Despite the increasing integration of the global economy, large differences in living standards between countries have persisted and even worsened in recent years. This is evidently indicated by the stark differences in the levels of economic development and growth across the global economy, suggesting the wide gaps between wealthy and poor nations. Almost 80% of GWP income is dominated by just 15% of the world's population whilst the rest of the 20% is shared by 85%. While international organisations are attempting to reduce these significant differences, inequality remains an entrenched feature of the global economy. The main reasons accounting for these differences result from domestic and global factors.
Standards of living are usually measured by a nation's Gross Domestic Product (GDP) per capita. GDP measures the total value of all goods and services produced in an economy in a given year, and it is usually quoted in per capita terms to adjust for differences in levels in population levels and population growth over time.…
