What Is Globalization And Global Poverty?

1015 Words3 Pages
bulb-icon

Recommended: The effect of globalization on developing countries

In addition to major economic growth in many nations, globalization has also significantly decreased world poverty. International trade promotes a higher real income of poor nations. Some of these third world countries offer unskilled labor, which should reduce inequality and poverty in poor nations. There is a high chance for poverty to decline if globalization increases the price of the goods manufactured by unskilled workers. In order for globalization to increase poor people’s revenue in developing countries like Zambia and Ethiopia, these developing nations must maintain a constant productivity of goods. Sustained high growth in international trade is the best way to reduce poverty as is the case with nations like India and China, which …show more content…

For example, in Colombia, studies suggest that trade reforms have attracted major foreign investments in the oil and mining sectors. Through the integration of international markets and the globalization reforms, Colombia has been able to have a major reduction in poverty and an increase in international investments. Once a very poor country, Colombia’s international trade has greatly increased, especially in the past two decades. The National Administrative Department of Statistics reports that Colombia’s GDP increased 4.3% in 2013. In addition, during the first quarter of 2014, Colombia had the second highest GDP after China. According to Ann Harrison, a professor at the University of Pennsylvania and a research associate at the National Bureau of Economic Research, “In Colombia, increasing export activity has been associated with an increase in compliance with labor legislation and a fall in poverty” (Harrison 4). This country is yet another clear example of how globalization through foreign investment and export growth have significantly reduced …show more content…

Developing nations must globalize their trade to reach economic progress, get rid of corruption, and reduce extreme poverty, especially in developing nations where many people live under the poverty line. With the incorporation of globalization among many nations that have gone from authoritarian regimes to democratic states, democracy will continue to spread around the globe. Nations that refuse to join globalization should gradually adapt to change their isolated economies. Delaying world integration could represent a high risk for these nations due to competition of trade among many developing countries that have joined globalization. Hopefully, countries that have not joined the world market will soon start to globalize their

Show More
Related

  • Analysis of The Noble Feat of Nike by Johan Norberg

    704 Words  | 2 Pages

    In Conclusion I think the third world would benefit a lot more steadily with globalization because it would bring more people out of poverty and help them better their lives with a better salary. If you look at most people in third world country’s they have to rely on family member’s to go to another foreign country with better job prospects to help them out.

    Read More

  • Does Globalization Contibute To Sustainable Prosperity For All People?

    1069 Words  | 3 Pages

    “Globalization contributes to sustainable prosperity for all people”. This quote contains mostly truth but there are also many arguments towards how globalization really does contribute to sustainable prosperity for people all around the world. This can be supported by three main points. How the rise of Japan’s economy effected the lives of millions of people. How shipwrecking effects the lives of both the ship companies and the workers in Bangladesh, and how economic growth contributes to the sustainable prosperity of the population in a specific nation. Sustainable prosperity can be defined differently from different individuals because of people’s personal opinions and their perspective is also effected by the people who influence their lives the most, but the main definition of prosperity is to have good fortune, or growth in an economic way. Globalization creates a gateway for sustainable prosperity to all people and gives people all around the world the opportunity to gain prosperity.

    Read More

  • Globalization In Peru Essay

    1042 Words  | 3 Pages

    Whereas globalization may not be the flawless answer to end all of the world's difficulties, it is a good start. Countries that adopt globalization, such as Peru, have benefited tremendously. Globalization is good for a country's finances, politics, and most significantly for its persons. Peru was one time a third-world country ravaged with poverty, oppression, and a need of learning. Globalization has contributed to the decrease of scarcity, bigger literacy rate, and the liberation of women in Peru. The consequences of globalization can be identified in Peru and all around the world, when technological information is disperse, free trade is boosted, and political or social liberation is accomplished.

    Read More

  • Fedex Macroenvironment Study

    1556 Words  | 4 Pages

    Nowadays, Globalization is a main trend for the world economic. The world’s economy has become fully integrated. There are no barriers and borders to trade around the world.

    Read More

  • Global Poverty

    570 Words  | 2 Pages

    Peter Singer, in his influential essay “Famine, Affluence and Poverty”, argues that affluent people have the moral obligation to contribute to charity in order to save the poor from suffering; any spending on luxuries would be unjustified as long as it can be used to improve other’s lives. In developing his argument, Singer involves one crucial premise known as the Principle of Sacrifice—“If it is in our power to prevent something bad from happening, without thereby sacrificing anything of comparable moral importance, we ought, morally, to do it” . To show that such principle has the property to be held universal, Singer refers to a scenario in which a person witnesses a drowning child. Most people, by common sense, hold that the witness has the moral duty to rescue the child despite some potential costs. Since letting people die in poverty is no different from watching a child drowning without offering any help, Singer goes on and concludes that affluent people have the moral duty to keep donating to the poor until an increment of money makes no further contribution.

    Read More

  • Economic Globazation-Source Analysis

    778 Words  | 2 Pages

    Our global world is becoming more connected as we become integrated politically, socially and even economically. Due to the Bretton Woods agreement, different countries have been economically dependent on each other in fear of war to erupt. From then on, different organizations and policies tied more countries into being economic globalized. This economic globalization has then given us many opportunities in trade and more access to natural resources in other countries. Unfortunately, there are some negative effects that are brought to less developed countries.

    Read More

  • Globalization Hurts the World's Poor

    1384 Words  | 3 Pages

    From an average American's perspective, globalization is a win-win situation for everyone involvedt. But we fail to see the other end of this situation, where lower-class families around the world are faced with troubles. In countries such as Indonesia and India, American companies purposely set up factories and take advantage of the population by giving them wages below minimum wage to manufacture their products. Families are forced to send their children to work in these factories in order to make enough money to survive. When there is only enough money to put food on the table, living conditions are poor and necessities such as clean water are not as available as they are for us Americans. In other countries such as Colombia, the drug trade is prevalent everywhere and is used as a source of income for many farmers who only want to produce crop for money so their families can prosper. Billions in Aid is given from the U.S government to find a different crop to use but nothing is accomplished as drug shipments continue to come in to America and drug crops are still being produced. If we are ever going to make Globalization beneficial for all, there must be a universal effort to employ laws to protect the lower class who can't afford to protect themselves.

    Read More

  • Colombia's Economy

    1754 Words  | 4 Pages

    Colombia is one of the oldest democracies in Latin America with solid functioning institutions, progressive laws, an active civil society, and one of the most ecologically diverse countries in the world. Economically speaking, Colombia has had a surprisingly turnaround over the past decade due to the confidence and business opportunities that the investors have found in its emerging market. However, the improvements made in the economy are not sufficient to ensure sustainable economic development. On May 15, 2012, the U.S.-Colombia Free Trade Agreement (FTA) went into effect, and after almost two years its effects have had a negative impact in Colombia’s economy, mainly in its agricultural sector, which constitutes 11.5% of the country’s GDP (Cámara Colombo Coreana). The farmers complain that cheap imports from the United States are hurting their sector leaving some of them almost in bankruptcy. During August and September 2013, the country was in a nationwide strike against the Free Trade Agreement, which had different areas of the country paralyzed specially in Bogota, the capital city.

    Read More

  • Globalization In Colombia Essay

    528 Words  | 2 Pages

    Colombia is known for their exportation of coal and oil. This has attracted the interest of foreign nations, which has led to Colombia gaining new trading partners. Globalization is defined as integration between countries through products and ideas. Through Colombia’s exportation of coal and oil they have been able to integrate themselves into the international community. Integration into the global market has brought new investors to Colombia, some of these investors include: the United States, China, and Spain. Due to the increase of investors into the oil and mining industries the economy has been relatively stable and has increased jobs for citizens. With a stable economy citizens are able to enjoy a better quality of life, the prices

    Read More

  • Impact Of Globalization On Coffee Trade

    1449 Words  | 3 Pages

    Globalization is an important contemporary phenomenon and it is difficult to avoid the trend. Its development as well as make people recognize each other's lives in an interdependent global village. Therefore, globalization encourages people to care about many global equity issues such as peace, justice, environmental protection. Like many phenomena, there are both sides of pros and cons in globalization. Globalization can create new opportunities for the expansion of international trade, and enhance global commodity circulation and improve cultural exchange (Krier, 2001). It is beneficial to the development of integration with the global economy. Emphasizing efficiency in terms of globalization

    Read More

  • Advantages And Disadvantages Of International Trade

    1063 Words  | 3 Pages

    ...liberalisations have had adverse consequences for some – including the poorest people – but should we automatically condemn trade initiatives because it means that one person loses or is pushed into poverty? The identification of hardship arising from a generally desirable policy reform should stimulate the search for complementary policies to minimise the adverse consequences and reduce the hurt that they unintentionally cause (Winters, 2002). ‘No country has successfully developed its economy by turning its back on international trade and long-term foreign investment’; although trade alone may not offer a solution for poverty reduction, the OECD and DFID have recently published reports identifying that combining aid and trade initiatives and encouraging the integration of trade and aid could progressively and sustainably alleviate poverty (OEDC, 2009; DFID, 2005).

    Read More

  • Impact of Globalization on Indian Economy

    1556 Words  | 4 Pages

    Globalization is the new notion that has come to rule the world since the nineties of the last century with the end of the cold war. The frontlines of the state with increased reliance on the market economy and renewed belief in the private capital and assets, a process of structural alteration encouraged by the studies and influences of the World Bank and other International organisations have started in many of countries. Also Globalisation has brought in new avenues to developing countries. Greater access to developed country markets and technology transfer hold out promise improved productivity and higher living standard.

    Read More

  • The Impacts of Globalization on Developing Countries

    1374 Words  | 3 Pages

    Globalization, love it or hate it, but you can’t escape it. Globalization may be regarded as beneficial from an economic and business point of view, but however cannot be perceived the ditto when examined from the social sciences and humanities side of it. Globalization can be argued as a tool for economic growth, advancement and prosperity through co-operation between the developed and developing countries. The pro-globalization critics argue that the benefits that globalization brings to developing nations surpasses or outcasts the negative impacts caused by globalization and may even go a step further to state that it is the only source of hope for developing nations to prosper and stand out. However, the real question to be asked is as to what extent are the positives argued upon without taking into account the negative aspects of globalization towards developing countries. Moreover, how many developing countries out of many are exactly benefiting or even prospering from globalization is another question to consider. Therefore, my paper will dispute that indeed growth and advancement provided by globalization to developing countries is beneficial in short-term, but in the long-run, it will only bring upon negative impacts and challenges due to the obstacles involved such as exploitation of labour and resources, higher increase in poverty, and effects of multi-national corporations on local businesses and the economy, and to an extent the effects on the developing country itself.

    Read More

  • Proponent and Opponents of Globalization

    1294 Words  | 3 Pages

    Proponents have a strong belief in free markets and limited governments intervention. According to Preble (2010), globalization has led to the creation of jobs, higher living standards and a higher variety of goods available to consumers. International trade is one of the driving forces behind globalization. Countries specialize in specific goods wherein it has a comparative advantage. This results in a higher efficiency and productivity and ultimately leading to an improvement of the living standards. As a consequence, export increases. Hereto, more jobs are created, a higher variety of goods are available and international competition has increased. This results in lower prices, keeping the inflation in check (Preble, 2010). Furthermore, Preble (2010) states that the increase of trade in goods and services, foreign direct investment and cross-border investment have been important for the success of globalization. Other important benefits, mentioned by the proponents of globalization, are the promotion of information exchange and high understanding of a variety of cultures. Globalization has led to a world where “democracy has triumph over autocracy” (BBC News, 2000, as stated in Preble, 2010, p. 334).

    Read More

  • The History of Globalization

    1807 Words  | 4 Pages

    Globalization is the increasing interconnectedness of people, places, and cultures throughout the world today. The effects of this homogenizing process that we call globalization can be seen in all aspects of life. From McDonalds being in almost every country, to the majority of North American clothes being made in periphery countries, to the technological ability that allows us to instantly communicate with people anywhere in the world, the effects are everywhere. Economically today, globalization has had both positive and negative effects around the world, with many similarities to colonization. Globalization has also led to increased poverty amongst the global periphery, and a specific group of winners and losers within this process of globalization.

    Read More

More about What Is Globalization And Global Poverty?

Open Document