Economics and Economic Change Macroeconomics Essay

Economics and Economic Change Macroeconomics - Essay Example Although globalization is hard to define, when one considers the lives of more than one-fifth of the population of the world, earning less than $1 per day, at stake, it is necessary to address the impacts of globalization. Globalization has increased the income gap in countries such as Pakistan where the government has been unable to keep updated with the latest technological advancements and financial integration (Danacica, 2005). Where globalization implies greater opportunities for economical advancement and progress, it cannot assuage the chances of growing inequalities and cultural uniformity. Moreover it fails to deliver equal advantages to all countries. Markets give reward to those who are well-equipped with appropriate capital, labor and entrepreneurial skills (South Center, 2006). In countries not equipped sufficiently, including those â€Å"under transition†, are harmed by globalization. The impact of globalization on these countries renders environmental issues, so cial disputes and immigration tendencies in them (Danacica, 2005). The integration of markets and the easy flow of capital along with the rapid popularity surge of the internet have contributed to an increase in the demand for skills than as compared to their supply (South Center, 2006). In countries where demand and returns for skills are high, people from other countries will be encouraged to immigrate there. Immigration from the skilled individuals from poorest countries also increases the resultant inequality, since the correct asset for today’s individual is higher education. Another argument presented by critics is that markets are not perfect and there are chances of their failure. One such failure of the market system is pollution, where the polluter can get away with pollution without being accountable for the complete costs of pollution. For instance, the environmental costs of greenhouse gas emissions of the US are levied on poorer countries.