Title: What is economic globalization? - Market Business News
Headings: What is economic globalization?
What is economic globalization?
Economic globalization linked to greater wealth and inequality
Advances in science and technology
Globalization of the automotive industry
Does globalization bring more inequality?
Video – Economic Globalization

Content: Does globalization bring more inequality? As the world has become more economically globalized, so has the income and wealth inequality within countries. Some people believe globalization is the cause – this has so far been difficult to prove. They argue that if companies have access to the whole world market, and most of those companies are located in a few countries – the US, EU and Japan – they will suck money out of the whole world in much greater quantities than if they sold just within their own markets. The counter-argument is that globalization brings well-paid jobs (compared to local pay rates) to emerging economies. A Ford factory worker in Mexico earns more and has better workplace conditions than he would as a farm laborer. When looking at inequality between nations, however, globalization has coincided with more equality between the advanced and emerging economies. The rich countries today represent a smaller percentage of global GDP compared to twenty or thirty years ago. Wealth inequality is not only a problem within emerging and low-income nations – it is also increasing in the advanced economies. Janet Yellen, who heads the Federal Reserve System of the United States (America’s central bank), said in a speech at the Conference on Economic Opportunity and Inequality at the Federal Reserve Bank of Boston in October 2013 that wealth inequality in the US has widened since 1990.