Both trade and financial openness can be expected to increase the rate of economic growth. Trade between nations increases the marketplace's size and the competition between firms. This improves efficiency as production is concentrated in the most productive firms, wherever they may be.
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Globalisation and growth
Both trade and financial openness can be expected to increase the rate of economic growth. Trade between nations increases the marketplace's size and the competition between firms. This improves efficiency as production is concentrated in the most productive firms, wherever they may be.