Globalisation Basics

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  • Created by: Simpson.e
  • Created on: 23-03-15 21:06

Globalisation Basics

Causes

  • Manufacturing in more developed countries.
  • Decrease of this in recent decades.
  • Lower labour costs over seas.
  • Changing flows of production.

Effects

  • Products also sold in the more developed countries.
  • EG. UK manufacture employment 5M 1985 to 3M 2009.
  • Companies relocate production abroad then import products back for sale.EG. Dyson 2002 moved production/assembly to Malaysia but vacuums still sold in UK...
  • ...Increasing international trade of manufactured goods EG. UK imported £200B 1990, £550B 2008.
  • World more interconnected EG. UK buy many products manufactured in other countries.

Overall summary

Lower labour costs in less developed countries has led to the movement of production and therefore international trade of manufactured goods has increased.

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