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Globalization is clearly contributing to increased integration of labor markets and closing the wage gap between workers in advanced and developing economies, especially through the spread of technology.
It also plays a part in increasing domestic income inequality. Globalization is about the interconnectedness of people and businesses across the world that eventually leads to global cultural, political and economic integration.
Due to the increased demand in the high tech industry around the world, business and industry have potential for huge profits working globally. In general, globalization decreases the cost of manufacturing. This means that companies can offer goods at a lower price to consumers. The average cost of goods is a key aspect that contributes to increases in the standard of living.
Consumers also have access to a wider variety of goods. According to the disciplining hypothesis, globalization restrains governments by inducing increased budgetary pressure. As a consequence, governments shift their expenditures in favour of transfers and subsidies and away from capital expenditures.
Never before has global governance been more important to ensure open and rules-based markets and fair competition, as multilateral rules of trade are under attack. Few other countries in the world are as globalized as Germany. This means that different customs and habits shared among local communities have been shared among communities that used to have different procedures and even different beliefs.
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