How does globalization affect economic inequality?

How does globalization affect economic inequality?

Globalization can both reduce and increase economic inequality. It often leads to economic growth, but the benefits may not be evenly distributed.

Can you explain how it benefits some countries more than others?

Certainly! Developed countries often have more resources and infrastructure to take advantage of global markets, while developing countries may struggle to compete.

What are some examples of countries that have benefited from globalization?

Countries like China and India have seen significant economic growth due to globalization, lifting millions out of poverty.

Are there any negative effects of globalization on inequality?

Yes, globalization can lead to job losses in certain sectors, wage stagnation, and increased competition, which can widen the inequality gap.

What can be done to mitigate these negative effects?

Policies such as fair trade agreements, education and training programs, and social safety nets can help mitigate the negative effects of globalization.