Q.11. Discuss the impact of globalization on trade, employment, particularly women employment, equality of income and wealth distribution etc.

Globalization has had a multifaceted impact on various aspects of economies worldwide. Here’s a comprehensive look at its effects:

Trade: Globalization has significantly increased international trade, with exports today being more than 40 times larger than in 1913. The reduction of trade barriers and technological advancements have contributed to this growth, reshaping the global economy and creating new opportunities.

Employment: The impact on employment varies by region and sector. In India, for example, globalization has led to the generation of employment since the economic liberalization policies of the 1990s. However, trade liberalization can have negative impacts on wages and employment for specific groups, such as industry workers in the US or farmers in India. Yet, globalization seems to create more jobs overall than it destroys.

Women’s Employment: Globalization has provided women with increased employment opportunities, particularly in emerging sectors like IT, service, and food-processing. However, the effects are uneven, with some women gaining new forms of employment while others lose traditional livelihoods due to control over natural resources being compromised.

Income Equality: Economic globalization tends to reduce income inequality in high- and middle-income countries but may increase it in low-income countries. Trade openness generally reduces income inequality in high- and middle-income countries but has the opposite effect in low-income countries.

Wealth Distribution: Wealth inequality is more pronounced than income inequality, and evidence suggests that rising inequality and wealth disparity due to globalization can hinder the potential benefits to the poor. Globalization is associated with income convergence across countries but income divergence within countries, necessitating targeted redistributive policies and investments in education.

In summary, while globalization has driven economic growth and expanded trade, its impact on employment, income equality, and wealth distribution is complex and requires nuanced policy responses to ensure that the benefits are shared equitably.