How does globalization affect income inequality?

Can you explain how globalization impacts income inequality?

Globalization can lead to increased income inequality by benefiting skilled workers and capital owners more than unskilled workers.

Why does it benefit skilled workers more?

Skilled workers often have more opportunities in a global market, while unskilled workers face competition from lower-wage countries.

Are there any countries that have managed to reduce inequality despite globalization?

Yes, some countries, like the Nordic nations, have implemented strong social policies that help mitigate the effects of globalization on inequality.

What role do governments play in addressing income inequality?

Governments can implement policies such as progressive taxation, education access, and social safety nets to address income inequality.