We should start off by saying that poverty is the number one reason why these countries are referred to as ‘third world’. About billion people in third world countries live on $ a day or even less. Serious efforts were made between 1990 and 2008 and the number decreased by nearly half. However, a recent UN report shows an increase in food prices, which is causing global concern for the first time in about 20 years. Poverty and hunger are inseparable. Millions live in hunger and malnutrition either because they cannot afford to buy nutritious food or because they cannot afford the farming supplies needed to grow their own food.
A major facet of globalization is the massive increases in international trade that we have witnessed in recent years. This process has been encouraged by institutions such as the World Trade Organization, boosted by regional trading blocks such as the European Union, the North American Free Trade Agreement, the ASEAN (Association of South East Asian Nations) and further facilitated by trade agreements between individual nations. The benefits of international trade are many, . competition, lower consumer prices, increased consumer choice and the increased availability of goods and services.