Globalisation

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Globalisation

Causes

  • Fall in transport costs
  • Decline in communication costs
  • Lowering of trade barriers
  • Collapse of communism
  • Opening up of China
  • Transnational companies

Effects

  • Wider choices of goods and lower prices for consumers
  • Lower production costs
  • The application of comparative advantage
  • Increased exploitation of workers and the environment
  • External costs such as pollution
  • Increased inequality between and within countries
  • Increased global instability and global trade imbalances

Overall summary

The causes of globalisation are wide ranging and stem from the introduction of more advanced technologies into the global economy. This has positive and negative effects.

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