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Ecconomic globalization - Essay Example

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Globalization is a phenomena that can be widely described as the increasing disintegration of the national boundaries in favor of the global economy, worldwide political integration and shared culture (Hanson, 2006). Globalization has had varying impacts on the economy of the…
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Ecconomic globalization
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Ecconomic globalization

Download file to see previous pages... tion has led to economic growth by increasing the aggregate demand which increases exports as well as increasing aggregate supply through higher levels of investments that are associated with globalization. Globalization has led to destruction of jobs in the manufacturing sector and increase of jobs in the service sector. In addition to that, globalization has led to the increased demand of skilled labour and reduced demand of unskilled labour. This is because firms have shifted their some of their productions stages to countries with cheap labour only leaving the ones that required highly skilled man power within the USA. This has led to widening income gap in the United States of America (Hanson, 2006).
Globalization has impacted positively on export and import trade in the USA. This increased trade has led to increase in the GDP of the country. However the effect of globalization on balance of payment is uncertain and it hugely depends on the relative growth rates, exchange rates and ...Download file to see next pagesRead More
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