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Outline and explain two ways in which globalisation may have increased levels of poverty in the United Kingdom. - AQA - A-Level Sociology - Question 10 - 2017 - Paper 2
Question 10
Outline and explain two ways in which globalisation may have increased levels of poverty in the United Kingdom.
Worked Solution & Example Answer:Outline and explain two ways in which globalisation may have increased levels of poverty in the United Kingdom. - AQA - A-Level Sociology - Question 10 - 2017 - Paper 2
Step 1
Way 1: Job Outsourcing
Answer
Globalisation has led to the outsourcing of jobs to countries with lower labor costs. This practice has resulted in a decline in employment opportunities within the UK, particularly in manufacturing sectors. As companies relocate their operations abroad, workers may find themselves out of a job, leading to increased levels of unemployment and, consequently, poverty. The lack of skilled jobs in the local economy, combined with a rising job competition for the remaining positions, exacerbates the difficulties for low-income individuals trying to find stable employment.
Step 2
Way 2: Wage Suppression
Answer
Another effect of globalisation is wage suppression due to increased competition. As businesses seek to remain competitive in a global market, they may opt to lower wages or limit wage growth for their employees. This trend affects low-income workers the most, as their earnings fail to keep pace with the cost of living, pushing them closer to the poverty line. Furthermore, reliance on temporary or part-time contracts, which often offer lower pay and fewer benefits, contributes to financial insecurity among these workers, ultimately increasing poverty levels in the UK.