1) TRADE IN GOODS
- Developing countries have acquiref the capital and knowledge to manufacture goods.
- Efficient forms of transport, easier and cheaper to transfer goods across international borders.
- Developing countries have advantage of cheap labour so MNCs take advantage of this.
2) TRADE IN SERVICES
- For example: trade of tourism, call centre services has increased from developing countries to developed countries.
3) Trade Liberalisation
- Growing strength and influence of organisations such as WTO, which advocates free trade, has contributed to the decline in trade barriers.
4) MNCs
- MNCs are organisations which own or control the production of goods and services in multiple countries.
- MNCs used marketing techniques to become global and by growing, they have been able to take advantage of economies of scale.
5) INTERNATIONAL FINANCIAL FIRMS
- Flow of capital and FDI across international borders has increased.
- Foreign ownership of firms has increased, more investment in factories abroad.
6) COMMUNICATIONS AND IT
- The spread of IT has made it easier and cheaper to communicate, making the world more interconnected.
- Better transport links and transfer of information.
7) CONTAINERISATION
- Goods that are distributed in standard sized containers so is easier to load and cheaper to distribute.
- Cheaper to ship goods across the world so prices fall, making the market more competitive.
- However, MNCs might exploit this and thus create more profits.
Comments
No comments have yet been made