The aim of technical progress and of the technological movement progression can be a pathway in which globalization could affect income dispersal and the poor. Technical change originates mostly from Research and Development activities in the developed countries in response to circumstances usually of their own reserve endowment. Meaning, that technical change has a tendency to be labor-saving, capital concentrated and skill prejudiced, and would typically increase inequalities in both developed and emerging countries by forming wider income gaps. There is a high degree of substitution between untrained labor forces and money, in contrast to the high degree of differences between skilled workforce and money. In addition, technological distribution and access to new technology are not the same everywhere and impulsive. This means differences may expand globally over time, which may substantially increase income inequality. Specifically, globalization has accelerated the process of control, including the privatization of research, which could make it tougher and, in some instances, higher the price for developing countries to access the new technology.
Write a one-page paper (300 words) explaining how economic globalization has impacted the poor.
Sample Solution
