Moreover, financial openness exposes economies to destabilising external influences. ![]() For example, globalisation has coincided with rising withincountry income inequality in some countries, although the evidence indicates that technology has been the main driver. Like any other form of far-reaching economic change, globalisation poses challenges. Together, international trade and finance have enhanced competition and spread technology, driving efficiency gains and aggregate productivity. Tighter trade and financial integration are deeply intertwined: international trade not only relies on, but also generates, financial linkages. ![]() ![]() Economic globalisation has contributed to a substantial rise in living standards and falling poverty over the past half-century.
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