Overview
Globalization has transformed the way economies interact, leading to increased trade and cultural exchange. However, it has also contributed to significant changes in income distribution, often resulting in greater income inequality. Understanding these dynamics is crucial for addressing the challen...
Key Terms
Example: The rise of multinational corporations is a result of globalization.
Example: Income distribution can be measured using the Gini coefficient.
Example: Income inequality is often highlighted by the wealth gap between the rich and the poor.
Example: A Gini coefficient of 0 represents perfect equality, while 1 indicates perfect inequality.
Example: Tariffs are a common form of trade policy.
Example: A strong labor market can lead to higher wages.