Title: Does Globalization Harm the Poor?
Headings: 
Does Globalization Harm the Poor?
Is Globalization a Force for Poverty Alleviation, or a Driver of Inequality?
Global Poverty Reduced
What about Inequality?
Why Domestic Policies Matter
Baylee Eby
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Further readings on Economics 101

Content: Only in a few places has it fallen. This means that inequality in developing countries has generally risen over the past two to three decades. While it has been challenging for economists to make a direct correlation between globalization and poverty reduction or increases/decreases in inequality, the Economist article provides one theory for how globalization creates high inequality: Outsourcing—when rich countries shift parts of the production process to poor countries. Contrary to popular belief, multinationals in poor countries often employ skilled workers and pay high wages. One study showed that workers in foreign-owned and subcontracting clothing and footwear factories in Vietnam rank in the top 20% of the country’s population by household expenditure. A report from the OECD found that average wages paid by foreign multinationals are 40% higher than wages paid by local firms… By contrast, unskilled workers, or poor ones in rural areas, tend not to have such opportunities… For these reasons globalization can boost the wages of skilled workers, while crimping those of the unskilled. The result is that inequality rises. From this point of view, we can see how globalization may be a contributor to inequality. However, there are two things that we should keep in mind: (