Rapid growth of technology caused the emergence of globalization.Today,globalization is one of the most major factors that shape the world economy. The impact of globalization can vary depending on a wide range of situations like jurisdictions,regulations and policy.
Globalization makes the access to the global market easier and stimulates global trade.As a result,poor countries can benefit greatly and grow faster if it is managed properly.A country or an individual can take the advantage of cheaper goods or services that are produced in the other countries that can produce these goods or services at lower prices.Large corporations and developed countries can also gain larger profits with the help of globalization.
However,globalization can exacerbate the situation and increase inequality in some countries.Skilled workers in industries that connected to the global economy may benefit more,while low skilled workers can face stagnant or falling wages.It can also contribute to wealth concentration,when the countries that have many resources and easier access can gain wealth more quickly,in contrast countries without such advantages can barely increase their profits.Globalization can also enhance tax avoidance and evasion which result in higher inequality.
In summary,the influence of globalization depends on many factors.In some situations,globalization affects economy positively,while it can also contribute inequality if it is not managed properly.However,saying globalization will definitely increase inequality is incorrect.