Impact of trade on Inequality Essay Example | Topics and Well Written Essays - 250 words

Impact of trade on Inequality - Essay Example Mostly, this takes place because the usage and the application of various useful technologies in trade is only available to the highly skilled and trained people but not to the unskilled and the poor. During several previous centuries, inequality in world trade has been on the rise. Income within most countries has been rising and declining drastically. Specifically, it has been increasing in the developing countries and falling in the highly industrialized and developed nations. However, this trend is becoming reversed in the Organization for Economic Cooperation and Development. This implies that there is no global inequality trend for the previous two centuries. Therefore, almost all the rise in world income inequality has taken place due to the increasing gaps between countries rather than increase of gaps within countries. Meanwhile, integration in world economy has advanced. If this relationship meant causation, it would be that the increase in inequality among nations has been caused by globalization but inequality within nations has not been elevated. The effects of globalization and its result have gone both ways with respect to disparity within nations. This is accordin g to simple correlation between the perceived trends. The following conclusions can be deducted from the economic record of inequality: a) The disparity between incomes among countries has reduced. This has been the result of the globalization factor as well as commodity markets for the nations that have been integrated into the global economy. b) Inequality has also been lowered by opening up to the international business as well as the international factor movements within labor-filled countries. This has taken place within the past few decades. e) Global incomes would continue to be persistent especially under a complete global integration. This is similar to inequality in large integrated economies from a domestic perspective. This situation is lower in a completely integrated