Effects of Globalisation on UK economy

Effects of Globalisation for The UK Economy

Shifting Sectors Globalisation will lead to a shift in the sectors of the economy. For example the UK no longer has a comparative advantage in many manufacturing industries, Developing countries now have an advantage due to lower labour costs. This process can lead to temporary structural unemployment. But these effects can be offset by specialisation in other areas e.g. in Financial and insurance services

Increased Competition. UK competition should perhaps allow domestic monopolies who face international competition

UK has a strategic position in Europe to encourage investment from Japan and the US, membership of the Single Currency would help