Gains from Globalisation

In this short revision clip we explore some of the claimed advantages from the process of globalisation. Many of them centre around the gains from specialisation and exchange across national borders.

What is the key benefit from globalisation?

Globalisation allows businesses and countries to specialisein producing goods and services where they have a comparative advantage. Specialisation and trade enable a gain in economic welfare, for example through lower prices for consumers which then increases their real incomes. They can consume more goods and services.