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Question 10
Outline and explain two ways in which globalisation may have increased levels of poverty in the United Kingdom.
Step 1
Answer
Globalisation has led to an increase in outsourcing, where companies move their operations to countries with cheaper labor costs. This trend has resulted in job losses in the UK as companies seek to minimize expenses. With manufacturing and service jobs being relocated abroad, workers who previously held these positions can find themselves unemployed or forced into lower-paying jobs, thereby increasing poverty levels.
Step 2
Answer
Globalisation can lead to wage suppression, particularly for low-skilled workers in the UK. As businesses compete on a global scale, they may choose to reduce wages to remain competitive. Additionally, the influx of cheaper labor from abroad can drive down wages in sectors that rely heavily on such labor. This means that even those who remain employed may struggle to make ends meet, increasing the incidence of poverty among working individuals.
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