Will Globalisation reduce world poverty?

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Harpal Chima 13A                                                                                     Economics & Business Essay Competition

Will Globalisation reduce world poverty?

“The essence of globalisation is a subordination of human rights, of labour rights, consumer, environmental rights, democracy rights, to the imperatives of global trade and investment.”

---Ralph Nader

Globalisation is a widely used term in current day economy; the term has several different meanings and has only come to existence over the past several decades.  The term Globalisation broadly refers to the expansion of global linkages, the establishment of social life in a global community, and growth of global consciousness, so it is the combination of a world society.  Globalisation is the basic result from human innovation and technological processes, it implies that due to the increase coherence of world economies through trade and financial flows the term globalisation has arisen. It basically means to trade goods and service upon a global service, an example would be like to buy coffee beans from Cuba and to create coffee in America and to sell the product around the globe, this clearly shows that commerce is occurring around the world upon different countries. It primarily means the expansion of global linkages, to communicate and exchange goods and service around the globe. The term sometimes also refers to the movement of people (labour) and knowledge (technology) across international borders.

There are several different advantages and disadvantages for and against globalisation.  Globalisation has been said to reduce world poverty yet it has also caused concern as it has led to the gap between the rich and poor countries to increase. This has meant that globalisation might lead to a general increase in world poverty causing globalisation to not fulfil its aim in the global economy. This has meant that not only poverty will generally increase but also it means that the gap between the rich and poor countries will gradually increase.  But in also can be argued that globalisation will eventually lead to the global economies to become equal upon there economic powers, this can be because of the cause of increase of jobs, increase in trade and also because of the increase of investment.

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The main advantages of globalisation can include such factors that will eventually lead to a reduction in world poverty may include the increase of jobs around the world, the increase of investment and also the increase of trade in contact with different economies in developed and undeveloped countries. Jobs may increase around the world through large multinational investing in different economies causing the expansion of businesses in developed countries. This means that as the firms expand they will need more employees and by employing locals it will mean that the companies will cause the regional and national economies to strengthen ...

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