... developing countries such as Sri Lanka and Bangladesh to benefit from cheap labour. This means that the production of sportswear is productively efficient and it also guarantees the workers in the developing economies an income, which is generally higher than they would otherwise get by taking up local employment. Recently, Dyson, the vacuum cleaner manufacturer has shifted its production to Indonesia for the same reason of cheap labour. The same reason is also behind the sporadic rise of call-centres in India. Hence, living standards in developing countries go up. Globalization also leads to competition between countries with a comparative advantage, in order to become the favoured supplier of goods and services. This means cheaper imports for other countries, resulting in a lid on prices, so inflation is less likely to derail economic growth. Also, there is room for innovation for an open economy, with fresh ideas coming from abroad. The major disadvantage of ...

See this essay or coursework document in full right now