Inequalities in trade
Causes
Developed countries such as the UK, USA, Japan and those in Western Europe have gained most from globalisation, because these countries have strong economies, firm trade links and their people enjoy a high standard of living. In recent years, Brazil, Russia, India and China (BRIC's) have benefited from globalisation as they have become more developed.
Another group of countries are also experiencing economic growthAn increase in the ability of an economy to produce more goods and services.. Referred to as the 'CIVETS' - Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa, the emerging markets in these countries are anticipated to be the place for continued economic growth. They are spread widely around the world but they share a number of similarities including young populations, relatively refined financial systems and they are not reliant on any one sector of industryFactories emitting gases..
Many developing countries that have missed out on globalisation include those in Africa, which are among the least developed countries in the world and are often politically unstableWhen a Government is corrupt and untrustworthy.. North Korea in Asia has also lost out on globalisation because its Government is very strict and controlling.
Inequalities in trade exist because of a lack of natural resources to develop or sell. There are high illiteracy ratesThe percentage of people who are unable to read or write. leading to a lack of skills to develop resources. Most developing countries are engaged in subsistence farmingWhen people only grow enough food to feed themselves and their family..
Exploitation of developing countries by richer more influential developed countries means that money leaves the host country. International debt and poverty prevents developing countries from investing in industry. political instabilityWhen a Government is corrupt and untrustworthy and civil warfare is likely. and corrupt GovernmentsA Government that is untrustworthy. mean money is diverted away from industrial developmentThe growth and expansion of different types of manufacturing and service industries, eg factories., which discourages foreign investmentsWhen a country invests in another country..
Poor health and diseaseIllness affecting plants and animals., eg AIDSAcquired Immune Deficiency Syndrome 鈥 a disease of the human immune system caused by infection with Human Immunodeficiency Virus (HIV). and malaria, mean people are unable to work even if they are skilled and willing to work. natural disastersThe threat of a naturally occurring event happening in a particular area, often without warning, which has negative impacts on people and the landscape e.g. tropical storms, earthquakes and volcanoes. such as droughtA long period of low rainfall that creates a major shortage of water., famineAn extreme lack of food that leads to large numbers of people starving to death. and earthquakes can set the development of a country back many years.
civil warA war between groups of people from the same country. prevent industrial development as foreign investors are repelled.
Lack of infrastructure, eg roads, railways, ports and airports, prevents products from being exportedTransported and sold to other countries. to market.