Globalization’s Gain Come with a Price

Globalization’s Gain Come with a Price

“Globalization Gain come with a price” is a case that explains the impact of globalization in different aspects; it relates the consequences of globalization in both a negative and positive approach.  The issue developed in the case, involves how globalization is assisting to widen the income gap that exists between the poor and the rich in developing countries. On the other hand, the case portrays a significant background of economist’s prediction that in many developing countries globalization is one of the most significant aspects to low skilled workers. This implies that the growing inequality includes arguments that globalization is significant only to the elite and in Latin America it has assisted presidential candidates; in china it appears to be a worry to many of the officials. Hence, the subject of globalization is enhancing to more inequality, concerns are being raised on whether the gaps between the rich and the poor together with inequality in many countries can lead a backlash that will undermine both investments and trade around the world. The question still remains whether globalization is in a position to increase inequality (Davis, Lyons & Batson 9).

Globalization has a great impact in enhancing the gap existence between the economic haves and the economic have not’s that have widely increased not only in US but also in other countries (Davis, Lyons & Batson 4). Economists assert that the advantaged group includes the skilled and qualified people educationally in order to gain significant opportunities hence leaving the rest lagging behind.

On the other hand, globalization has a positive impact and in this case, the income of the low skilled workers is expected to increase, comparing this income to skilled workers which will increase remarkably (Davis, Lyons & Batson 5). The idea of globalization has been credited for assisting many people in US and all over the world by improving their standards of living and exempting poverty.

Different studies have shown that although globalization have indicated that it is in a position to create inequality hence, raising concerns  on the gap existence between the rich and the poor in US. Therefore the growing inequality between the gaps   is included by the populist and argues that globalization is a game that benefits only the elites.

The US government plays a critical role in globalization for instance it is initiating effective measures on boosting international investments and including significant factors that influence  foreign investment decisions. In this way, the government is opening different opportunity that will encourage international investment in US.

As a result of the role of the government in globalization, this will impact the community in terms of creating new opportunities for skilled labor that leads to increase of wages. Foreign competition and investment will enhance a significant demand for skilled labor only hence the gaps will still remain. This is because the result of widening the income gap is intense signifying that those without the required skills and education will be placed in the underground economy (Davis, Lyons & Batson 6). This means that the local companies will require an upgrade or closed in order to encourage international investments. On the other hand, skilled labor will be of use and hence the increase in wage s expected to rise. Additionally, the encouragement of foreign firms will automatically enhance to introduction of new technologies hence boosting the skilled workers demand and increasing the wages (Davis, Lyons & Batson 3).


Davis Bob, Lyons John & Batson Andrew. Globalization’s Gain Come with a Price: While poor benefit, inequality feeds A Backlash Overseas; retrieved from 2007


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