Economic Impact of Globalisation

1. Costs

1.1. Brain drain

1.2. Financial Interdependency

1.3. increased risk of exploitation

1.4. Structural unemployment - mismatch of jobs and skills

1.5. Income inequality

1.6. Greater vulnerability to external shocks

1.7. Loss of jobs - Outsourcing of manufacturing and white collar jobs

1.8. "Planned obsolescence"

1.9. Financial instability

2. Benefits

2.1. Higher national income

2.2. More trade

2.3. Healthy competition

2.4. More jobs

2.5. Encourage specialisation

2.6. Capital mobility - stable domestic interest rate

2.7. Higher standard of living

2.8. Faster propogation of technological innovation

2.9. Greater sharing of ideas