Global Economic Interdependence

How does global trade make us more interdependent? Global trade makes us more interdependent by the impacts of finance, trade, investment, technology and migration. Also, economic, social and environmental impacts. They affect the formulation and implementation of policies at the national, regional and global levels. Among significant impacts is the reduction in the degree of national autonomy in policymaking and the resulting need to better harmonize national policy formulation with international obligations, commitments and compulsions.

The 20th century brought with it a rapid expansion of the global interrelatedness of the world. In the beginning of the 20th century the world was dominated by a European world system of colonial empires that was created through expansion by sea (Findley, 2011). The competition between Britain and the other colonial powers led to an insatiable appetite to expand their empires across the globe (Findley, 2011). As the 20th century progressed this European world system collapsed and a new three world system of the United States, Soviet Union, and the rest of the world emerged (Findley, 2011). The end of the century coincided with a new era of globalization that was made possible by the introduction of global communication via the internet (Findley, 2011). This new technology brought the entire world closer together than it had ever been before. The four events that best illustrate the progression of global interrelatedness throughout the 20th century are the Great Depression, World War II, Cold War, and the introduction of instant global communications via the internet.

The nature of this critical though paper is to understand how globalization has affected our generation in different ways so we can compare and contrast the movements of the 21 century in positive and negative ways. The world has been impacted regularly in conflicts regarding the major political changes over the years we have seen a major growth in economies around world, countries like China and India have managed to rise up to compete with one major power the United States of America, the nature of this envelopment begins in how free trade and economic issues made politicians aware of creating a global system to achieve better economic deals. The west most American politicians have managed to influence many countries in the east to come forward with policies that have similar viewpoints to a capitalist system. As of this point globalization has grown rapidly around the world, the power of the internet, new technologies and the use of these techniques has triggered social and political changes around the world. Political activists have used these tools to encourage regular citizens to engage in political activities to speak up against brutal governments and to make social changes within their society and community.

The world economy played a large role in the shaping of racial circumstances in Africa and the Western world. The African world went from barely any contact with any nations outside of Africa pre-1400, to vast trade with European nations and the West by the 1800s. The major change in communication and trade affected the way in which the economy flourished and countries evolved. The introduction of African slaves to the Western world through trade because of disenclavement and the emergence of capitalism are the two main events that influenced the racial circumstances in Africa and the Western world.

Although the first use of the term ‘globalization’ can be traced back to the 1940s, it was only after half a century that this concept stormed the public consciousness. The buzzword ‘globalization’ exploded into the ‘Roaring nineties’ because it captured the increasingly interdependent nature of social life on this planet. Earlier the concept of globalization was viewed as a techo-economic juggernaut spreading western culture and the intellection of capitalism and quashing local beliefs and national traditions. Thus, it was viewed as a ripple of Americanization. One corollary of the propagation of this perspective created fears in the minds of people, who had utter love and affection towards their own culture.

Based on World Health Organization statistics, global economic interdependence has led to an astonishing increase of the population and higher standards of living (Who.int, 2016). For instance, Lagos used to have a population of 41,000 in 1900 (Cahoon, n.d.). A century later, Lagos records an astonishing population number of 8 million (World Population Review, 2016). The traveling from one place to another resulted in denser population centers. For instance, China has 150 million people that left the countryside to the cities for the past 20 years (Williams, 2012, 76). Such shift can also be seen mainly in the U.S. and Europe in different work sectors; from agriculture and manufacturing to service – healthcare, retail, education, technology, entertainment and the list can go on. This shift allowed for changing worldviews and especially a change in the psychology of the upper class living in the industrialized world (Stopford, Strange and Henley, 1991, 82-87). Frederic Jameson says “we are… so far removed from the realities of production and work that we inhabit a dream world of artificial stimuli and televised experience” (Jameson, 1972, ‘Preface’ p. xvii). This supports the argument made by many historians who believe that globalization has led to a “celebration of individualism” (Elliott and Lemert, 2009, pp.17). Going back to the Depression and World War II, the population then faced a large-scale collectivist response to an individualistic absence. Part

In 2008 the U.S. and global economy confronted one of the worst crisis in the history. These financial crisis were considered the worst since the great depression in 1930’s. Several events took a place early in 2007 which led to the economy crash, such as, the massive decrease in home prices in the United States after it was significantly high. This decline in home mortgage market expanded rapidly causing massive crisis in the whole United States financial sector (Bullard, Neely, and Wheelock 2-4). Those crisis had dangerous effects on the stock banking industry, insurance firms, and Fannie Mae and Freddie Mac, the two most important enterprises commissioned by the government to assist mortgage lending, and some other mortgage lenders and financial service organizations. Those crisis generated a decline in banks and financial associations trust of others, believing that they will never get paid back. They simply stopped offering loans to people who needed money to buy a house or start a business, which created a massive decline in the home mortgage market and the whole financial sector of the United States (Havemann 1)

From 2010 until the end of 2014 oil prices remained relatively constant. With very little fluctuation over these four years, the average price per barrel of oil was around 110 dollars. That price has been more than cut in half within the past year. The price for United States crude oil is now just 48 dollars a barrel, the lowest it has been since 2009 (BBC News). So what is the cause for this sudden change and to what effect will this have on the United States’ economy as well as the global economy?

Post World War II, internationalisation underwent a major transformation into what is now globalisation. While the concept of internationalisation keeps the nation what it was at the core and maintains the cultural practices, globalisation integrates nations into one economic area due to free trade and capital mobility. It is incredibly difficult to look at globalisation objectively as a black and white issue because there are both helpful and hurtful things about it. When once it took months of time to communicate with other countries, technology has made it possible to make contact with someone across the globe within minutes. Another outcome of globalisation is that a single language (English) is becoming much more common so more people across different cultures are able to have a conversation. Whether that is a positive or negative effect has yet to be determined. While there are advantages to the integration of nations there are also downsides. With the increase of globalization, there is also harm caused to countries that are attempting to develop economically because they are unable to keep up with major economic powers. The loss of culture is another serious effect as well as the marginalization of those who are not an over-developed and commercialized nation. Westernized countries are emerging all over with corporations looking for cheap labour and tourist spots for their citizens. As the world advances, so do the reaches of communication and the expansion of

Particularly after the Cold War ended, economics became one of the primary motivators in foreign policy. This idea, called globalism, refers to a number of theories that see the complexities of modern life such that events and actions are tied together, regardless of the geographic location of a specific country (political unit). In broad strokes, globalism is a movement that encompasses politics, culture, economics and foreign policy that flattens the world in terms of hierarchy and brings nations with divergent interests together on a more level playing field. Globalism is tied to technological development, in that the Internet, SmartPhones, and other instantaneous technological solutions offer a more global approach to business and finance. The rapid growth of the global economy profoundly effects modern economic development and stability, labor, and, most particularly, the way humans are able to interact with one another in other words, the ethics and morality of human interaction.

Is globalization destroying our society? Nowadays people have different opinions about globalization. It relies on different points of view on consequences of globalization process. Some of the people consider it as a serious threat to world’s economy, but some of them see it as an economical progress. “Globalization is partly a result of the tremendous advances in information technology that have, in effect, shrunk the world and linked distant parts of the Earth, creating global relationships.”-Akin L. Mabogunje, “Poverty and Environmental Degradation”. However, Even though globalization leads all parts of the world to be connected and creates global relationships, it also can cause unemployment, cultural diversity and spreading of deadly diseases.

Marginal revenue refers to the surplus revenue generated through increasing the sale of products by 1 unit. It is also known as the unit revenue generated by the last item of the firm (Perloff, 2008). 1. Explain its relationship with total revenue.

Many historians and sociologists have identified a transformation in the economic processes of the world and society in recent times. There has been an extensive increase in developments in technology and the economy as a whole in the twentieth century. Globalization has been recognized as a new age in which the world has developed into what Giddens identifies to be a “single social system” (Anthony Giddens: 1993 ‘Sociology’ pg 528), due to the rise of interdependence of various countries on one another, therefore affecting practically everyone within society.

In today’s world, with a few notable exceptions, nearly everyone in every region of the world has access to the same products, information and services. A long-distance relationship is no longer so distant, since each party involved in the relationship can communicate through Skype, Facebook or through any of the vast amount of social media available. A person in Easter Island, one of the most remote inhabited islands in the world, can go to the other side of the world and travel to Canada. An economic crisis in Argentina could affect the economic landscape in Brazil. A person in Chile or Peru can buy an Abercrombie and Fitch t-shirt because this transnational corporation decided to expand its market to developing countries, or as you might prefer, to emerging economies in South America. Although many of these examples might be trivial, these are the consequences of globalization.

Global interdependence never really crossed my mind when thinking about company’s and what they must go through. As I acquired knowledge about globalized companies in other classes, I never dove this deep into it like this class. Overall, this class has taught me a great deal about all aspects of a company from the management standpoint to the logistics that go into getting products to where they need to go. Global interdependence is a huge topic in every company and is a topic that must be perfectly in sync with the company’s beliefs to be successful overseas. Global interdependence includes changes, interconnectedness, and diversity.