Introduction Globalization is the process through which services, capital, and even goods are freely moved across the borders (Alderson and Nielsen 1244-1245). Through globalization, western markets have spread all over the globe. Internationalization helps in integrating markets, technologies, and countries in a way that enables people and even companies to economically reach other areas around the world faster (Rueda and Pontusson 353-356). In recent times, there have been increase studies on the subject internationalization and the resultant income inequality. This paper highlights the link between globalization and income inequality. Globalization and income inequality Globalization has increased competitiveness. There are thousands of people in less developed countries that are willing and ready to earn less as compared to what workers in developed countries are to be paid for their services (Mahutga 1865). This has resulted in numerous cases of job loses in developed countries as people from the developing world have moved to developed countries in search of jobs in the manufacturing sector. This depresses the earnings of the remaining workers who must as well compete with the displaced employees. Income inequality and poverty Poverty simply means being in a state of inability to afford basic human needs (Mahutga 1865). Some of this basic needs include education, health care, food, and even shelter. Poverty relates to income inequality in different ways (Dicken 480-500). For instance, there is a huge gap or difference in inequality between the poor and the rich, especially in developing countries. The trends Since the 1940s, income inequality in the United States has been high. However, it has grown out of control or up to its highest at the turn of the 21 st century (Mahutga 1865). Specifically, at the turn of the 21 st century, almost all the rich people received close to five times more income as compared to the earnings of the majority of the poor households. This was almost three times up from what was recorded in the 1980s (Dicken 483-494). It is also estimated that in the 1980s, the Unite States recorded a seventy percent growth in income that appeared in pocket of the rich who at that time was just one percent of the entire population. This inequality has increased in the past two decades. For instance, in terms of wealth, in the mid 1990s, one percent of people of the United States was rich (Mahutga 1865). The interesting thing is that these households owned over forty percent of capital market stocks, over forty percent of private and government bonds, and over forty percent of all the real estate assets. Within and between-country income inequality Within-country income inequality simply refers to the inequality existing within each country (Mahutga 1865). Individuals within each state have differing levels of income. Income inequality between countries implies the differences in income between different countries. Income inequalities between people living within each country affect the inequality levels globally (Alderson and Nielsen1244). For instance, if income inequalities increase, it leads to a difficulty in the decline of income inequalities, specifically, t