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The Impact on Wealth Growth from Globalization

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The Impact on Wealth Growth from globalization: critical thinking #2

The Impact on Wealth Growth from globalization: critical thinking #2

The Impact on Wealth Growth from Globalization There are a lot of concerns for today’s economy. One of them being wealth distribution. There is the poor, middle class, and the rich. It is evident from the graph shown that the poor are getting richer, the rich are getting richer, and the middle class is getting poorer. So, what is the cause of this? The big answer economist will say is “It Depends”. It depends what factor you look at because there are many. The one I want to focus on is globalization. Is globalization a factor in wealth growth? How is it a factor? Is globalization positive or negative for wealth growth? If anything, what should be done? These are all the question I will try my best to answer in this essay.
Globalization VS Wealth Growth Back to the previous question, does globalization effect wealth growth? My answer is, yes. It absolutely effects wealth growth for all nations. Globalization effects a lot of economic studies. For an explanation, let me first define globalization. TechTarget.com defines Globalization as the tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen. The global economy is sometimes referred to as a globality, characterized as a totally interconnected marketplace, unhampered by time zones or national boundaries. There are probably different ways globalization effects but, I want to look at the business portion of globalization. Every big corporation is always looking for ways to make their production cheaper so they can make more profit. One way is cheaper labor, and resources. Businesses will move their industry to other nations that have cheaper resources, and where they can pay cheaper labor wages. This…...

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