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The Effects of Globalisation on Developed Economies

Developed countries throughout the world express varying levels of concern about the affects of globalisation on their economies, and while these concerns aren’t necessarily grounded in fact, it is clear that the effects are sometimes positive and sometimes negative – and the same can of course be said for developing countries too. First, globalisation is a result of two elements; increased movement (freedom of movement), and free trade (internationalisation of industries and corporations). They both have their own impacts: Freedom of Movement Freedom of movement allows workers from many different countries to come together to fill a demand for labour in a marketplace. This freedom of movement means that economies are less limited now in their ability to compete in a wider range of industries, but on the flip side...

IMF Forecasting Slower Growth For the UK Following Election

The IMF has just come out with a forecast of UK growth which is at odds with what the OBR forecast for the plans by the conservatives. They have forecast a slower rate of growth for the UK economy which may well interfere with the plan to reach budget surplus by 2019, and that the UK government and people should expect to see a £7 billion deficit rather than a £ billion surplus. The IMF points towards uncertainty created by election results as a significant cause for concern, potentially reducing UK growth from 2.9% this year to 2.3% in 2016. It is worth keeping in mind however, that the IMF has consistently underestimated the UK growth in their forecasts throughout the last few years, and we may well surprise them...