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  • How Has Globalization Affected the World Economy?

     

    Eseja4 Ekonomika

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Identifikators:408701
 
Vērtējums:
Publicēts: 21.04.2004.
Valoda: Angļu
Līmenis: Vidusskolas
Literatūras saraksts: Nav
Atsauces: Nav
Darba fragmentsAizvērt

Globalisation - is the movement of goods, services and money capital or investment across international boundaries and in this way becomes a predominately economic phenomenon sweeping the world. Throughout which, what were formerly national companies become international conglomerates. Hence, countries are no longer seen as independent and closed sovereign states, but as part of one big economy.
While still seen as a relatively new event, globalisation is in fact an extension of a trend which dates back well over two hundred years, when it was simply called colonisation. During this period a well known economic theorists (David Ricardo) published a book in which he developed a theory called comparative cost advantage. In this he notes that countries should specialize in areas of production where their comparative cost advantage was greatest or their disadvantage least. International free trade and specialization, he argued would lower prices, better incomes and raise living standards, thus in turn with better transport and communication contributed to the development of globalisation.

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