Globalisation | People | 2nd February 2022 | Virtual Wire
Globalization is the growing interdependence across borders that affect the nation's economies, cultures, populations, by trading in goods and services, technology, flows of investment, people, and information.
Let us first understand, WHY GLOBALIZATION?
Globalization is mainly of three types, Economic, Cultural, and Political. Globalization is effective mostly on the economies of the nations as people from all walks of life have access to global supply chains, including the natural resources and labour markets. When an economy is globalized it means countries specialized in specific products and services have a competitive advantage. With the use of minimum natural resources, producing goods efficiently and selling globally at a lower cost than competing nations.
Economic globalization is possible now than ever because of the policies that promote free trade, open borders, and international cooperation. By going across borders, people are now able to have access to the cheap labour, cost-effective parts, and tools that are required in their business, global markets through which they can sell their products and services.
Exchanging the products, services, information, technology, and the way financial exchange and interaction occurs results in the cultural exchange of ideas. People get to compete in the international markets, also to understand their culture and traditions. With the help of globalization, business tends to expand and grow. Now let us shed some light on Is globalization widening people’s gaps or bridging them?
Globalization implies that world trade and financial markets are becoming more integrated. How far the developing countries are involved in this integration? The income gap has been widening between rich and poor countries for many decades. Developing countries to compete with the developed countries lose their game. Hence, lacking behind in terms of growth and development.
Globalization is working very well for developed countries. Some developing countries have also been benefitted from it but to a definite extent. The bargaining power of unskilled workers has reduced due to Globalization. Thus, widening the gap between the rich and poor. "Millions are benefiting from globalization but at the same time there's a feeling something's wrong with the process," said OECD's secretary-general, Angel Gurría. Such inequality is a threat to the economic growth of a nation.
To reduce the inequalities and to bridge the gap that is evident in today’s world, what we can do is,
We can improve the opportunities for the upcoming generation, along with addressing the current unequal disparities of current generations.
Inequalities between rural and urban areas would have a great impact on reducing the overall inequalities.
The amount of research work should be increased so that more amount of loopholes could be assessed and solutions could be found accordingly.
Governments and financial institutions are the central pillars of any nation. They should make such policies that enable the citizens of the nation to help them grow in their lives. Income inequalities have always risen in developing countries. But with the support of the government and enhancement in the policies world can still bridge this gap that has arisen.