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The Economics Of Global Warming
(by William R. Cline)

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Globalisation is not a single phenomenon. It has become a catch-all concept to describe a range of trends and forces leading to openness, integration and interdependence of economies. In short LPG Process -Liberlisation, privatisation and globalisation.
Estimates are presented for economic damages, ranging from agricultural losses and sea level rise to loss of forests, water scarcity, electricity requirements for air conditioning, and several other major effects. The study concludes with a cost- benefit estimate for international action and a discussion of policy measures to mobilize the global response.
This has lead to intergration of economies worldwide where economy is viewed as a single market even at the macro 'global' level. Production area is regional or sub-sectors rather than a set of national economies linked by trade and investment flows.

Cross border operations of economic activities ? production, investment, financing, technology utilisation and marketing.
Optimal utilisation of global resources including competitive sourcing of inputs for achieving cost competitiveness in production, economies of scale in operations and efficient technology utilisation.
Easy movement of product and factor flows across borders involving merchandise trade, services, investment, financial capital, technology and labour.
The internationalisation of consumption ? consumers are buying more foreign products.
Competition, production and markets become global in nature and goods and services become less distinguishable or identifiable with their country of origin.
At the firm level, globalisation would refer to a process in which firms configurate and coordinate their activities across national boundaries in order to maximise profit and remain competitive.
The economic circumstances and factors that spur globalisation and liberalisation is enhanced efficiency in production made possible by increased specialisation. Besides, Improvements in transport, communication and information technology networks have led to lower cost of transactions and of doing business globally This has created new ways to organise firms at global level.
Increased production levels due to better exploitation of economies of scale made possible by the increased size of the market.
Greater worldwide acceptance and commitment to the free trade principle and market economy and dismantling of planned economies.
Easy movement of factors of production across national borders. This had facilitated firms to locate different parts of their production process in different countries.



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