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1.2.1b Correlation between global patterns of trade, capital, and labour…

- - - - Domination of advanced economies e.g. USA and Western Europe in the 1950s
      - Rise of East Asian economies since the 1950s due to rapid industrialisation and export-oriented growth
      - Emergence of e-commerce in the mid 1990s
      - Advancements in transportation and communication technologies
    - - Change from fixed to floating exchange rates
      - Emergence of formal foreign exchange markets in the 1950s
      - Globalisation of finance since the 1950s
      - Emergence of sovereign wealth funds since the 1950s
      - Expansion of FDI into various sectors since the 1950s
      - Increasing interconnectedness
        
        Increased potential for global financial crises
    - - Introduction of guest worker programs in the 1950s/60s
      - More prevalent skill migration since the 1950s/60s
      - Brain drain and brain gain
- - - - Productivity
      - Access to foreign technology
      - Investments
    - - Economic volatility
      - Dependence on global commodity prices
  - - - Job creation
      - Technology transfer
      - Infrastructure improvement
      - Spill over effects of FDI
    - - Crowd out investment from domestic sources
  - - - Remittances
      - Skill transfers
- - - - Major consumers of goods and services
      - Establish regional trade agreements that encourage flow of trade
    - - Often rely on exporting
  - - - Attract global capital flows
      - Provide aid, grants and investment to less developed regions
    - - Those with high growth potential attract foreign investment