GLOBALIZATION AND POVERTY

These words are the buzzwords of today.However, there is a negative correlation between them.It is obvious because globalization has led to a rise in the standard of living for many people worldwide.As technology advances and living conditions change, the third world countries can’t afford to pay such a high price for the latest technology.Furtherme, small businesses and poor countries are not capable of improving their technology as aresult of the rising demand and supply.The effects of globalization on poverty are a really controversial issue.While developing and developed countries make a profit thanks to globalization,third world countries are compelled to do business locally, therefore, they don’t expand and reach their full capacity.

When technology is considered ,improvements are not only useful for wealthy countries, but also wealthier companies.Without a doubt, many companies which are successful and wealthy owe their development  to technological innovations.One good and the most simple  exampleis certainly the invention of the telephone.It enabled information to be sent all over the world relatively more rapidly than ever before.Before it was invented, the transfer of information may have taken days, weeks, and even months!. Today, through the use of telephones , many countries are able to do business  in distant places.Consider, for example,your Office is in the USA but you want to communicate or sent a text back to India, via the advanced systems, it can be managed by touching a key.

Unfortunately, nothing is so simple.This situation creates high unemployment rates and drives the people further and further into poverty.Therefore, some countries who can afford to pay millions every year for the newest technology will compete with others.Nations have to update their technology.If not, they are mostly unable to compete with wealthy countries.Unemployment is a critical concern in every national economy because a huge number of companies which have a great reputation consider that workers  who are not well-educated and lack skills are an obstacle to higher investment and economic  circulation .

To sum up, the fact is that there is both a negative and positive correlation between globalization and poverty.Globalization decreases poverty in some countries while simultaneously increasing it in others.Likewise,it  causes the economies of many  third world countries and smaller companies to collapse, wealthier companies are using the poverty of other countries to their own advantage.Briefly, they behave like parasitic  animals.