Globalization's Impact on Income Inequality

Effects Of Globalization On Income Distribution
Ana Hernandez IGS 2350 Dr. Kanojia The author describes the effects of globalization on income distribution in both rich and poor countries.
International trade theory implies that increased trade and foreign investment should make income distribution more equal in poor countries, but
the writer's research has proven the opposite. Globalization portrays the diverse ideas of exchange of goods and services across nations' borders.
The primary objective of trade is to maximize the gains from trade for the parties engaged in the exchange of goods and services; it affects the
livelihood of free countries, meaning that the lower the income the lower the life expectancy is. However, Milanovic argues that when looking at
globalization's effects we tend to neglect the poorer countries. In his readings, Milanovic explains how convergence is linked to globalization
because an economy is supposed to converge to its own steady state. He explains the effects of globalization through data from household budgets
and foreign direct investment and also focuses on the impact of openness. Openness is not necessarily good for some countries, it only benefits the
rich at low income levels while increasing inequality levels in poor countries. The writer focuses on the poor countries to see how globalization affects
their income distribution. GDP and income level are measured by comparing the country's current data to its historical one, a lapse of 15 years.
Unfortunately there has been a lack
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Globalization : A New Phenomenon And The World We Live...
Globalisation is a multifaceted concept including political, economic and social elements. It refers to to the connectedness at continental distances
through the flow of people, information, capital and goods (Clark 2000, as cited in Potrafke 2015: 510). It is also linked to universalising markets and
production, technological innovation, privatisation of state agencies, trans–national organisations and spread of common culture (Urzua 2000: 421).
Wood (2006: 29) stated that globalisation is not a new phenomenon and that the potential effects, both positive and negative, where somewhat
predicted by Marx and Engels. They expressed concepts such as rapid change and uncertainty, integrated global supply chains and spread of common
cultures across all nations, which is remarkably similar to the world we live today. According to Johnson (2002: 428) five developments have had a
major role in making globalisation both possible and effective. This was not the case prior to the 16th century, where there was not much movement of
goods or ideas between the continents. These developments were increase in scientific knowledge, faster and cheaper transportation as well as
communication (telegraph, telephone, radio, television, internet), growth of income and reduction of barriers to trade. Osland (2003: 137–154) in his
literature review examined the advantages and disadvantages of globalisation. He identified both winners and losers of globalisation by examining
empirical evidence of its

Impact Of Uneven Distribution Of Income Inequality Essay
Question 1
Task 1
(B) New Zealand has one of the highest rates of income inequality among developed or wealthy nations around the world, ranking 17th out of the 21
countries ranked by Wilkinson and Pickett (professors of economic)
There are several impacts of uneven distribution of income in NZ
First of all, I would like to discuss social impact of the same.
Households with low incomes have fewer options for meeting the same economic needs than that of their wealthy counterparts. For example, having
uneven income people cannot purchase adequate necessities because they do not have sufficient funds to do so. Therefore at the end of the day they
are unlikely to enjoy comparable life with wealthy people.( Wairarapa has to fight the growing social divide o Wairarapa has to fight the growing
social divide
By Andrew Bonallack
6:00 AM Monday Oct 28, 2013
(1)
(2)Children whose parents are having uneven income do not get decent nourishment as well as education. It is well documented that children of such
families are also more likely to have adverse outcomes in other phases of their life. This contains low educational achievement, poor physical and
mental health, and susceptibility to take up substance abuse and crime. On the other hand, there are currently several government policies meant to
address the social impacts of child poverty, for example the Children's Action Plan which aims to improve outcomes for vulnerable children and the
Better Public Service

The Role Of Meritocracy In The United States
In today's society, the gap between the rich and the poor continues to widen as the rich get richer and the poor get poorer. America, with the
"American dream," prides itself in its operation of a meritocracy. Meritocracy is the social structure that rewards merit. In the US, the system of
meritocracy is designed to provide hope and equal opportunity for people to rise to success. However with the system of meritocracy in place, the
United State's income gap continues to rise. The widening chasm prevents the mobility of people to work their way up to achieve the "American
dream." The first problem arises with the nature of merit. Merit can be defined differently for each individual, so how can the standard for reward be
defined? Is a sense

The Systems Of Distribution And Distribution
Two systems of distribution will be adopted. The systems of distribution include direct distribution and indirect distribution system. Indirect distribution
system will be characterized by the employment of third parties in the distribution of the products. Therefore, in indirect distribution channels, the
business will utilize third parties, often referred to as an intermediary, to offer a link between the manufacturer and consumers. On the other hand, in
direct distribution, only two parties will be involved – the manufacturer and the consumer. In the latter system, direct distribution channel will be
organized in such a way that the manufacturer will deliver the products (plantain chips) to the market directly without assistance of another independent
party such as a distribution company or the intermediary. The decision on whether to employ a direct or indirect distribution channel will depend on the
accessibility and distance from the processing zones.
In particular, the business will utilize indirect distribution channels in areas that are costly in terms of accessibility, and adopt direct distribution in
areas whose accessibility is cost–effective. For instance, the distribution strategies will be distinctive for urban and rural segments – in collaboration
with contract partners. It is noteworthy that plantain chips will be distributed directly in the urban regions and indirectly in rural areas. Additionally, in
the situation that the accessibility is adversely

An Annotated Bibliography On Household Wealth Essay
Creative Title: An Annotated Bibliography Xie, Yu, and Yongai Jin. "Household Wealth in China." Chinese Sociological Review 47.3 (2015): 203
–229.
Academic Search Complete. Web. 27 Oct. 2015. Xie and Jin examine the level, distribution, and composition of household wealth in contemporary
China. The study reveals that the richest one percent of the population owns over one third of the total national household wealth, while the poorest
twenty five percent owned less than two percent in 2012. Housing assets in China show to be the largest component of household wealth, comprising
seventy percent. The study also discusses how regional disparities and the urban–rural divide play significant roles in the household wealth distribution,
wealth growth rate, and wealth mobility. I plan to use this study as informational background and a look into the state of affairs regarding Chinese
society and the wealth disparity that is present. Gan, Li, et al. "Reducing Inequality: Taking From The Top To Distribute At The Bottom." China
Perspectives 2013.3 (2013): 80–82. Academic Search Complete. Web. 29 Oct. 2015. Gan et al. examine the true scope and detail of the income
disparity present in contemporary Chinese society. This work examines the introduction of government measures, the criticisms and inadequacies of
these supposed measures, other potential solutions that have been proposed, as well as whether or not the Chinese government has the true ability and
willingness to carry out the new

Inequality And Inequality Of Income Distribution
Inequality of Income Distribution in the United States Today, the average income of the richest 10% is 14 times that of the poorest 10% in the United
States. Famous economist Milton Friedman argues that this inequality gap would eventually spur people to work harder and boost productivity. Others,
who are not that optimistic, argue that the income inequality leads to a growing level of inequality of opportunity. For that reason, six in 10 Americans
now say that only a few people at the top have an opportunity to advance. Looking at both of the perspectives, we see that different people's attitudes
towards fairness and equality are different. However, it still does not change the fact that income inequality is not at the desired range to have positive
consequences, which makes it a huge problem. A recent study points out that different economic systems function best with different levels of
inequality and under current circumstances, the inequality range that will lead to positive consequences for the U.S. economy is between the Gini
coefficients of 0.25 and 0.35. This is an efficient range, because it addresses notions of fairness that have been supported by each side. Throughout the
history, major events and technological shifts have been the greatest drivers of income inequality. During the times of wars and disasters, people
demanded less inequality to be able to support themselves. On the other hand, use of fossil fuels further expanded the inequality gap. Today, these

Wealth Inequality in U.S.
Final Paper
Wealth Inequality in U.S. and Economic Efficiency
Over the last decade, income inequality has become one of the most important issues in the U.S. and a subject of a lot of debate. There is a prevalent
idea in the society that the wealth inequality in United States is currently at the highest level in the history after steadily raising for a number of
decades. The financial crisis is said to have contributed to this significant gap between the top 1% and everybody else. People view it as an inherently
negative thing, and fight hard to promote the equality and income redistribution. This paper examines the causes of inequality; the relationship between
wealth inequality and economic growth and the hypothesis on how policy ... Show more content on Helpwriting.net ...
According to a 2014 Credit Suisse study, the ratio of wealth to household income is the highest it has been since the Great Depression. (Mark
Gongloff, Key Inequality Measure The Highest Since The Great Depression. The Huffington Post.). Based on Inequality for All, the top 1 percent
generates more than 20 percent of the country's income, and the 400 wealthiest people in the nation possess more wealth than everybody in the bottom
50 percent. There is a significant correlation between the income inequality and social mobility which reflects the prospects of individuals, families,
households, or other categories of people in a society to move through a system of social hierarchy. According to Harvard study, the spatial variation in
intergenerational mobility is strongly correlated with five factors: (1) residential segregation, (2) income inequality, (3) school quality, (4) social
capital, and (5) family structure. (The Geography of Intergenerational Mobility in the United States, Harvard, June 2014). The inequality problems arise
when society lacks equality of opportunity to advance. Economic mobility in U.S. is much lower than in most first world countries. For instance, poor
children growing up in countries like Canada and Denmark have a greater chance of moving up the economic ladder than do poor children from the
United States. (The Geography of Intergenerational Mobility in the United

How Companies Handle Nonliquidating Distributions
This paper explores the different types of nonliquidating distributions and how they distributed to shareholder in a corporation from research collected
online (Internet) and offline (non–Internet). The online research was done using sites including the IRS website, ProQuest and EBSCOhost. The
majority of the offline was done using the textbook McGraw–Hill's Taxation of Business Entities: 2016 Edition. The different types of nonliquidating
distributions includes property distribution, dividend from earnings and profits, constructive dividends, stock redemptions, and partial liquidation.
Form 1099–DIV will be shown in the appendix to show the distribution of dividend to shareholders. The research indicated that each type of
nonliquidating distribution is important to the corporation. The purpose of this paper is to give a general overview of how companies handle
nonliquidating distributions throughout the year and to provide an explanation of the distributions. Nonliquidating Distributions Today's economy was
founded upon the fundamentals of capitalism and continues to find its strength in the presence of freedom of enterprise and trade. Regulation and taxes
are vital in order to support fairness amongst businesses and to provide funds for the government to develop and maintain the country's infrastructure.
Most companies distribute some of the company's accumulated profits, so that is why it is important to characterize the distribution under whether it

United States Income Distribution
Many years of stability has led to higher income inequality in America. While amongst many developing nations the inequality has also risen however
it has been reported to be the highest in America. According to NewRepublic a political discussion website income inequality is happening worldwide
however not uniformly. In their article they mention how until recently income inequality has been declining in France, Ireland, and Spain as now it's
declining in Turkey and Greece, and has been almost flattened in France. In the US income distribution amongst civilians has changed drastically over
the last several years. According to Congressional Budget Office (CBO) after tax–income, (income which is received after all taxes have been
deducted) has grew more households with highest incomes. After–tax income has grown more for the highest–income households than it did for any
other household group. According to the statistics by CBO between 1979 and 2007 income has grown by 275% for the top 1% of households
whereas only 18% for the bottom 20% of household. As the share in the scale of income has grown for families with higher household incomes the
scale of income for families with lower household incomes has even further lowered. CBO reports that's the top fifth of the population has seen an
increase of 10 points increase in their increase in their share of after–tax income whereas all the other groups have seen a 2 to 3 point decline. Reported
by the National Bureau of

Sociological Explanations of Unequal Distributions of...
Sociology Homework: Examine the sociological explanations of unequal distributions of wealth and income in contemporary Britain (24 marks)
There are five main sociological explanations of unequal distributions of wealth and income in contemporary Britain that I will be discussing as well as
explaining within this essay.
One sociological explanation for the unequal distribution of wealth and income in contemporary Britain is because it is necessary for the maintenance
of society. This is argued by functionalists such as Davis and Moore who suggest that inequality in wealth and income is very significant due to the fact
that some jobs are seen as more functionally important than others. As well as this, they believe that meritocratic ... Show more content on
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However this theory can be criticised as it only looks at inequality within class and not inequality within gender, age or other aspects. In addition to this
this theory also fails to explain inequality within men and women from different cultural and traditional backgrounds.
A further explanation is because of market situation of individual workers in the labour market. This is argued by a social theorist in the name of
Weber, who suggested that wealth and income inequality occurs because some jobs have high rewards due to the fact that they are associated with
strong trade unions. Other reasons are because of how high the demand is or because of key attributes needed in order to undertake a job. A prime
example would be people employed to undertake transport services e.g train or bus drivers. On average Train drivers get around ВЈ 41,000 a year while
nurses or school secretaries get around 15–27,000 a year. We see that this is the case because train drivers are linked to trade unions such as the TLC
which help make the decisions of striking or protesting if something is wrong and its difficult for the government to oppose transport workers as a lot
of people rely on tubes and buses to get to work and if trains and buses don't operate then no money will go towards the government. This links to
contemporary Britain because some jobs don't give high

Sunflower Analysis : Sunflower Rhythm Coffee Cafe
Sunflower Rhythm Coffee CafГ© is a retail business venture based in the heart of Waldorf, Maryland. The company is a small LLC independently
owned business started in 2015, and is expected to provide a combination of highly–quality coffee beverages and light food products while listening to
a rhythm combination of Jazz and Blues. In addition to providing products and services surrounding our extraordinary sound, we will enrich efficiency
and effectiveness to meet the needs of our customers. Sunflower CafГ©' will offer various coffee products which will identify the smallest details that
will magnify the significance and branding of Sunflower Rhythm Coffee CafГ©. Again, as a result of the strong industry experience, it is our goal
to market, the strength and competitive climate in Waldorf; while also targeting the undefined population who still loves to hear and can appreciate
good music behind the rhythmic melodies of jazz and blues. The name of this business highly reflects my mother who passed away on November
27th, 2015. Her favorite flower was the sunflower; she would always tell me baby no other flower can lift someone's spirits like a sunflower. She
went on to say sunflowers are unique and they provide energy in the form of nourishment and vibrancy. This flower has a delightful disposition and
is the perfect flower to bring joy to a person's day. The Blues and the Jazz, on the other hand targets both me and my mom. We both love good music,
and we all know,

Essay Inequality of Wealth and Income Distribution in...
Inequality of Wealth and Income Distribution in America
Every American dreams of finding a job that pays well enough so that they may comfortably take care of their loved ones and themselves for years to
come. Most Americans hope to find some way to make a living that they enjoy, something that they view as productive. Unfortunately, many do not
have this luxury. In our society, a good portion of the population is forced to hold the base of our country in place while hardly being redeemed for
their time and effort, and thus the problem of income inequality. Numbers of these people live from paycheck to paycheck, barely getting by, not
because they manage their money poorly, but because the value of their time at work is negligible. ... Show more content on Helpwriting.net ...
Income inequality was a large reason why people immigrated here in the 1800's. Their countries were becoming too segregated by classification of
income. Now this country is becoming more of what those people fled from over a hundred years ago. Moreover, many companies are now moving
their production overseas and taking away the very jobs and opportunities that looked so attractive to the American immigrants. Back in America,
some companies hire illegal aliens at low wages, which creates a larger lower class. As of 2010, illegal aliens made up 10% of the California
workforce, with over 8 million illegal workers nationally. We need to keep this country from becoming like those socially segregated countries that
people emigrated from in the past.
Many large firms make a lot of money, but there is no trickle down effect. The few on top make most of the money while the average worker does
much of the work. According to the real annual income of Americans, about 95% of the benefits of economic growth over the last 25 years have gone
to the rich. Should not the hard worker on the bottom get more? These firms are controlling because they only give out as much as necessary to keep
the workers employed. Many of these same firms have companies in other industries, such as entertainment or retail, and a lot of the money they pay
out comes back to them through these other industries. In

The Distribution Of Annual Net Income Scaled By The Market...
The distribution of annual net income scaled by the market value at the beginning of the year (Burgstahler and Dichev, 1997). Notice the obvious shift
of observations from just under expected levels of income to just over expected levels, showing evidence of earnings management. Dechow et al.
(2000) focus on firms with positive earnings and firms with zero forecast error to evaluate whether firms manipulate accruals and special items to beat
the zero earnings benchmark. However, the result fails to establish a significant difference between the level of discretionary accruals and working
capital accruals in firms that achieve the target and those that fall short. The earning distribution method is based on the assumption that the target...
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Roychowdhury (2006) derived normal levels of cash flow from operations, discretionary expenses and production costs; then tested the effect of sales
manipulation, discretionary expenditures and overproduction on the abnormal of the previous three variables. His research found that directors use
the various RM activities to manipulate earnings, however it is unclear just how much can be attributed to the purpose of meeting expectations, and
how much is to simply control expenses during times of difficulty. Grahama, Harvey and Rajgopalc (2004) interviewed over 400 executives,
revealing that executives assign a high level of priority in meeting target earnings as it builds credibility with the market and multiplies the positive
effect, confirming previous research. The executives also believed failing to meet the targets would result in a severe market reaction and that
directors sacrifice economic value to avoid these effects, avoiding a potentially larger economic loss. This can also be said of achieving or beating
expectations, where the potential economic gain from the multiplied positive market effect can easily outweigh the economic sacrifice. Equipped with
these justifications, over 80% of those surveyed admitted they were willing to sacrifice economic value and use RM to meet expectations. Moreover,
the executives acknowledged that RM is more widespread and favoured to the manipulation of accounting methods,

Coca Cola in Africa Essay
COCA–COLA IN AFRICA
THE DECISION
Table of Content
Integrative Cases Study – Page 3
Case Study Analyses – Page 4
References – Page 6
Integrative Case 1.1
Coca–Cola in Africa
1. Why is Coca–Cola so interested in Africa, which is typically regarded as part of the base of the global economic pyramid?
Coca–Cola is an organization that has been around since 1892. Coca–Cola is looking for new emerging growth markets and Africa has proven to be
that. Combined, 12 of the African countries have a GDP greater than that of Chine. Coca–Cola has 29% of the market share in Africa.
2. What unique resources and capabilities does Coca–Cola have that will help it compete well in Africa?
Coca–Cola has the ... Show more content on Helpwriting.net ...
Sales in the United States are declining due to the public concern over sugar. Sales in Europe and Japan are flat, while markets in China and India
offer up strong completion for Coca–Cola. Africa's middle class population is growing at a steady rate, so the disposable income is increasing. This
creates an opportunity for Coca–Cola to tap into growth opportunities (Natalia Cheverri 2012).
How does it work?
Although there are areas in Africa lacking infrastructure, Coca–Cola operates in every country. Coca–Cola utilized a franchising manufacturing model
that works perfectly for operating in Africa. Coca–Cola partnered with local licensed bottling groups to help create the product. Coca–Cola
manufactures the syrup concentrate and sells to the bottlers. The bottlers add filtered water, carbonation, and sweetener to make the final product. With

this model, Coca–Cola is sharing the wealth with local investors/community members. This creates sustainable business and improves community
buy–in with Coca–Cola's existence in Africa (Maritz Jaco 2010). Because partnerships are formed with local bottlers and local members of the
community, there is a vested interest by the locals to keep Coca–Cola's business successful. Through these partnerships, Coca–Cola is able to help build
the socio–economic system in different towns.
Distribution
Coca–Cola was having difficulty distributing product to different area of Africa with no roads. In

Impact Of Globalization On Income Distribution
Introduction Today we live in an extremely dynamic and globalized business environment, it is perhaps the driving forces of capital and trade streams
across the borders. Globalisation has integrated financial markets, labour productivity and product implementation with the economical factors across
the globe (Lynn et al 2004). The most crucial discussions on the aspects of globalisation are the impact of increased economic integration on income
distribution (Lingard & Rizvi 2007). One of the biggest business challenges in recent times involves understanding how to respond to an environment
that is unpredictable and markets in which the basis of the competition is continuously changing. Alongside the unpredictability, any attempt to set...
With the growth of transport and communication networks possible, individuals and businesses can exchange goods, services and information at a rate
which us humans would have considered impossible 50 years ago. From improvements in the economy, rise in emerging markets and dramatic growth
in technology, businesses have little or no choice but to adapt to the dynamics of globalisation and design strategies that compliment the compliance
structure of current market trends and institutional conditions (Ghemawat, 2003). Organisational culture is also known to be classified by measures
dictated by these forces. This paper analyses how global forces impact the current and future elements of business and society emphasizing on factors
such as technological developments, rise of emerging markets, demographic shifts and future of labour market, focus on sustainability and economic
globalisation. Specifically, the paper will focus on what factors affect the financial and economic integration and how technology and demographic
changes affect the future market trends and what aspects need to be considered in the coming future. Furthermore, it will articulate the importance of
designing business goals around the elements of sustainability and global economic concentration levels of leading industries taking over the market.

The Value Of Enterprise And Trade
Today's economy was founded upon the fundamentals of capitalism and continues to find its strength in the presence of freedom of enterprise and
trade. Regulation and taxes are vital in order to support fairness amongst businesses and to provide funds for the government to develop and maintain
the country's infrastructure. Most companies distribute some of the company's accumulated profits, so that is why it is important to characterize the
distribution under whether it is deductible or not. As there are many different types of distributions, it is necessary for the tax paying entity to understand
the distribution so that each type can be deducted appropriately.Before we can get into what type of distributions that a company ... Show more content
on Helpwriting.net ...
First, the amount of any distribution shall be the amount of money received, plus the fair market value of the other property received (IRS 2016).
Secondly, the amount that is taxable is the portion of a distribution which is a dividend is included in gross income, and that the remaining portion
of the distribution is applied first against the adjusted basis of the stock and then is treated as gain from the sale or exchange of property (IRS 2016).
Thirdly, the basis of the property received in a distribution shall be the fair market value of such property (Cornell 2016). Finally, the special rules
applies to 20 percent corporate shareholder. "For purposes of this subsection, the term "20 percent corporate shareholder" means, with respect to any
distribution, any corporation which owns, stock in the corporation making the distribution possessing at least 20 percent of the total combined voting
power of all classes of stock entitled to vote, or at least 20 percent of the total value of all stock of the distributing corporation (except nonvoting stock
which is limited and preferred as to dividends), but only if, but for this subsection, the distributes corporation would be entitled to a deduction under
section 243 or 245 with respect to such distribution." (Cornell 2016)

Distribution Of Income Inequality In The United States
The income distribution is very unequal because of the different jobs there are available, the wages they pay, and the different amount of taxes
each individual has to pay. The main factor that makes the most difference is the taxes people have to pay. There are different types of taxes such
as individual income taxes, social insurance taxes, sales taxes, property taxes, and excise taxes. Some of these taxes, such as sales taxes and excise
taxes, do not have anything to do with how much you do or do not make it is the same for everyone. Other taxes do go off of your income, those
taxes are either regressive or progressive. For regressive tax, people who have a lower income pay a higher percentage of their income in taxes than
people with... Show more content on Helpwriting.net ...
International trade may or may not reduce income inequalities within developing countries but, it can enhance trade–induced growth, which increases
average incomes providing more resources with which to tackle poverty. Poor countries, such as Bolivia and Paraguay, have more unequal distributions
of income than the United States. The distribution of income in the United States is less equal than in some moderate–income countries. The United
States has the most unequal distribution of income of any high–income country in the world. A reason why the United States distribution varies
between the poor countries and the high–income countries is because of the income mobility. Income mobility are the changes in an individuals or a
family's income over time. That is another reason why inequality distribution occurs because just because an individual is in one quintile one year does
not mean they will be in that same quintile the year after that. People are constantly moving up and down in the social statuses. For instance, a person
in the bottom quintile, or poverty level, might open a new business and it becomes a great success and that person then becomes a billionaire, that
person just went from the bottom quintile to the top quintile in a matter of a few years. The complete

Distribution Of Income Inequality In The United States
Income distribution is one of the effect of the economic growth. The economic growth somehow results the income inequality to a country which is
clearly can be seen as a large impact. Income inequality is a valuation of the distribution of wealth in a households. It is a conditional comparison of
the gap in household incomes in a given state, region or a country. Income inequality is calculates the extent to which the income distribution in a
country deviates from perfect equity. There are many obvious ways for income inequality happen in a country or region. One of common factor for
income inequality happen is investment income earners are payed less taxed than others who receive their pay check which is unfair to the citizen of
that country.

Income Distribution and Economic Growth in LDC's Essay
Income Distribution and Economic Growth in LDC's
INTRODUCTION
In recent years, one of the major concerns of economic development is the study of poverty, the income distribution and growth in the less developed
countries (LDC's) or Third World countries. Economists from all over the world have been doing researches and studies on how to induce a growth in
those underdeveloped countries. However, countries differentiate in historical backgrounds, cultural believes and natural resources. As a result, the
government would implement different strategies to attain a much fairer distribution of income among the society. The relationship between the income
distribution and growth in the LDC's is a significant factor that would affect ... Show more content on Helpwriting.net ...
The major concern of the policies would be the approach to provide human basic needs (HBN) for each and every one of the people in the country. In
nearly all of the LDC's, majority of the people are living under absolute poverty. This means that they are not able to provide a standard level of living
for themselves. Different policies to improve the income inequality and also procure an economic growth include land reform, redistribution of saving
and investment, education for all, progressive taxation, public expenditures from tax revenues and birth control.
Some people think that there existed a trade–off between growth and equity. They think that distributing income too equally would undermine
incentives and thus lower everyone's income. They believed that the rich needed special encouragement to save and invest more in order to cause a
growth in the economy. Recent evidence suggests that this conventional wisdom is wrong. Many economies in Asia– Hong Kong, Indonesia,
Malaysia, the Republic of Korea, Singapore, Taiwan (province of China) and Thailand– have had both rapid growth and relatively low inequality.
"Between 1960 and 1993 the East Asian economies,

Inequality : Inequality And Poverty
Inequality and poverty exist in our society because wealth and opportunity are inherited. If we all entered the world with an equal amount of
resources, some would still rise above others but everyone would get the same chance to succeed in life. Since greed is one of the norms of our
society, and wealth is passed from generation to generation, there will always be inequality and poverty. The system of wealth and inequality is
actually pretty simple. It all boils down to a few things what you start with and how much you earn. Also, what you save and at what rate does your
saving return and even greater profit. No one policy can single–handedly beat inequality the roots of the problem extend into the very structure of our
economy. However, there are means by which we can change the system of inequality by looking at previous history and the current world today.
Today, we live in the richest country in the history of the world, but that reality means little because much of that wealth is controlled by a tiny
handful of individuals. The issue of wealth and income inequality is one of the most prevalent issues affecting society today. In my opinion, one of
the first and best ways to help reduce inequality is simply redistribution. The objectives of income redistribution are to increase economic stability and
opportunity for the less wealthy members of society and thus usually include the funding of public services. The problem with our society is that we
give away are

Essay on Week 4 Assignment
C:4вЂ‘29 Current E&P Computation. Water Corporation reports $500,000 of taxable income for the current year. The following additional
information is available:
For the current year, Water reports and $80,000 long–term capital loss and no capital gains.
Taxable income includes $80,000 of dividends from a 10%–owned domestic corporation.
Water paid fines and penalties of $6,000 that were not deducted in computing taxable income.
In computing this year's taxable income, Water deducted a $20,000 NOL carryover from a priortax year.
Water claimed a $10,000 U.S. production activities deduction.
Taxable income includes a deduction for $40,000 of depreciation that exceeds the depreciation allowed for E&P purposes.
Assume a 34% ... Show more content on Helpwriting.net ...
The distribution is treated as a dividend to the extent of the distributing corporation's current and accumulated E&P. Any additional; excess is
treated as a capital gain. The shareholder's basis in the property received is its FMV. The shareholder's holding period for the property begins on the
day after the distribution date.
When a corporation distributes appreciated property, it must recognize gain as if it sold the property for its FMV immediately before the
distribution. For gain recognition purposes, a property's FMV is deemed to be at least equal to any liability to which the property is subject or that
the shareholder assumes in connection with the distribution. A corporation recognizes no loss when it distributes to its shareholders property that has
depreciated in value. A corporation's E&P is increased by any E&P gain resulting from a distribution of appreciated property. A
corporation's E&P is reduced by (a) the amount distributed plus (b) the greater of the FMV or E&P adjusted basis of any non money
property distributed, minus © any liabilities to which the property is subject or that the shareholder assumes in connection with the distribution.
E&P also is reduced by taxes paid or incurred on the corporation's recognized gain, if any.
In Part a, what would be the tax consequences if Bailey were a corporation?
The amount

The Importance Of Income Inequality In The United States
In the past few years, income inequality in the United States has become a familiar theme of national debates, especially during times of presidential
elections. Bernie Sanders advocated for a raise in minimum wage, while Ted Cruz offered a national flat tax plan. Hilary Clinton called for a tax
raise for the wealthy and an increase in the minimum wage, while Donald Trump planned out a comprehensive tax reform plan including lower tax
rates for the US workforce on his campaign site. All of the candidates, running or eliminated, have addressed the topic to various extent; yet only a few
focused on how income inequality directly affects the general physical and mental health of the labor force, which may eventually result in economic
and social... Show more content on Helpwriting.net ...
(2014) Inequality for all. Retrieved September 16,2016, from https://www.amazon.com/Inequality–All–Robert–Reich/dp/B00HQAHFGEzw Krugman,
P. (2014). Why We're in a New Gilded Age by Paul Krugman | The New York Review of Books. Retrieved September 17, 2016, from http:/
/www.nybooks.com/articles/2014/05/08/thomas–piketty–new–gilded–age/ Landsbergis, P. A. (2003). The Changing Organization of Work and the
Safety and Health: Journal of Occupational and Environmental Medicine. Retrieved September 17, 2016, from http://journals.lww.com/joem/Abstract
/2003/01000/The_Changing_Organization_of_Work_and_the_Safety.14.aspx Rones, P. L., Ilg, R. E., & Gardner, J. M. (1997, April). Trends in Hours
of Work Since the Mid–1970s. Retrieved September 16, 2016, from http://data.bls.gov/search/query
/results?cx=013738036195919377644%3A6ih0hfrgl50&q=trends+in+hours+of+work+since+mid+1970s Theorell, T., Perski, A., Oth
–Gomer, K.,
Hamsten, A., & de Faire, U. (1991). The effects of the strain of returning to work on the risk of cardiac death after a first myocardial infarction before
the age of 45. Retrieved September 16, 2016, from

Getting Worse in the Distribution of Income
The studies have shown that 62 percent of the world population has a worsening in the distribution of income. Income distribution is one of the reason
economist believe the Samuelsson model is still an hypothesis and have not been able to be proven as more of the world engages in trade. With there
being different ways to measure distribution income most of the data collected is confusing to economist. Data from the World Bank show that 2.8
billion people live below the poverty line. Changes in income of the poor house can be changed by two variables first economic growth and
distribution of income. According to the author there is growing recognition that distribution is important to poverty reduction as well as growth.
Because of this gap in income distribution most economist cannot measure the effect globalization has on a country most country or rank twice with
two different numbers making it hard for economist to measure the growth of a country. Samuelsson says that trade should bring in income helping a
country rise above poverty because globalization can be measured there no way to tell if globalization has a positive effect on country overall growth.
If we take a look at Cross country studies presented by Harrison we see a different take on globalization. It takes a look at the relationship between
poverty, inequality and globalization. Easterly finds that increasing trade integration is associated with Falling inequalities within developed countries
and greater

International Division of Labor: Equal Distribution of...
International division of labor can raises the incomes in depressed areas of Eastern and South–Eastern Europe and achieve a more equal distribution of
income in the world. However, it cause many hardship in the immigration areas as it is not practical on a large scale. This problem can be solved by
industrialization with prerequisite that the industrialization takes place in a large area in order to achieve the most optimal result.
Basically, there are 2 ways of industrialization. The first way is own industrialization based on the "Russian Model" which do not have international
investment. This approach build up all stages of industry such as light industry and heavy industry. At the end, the economy will built like a vertical
industrial ... Show more content on Helpwriting.net ...
However, this method does not work well because the training workers may work for other firms after the training. Yet, this method is a good method
from the point of view of the State because the social marginal net product is substantial than the private marginal net product. Besides, this method is
costly and considered as capital investment.
However, these are not the main factors in favor of this huge investment. In fact, the interdependent of different industries is the most important reason.
Whole system of industries contribute more to the world output if compared to one industry only. Interdependent system also reduces the possibility of
low sales and hence decrease the costs. This is a different case of "external economies".
There are 2 others types of "external economies". The first one is the strictly Marshallian economies external to a firm within a growing industry. The
second type is economies external to one industry because of the growth of other industries. The present institutions of investments do not have the
benefit of external economies. There is no incentive for them to invest in investment which has high return in "social marginal net product". In contrast,
the key factor of investment is the profitable prospect of the investment. If the industrialization of international depressed area totally depend on the
incentive of the entrepreneurs, industrialization will not proceed gradually. In fact, investment will

Why Does Income Inequality Exists?
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"WHY DOES INCOME INEQUALITY EXIST?"
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4. Why does income inequality exist?
Income inequality, also known as economic inequality or wealth and income differences typically refers to inequality among individuals and society,
but it can also refer to disparity among countries. There are many reasons for this phenomenon to happen within the societies, most of them are often
inter–related. However, we could say that the most important factor that causes greater income inequalities are wages and salaries. The determination
of wages by the market is a major cause of economic inequality. Wages work in the same way as price and by applying the law ofsupply and demand,
the wage is ... Show more content on Helpwriting.net ...
But having both parents at home couldn't still guarantee equality either way. At worst, a person marries their peers which make it two professionals of
the same job at home thus the two gets minimum wage if the situation calls for a lack of demand of their profession. Another cause of the existence of
wealth and income differences is the wealth concentration which is also known as wealth condensation. This refers to a theoretical process by which
under certain conditions, newly–created wealth concentrate in the possession of the already–wealthy individuals in the society. As for example, those

who have capabilities and rich can make investments and save up great fraction of their income thus, accumulating their chance of getting even richer.
Another one is the use of family inheritance, and individual may receive wealth from their family and would be able to establish eventually his own
business therefore increasing their income. Those who owns a business would earn more income and the workers or his employees make a lesser
wage and therefore unable to build his own build his own to increase his income. Globalization is also a factor in income inequality. This term refers to
the increasingly global relationships of culture, people, and economic activity. This contributes in the

Domestic Inequalities in The USA and Denmark Essay
Societies and their governments have developed different policy approaches to addressing domestic inequality. Compare and contrast two different
countries and evaluate the effectiveness of their key policy measures in addressing inequality.
It is a commonly accepted that inequality is increasing throughout the globe, with startling statistics such as the recent Oxfam report indicating that the
richest 85 people in the world own more wealth than the poorest 3.5 billion people(Oxfam Australia Media, 2014). Inequality is thought of as
disparities or gaps, such as the distance between a low income and a high income household, or the ratio of their incomes (Divided We Stand, 2011).
Domestic inequality refers to inequality within a country and ... Show more content on Helpwriting.net ...
Wealth and assets refer to the "stock" of an individual or household, inequality if often generated from inherited wealth. Physical environment affects
inequality through access and availability to natural resources, raw materials and the natural climatic factors that may enhance or disadvantage, leading
to inequality.
Although different societies have varying perceptions of what is an acceptable level of equity, it is generally accepted that inequality has an impact on
key social determinants such as health, wellbeing, political trust and violence. Wilkinson and Pickett (2009) highlight the social costs of inequality on a
whole range of aspects of our lives. Wilkinson and Pickett (2009) argue that if inequality were reduced, there would be significant reductions in mental
illness, murder rates, imprisonment and an improvement in social mobility (Wilkinson and Pickett, 2009).
Image: Index of health and social factors – life expectancy; maths and literacy; infant mortality; homicides; imprisonment; teenage births; trust; obesity;
mental illness, including drug and alcohol addiction; and social mobility – relative to income inequality. (Wilkinson and Pickett, 2009).
Domestic inequality is most commonly measured using the Gini coefficient that varies between 1 and 0. A coefficient of 1 implies inequality is

Gdp Is the Best Measure of a Country's Standard of
GDP is the best measure of a country's "standard of living" Discuss
Gross Domestic Product (GDP) is the value of everything produced in the economy for the year. It usually is used to provide economic growth rates
and other important data, it is valued in terms of the cost of all inputs. Gross means total; domestic means it applies to everything produced within the
economy, product means output. Standard of living refers to the wellbeing of the population, this requires a very wide range of data to measure
effectively and I am going to find out how and if we can measure the standard of living and whether GDP is the best at it.
GDP is useful because it is a key measure of economic activity, it is measurable, quantifiable and there is... Show more content on Helpwriting.net ...
It could work because it generates political competition and tries to put the people at the centre instead of outputs like the GDP, it is very crude though
because of the huge amount of things it has to take into account.
Overall I think that GDP is very helpful to find out a rough estimation of how a country's economy is doing at a certain time and how it is
performing compared to other countries but it wasn't designed to show peoples standard of living and it simply doesn't do that. I think that the HDI is
better than GDP because it actually measures health, education and income this is a better judgement of the standard of living because it actually uses
measures that actually involve people. I think that showing the measures of social welfare would be a good place to start because it shows us about
the lives and chances available to the people and we should add percentage of income showing the distribution of wealth, that would give us a good
idea of peoples standard of living and

Income Distribution And Distribution Income System
QUESTION 1 a) 1.Equality income distribution may make workers and producers lose motivation to work and reduced efficiency. Because when
workers and producers get correspondence pay, they care a lot about workload more than salary. It implies the less work for them rather than the more
ideal. 2.The equality income distribution system can shrunken the wealth gap. It improve the quality of life for most people so that the system become
more stable 3. Employment rate can be increased by the Even distribution income systems. Because people can get stable salary by working. Salary will
not change. 4. Equality distribution income system would make the percentage of poor people in population decrease steadily. And it also improves
health standards and housing conditions. 5. Balanced income distribution system would reduce the market competitiveness of the market and lack of
investment, thereby it inhibited economic development. 6. Fair income distribution may promote import and export trade economic. Because it
improves the level of per capita consumption. Although the competition which is in the domestic market might be suppressed, but there could be a
steady rise in the international market. 7. Good effects in even income distribution pattern would help stimulate and sustain economic growth in the
short run and would provide stronger incentives for investment, innovation and job creation in the long run. 8. Equality distribution income would
pursue unification of the

The Inequality Of Income Distribution
In an economic sense, income distribution refers to how wages and salaries are split among a society of people. The top earners in a society are
naturally considered to be the richest, whereas the lowest earners are the poorest. In any society, such differentiation in earnings commonly creates
class systems based on yearly income. This structure is often measured by labeling people as lower class, middle class, or upper class depending on
yearly earnings even though there can be a large difference in the top and bottom incomes of a class. Concerns about the inequality of the distribution
of income in any society are often brought about when individuals believe that one income class is earning too large or too little of a percentage of the
total income. In the United States however, certain policies and programs are in place to combat criticism against the fairness of income distribution. In
addition to these policies and programs, the United States was founded on the belief that any individual, regardless of social class or birth status, should
be as successful or unsuccessful as they wish depending on their ability to capitalize on opportunities presented to them throughout their life.
Commonly known as "The American Dream," this notion towards freely being able to create one's own wealth and worth can be seen throughout the
history of the United States and is a major factor that guided America to become one of the world's economic super powers. After recognizing a historic

Income inequality can be defined as the difference of...
Income inequality can be defined as the difference of distribution of assets, wealth, and income between the populations. The term income inequality
refers to the inequality among persons within a society. The topic is commonly debated, and the liberties and rights of people are often brought into
the debate being made. In America, it has been said that "The 400 richest people in the United States have more wealth than the bottom 150 million put
together" leading the reader to believe there is a huge inequality problem that is only growing wider. There is no doubt that the income gap in America
is growing, with the middle class taking home 9% less than they had in 1999, but I feel that the government does not have the obligation to lessen ...
At first glance, I feel a majority of people will answer yes, the government holds an obligation to lessen the income gap, just as I did. However, after
dissection and analysis of the question, more questions are brought up, questions that are not so easily answered. How would the government come
about a solution to lessen the income gap? Just as I previously stated, it would be a matter of theft from the wealthy to support the poor, and support
their right to equality. This argument does not seem viable, due to the fact that the wealthy persons rights are now being all but forgotten. The
redistribution of wealth can be simply put as taking a little from the wealthy, and sprinkling some here and some there, as they should not need all that
excess wealth. This ideology sounds like Marxists philosophy, which does not have a history of prevailing. When the government controls and
distributes the wealth, what is the motivation to produce more? Higher level of production would only lead to more government interference. Although
there is no doubt income inequality exists in the United States, the government does not have the obligation to lessen the gap. A government has the
obligation to protect citizen's rights, and the only means of lessening the wage gap that I could find, violated the rights of citizens. Income inequality
can be an incentive for people. It encourages creativity necessary to allow people to climb in the ranks of

Income Inequality And The Distribution Of Wealth And Income
Income Inequality
Income inequality is the extent to which income is distributed unevenly in a country, it measures by what extent is the distribution of income within a
country deviating from perfect equality. It is an important measure to determine the fairness in a country and the social outcome in a country such as
the level of corruption, crime rate and poverty. Countries make use of the Lorenz curve to help show the graphical representation of the distribution of
wealth and income. "Income inequality in Canada has increased over the past 20 years. Canada reduced inequality in the 1980s, with the Gini
coefficient reaching a low of 0.281 in 1989" ("Income inequality", 2013, Is Canada becoming more unequal?, para.1). Gini coefficient is a measure of
statistical dispersion intended to represent the income distribution of a nation 's residents, and is the most commonly used measure of inequality. Income
inequality rose in the 1990s, but has remained around 0.32 in the 2000s.
Income inequality is quite important when deciding the level of development of a country. As a country becomes more developed, the income and
wealth distribution of a country is questioned. Income inequality shows that a country is becoming more developed but brings the issue of the social
issues (for example corruption). Government in Canada over the years have increased personal income taxes and government transfers (such as social
assistance, unemployment insurance, old age security, and child

Measuring Economic Participation and Social Protection
Gender discrimination has always been a problem that affected our society, where women were and continue to be treated inferior to men and were
downgraded to do domestic work. Although there have been several reforms in trying to lower inequality against women because of the now–known
great importance to the development of society, it still, nonetheless plagues our society. The promotion of gender equality is co–existent with social
protection and the first step to combating gender inequality, while simultaneously combating problems related to poverty and education. Inequality
does not only exist in the form of gender inequality, but also in income distribution as well, where the top quintile of the population consumes far
more than the bottom quintile of the population. The existence of unequal income distribution can potentially lead to aristocracy, in which a few
members or countries have control over most resources and income (Thomas Caroll & Associates, 2013). Dubner and Levitt as cited by Thomas
Caroll and Associates use a classic example of the Black Disciples, in which gang members received a mere $3.30 per hour, with minimum wage
being $5.15 and over half of the income was received by gang leader. The members forfeited the chance of earning the higher income with the
probability of becoming the next gang leader; however 1 of 4 died in their pursuit of becoming gang leaders. This application can be used in real life,
where wealth is concentrated among a wealthy

Analysis Of Sunflower Rhythm Coffee Cafe
Sunflower Rhythm Coffee CafГ© is a retail business venture based in the heart of Waldorf, Maryland. The company is a small LLC independently
owned business started in 2015, and is expected to provide a combination of highly–quality coffee beverages and light food products while listening to
a rhythm combination of Jazz and Blues. In addition to providing products and services surrounding our extraordinary sound, we will enrich efficiency
and effectiveness to meet the needs of our customers. Sunflower CafГ©' will offer various coffee products which will identify the smallest details that
will magnify the significance and branding of Sunflower Rhythm Coffee CafГ©. Again, as a result of the strong industrial experience, it is our
goal to market the strength and competitive climate in Waldorf; while also targeting the undefined population who still loves to hear and can
appreciate good music behind the rhythmic melodies of jazz and blues. The name of this business highly reflects my mother who passed away on
November 27th, 2015. Her favorite flower was the sunflower; she would always tell me baby no other flower can lift someone's spirits like a
sunflower. She went on to say sunflowers are unique and they provide energy in the form of nourishment and vibrancy. This flower has a delightful
disposition and is the perfect flower to bring joy to a person's day. The Blues and the Jazz on the other hand targets both me and my mom. We both
love good music, and we all know, Blues is good

Wealth Distribution and William Domhoffs "Wealth, Income,...
In William Domhoff's article, Wealth, Income, and Power, he examines wealth distribution in the United States, specifically financial inequality. He
concludes that the wealthiest 10% of the United States effectively owns America, and that this is due in large part to an increase in unequal distribution
of wealth between 1983 and 2004. Domhoff also states that the unequal wealth distribution is due in large part to tax cuts for the wealthy and the defeat
of labor unions. Most of Domhoff's information is accurate and includes strong, valid arguments and statements. However, there is room for
improvement when identifying the subject of what is causing the inequality.
The most important points made in Domhoff's article are his statistics, the ... Show more content on Helpwriting.net ...
William Domhoff's claims in the article Wealth, Income, and Power, are, for the most part, very strong. He makes strong statements regarding the
concentration of wealth in the United States, and backs them up with good sources throughout. The statistics used are valid, and consistent among many
trusted sources. The only area where Domhoff's argument falls short is when he references the causes of wealth inequality. In this portion, his argument
is a bit weak and could be strengthened by considering other important factors effecting wealth concentration, rather than limiting it to two seemingly
all–important issues. Overall, upon examination of Domhoff's ideas and sources, he presents an accurate and fairly strong argument about the unequal
distribution of wealth in the United States.
1 Edward N. Wolff. "Recent trends in household wealth in the United States: Rising debt and the middle–class squeeze – an update to 2007," Working
Paper No. 589. Accessed January 13, 2013, http://www.levyinstitute.org/pubs/wp_589.pdf
2 Hope Forpeace. "20% of Americans own 93% of American Wealth and They Should All Get Tax Cuts," Newsvine. 2010. Accessed January 14, 2013.
http://salemsage.newsvine.com/_news/2010/06/06/4471117–20–of–americans–own–93–of–american–wealth–and–they–should–all–get–tax–cuts
3 Arthur B. Kennickell. "Ponds and Streams: Wealth and Income in the U.S., 1989 to 2007," Federal Reserve. 2009. Accessed January 13, 2013.

Impact Of John Stuart Mill On Income Inequality
ECON1401 Written Assignment 1– John Stuart Mill and Income Inequality
Many great economic thinkers throughout history has offered various differing yet interrelated views and ideas that may prove useful to the analysis of
current issues in modern economics. A persistent issue in the modern economy is income inequality whereby the distribution of income among the
population is unequal. This means that the gap between the rich and the poor increases over time if the issue is not appropriately addressed. In
exploring the issue of income inequality in Australia, this essay aims to analyse the issue from the perspective of a selected economic thinker – namely
John Stuart Mill – by: (1) providing a summary of Mill's key ideas and theories, including the different forces that may have shaped his thinking; (2)
applying Mill's conceptual framework to the income inequality problem; and (3) offer solutions he might have suggested to address this problem,
including policies that may be adopted and institutions that may be constructed in the Australian context.
In order to consider the problem of income inequality from Mill's perspective, it is of imperative importance to first grasp an understanding of what
factors contributed to the development of his key ideas. Known as one of the most influential figures in classical economics, Mill is more commonly
described as a philosopher and socialist than an economist due to his obstinate strive for progressive social reform throughout his

PHI2604 income distribution Essay
Patricia Pupo
Professor Matthew Sang
PHI 2604
26 November 2014
Income Distribution
This essay will discuss if current income distribution has a negative impact in the society because of the inequality that exists. What is income
distribution? It is how a national income is split between different groups. Rights theory worries as the name says it, about people rights, and action is
good if it respects the people's rights. There are two kinds of rights, positive and negative. The first one relates to the right that people have to
entitlements, is also known as Welfare (food, shelter, healthcare). The second one is negative rights, it is associated with the right that a person has not
be subjected to an action from another group or person. ... Show more content on Helpwriting.net ...
The inequality of income distribution does not fit well with rights theory since the goal of the second one is equality. All citizens should have same
opportunity. People join a society because they need protection and help.
Another philosophical theory is egoism that states that since people live from their minds which is independents therefore they should act in their own
self–interest. There are two kinds physiological that says that people should do what they want and ethical suggest that they do things in self–interest.
Egoist does not sacrifice himself for others and does not sacrifice others for himself since that is the basis of this theory we can resume that the
inequality of income distribution goes well with this theory. No one is responsible for no one, because if they are, they would be living like
parasite." The average pay of a CEO in a major corporation was $11.9 million in 2000." (Shaw,144) and a McDonalds employee is $18,890, if we
were to compare those two salaries from a egoistic point of view they both deserve what they have accomplish because they work independently, it does
not matter how unequal the distribution of the income is.
Many associates income distribution with social inequality and see it as a bad thing, from the egotistical point of view is good, individuals get to
thrive because they set their goals and derive their

The Economy And Government Project
Markets and Government Project
Introduction
Italy is a small Republic that borders France and multiple bodies of water such as; the Liguarian Sea, the Tyrrhenian Sea, and the Ionian Sea. The
country consists of small islands but also many enclaves and cities on the mainland as well. As of 2005 their population was estimated around
58,103,000 people. Their largest city and capital is Rome, but Vatican City where the Pope resides is also in Italy. Italy is home to a large amount of
historic and cultural cities like Florence, Tuscany, Siena, Bologna, and Naples. Italy is governed under the constitution of 1948 as amended. According
to the Columbia Electronic Encyclopedia:
"They have a president, who is the head of state, and elected by ... Show more content on Helpwriting.net ...
Due to their vast plains, Italy began to industrialize late in comparison to other European nations because it was a largely agricultural country. "It
wasn't until 1950 that industry began to develop rapidly, and by 2006 industry contributed to 30% of the annual gross domestic product." (Columbia
Electronic Encyclopedia 2012). The country relies heavily on tourism, it is one of their major industries and also an essential source of foreign
exchange. Italy's economy has gradually been diversifying, shifting from food and textiles to engineering. Although many of Italy's important industries
are state–owned, the trend in recent years has been toward privatization. "The service sector has growing importance in Italy and employs well over
half the labor force. Italy has large foreign trade, facilitated by it's large commercial shipping fleet." (Columbia Electronic Encyclopedia 2012). Their
leading exports are motor vehicles, clothes, and engineering products. Their chief trade partners are Germany, France, Spain, and Great Britain. Italy's
economy has deceptive strength because it is supported by a substantial "underground" economy that functions outside government controls. Part 1
Overall the country does not have much economic freedom, it has some, but not much. So on the spectrum of economic systems it would fall towards
the middle, but leaning more toward a command socialist economy. Italy has some freedom in

Young Adults During The U.s.
Young adults in the U.S. commonly have their first job by the time of their third and fourth years of high school. At this time in their lives, they aren
't exposed to a lot of politics or economics; it 's easy to conform to biased opinions at this age. It 's easy to jump onto social media and learn one side
of an issue, which is something that most teens do. But, being more open–minded and doing research is something that should be more encouraged to
younger groups of people. As I start to look for my first real job, I have started asking myself "is there a wage gap between men and women, or blacks
and whites, or middle class and upper class?" Most say "yes, there is." But I decided to do my own research and form my own opinion – a
well–educated opinion. I 've watched and read a speech by Nick Hanauer called, Beware Fellow Plutocrats: The Pitchforks Are Coming. Plutocrats
are the top .01% in the U.S. economy, literally the tippy top of the upper class, and seemingly the most hated group of the middle class. According
to a Business Insider article, written and edited by G. Lubin, "half of America owns 2.5% of [the] country 's wealth [and] the top 1% owns 33.8% of
it." (Lubin 2011) These numbers are astounding, and makes me wonder if class gaps have anything to do with the supposed inequality wage gaps.
Nick Hanauer claims that "inequality today is at a historic high and it 's getting worse every day." (Hanauer 2014) Having the knowledge of any other
average teenager, I knew

Globalization's Impact on Income Inequality

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