Explain the Macro-economic benefits of globalisation.

Globalisation is the increase in connectivity of the world through the trade of goods and services. The effects of globalisation can benefit two different parties: one being producers; the other being consumers. The benefits that effect producers are those of economies of scale. For example: the average cost of producing a good or service decreases as more workers become available; decreasing costs of labour. Whereas, consumers can also be benefited from this increase in access to the global economy as firms have higher levels of competition; therefore leading to consumer prices decreasing. Therefore, it could be stated that globalisation allows increased work opportunities for those who inhabit a country with poor working conditions and salaries; resulting in a decrease of poverty assuming the firm does not exploit their workers.