How imports from the global south thought to increase inequality in developed countries
Using the readings by Alderson and Nielsen (2002) and Mahutga and Jorgenson (2016), answer the following questions in two sentences or less.
How are imports from the global South thought to increase inequality in developed countries?
How are exports to the global North thought to increase inequality in less-developed countries?
Synthesizing information from the two readings and the lecture, answer ONE of the following two questions:
How should institutions alter the relationship between imports from the global South and income inequality in developed countries? Cite any relevant evidence to support this idea.
How should EU integration alter the relationship between exports to the global North and income inequality in less-developed countries? Cite any relevant evidence to support this idea.
Sample Solution
Potential Impacts of Trade on Inequality:
Developed Countries (Imports from Global South):
- Job displacement: Cheaper imports might lead to job losses in manufacturing and certain sectors, affecting low-skilled workers disproportionately. (This aligns with points raised in Alderson & Nielsen, 2002).
- Wage stagnation: Increased competition from foreign labor can put downward pressure on wages, widening the income gap. (See Mahutga & Jorgenson, 2016, for arguments on wage inequality).
Less-Developed Countries (Exports to Global North):
- Exploitative labor practices: Unfair trade agreements or weak regulations can lead to low wages and poor working conditions in export-oriented industries. (Mahutga & Jorgenson, 2016, discuss vulnerabilities in developing economies).
- Resource depletion and environmental damage: Unsustainable export practices can deplete natural resources and harm the environment, impacting livelihoods and future development. (Consider arguments from the lecture on sustainability and its connection to inequality).
Full Answer Section
Policy and Integration Approaches:
Developed Countries:
- Fair trade policies and tariffs: Implement measures to ensure fair wages and labor standards in countries producing imported goods. (Alderson & Nielsen, 2002, propose similar measures).
- Investing in worker retraining and education: Equip displaced workers with skills to navigate the changing job market, mitigating negative impacts of imports. (Evidence-based approaches to worker training are crucial).
EU Integration:
- Conditionality based on labor and environmental standards: Make EU market access contingent on adherence to ethical labor practices and sustainable production methods in exporting countries. (This aligns with concerns raised in the lecture about responsible trade).
- Development aid and capacity building: Support developing countries in upgrading their economies and diversifying exports to reduce dependence on low-value production. (Research on the effectiveness of development aid programs can inform this approach).
Remember to cite specific evidence from the readings and the lecture when possible to strengthen your arguments.
Disclaimer: Please note that these are just general approaches based on the limited information you provided. A more comprehensive and nuanced response would require access to the specific content of the readings and the lecture.