Globalisation

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  • Globalistation- ever increasing integration of markets into 1 market
    • Broken into 4 main areas
      • Free trade
      • Free movement of labour
      • Free movement of capital
      • Free interchange of technology and intellectual capital
    • Causes of globalisation
      • Trade in goods- production in China
      • Trade in services- Japan call centres
      • Trade liberalisation- less protectionism
      • Multinational companies- Coca Cola
      • International financial flows- Malaysia have financed growth from inward investment
      • Foreign ownership of firms
      • Communciations and IT -  used more between countries
    • Effects of globalisation
      • Prices- Fall in prices due to less cost of production but rise in commidity prices due to more demand from China
      • More consumer choice
      • Higher incomes in developing companies
      • LEDCs more employment
      • Income distribution- arguements for both
      • Environment harmed
      • More economic dependency

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