Globalization is a word that has recently become a commonplace in two different ways. Firstly globalization inspires visions of global village, a place where by all citizen of the world is linked together with high technology system. On the other hand, globalization is the one of the consequence that local factory closed down and re-open at another corner of the world where the country with cheap labor and weaker environmental law.
Globalization as it exists today is not fully understood and impacts are unclear. It is because globalization has wide variety of combinations that affecting every aspect of life. In this report aims to explore world issues to analyze two statements: prosperity and poverty.
Throughout this report many of the issues that will be examined by four important issues which influence prosperity and poverty in farther chapters; Economical, Technological, Political and Cultural Globalization.
In the past, a company tended to be identified with one particular country. For example Toyota started with their ownership, production and their market were primarily located in Japan. Today in the globalized world, growing number of huge companies including Toyota, are Multi National or Transnational in nature. Since they have integrated operations across the world. They maximized their work. The economist Karl Marx’s quotes “The working men have no country” (Marx, 2002, Pg.17) pretty much make sense of this.
According to Fortune magazine publishes a list of the Global 500, which contains the 500 largest companies in the world based on their annual revenues. For example, In 2008 Toyota’s revenue of USD 230 billion is comparable to the size of the entire economy of Bangladesh’s GDP of USD 224 billion with 156 million population. (CNN, n.d. and CIA, n.d.) As we can see the number of GDP in the process of globalization, the wealthy is based on own stability. The gap between rich who move their production and capital, seek markets everywhere in the world that benefit the company.
Those own stability comes from competitiveness in Knowledge Economy (K-Economy) based on technology. Those who can expend and apply new knowledge and defined trends early, and quickly create competitive advantages that produce much greater global wealth which will leads higher standard of living.
World Trade and Income Inequalities
In 2003 statistics (Norton, 2007) stated that, the richest fifth of the world’s population received 85% of the total world income, while poorest fifth received just 1.4% of global income. The wealthy countries has high percentage of open trade and investment. Which reduced the bargaining power of unskilled workers to gain the lower wages and increased inequalities between wealthy and poverty countries.
For example in the United States, there is rising income inequality due to increased of population migration. On many occasions for those migrants legally or illegally, they order to find jobs and improve their standard of living. However decreasing number of job opportunities for less-skilled native citizens of the United States.
In addition, corruption of Cameroon is part of increasing in the country income inequalities due to poor governance, poor finance administrations and tax evasion and exemptions that disproportionately connected to wealthy population groups. (Harford, 2006)
Impacts of Innovation and Technology
The technological globalization has been always produced revolutions in the way in which people live. Today we are more referring primary to communications. This has occurred because of non-stop growth of communications revolutions as well as computer technology in the past few decades. The impact of this technological revolution affects everyone of the world almost every single seconds. We are able to communicate with much of the world, by...