Globalisation takes a number of forms and it has many effects on us all. Forms of globalisation include globalised manufacturing, fast global transport and cheap global telecommunications. Globalisation brings us many benefits, but there are negative effects too. As a result of globalised manufacturing, cheap goods come from the
attempt to compete, some high-cost manufacturers move their operations to regions with lower costs.
Both these changes cause unemployment and social problems. Importing countries may react with protectionism in order to protect their industries. However, free trade always beats protectionism in the end because it offers consumers the widest choice at the best prices.
Multinational companies are starting to become truly multinational and to provide new opportunities around the world. In the first stage of globalisation, companies manufactured and kept control in their home countries and sold abroad. In the second stage, they started manufacturing abroad, but control was kept at head office. Finally, companies are now moving control away from head office. As a result of this third stage, power is moving to more places
around the world, and staff are becoming more mixed and non-western.
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