Tuesday, December 10, 2013

How does global distribution of wealth both change as well as stay the same?

How does global distribution of wealth both change as well as stay the same?

We live in a world where a majority of the wealth is centred around a fragment of the world's population. The global distribution of wealth in the world is uneven to say the least. A handful of countries control the distribution of wealth, particularly economic powerhouses such as the United States, Japan and China which have numerous transnational corporations around the world. Through expanding their companies, outsourcing (offshoring), to countries around the world, they are in fact allowing other countries to industrialise which is an example of how wealth can change. However, a percentage of the money generated - in most cases a majority of the money generated - benefits these aforementioned economic powerhouses making the global distribution of wealth stay constant. 

Another example that this can be applied to is when economic powerhouses offer loans to other countries. They expect to be payed back in full, with interest at times, making the global distribution of wealth seem as though it is changing, but in the long run it is staying the same.