Analyse two economic benefits of globalisation (6) POINT 3 EXTRA

1. Increased Trade: Globalization increases the volume of international trade by providing more access to foreign markets for trade of goods and services. This allows for greater competition amongst firms, resulting in lower prices and a wider variety of products for consumers. Increased trade also leads to greater economic efficiency as labour and capital are used more efficiently and can often spread new technologies to improve production methods. 2. Foreign Investment: Globalization increases the opportunity for foreign investment in domestic markets, which can provide a much needed shot in the arm to the domestic economy. By allowing foreign direct investment, businesses and governments can receive access to different financial resources and capital that they may not be able to access domestically. This then can result in an increase in jobs, wages, and economic growth. The benefits of globalisation are far reaching and can help to support economic growth and development around the world. Increased foreign investment, access to more trade routes, free capital flows, and improved technology can all contribute to improved economic outcomes. As a result, globalisation has the potential to improve levels of living and reduce inequality on a global scale.