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In this paper, how labour markets are affected by globalisation is examined. The paper takes the form of three chapters. The first chapter looks at the state of trade unions in Europe and how they have been affected by globalisation; the second chapter is theoretical in nature and shows how the increasing size of trade blocs and lower transport costs can help to explain the decline in trade union density; and the third chapter looks at how the ability of firms to locate production in more than one country can affect wages and unemployment.
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