Globalization & Technology on Inequality

 Globalization & Technology on Inequality

The impact of technology and globalization on inequality is a topic of ongoing debate among scholars and experts. I reckon that it is difficult to make a definitive statement on this matter since both sides of the argument are reasonable. Technological advancements and automation can lead to job displacement and income polarization. Certain industries and occupations may be more affected by automation, resulting in job losses and a widening wage gap between high-skilled and low-skilled workers. In addition, globalization can lead to a concentration of wealth and power in the hands of multinational corporations and the global elite. It can result in the exploitation of cheap labor in developing countries, while benefiting wealthier nations. Intellectual property rights and patents can create barriers to entry for smaller innovators, hindering competition and consolidating power in the hands of a few dominant players.

However, changes and trends are not always negative. Technology has the potential to improve productivity and create new jobs in emerging industries. It can lead to increased efficiency, lower costs, and improved access to goods and services, benefiting a broader range of people. Globalization can also facilitate the flow of capital, knowledge, and ideas across borders, fostering economic growth and reducing poverty in developing countries. For example, now I can invest in the US stocks just sign up and put on my order on my phone. This is unbelievable before smartphone was innovated. Global collaboration and interconnectedness can lead to the sharing of best practices, innovation, and knowledge transfer, potentially benefiting both developed and developing nations.

Therefore, I think it is important to note that the impact of technology and globalization on inequality can vary depending on various factors such as policy frameworks, governance, education, and social structures. Governments and societies play a crucial role in shaping the outcomes of these forces and mitigating any negative consequences. They are like toolkits on your hand. You can either them it well to do upgrade yourself, or just rejecting them forever and always think the negative way.

Impacts on Taiwan

I think that technology and globalization have had a significant impact on Taiwan, both economically and socially. For example, Taiwan has leveraged technology and globalization to become a major player in the global electronics industry. Taiwanese companies, such as Foxconn and TSMC, are renowned for their manufacturing and semiconductor expertise. This has contributed to Taiwan's economic growth and helped establish it as a leading exporter of high-tech goods. In addition, Taiwan has actively participated in the global economy, benefiting from international trade and investments. The country has forged economic ties with numerous nations and established free trade agreements (FTAs) to expand market access for its exports. Globalization has enabled Taiwanese companies to establish supply chains across borders, tap into global markets, and attract foreign direct investment (FDI).

However, it's worth noting that technology and globalization have also posed challenges for Taiwan. The reliance on high-tech industries has made the economy vulnerable to global market fluctuations. There have been concerns about job displacement due to automation and outsourcing, as well as the need to address income inequality and the digital divide within the country.

Reference

Derviş, K., Laurence Chandy, H. K., Gentilini, U., Indermit Gill, I. I., & Pipa, A. F. (2022, March 9). Are Technology and globalization destined to drive up inequality?. Brookings. https://www.brookings.edu/articles/are-technology-and-globalization-destined-to-drive-up-inequality/ 

Why taiwan matters - from an economic perspective. CSIS. (n.d.). https://www.csis.org/analysis/why-taiwan-matters-economic-perspective