TABLE OF CONTENTS IMPACTS OF GLOBALIZATION 2 OPPORTUNITIES 2 EFFECTS ON POVERTY 2 THRESHOLD EFFECTS 3 CHANNELS AND LINKAGES 3 OPENNESS 3 GROWTH EFFECT 4 DISTRIBUTION OF INCOME 4 TRANSPARENCY 4 AGRICULTURE 5 INEQUALITY AND POVERTY AFFECTED BY GLOBALIZATION 5 INCOME DISTRIBUTION 5 LABOR AND CAPITAL 5 TECHNOLOGICAL PROGRESS 6 ECONOMIC SHOCK 6 POOR GLOBALIZATION 7 POLICY IMPLICATIONS 7 CHALLENGES 8 GROWTH 8 1. IMPACTS OF GLOBALIZATION 1.1. OPPORTUNITIES The globalization process offers a tremendous opportunity for mankind to lead to a major worldwide reduction in poverty (United Nations, 2001). While there is significant potential for reducing poverty, the magnitude will depend, in particular, on the growth trend adopted by the developed as well as developing countries. A common question is whether the real distribution of income is equitable and if the poor gain from globalization in less than proportion and in some conditions may actually be affected. With the weak developed economies and the poor in the world, the threats and costs of globalization may be important. In periods of frequent global economic crisis, the drawback to globalisation. In the developed world over and sometimes overwhelmingly, the costs of recurring crises linked to the globalization of the economy and the finances are most vulnerable. Despite prosperous times, however, the advantages of globalization are not universal to the global community (National Geographic, 2019). 1.2. EFFECTS ON POVERTY Recent studies that show minimal, if not missing convergence between engaging national and regional economies as globalization rises. This illustrates the fear that in some circumstances poverty has been ignored, or hurt by globalization. The observed trend towards greater disparity in the distribution of world incomes between countries and regions (where the population does not calculate them) and in many of the developing countries has a strong impact on the circumstances affecting the poor in the world because disparity acts as a conduit from growth to poverty. In particular, growth and thus poverty alleviation can in the future have an effect on inequalities (Nicolas, 2019). The most recent studies show a decrease in poverty from 40 percent in 1980 to 8 percent in 2020 in the population of developing countries that live under 1 dollars a day. This development was, however, mainly accomplished by substantial poverty reduction in China (United Nations, 2001). In comparison, the total number of people living under 2 dollars a day has dropped only in Asia and risen elsewhere and has also increased worldwide (Nicolas, 2019). Whereas any increase of poverty and income disparity so far noticed can not be attributed to the impact of “globalisation” alone or even primarily, even the most positive estimates can not ignore the worries posed that the process of globalization has at least had some negative effects on deprivation and distribution of revenue. Such issues have created a worldwide heated debate and a large anti-globalization movement (National Geographic, 2019). 1.3. THRESHOLD EFFECTS The relationship of globalization and deprivation with multifaceted networks is dynamic and heterogeneous. Globalization-poverty relations in several ways, including some threshold effects, are most possibly non-linear. It may be futile to attempt to define impacts of globalization on poverty as a factor (Alice, n.d.). In addition, any sub-group of links embedded in a global (open) connection can be controversial. In addition to the "crowding" impact of globalisation, which are directly mediated by economic development, on poverty, it is also understood that the cycle of globalization or integration occurring on various other networks produces winners or losers that cause vertical or horizontal inequalities (Nicolas, 2019). Such channels include relative and value adjustment, the movement of factor, the essence of technological changes and diffusion, the effect of globalisation, global knowledge flows and global disinflation on the volatility and vulnerability (Julia, 2020). 2. CHANNELS AND LINKAGES 2.1. OPENNESS Globally, open policy has been encouraged to accelerate development by trade and investment structures and the liberalization of capital movements. The cause of openness and growth is still being debated and the positive correlation between openness and development is either inherently or universally identified. (Matt, n.d.). 2.2. GROWTH EFFECT There are two theoretical branches of income and wealth levels inequality, due to the "growth" impact of the trigger chain of openness to poverty. Traditionally, higher net savings, accumulation of capital and the presence of indivisible wealth-reward effects underline the growthenhancing effect of inequality. Recent political economic work compares growing inequity with decreased development on a wide range of sub-channels, for example, improductive rentesearching activities that reduce property protection, the spread of policy-making and social turmoil leading to increased volatility and lower investment. (Julia, 2020). 2.3. DISTRIBUTION OF INCOME The advocates of the new approach to political economics claim that the trends of development that generate more disparities in income distribution would in turn contribute to lower potential forms of development. It will also have an effect on the poverty reduction potential (United Nations, 2001). The idea is that successful poverty alleviation is not only dependent on favorable GDP growth per capita, but also improvements in income inequality. Inequality is an obstacle to poverty reduction because poverty elasticity in terms of development has declined with inequality (Julia, 2020). As the trend of economic growth and development will greatly affect the future distribution of income and the poverty profile of a country rather than the growth rate in itself, a quest for weak growth or distribution is important (Syed, 2018). 2.4. TRANSPARENCY In fact, transparency is a prerequisite for successful development in an interdependent environment. All countries must experience structural changes during the development process. The biggest challenge at the early stage of development as the accumulated growth process starts is how to produce the capital required to achieve the starting point. A nation is primarily agricultural in the early days of development and its economy is largely closed. (Carol, 2004). 2.5. AGRICULTURE In order to increase productivity and capacity to contribute to the rest of the economy, and ultimately net surplus to fund the growing industrialisation process, agriculture must continue to have a strong resource flow through its component soiling, materials, science, and credit combined with appropriate institutions and price policy. Experience in East Asia found that a structural transition that has been systematically applied leads to an unequal and transparent development cycle. (Carol, 2004). 3. INEQUALITY AND POVERTY AFFECTED BY GLOBALIZATION 3.1. INCOME DISTRIBUTION In SamuelsonStolper's theorem of international trade theory is generally recognized as the income distribution effects caused by relative commodity price increase in the process of trade opening. As a matter of fact the increases in absolute and relative prices of wage products are not only likely to be winners, losers (especially the poor living in cities or rural areas). Although in many developed countries the wage gaps between skilled and skilled labor have not declined, especially in Latin America and Africa, as demand for skilled work increased, the incidence of income inequality is supposed to have been reduced. It can be explained by several factors such as: (i) a strongly prejudicial value of emerging technologies for skilled and well-educated labor; and (ii) the entry of Asian economies with significant reserves of untrained labour, such as China and India, into the world markets (Matt, n.d.). 3.2. LABOR AND CAPITAL The increasingly diversified degree of labor and capital today is another powerful vector for winners and losers as a result of globalization. There is, in particular, a significant gap in crossborder mobility between skilled and unskilled jobs. As a result, salary equalization is less likely to occur as a result of labor migration. Factor migration is more broadly characterized by: (i) capital and trained labor do not move to the developing world more than to the poor; (ii) skilled workers are likely to migrate to developed countries from developing countries and (iii) liberalization of capital markets leads to a flight of capital to developed countries, especially with globalisation, developed countries are disproportionate. (National Geographic, 2019). While labor mobility is strictly restricted and regulated for unskilled labor, illegitimate labor mobility has been enabled by the rising free movement of cross-border capital and power of multinational corporations as a result of changes in relative labor costs. For fear of banning MNCs, developed world governments are less likely to implement human rights laws and strengthen them. The mobility factor difference seen in the recent decades thus could have a profound impact on the distribution of usable incomes between labor and capital (National Geographic, 2019). 3.3. TECHNOLOGICAL PROGRESS The nature of technological development and the technological diffusion process may also have a negative effect on the distribution of wealth and poverty. In response to circumstances characteristic of their own wealth, technological progress comes primarily from R&D in developing countries. The technological change is therefore more likely, in developed and developing countries, to save labor and energy and raise inequality by establishing a wider wage gap. In comparison to the high degree of complementarity between skilled workers and capital, the replacement between skilled workers is weak. In addition, there is no universal and random dissemination of technology and exposure to new technologies. As a result, over time productivity inequalities will increase globally, increasing income inequality. In particular, globalization has accelerated the privatization process, which may hamper and often cost developing nations' access to advanced technology. Potential example may be agricultural technology, in comparison to the previous Green Revolution in a public domain, where the latest biotechnological revolution is created by large private corporations (Matt, n.d.). 3.4. ECONOMIC SHOCK Greater transparency is also correlated with rising uncertainty and economic shocks that are greatly worsening deprivation and income inequality, at least temporarily, among vulnerable and affluent households. There is some evidence that the poor are harmed rather than benefit from expansionary cycles during contraction. In the Asian financial crisis, for instance, poor households in urban areas are hit hardest and they lack security grids (Branab, 2004). The poor are still not well positioned to leverage new opportunities created by the massive increase in the global data flow. Eventually, while global disinflation has provided macroeconomic and monetary stability advantages, macroeconomic and monetary stability has been achieved at the cost of some additional development. The prevailing state of global fiscal restraint may have weakened governments' capacity to raise revenue for re-dispartitionary purposes (Branab, 2004). 4. POOR GLOBALIZATION 4.1. POLICY IMPLICATIONS The trend of income gaps between countries that have been identified threatens to jeopardize the feasibility of the convergence dissertation. However, the mere implementation of free trade and investment schemes does not ensure entry of developed countries to the Convergence Community. Many developing countries which have opened up their economies since the 1980s fell behind not only comparatively but also entirely in terms of sales levels and economic growth. Depending on the initial terms of show and the effective implementation of policies at national and international levels, global market forces may create a virtuous circle or a vicious circle in the integration process. (Syed, 2018). In a strategic position on globalisation, the speed and sequence of liberalization steps can not be clearly defined. It is just a matter of models or integration processes. The above-mentioned policies for national growth should be strategically developed, in view of the highly skewed reality of the on-going globalization. 4.2. CHALLENGES When patterns are observed in rising per capita income disparities between and in many countries, developed countries need to implement strategic steps to safeguard themselves, with a long-term approach to enhancing competitive benefits through higher value-added activities to benefit from globalization's dynamic forces. In order to thrive, the governments of developing countries need to systematically construct structural, inclusive capacities to address major globalization challenges (Syed, 2018). 4.3. GROWTH The policymakers need, not only for the benefit of, but also to combat the detrimental effects of the unstoppable forces of globalisation, to plan and execute an ambitious growth strategy. Governments are not required to engage actively in liberalizing trade and capital movements and the restructuring of their economies while passively waiting for the impact of the Washington Consensus and market forces for globalization to drive them down the speedy path of growth. Governments would instead follow ambitious independence and positive domestic development policies. Those who argue that we need to have fairer ways and procedures for globalization in the first place will face up to the need for a much better understanding of the idea of "poor globalisation" than we currently have in today 's globalization forces (Syed, 2018). REFERENCES Nicolas, A. P. (2019). How Globalization Affects Developed Countries. Retrieved from https://www.investopedia.com/articles/economics/10/globalization-developed-countries.asp National Geographic. (2019). Effects of Economic Globalization. Retrieved from https://www.nationalgeographic.org/article/effects-economic-globalization/9th-grade/ Julia, H. (2020). The Impact of Globalisation on Poverty and Inequality in the Global South. Retrieved from https://www.e-ir.info/2020/03/22/the-impact-of-globalisation-on-poverty-andinequality-in-the-global-south/ Hardy, L., Zanariah, Z., Selina, D., & Mohammed, K. (2014). Globalization and its Effect on World Poverty and Inequality. 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