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What are the main aspects of globalisation
Two of the other main aspects of globalisation are greater international mobility of capital and to some extent of labour. Globalisation allows the movement of capital from developed economies to poor economies. Capital is relatively abundant in developed economies whereas labour is expensive compared with its price in developing countries. In response to differing prices of labour and capital, firms move labour-intensive manufacturing processes to poorer countries. In other words there is an outward capital flow from rich to poorer countries.
Theoretically globalisation also leads to labour mobility in the opposite direction. Though immigration controls slow down the movement of labour from poor to rich nations. Yet in recent years illegal immigration into developed economies has happened since rich countries have informally encouraged migrants to fill relatively low-paid jobs rejected by their own citizens.
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