Globalisation is the increasing integration of separate economies leading to the emergence of a single global economy. Globalisation increases through the abolition of barriers to both trade and financial flows around the world. This procedure of deregulation generates more wealth and theoretically raises the standards of living in the global economy.

The standards of living in the global economy are quite difficult to measure – it is even more difficult to measure the impact of an outside factor such as globalisation. This is due to the difficulty in isolating the impact of globalisation from other factors. Standards of living in the global economy are devised of income, health, and education. These broad terms are indexed by GDP per capita, literacy, infant mortality, GNP per head, secondary and primary education, doctors per 100,000 people and so on. The impact of globalisation

Living standards differ because of national economic structure – high-income countries are based on service industries and advanced technology and low-income countries are based on agricultural production. They differ within the population and labour market factors with high-income countries have a population with a high level of education and relatively high rates of production. Institutional factors – stable government and policies allows for better living standards, economic growth influenced by culture, access to capital and ease of establishing a business, global relations and levels of foreign debt.

The most painful way in which international organisations have influenced the living standards in the global economy involves the health of its poor. The WTO aims to restrict the right of developing countries to produce generic drugs, preferring them to purchase brand-name drugs that they cannot afford. Coupled with the unfortunate fact the both the IMF and WB largely place the promotion of globalisation before the living standards of the global economy. However, the role played by another international organization clashed with that of the WTO, the UN declared that the WTO’s agreement is a violation of human rights. Demonstrating that international organisations can have a positive influence of living standards in the global economy.

The role of trading blocs played in the global economy is also important, as these international organisations have a substantial influence on trade and financial flows in the global economy. Some trading blocs are created to promote the globalisation process, it is the goal of these organisations to abolish all barriers to the flows of the global economy in their regions. They have achieved huge success in lowering protection, forwarding deregulation, and uniting the global economy.

It can be said that globalisation has done little to raise the living standards of the global economy’s poor. Over 2bn people still live on less than US$ 2 a day, with 1.2bn on less than US$ 1. However, the impact of globalisation has done some marginal help for this one third of the global economy, with less people earning less than one dollar a day. This means that globalisation has increased the poor living standards, but in a manner so marginalised that it hardly counts.

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