Impact of Globalisation on Trade, Employment, and Income Distribution

1. Trade

Globalisation has significantly transformed international trade by increasing market access and competition. Free Trade Agreements (FTAs) and Trade Liberalisation have expanded global markets for goods and services. For instance, the Regional Comprehensive Economic Partnership (RCEP), which includes countries like China and Japan, has enhanced trade flows among member states. However, this increased competition can also negatively affect domestic industries unable to compete effectively.

2. Employment

Globalisation has created diverse employment opportunities by fostering new industries and expanding existing ones. For example, the IT and service sectors in India have seen substantial growth due to global outsourcing. However, it has also led to job displacement in traditional sectors, such as agriculture and manufacturing, due to increased competition and technological advancements.

3. Women Employment

Globalisation has improved women’s employment opportunities by encouraging industries that employ a higher proportion of women, such as the textile and garment industries. However, it has also highlighted issues like wage disparity and job insecurity, where women often face lower wages compared to their male counterparts.

4. Equality of Income and Wealth Distribution

Globalisation has contributed to economic growth but has also widened the income and wealth gap. In developing countries, while economic progress has been made, the benefits are often unequally distributed, leading to increased income inequality. For example, in India, the wealth of the top 1% has grown significantly compared to the average income of the lower-income groups.

In summary, while globalisation has spurred economic growth and provided new opportunities, it has also exacerbated income inequality and presented challenges in employment, particularly for women.