IntroductionGlobal business is the modern form of business in this 21st century. Global business involves the interaction of people from different cultures, societies, and diverse backgrounds. In undertaking various business activities, each party aims at achieving their goals for example earning profits from their investments. (Bilton, 2002)Due to modernization and advancement in technology, most businesses are beginning to explore international markets for better profits and opportunities. In the recent past, trading has become increasingly global in many ways because of the need to gather and increase the organization’s financial bases. Advancement in technology including communication efficiency and better international relations has contributed to the promotion of the international trade.
A social division in the society basically refers to classifying people according to their education, income or wealth levels etc. In this case, each cluster of people does not mingle with the other due to its superiority or inferiority. This paper therefore at how globalization increases or decreases social division. (Bradley, 1996)Income inequalitiesGlobalization one can say has played a very big role in increasing income inequalities in the society. Analysis within any nation shows that global traders always tend to be fewer than the rest of the people.
These people who carry out global trade usually have increased income levels. Some of them could be people with individual businesses or could be in organizations owned by a number of people. Research carried out by Bilton reveals that global trade can increase someone’s income by approximately seventy to hundred percent. This usually results in these global traders feeling they are more superior to the other people. They will drive very expensive vehicles and eat in highly expensive restaurants.
Many of them usually cut off any links that they had with the low or middle income people. (Bilton, 2002)Research has shown that with increase in money accrued from global trade, these people who were even helping low income earners stop because they tend to perceive them as lazy. Global traders start having friends who are in other nations and are in the same earning capacity as them. They speak a language of millions and billions of dollars that any small or middle income person would feel uncomfortable in their midst.
(Bilton, 2002)It is quite apparent that global traders always want to conceal any business information that would help low and middle income earners climb the ladder. This therefore connotes that globalization has played a very big role in increasing income inequalities in the society. It has actually enhanced the classification of people of high income class in the society. It is only the wealthy people in the society that benefit from globalization in the long run. This therefore results in social income disparities. (Bilton, 2002)On the other hand, globalization has helped decrease social division.
It is quite clear that many organizations that decide to carry out global trade usually start branch offices in other nations. These branches normally require employees to carry out operations. As people get employment in these global organizations, their income gradually increases. For instance, Barclays bank has branches all over the world and it has employed citizen of nations where its branches are. (Cohen and Kennedy 2000)