Factors Contributing to Increase Globalisation

• what are the 8 factors contributing to increased globalisation?

  • trade liberalisation
  • political change
  • reduced cost of transport and communication
  • increased significance of transnational companies
  • increased investment flows
  • migration
  • strutural change
  • growth of global labour force
• define globalisation

  the economic integration of different countries through increasing freedoms in the cross-border movement of people/goods
• define trade liberalisation

  the removal or reduction of barriers to trade between different countries
• give one benefit of trade liberalisation

  increased interenational trade --> increased market size --> increased output --> benefit from economies of scale
• give one drawback of trade liberalisation

  domestic firms will struggle to compete with international firms