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Although wages for unskilled workers fall in developed nations, globalization helps workers manage these potential threats by acquiring additional skills, which benefits the whole of society.
Globalization allows use of different skills from all over the world and the import of goods at cheaper prices. Thus if a country is not producing clothes, the same can be imported from elsewhere and the country can focus upon its own specialization for example coal mining or tourism. They can produce high value items rather than fulfilling their needs of low value items.
Rich states can also procure labour from other countries at lower prices thus lowering the cost of production. This benefits exports and raises the overall standard of living in the society. People also have to spend lesser to buy goods they need.
In case of poor states, globalization offers opportunities to export the goods which bestows riches upon the people of the state. They are able to relocated to other countries if they have a skill that is required elsewehere thus earning higher wages. Even within the country the overall wages increases due to competition and higher demand.
The poor people are also able to focus upon their own specialization. Thus if a farmer specializes in growing tea, he need not switch to growing coffe as the demand can be met through imports. The specialization will reap him more output and more returns thus increasing the overall standard of living.
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