Why has globalization led to an increasing income gab between rich and poor coutries?

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2026-04-15 10:51

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Globalization has often favored wealthier countries by providing them with greater access to markets, technology, and investment opportunities, allowing them to enhance their economic growth more rapidly than poorer nations. Additionally, the competitive pressures of globalization can lead to a race to the bottom in labor standards and wages in developing countries, further exacerbating income disparities. Moreover, richer countries typically have more resources to adapt to global economic changes, leaving poorer nations struggling to keep pace. As a result, while globalization can create opportunities, it can also deepen existing inequalities between rich and poor countries.

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