Globalization and Poverty

Poverty has become one of the most important issues in a globalized world. Two important and strong arguments support the negative effects of globalization on poverty. 

First reason is that many developing countries do not benefit from the global trade. Some companies such as GAP produce their products in these countries to pay less money for producing. While these companies are becoming richer by this way, these countries cannot improve themselves and they are getting poorer. For example, developing countries have a lot of sweatshops. In Vietnam, people who are working at the sweatshops earn two dollars a day. 

Second reason is that the poor countries cannot compete with other developed countries. These poor countries have a lot of resources which are available to the wealthy; however, they cannot afford to gain more resources. For this reason, these countries have to sell all their food as well as products to the developed countries in order to survive. 

Although globalization means to approach the countries in the economical field, always rich countries derive profits by trade because of their power of using money.