Ultimately, scholars from both disciplines must begin to evaluate government commitment to pro-poor redistribution (rather than the extent to which policy is beholden to vested elite interest groups) in order to assess the relationship between trade and poverty. Further, we provide some preliminary quantitative and qualitative tests of our argument. We provide theoretical guidance on how scholars might begin to operationalize ideology on a global basis and why this is necessary to evaluate the globalization–poverty linkage. Specifically, we contend that scholars need to identify the ideological positions of developing country governments, an identification that moves beyond the conventional left–right divide that prevails in developed nations. We review this literature and argue that to understand the relationship between globalization and poverty, we must ultimately understand the political motivations underlying the policies directed at the poorest.
Economists and political scientists explore this relationship but are far from reaching a conclusion. In my opinion, some solutions are needed to reduce negative impacts of globalization and to find happy medium between developed and developing countries.What is the relationship between globalization and poverty? Developing economies have long turned to international trade and finance as a solution for development, yet 35% of the world's population still lives below the international poverty line.
To sum up, globalization is a complex process that works in various ways and has different effects. As a result, employment rate in these sectors falls. Automation, especially in the manufacturing and agricultural sectors reduces the need for unskilled laborers. But those foreign companies arrive with the new technology, which extends across the country. The arrival of foreign companies into developing countries increases employment in many sectors. In the short term, some of the poor will become poorer. An arrival of foreign companies and foreign capital creates a reduction of unemployment and poverty however it can also increase the wage gap between well-educated, skilled workers and those who are not. On the other hand, scientists consider about so-called paradox of globalization: in many cases, the gap between the rich and the poor is increasingly widening. It also has major effects on efficiency, productivity and competitiveness. It also affects investment, both in physical capital and in human capital. Order custom essay The Impact of Globalization on the Economy For instance, it affects countries’ production of goods and services. Leading pro-globalization arguments make a strong case that globalization is simply the industrial revolution that rationalizes economic activity everywhere. There are heated debates around positive and negative effects of globalization. Globalization has significant impacts on all economies of the world, with various effects. Of course there is not a complete list of the factors of globalization, but in my opinion, those mentioned sources are the most important. And finally source of globalization is creating globalized media, the arts, and popular culture with the widespread use of the English language for global communication. Next reason of globalization is trade liberalization that has led to more liberal world trading system. E-mail, the Internet, and the World Wide Web have significantly lowered the costs of transportation and communication in international trade and in doing business by and large. The first factor is technological advances. There are several sources of globalization. Today majority of scientists agree that economic globalization “is the increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, service, technology, and capital”. To talk about the effects of globalization, it is necessary to understand its nature and the factors, sources, which led to its emergence. Today it covers almost all spheres of human activity, and its influence becomes more and more obvious. The impact of globalization on the economy Globalization is one of the main features of modern society.