Globalization has increased connectivity between countries but may not reduce inequality within poorer nations. While trade theory predicts inequality will fall as developing countries enter global markets, many have actually seen inequality rise. This is because multinational companies in poorer countries often employ skilled labor, raising their wages, but unskilled workers do not receive the same opportunities and productivity gains. New theories suggest globalization can boost wages for skilled workers but limit wages for unskilled labor, increasing inequality. Despite allowing closer economic ties, globalization has also been linked to growing inequality in some developing nations.

1. A. Read the following text carefully and do the tasks that follow it.
1. For questions a – l put the words from the box in the right places.
Why globalisation may not reduce inequality in poor countries
Globalisation has made the planet more (a) ___________________. As communication gets cheaper and
transport gets faster, developing countries have closed the gap with their rich-world counterparts. But
within many developing economies, the story is less (b) ___________________: inequality has worsened.
Basic theory predicts that inequality falls when developing countries enter global markets. The theory of
comparative advantage is found in every introductory textbook. It says that poor countries produce goods
requiring large amounts of unskilled (c) ___________________. Rich countries focus on things requiring
skilled workers. Thailand is a big rice exporter, for example, while America is the world's largest exporter
of financial services. As global trade (d) ___________________, the theory says, unskilled workers in poor
countries are high in demand; skilled workers in those same countries are less coveted. With more
employers clamouring for their services, unskilled workers in developing countries get wage boosts,
whereas their skilled (e) ___________________ don’t. The result is that inequality falls.
But the high inequality seen today in poor countries is prompting new theories. One emphasises
outsourcing—when rich countries (f) ___________________ parts of the production process to poor
countries. Contrary to popular belief, multinationals in poor countries often employ skilled workers and
pay high wages. A report from the OECD found that (g) ___________________ wages paid by foreign
multinationals are 40% higher than wages paid by local firms. What is more, those skilled workers often get
to work with managers from rich countries, or might have to meet the deadlines of an efficient rich-world
company. That may (h) ___________________ their productivity. Higher productivity means they can
demand even higher wages. By contrast, unskilled workers, or poor ones in rural areas, tend not to have
such opportunities. Their productivity does not rise. For these reasons globalisation can boost the wages
of skilled workers, while crimping those of the unskilled. The result is that inequality rises.
Other economic theories try to explain why inequality in developing countries has reached such (i)
___________________. A Nobel laureate, Simon Kuznets, argued that growing inequality was inevitable in
the early stages of development. He reckoned that those who had a little bit of money to begin with could
see big gains from investment, and could thus benefit from growth, whereas those with nothing would
stay rooted in (j) ___________________. Only with economic development and demands for redistribution
would inequality fall. Indeed, recent evidence suggests that the (k) ___________________ in developing-
country inequality may now have slowed, which will prompt new questions for economists. But as things
stand, globalisation may (l) ___________________ to promote equality within the world’s poorest
countries.
http://www.economist.com/
2. Find in the text the words that mean the same as the following.
a. large difference b. likely to be good or successful
c. things that are produced in order to be sold d. having or showing the knowledge, the ability
e. strongly desired by many f. obtaining goods or a service by contract from an
outside supplier
g. having a limiting or adverse effect on (something) h. very strong and firmly fixed
3. What do the underlined words refer to in the text?
a. their (line 2) b. it (line 5) c. their (line 10) d. they (line 18) e. ones (line 19) f. those (line 21)
4. Answer the following questions. Use your own words as far as possible.
a. What is the difference between developed and developing countries in terms of their working force?
b. In what way do multinational companies cause inequality among workers when they relocate to poorer
countries?
increases ● growth ● boost
equal ● average ● counterparts
poverty ● labour ● shift
struggle ● heights ● rosy

2. 5. Complete the following using your own words as far as possible.
a. According to past theories, global trade reduces inequality among workers in developing countries
because …
b. Local industries in developing countries …
c. Despite allowing countries to move closer to each other, globalization has …
B.
1. Rephrase the following as started.
a. I have never thought about working abroad because I have a career here. I would think about …
b. How long does it take to get a visa? Have you any idea …
c. Many EU countries are experiencing high levels of immigration because of the unemployment crisis. If it
weren’t …
d. Lots of workers will be unemployed if the company relocates. Should …
e. “Don’t worry! Everyone will help you if you need it.” He was insecure about going abroad, so I told him …
f. If the world economy improved, immigration rates would go down. Were …
2. Complete the sentences with the verbs in brackets to give them a future meaning.
a. Provided she (have) the right skills, she will get the job at the multinational.
b. By this time next year the company (relocate) to India.
c. If the company (give) an image of fairness, it needs to pay their workers better wages.
d. I think that one day inequalities in the workplace (fall).
e. I need to brush up my English because I (work) in the States.
C.
In about 200 words, write an argumentative text either on the advantages and disadvantages of being
immersed in a global world or of being part of the EU. Follow the guidelines below.
WRITING GUIDELINES:
INTRO PARAGRAPH
a) hook – start with a sentence that grabs the reader’s attention. This can be
a rhetorical question, an interesting statement, some kind of shocking fact...
b) background information – identify the topic and start introducing facts from past
history or just generally valuable points. These are meant to inform the reader in more
detail about the argument at hand.
c) thesis – this comes at the end of your introductory paragraph and is the heart of
your essay. Everything that is written in your essay is used to support this statement.
BODY PARAGRAPHS
●Topic Sentence: The purpose of this sentence is to introduce the reader as to what
your specific argumentative point will be about.
●Development of your argument: This is the "WHY" of your topic sentence. Justify
your argument with evidence, examples, etc.
●Refuting counterargument: Recognize the counterargument, and at the same time,
show why your side holds more weight!
CONCLUSION
Restatement of Thesis: Rephrase your main argument(s) in an assertive and
confident manner. You shouldn't introduce any new information.

3. KEY
A.
1. a. equal b. rosy c. labour d. increases e. counterparts f. shift g. average h. boost i. heights j. poverty
k. growth l. struggle
2.
a. gap b. rosy c. goods d. skilled e. coveted f. outsourcing g. crimping h. rooted
3. a. developing countries b. the theory of comparative advantage c. unskilled workers’ d. skilled workers
e. workers f. the wages
4.
a. In developed countries there is a demand for skilled workers, while in developing countries there is a
demand for unskilled labour.
b. Since they want a skilled workforce they may raise the wages of these workers. These, on the other hand,
are more productive and can demand better wages. Unskilled workers are not given the same opportunities
and remain in poverty.
5.
a. … unskilled workers (are high in demand and so) get a wage boost (while skilled workers don’t).
b. … pay their workers less than foreign multinationals.
c. … (also) created situations of inequality in developing countries.
B.
1.
a. working abroad if I didn’t have a career here.
b. how long it takes to get a visa?
c. for the unemployment crisis, many EU countries wouldn’t be experiencing high levels of immigration
d. the company relocate, lots of workers will be unemployed.
e. not to worry because everyone would help him if he needed it.
f. the world economy to improve, immigration rates would go down.
2.
a. has b. will have relocated c. is to give d. will fall e. am going to work