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Question 16
Outline and explain two ways in which globalisation may affect global inequalities.
Step 1
Answer
Globalisation often leads to the concentration of wealth in certain regions, primarily developed countries. This phenomenon is attributed to the establishment of a powerful transnational capitalist class that benefits disproportionately from global economic practices. As multinational corporations expand their operations across borders, they often secure more favorable economic conditions and labor practices that may not be available in their home countries. Consequently, this creates a widening gap between the rich and the poor, both within and between countries.
The shift of manufacturing and services to countries with lower labor costs further exacerbates this inequality. While some nations may experience economic growth from foreign investment, the workforce can suffer from job insecurity and lower wages, enhancing income disparities.
Step 2
Answer
In response to globalisation, some countries may adopt non-liberal economic policies that further entrenches inequality. Such policies can include protectionism, restrictions on foreign investment, and limitations on trade. While these policies aim to safeguard local industries and jobs, they can isolate nations from the benefits of global trade networks.
Moreover, the focus on preserving national economies can lead to a neglect of social policies that promote equity, such as healthcare, education, and social welfare programs. As resources become increasingly allocated to protect existing economic structures rather than invest in social development, poorer communities are often left behind, exacerbating social divisions and global inequalities.
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