We have reviewed the labels of our clothing and found that they were made overseas while the companies that carried them out are Spanish or Italian. For instance, a Spanish corporation makes their clothes in eight different countries; books in Spanish or Galician language are printed in China. How can we explain this fact?
Since the collapse of planned economies in 1989, the free market system spread all over the world so globalisation has created global economic integration. This process is possible due to the following reasons:
– ICT (Internet) allows corporations all over the world to be in contact with each other.
– Countries have created blocs of economic integration like a common market as European Union or a free trade zone as General Agreement on Trade and Tariffs.
– Multinationals decide where and how to produce their goods, so they relocate their factories looking for cheaper costs (raw materials and, above all, low salaries).
– Globalisation of economy is supported by international organizations like the United Nations (UN) and the World Trade Organization (WTO) which promote free trade between members.