ABSTRACT
Proponents of globalisation usually base their arguments on the theory of comparative costs. The economic relations that a country has with other countries are reflected in its balance of payments. The end of the twentieth century and the beginning of the twenty-first century were characterised by a rapid growth in international trade and investments and a rapid growth of the economy in a number of developing countries, especially in that potential economic giant, China. The wage costs per hour in the developing countries are much less than those in Western Europe. The International Monetary Fund (IMF) classifies the world economy into three categories of countries: advanced economies, emerging markets and developing countries. The development of the global distribution of production is dependent on economic growth. The economic growth in the advanced economies lagged behind the world’s average in the period from 1998 to 2017.
