Increased flow of trade Access to goods not produced domestically Increased choices

Increased vulnerability Segmentation of production process Problem oversea transmitted home Imported inflation Lower Standards of Goods Lower cost of production Less stringent checks to attract FDI Financial Market Instability Increased flow of capital Financial market unable to cope Currency fluctuation/ crisis Marginalised low-income countries Lack technology Lack resources Greater income disparity

Ecnourages Specialisation Allocative efficiency Lower prices for consumers

Advantages

Greater Competition More innovations Lowered prices Improved quality

Globalisation
Disadvantages

'Disciplined' Government Under scrunity Foreign Direct Investment based on government policies

Increased Productive Capacity Access of more resources Access of more technology

Increased demand for skilled workers Decreased demand for lowly skilled workers Higher Level of Structural Unemployment Faster rate of change of economy Firms relocate

Faster Rate of Growth Speed up economic development

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