Developing countries, with their higher populations and lower wages, will concentrate on labor-intensive industries, such as raw materials and manufacturing, in much the same way as Western countries did during the industrial revolution. The ricer countries, on the other hand, will diversify into hi-tech industry. The effect of this, say supporters, will be to improve productivity in all countries, leading to higher living standards. The free movement of capital will also help poorer countries to develop so they can play a full and active role in the world economy. Even supporters of globalization acknowledge, however, that there will be losers.

At present, those suffering most are people working in labor-intensive industries in the developed world. Without the protection of trade barriers and the welfare states, their chances of improving their skills and living standards will disappear, resulting in a growing divide between rich and poor. But how close are we to a truly global economy? For the losers, probably too close. But in terms of real economic integration, there is still a long way to go. What is really holding globalization back is the lack of labor mobility. Labor markets remain overwhelmingly national, even in areas like the European Union, where citizens live and work in any EU country. The main reasons for this are language and cultural barriers; the lack of internationally-recognized qualifications; and, in some areas, strict immigration controls.

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