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Key facts: The global economy
Communication costs and growth of multinationals

The way manufactured goods are produced has changed dramatically in the last 50 years as the cost of transport and communications has fallen.

More and more goods are produced by global multinational companies with production plants around the world.

This set-up enables them to take advantage of cheaper labour and gives them better access to local markets.

More recently, "virtual companies" have outsourced their production to other firms around the world. These use the internet to manage their global supply chain, or their IT services like billing.


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