An examiner may therefore ask something on either or both of these empirical observations. Let's think about them. A good place to start is the cost of unemployment. Trade has become increasingly global . We have seen considerable liberalisation of trade in recent years.
Countries can now exploit their natural advantages.
In the developing world this has led to low cost labour being used as a magnet to attract corporate investment and output. Developed countries have therefore seen their industrial base shrink and the importance of manufacturing decline. Companies have needed to adapt quickly to these changes and where this has not been done unemployment has risen. Technology has increase enormously in recent years. Machines have replaced people in many areas of the economy.