The author deals with the costs and benefits of globalisation. He also gives a simple explanation of the core economic forces behind the globalisation. The current technical development favours the decline of the fixed coordination costs of the multinational enterprises and this opens up the possibility for the enterprise to utilize the lower marginal costs elsewhere on the globe. The optimal degree of globalisation depends on the interplay between the fixed coordination costs and local marginal costs. Even though globalisation brings also costs in addition to benefits, the critics should remember, that any structural economic change tends to cause adjustment costs.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Government Institute for Economic Research Finland (VATT) in its series Discussion Papers with number
379.
Length: Date of creation: 03 Jan 2006 Date of revision: Handle: RePEc:fer:dpaper:379
Contact details of provider: Postal: Arkadiankatu 7, P.O. Box 1279, FI-00101 Helsinki Phone: +358 40 304 5500 Fax: +358 9 4780 2929 Email: Web page: http://www.vatt.fi/ More information through EDIRC
Order Information: Email:
For technical questions regarding this item, or to correct its listing, contact: (Anita Niskanen).