同樣，在Gujrat州，當蘇丹開始在當地市場上大量生產廉價的口香糖時，來自巴伐爾樹的口香糖收集者就失業了。 (Anderson, Cavanagh, Lee, 2005)一方面，這給許多社會灌輸了工作不安全感，導致了人才流失;它還阻礙了發展中經濟體的創業和創新。許多家庭手工業和小型企業因為發現自己無法與具有巨大規模經濟的跨國巨頭競爭而破產，從而將當地企業擠出了市場。此外，工業化國家的保護主義政策阻止第三世界國家的當地生產者進入出口市場。 (Stiglitz, 2002)例如，拉丁美洲(如秘魯)政府開放進口的速度遠遠快於其他地區，因此生活在貧困線以下的人數也在增加(每天1美元)。這進一步加劇了該區域已經存在的收入不平等。
In April 2013, a garment manufacturing factory based in Bangladesh, responsible for producing goods for Western retailers collapsed with death toll surpassing 1000 – reason being poor safety arrangements. Keeping in consideration the above quoted research, it can be said without any hesitation that globalization is only viable for the rich and developed whereby they can get their hands on cheap labour and low-cost products which in turn increases their margins. Poor countries, on the other hands appear to have no significant benefit from globalization.Globalization has led to rising social inequality. As globalization removes barriers to trade, it is quite easier to find imported products on the local stalls. The notion that “imported products are better than the local products” has affected both consumers and producers, particularly in the third-world countries. Who would prefer buying from street hawkers and local shops when imported, hygienically packaged branded stuff is easily accessible? While this may mean greater set of choices for the affluent customers, the livelihood of a local producer is set on fire. If we look at Indian economy, women silk spinners and twisters of Bihar lost their jobs as Chinese and Korean silk yarn unleashed Indian market.
Similarly, in the state of Gujrat, gum collectors from Baval trees went out of employment as Sudan began pumping in the cheaper gum in the local market. (Anderson, Cavanagh, Lee, 2005)This, on one hand, it has instilled job insecurity and the resultant brain drain in many societies; it has also hampered entrepreneurship and innovation in the developing economies. Many cottage industries and small businesses shatter as they find themselves unable to compete with the transnational giants who have massive economies of scale, thus driving local companies out of business. Besides, protectionist policies in industrialized countries prevent local producers from third world countries to access the export markets. (Stiglitz, 2002)For example, government in Latin America (e.g. Peru) liberalized imports far more rapidly than other regions, consequently increasing number of people who are living below the poverty line ($1 per day). This has further aggravated the already existing income inequality in the region.