Income Inequality and Globalisation Assignment Example | Topics and Well Written Essays - 2750 words

Income Inequality and Globalisation - Assignment ExampleOver the past decades, many economists be in possession of been debating and claiming that increasing degree of trade relations between developed and developing countries can be identify as one of the major aspects which gave rise in income inequality. Furthermore, economists have also argued that trade relations just within nations in the current day context are highly influenced by globalization trends and thereby, globalization can also be addressed as a vital reason for income inequality (Freeman, 1995). Where on one hand, the advantages of globalization can be identified as reduced trade barriers and implementation of new technologies conversely, its disadvantages can be identified as inequality in payment of wages to workers being sort as skilled and unskilled. To be illustrated, implementation of modern technologies can be observed to play a vital role in reducing the demand for the unskilled workers in the global pla tform which is yet giving rise to income inequality amid different economies (Batterson & Weidenbaum, 2006).Recent studies (Atkinson, 2003 Alderson & Nielsen, 2002 Sala-i-Martin, 2002), based on the understanding of this particular field in the current day context, have revealed that nations react in a distinct manner towards compulsive income inequality, fundamentally depending upon their divergent social as well as economic features. For instance, the current trends have revealed that the US, as a developed nation is also facing the problem of income inequality which has further been recorded to cast up with significant rapidity over the past few decades. This particular issue, within the context of US trade environment, can further be illustrated with reference to the distri exactlyion of the organizational wages i.e. in accordance with the emerging significance of higher level officials such as the Chief Executive Officers and skilled managers in similarity to the ground level laborers or front desk employees. It is worth mentioning in this context that the recent trends depict a continuous increment in the wages paid to the skilled employees designated in the decision-making or managerial positions, but contradictorily, it also reveals that the low-skilled workers are receiving lesser wages at a stagnant rate.