Impact Of Globalization On Poverty

INTRODUCTION

According to the estimations sourced from The World Bank as of 2011, there are 17 percent of people living under poverty in the world, these people are living at or below $1.25 a day. Poverty has been a global issue since centuries ago as people in some countries are suffering from living under poor conditions, without sufficient amount of goods and money to survive. However, in accordance to the statistics published by the World Bank, the poverty rate has significantly declined over the last twenty years. Taking the example of $1.25 a day of year 1981 and year 2005, the poverty rate decreased from 40% to 20% approximately.
In this modern day and age, the world is constantly improving and developing itself. The advancing

The globalization that understood by the economist, is most of the time when someone speaks about globalization, he or she will refer to a multitude of phenomena, which usually have less or nothing to do with globalization. IMPACTS OF GLOBALIZATION ON POVERTY
Globalization is the result of the phenomena which the evasion of the obstructions on the international commerce, the unprecedented development of the capitalist market which demands a greater freedom of movement, acceleration migration and the increase of the direct foreign investment and technological transfer. The phenomena are resulted through the eye of the economist.

Positive impacts of globalization on poverty
Does ecoomic globalization make the world we live in be a fairer place to live? No, but it did improved the poverty in certain

On a local economis level, globalization has dramatically changed the nature of business. Their competitors have pushed out the smaller local companies from the market. This is because the customers have been changing their mind and turning to other cheaper retail prices which are offered at a cheaper costs of foreign labours in manufacturing their products, as compared to the local companies which are not able to do so. In this case, large quantities of goods can be produced as well. Many campaigns have been initiated by the people or the government to promote the local markets. So, the local markets able to be restores and the return of locally produced goods and services. However, at a closer glance, the multinational company nowadays are highly localized to accommodate local tastes, and the company will fom a mutually benificial relationship with other foreign countries to further their sales. Some small businesses such as the aformentioned local grocer have suffered to avoid being crushed by a large, globalized company. Eventually, as the business of local companies declined, the income in that country will fall as