Globalization And Its Impact On The World Trade Organization Essay

945 Words Mar 5th, 2015 4 Pages
Globalisation is a highly contested term, where different perspectives have emphasis placed on different areas. With that being said, there is a broad level of agreement on the nature of globalisation. Globalisation is ‘a process which embodies a transformation in the spatial organization of social relations and transactions, generating transcontinental or interregional flows and network of activity, interaction and the exercise of power.’ (Held et al., 1999) At a simple level, globalisation has meant an increase in international trade, development of multi-national corporations, for example, McDonalds, free trade (movement of goods and services) through organisations such as the World Trade Organisation, free movement of labour, and an inter-connected global economy through improved communications and transport. Some may argue that globalisation is most beneficial to less economically developed countries (LEDCs) as it helps to create more jobs and wealth, however this does come at a cost. Also, not much is being to done to bridge inequality. Despite increased free trade between countries, the gap between the richest and poorest does not seem to be changing, with a recent report suggesting that by 2016, the top 1% will be richer than the rest of the world combined (Oxfam, 2015). Also, more than 80% of the world’s population lives in countries where income differentials are widening (Shah, 2013) Arguably, globalisation has helped capitalism become more widespread than…

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