The economies of most countries are now becoming more interconnected with each other – a process called economic globalisation. There are several reasons for this:
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Import–export taxes and other trade ‘barriers’ between countries have decreased.
International free-trade areas, such as the European Union (EU), allow the free movement of goods, services and citizens between their member states.
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Multinational corporations (MNCs) control more and more trade and manufacturing operations. Most of these companies have their headquarters in the USA or Europe, with branches in many parts of the world. These powerful companies thrive in free-trade conditions and can put enormous pressure on individual governments to adopt free-trade laws and policies.
Managing information and thinking:
1. List the multinational companies that you see depicted on this map. Name three other multinational companies that are not depicted on the map.
2. What message do you think the map is giving? 415
