Impact of Globalisation on Poverty (WJEC Eduqas GCSE Sociology): Revision Note

What is globalisation?

• Globalisation refers to the growing interconnection of countries through trade, communication, technology, migration and culture

  • It allows goods, money, and information to move quickly across the world

  • Multinational corporations such as McDonald’s, Shell, and Coca-Cola operate across many countries, influencing global economies and cultures

• While globalisation can create wealth and opportunities, it can also widen inequality — both between and within countries

Globalisation and poverty in the UK

• The UK economy is affected by globalisation through changes in trade, jobs and living costs

• Economic recessions linked to the global economy — such as the 2008 financial crisis — have led to:

  • job losses and redundancies

  • insecure work and zero-hour contracts

  • wage stagnation while living costs rise

• When multinational companies move production to cheaper countries, UK workers lose jobs, especially in manufacturing

• Globalisation also brings cheaper goods and more consumer choice — but this can mask the reality that many UK households now face relative poverty

A global elite

• Marxist Leslie Sklair argues that globalisation has created a powerful global elite — a small group of wealthy business leaders who influence global decisions

• These elites benefit from global capitalism, while ordinary workers experience low pay and insecurity

• Multinational corporations are often more powerful than governments, giving them the freedom to move operations wherever labour is cheapest

• Globalisation has therefore strengthened class inequality and reduced job security for working people

Employment and the working poor

• Globalisation has changed the nature of work in the UK:

  • Permanent, full-time jobs have been replaced by temporary or part-time work

  • Zero-hour contracts give no guaranteed weekly income

  • Wages are often low, while the cost of housing, energy and food continues to rise

• Workers in industries affected by outsourcing or automation are more likely to become unemployed or underemployed

  • E.g. many UK factories have closed as production has shifted overseas, where labour costs are lower

• This has left former industrial towns with limited job opportunities and rising poverty rates

• Families in these situations may struggle to escape the cycle of deprivation

The cost of living crisis

• Since 2021 the UK has experienced a severe cost of living crisis — global factors have made essentials more expensive

• Causes include:

  • disrupted global supply chains after COVID-19 lockdowns

  • rising energy and fuel prices due to the Russia–Ukraine conflict

  • inflation driven by high global demand and limited supply

• House of Commons Library (2024) reports that:

  • 7.2 million people lived in food-insecure households in 2022 and 2023 — up from 4.7 million the year before

  • 11% of people and 17% of children now experience food insecurity

• The Trussell Trust (2024) distributed over 3.1 million emergency food parcels between 2023 and 2024 — a 94% increase in five years

• Rising global prices make essentials unaffordable for those on low incomes, pushing more families into poverty despite working full-time

Sociological perspectives on globalisation & poverty

Marxism

• Marxists argue that globalisation intensifies capitalist exploitation

  • A small global elite gains wealth, while the working class faces job insecurity and low pay

• Globalisation creates a reserve army of labour — workers worldwide competing for the lowest wages

• The result is greater inequality and global poverty

Functionalism

• Functionalists argue that globalisation can have positive effects — spreading technology, skills and jobs

• It helps countries become more interdependent and improves living standards over time

• However, they acknowledge that rapid economic change can cause temporary disruption and inequality

New Right

• The New Right see globalisation as encouraging enterprise and competition

• They argue that individuals should adapt to new global labour markets by upskilling and working flexibly

• Critics say that this ignores structural problems and the lack of secure jobs available