Globalization and Income Inequality

Globalization involves the process of globalizing which implies particularly the growth of a tremendous integrated global economy marked particularly by the free flow of capital, free trade and the tapping of low-cost foreign labor markets. The world has witnessed various advances in the field of communication and enhanced the technology that has both made globalization possible. Globalization has become a common phenomenon in the world wherein the most production of goods and services has become international. A key element of the current wave of increased globalization is foreign production chains that presently allow workers to pair easily up across various borders. Although globalization has been seen to have benefits, there are various arguments put forward by lobby societies and protestors who oppose the conditions under which globalization operates. Likewise, the incidence of inequality has been on the rise with many nations not getting a fair share of this global trend. The following literature addresses these concerns and provides more insight into the issue of globalization and inequality.
Joyce (2008) in his research addresses the gap that exists between the richest and poorest nations in terms of the average GDP per capita levels. The author argues that despite the tremendous increase in globalization, developing nations have continued to drag behind economic wise. In his research, the author provides a review of the evidence on the contributing factors of the disparities in GDP per capita, which has concentrated on the role institutions play in fostering development. These institutions mainly reflect prevailing domestic conditions. however, globalization, as indicated by Joseph, has an impact on the development of these nations.