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Global Inequality During The Cold War

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Global inequality involves the concentration of resource in certain nations; significantly affected the opportunities of individuals in poorer and less powerful countries. During the cold war, countries were classified as a first, second, third, or fourth world country. Countries were classified based on the amount of resources and money the country had as a whole. First world countries were considered in the best shape and the idea of noblesse oblige was brought up. It meant that the classified first world countries would provide foreign aid to the less-developed and underdeveloped nations in order to raise their standard of living. The World Bank defines how these higher income nations of having a gross pay of at least $12,276. Due to the high income in some countries, two main issues will arise. The first issue is Capital flight and it is the movement of capital …show more content…
An example of this would be when the American made company General Motors, who has been around for decades, closed their American factories in Michigan to open up new factories in Mexico because they were able to save more money by relocated their Mexico due to the lower cost of living. The second major issue is deindustrialization, which occurs as a consequence of capital flight because no new companies open up to replace the jobs of the employees were lost them to foreign nations. Global companies have an advantage over companies in America for example because the global companies can get the most production with the least cost that includes infrastructure, training, shipment and employee wages. I feel that global inequality when it comes to business is a huge issue in this country and looks like it may continue to be for years to come. Each year in America, many companies are closing down due to the high cost of running the

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