GLOBALIZATION

To What Extent Has the Process of Globalisation since 1980 Resulted In a More Even Distribution of Income?

Abstract

This paper is about the study on the impact of globalization process after 1980 on distribution of income. The paper presents the basic concept of social inequality, along with presenting the reasons of social inequality. Moreover, the paper also presents facts related to the distribution of income after the year 1980, attributed to the processes of globalization. The study it can conclude by setting additional considerations developed here, strengthens the argument of those who argue that the process of globalization promotes inequality in income, tend to have a negative impact on wages (and labour standards), especially low-skilled workers and supplies conditions of instability and insecurity in the workplace (Hillary, 2008, p. 87-95). In addition to these findings, it may be appropriate to add that even those who think that globalization, so far, has exercised an influence on the modest wage structure in developed countries are mostly in agreement that, in future, the impact of this factor will tend to grow progressively.

To What Extent Has the Process of Globalisation since 1980 Resulted In a More Even Distribution of Income?

Introduction

Globalization although not an entirely new phenomenon, and even if it can be shown with different terms and not abused, is certainly the most powerful agent of change in our time. Globalization is process of integrationchanges occurring due to exchange of views, goods and services, different ideas and variety of cultural characteristics. There is a rather strong tendency to define the consequences of globalization regardless of the behaviour of the different players (Dollar, 2005, p. 145-173). Thus globalization enabled the companies to increase trading activities which create social differences like difference in income distribution pattern. The main purpose of this study is to assess how globalization have an impact on the welfare states, it also analyses the impact of globalization on two economic performance indicators: growth and distribution of income. The study will provide an analysis of income distribution in developed and developing nations of the world like China, USA and Brazil.

Discussion

Definitions and Measures of Inequality

Social inequality is a term used in sociology and is the unequal distribution of material or immaterial resources in a society. The resources of the world are unevenly distributed among the people of the world. The affordability of the people enables the people to avail the resources of the world. According to sociologists social inequality that is created on income or class creates problems in the society. Social inequality can be judged by many factors like some people earning more money and some people earning less money. Often these terms are central to economic factors (for example, wage cuts, brushing of valuable benefits, changes in the social security, etc.) (Dollar, 2005, p. 145-173). The measures of social inequality are based on the following three:

Valuable goods.

Distribution

Unequal distribution of social position in a relationship (Dollar, 2005, p. 145-173).

Impact of Globalization on Income Distribution

The studies, both theoretical and empirical, dedicated to examining the effects of ...