We see this in regions of the UK for example where de-industrialisation has taken place leading to much higher rates of long-term unemployment and a worsening of economic and social deprivation.
In the United States, the share of national income claimed by the top 1% of the population climbed from 11% in 1980 to 20% in 2014, compared to just 13% for the entire bottom half of the population.
This can range from introducing country-by-country financial reporting so that it becomes clearer where the profits are being made, to introducing restrictions on interest rates charges from one subsidiary of a TNC to another.
There are also moves to reduce the amount of intra-company loans made by TNCs which can shift profits to countries with lower corporation tax.
Automation threatens many jobs - ranging from fork-lift drivers to workers in farming and production lines.
The onus is on government to implement and fund the right supply-side policies designed to improve the human capital of people affected including lifting investment in human capital and entrepreneurship.Oxfam estimates that tax avoidance costs developing countries 0 billion a year whereas 0 billion could provide an education for 124 million children and pay for healthcare services that could prevent the deaths of at least six million children annually.In evaluation, there are steps that governments can take to increase their tax take.They are therefore at greater risk of unemployment and persistent relative poverty; many have been pushed into poorly paid jobs in services linked to the Gig Economy.People affected often feel that they have been left behind by the forces of globalisation and their votes may have been a factor behind the Brexit outcome and the election of Trump who has adopted a “protectionist approach” to trade policy since becoming President.Because of tax avoidance, national governments do not generate the revenues needed to pay for public services and welfare systems - both of which can have a progressive effect on the final distribution of income.The UK government has estimated that, in 2017, multinational businesses managed to avoid paying nearly £6 billion in tax revenues.One way globalisation can increase inequality is through the effects of increasing specialisation and trade.A rise in trade-to-GDP ratios signifies an increase in the volume and value of trade between countries and regions.The latter is a good indicator of the depth of inequality since it tracks incomes flowing to the top ten percent of households and divides by the incomes for the bottom forty percent.In South Africa, that figure is 7.1 whereas for Germany the Palma Ratio is just over 3.