Cheaper shipping and air cargo made distance cost less

Moving goods between countries used to be slow and dear. Container ships, which carry goods in standard steel boxes that lift straight from ship to lorry or train, and cheaper air cargo have driven down the cost of transport. Once shipping a product halfway round the world adds little to its price, a firm can sell to buyers far away and buy its parts wherever they are cheapest.

Cheaper communication lets one firm run production spread across several countries

Advances in computing and telecommunications have made it easier and cheaper to manage production and sales over long distances. A firm can design a product in one country, buy parts made in a second and assemble them in a third, keeping every stage in touch. Some products are pure information, such as software, financial advice, music and building designs, and these now travel over networks at almost no cost.