The impact of globalisation: Winners and losers in the EU and the USA

04-07-2016

Does globalisation level up living standards or increase inequality? Economists have long been debating the role free trade plays in creating winners and losers. By opening up markets, globalisation reduces the number of monopolies, while consumers benefit from the resulting increase in competition. But globalisation also leads to losses, or at least smaller net gains, for some and it can also increase economic inequality. Once a purely economic and social issue, the question of who wins and who loses in globalisation has become a topic for heated political debate in Europe and the USA.

Does globalisation level up living standards or increase inequality? Economists have long been debating the role free trade plays in creating winners and losers. By opening up markets, globalisation reduces the number of monopolies, while consumers benefit from the resulting increase in competition. But globalisation also leads to losses, or at least smaller net gains, for some and it can also increase economic inequality. Once a purely economic and social issue, the question of who wins and who loses in globalisation has become a topic for heated political debate in Europe and the USA.