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Outline and explain two ways in which globalisation may have increased levels of poverty in the United Kingdom. - AQA - A-Level Sociology - Question 10 - 2018 - Paper 2
Question 10
Outline and explain two ways in which globalisation may have increased levels of poverty in the United Kingdom.
Worked Solution & Example Answer:Outline and explain two ways in which globalisation may have increased levels of poverty in the United Kingdom. - AQA - A-Level Sociology - Question 10 - 2018 - Paper 2
Step 1
The increased power of transnational companies
Answer
Globalisation has led to the strengthening of transnational companies (TNCs), which often wield considerable influence over labor markets. As TNCs expand, they may find it easier to pressure workers in the UK to accept lower wages and less favorable working conditions in order to maintain competitiveness against firms in countries with cheaper labor. This dynamic can increase job insecurity, contributing to higher poverty levels as families struggle to meet basic needs.
Step 2
Impact of outsourcing on employment
Answer
The trend of outsourcing jobs to developing countries has been exacerbated by globalisation, allowing TNCs to reduce costs significantly. As companies shift roles that were once held by UK workers to cheaper labor markets, this leads to a reduction in available jobs within the UK. Consequently, those who lose their jobs may find it difficult to secure new employment, particularly in regions heavily reliant on manufacturing or traditional industries, thereby increasing the levels of poverty in affected communities.