Globalization_Outline - Globalization 1. Increasing trend...

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Globalization 1. Increasing trend of international trade of goods and services and international capital flows. 2. This has been facilitated by lowering trade barriers across countries through organizations such as the WTO. International trade has also been greatly facilitated by the sharp reduction in transportation (container shipping) and communication costs (large cable, wireless and internet investments were made during the tech boom of the 1990s). This has enabled the deconstruction of the value chain allowing suppliers from different countries to specialize and participate in the value chain. 3. Huge labor force of China and India has in the last decade entered the global labor force resulting in far reaching changes. 4. China has become one of the most efficient low-medium skilled manufacturing economies and has been shifting up the value chain. China has been able to sustain an average GDP growth rate of about 10% over the last 25 years. This has made manufacturing very competitive and many manufacturing facilities in the developed world have had to shut down and shift to lower cost facilities elsewhere. Services have also become very competitive with a great deal of outsourcing taking place to countries like India. 5.
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Globalization_Outline - Globalization 1. Increasing trend...

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