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For those who lead and manage cities, the transition to an internationalised world has not been easy. Nor is it likely to become easier. Promises of free trade, open borders, industrial restructuring, mobility of labour, technology transfer and electronic communication all create remarkable opportunities, but they also pose major challenges. On the economic side, many Western democracies now have a dual, segmented labour market with increased unemployment and growing inequality. Industry may succeed by, for example, redeploying operations offshore to take advantage of low labour costs in far-off countries, but the consequences of disinvestment can be traumatic for specific cities and for particular areas within cities.
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