultaneously, the poorer, lower-educated sectors of society face increased competition from workers in lower-cost countries for unskilled labour. Their wages must be kept low to compete. [2] Therefore, globalization is increasing the wages of the wealthiest sections of a developed society, increasing inequality and leaving the poorer segments worse off.

Counter arguments

On a global scale, globalization reduces inequality. It provides developing nations with increased economic opportunities. Unbridled global trade has led to the emergence of China, Brazil and India and improved living standards among the populations of developing nations.[3] By bolstering the economies of developing nations, globalization reduces international inequality, even if it contributes to inequality on a domestic level.

Proponents

Premises

[P1] Globalization increases exports of hi-tech manufacturing and services in developed nations with a highly-educated workforce. [P2] Therefore, economic opportunities increase for skilled, college-educated workers that inhabit the wealthier demographics. [P3] Simultaneously, lower-skilled workers face increased competition from cheap labour destinations abroad, reducing economic opportunities for the working classes. [P4] Under these conditions, the rich get richer and the poor get poorer.

Rejecting the premises

[Rejecting P4] On an international level, under these conditions inequality decreases.

References

  1. https://theglobepost.com/2019/01/30/globalization-inequality/
  2. https://www.worldbank.org/en/news/feature/2014/06/23/theorist-eric-maskin-globalization-is-increasing-inequality
  3. https://www.theguardian.com/business/2018/jan/02/do-globalisation-and-world-trade-fuel-inequality
This page was last edited on Tuesday, 3 Nov 2020 at 15:57 UTC

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