Globalization And Its Effects On The Global Economy

We live in a time of worldwide change. What happens in one part of the world impacts people on the other side of the world. People around the world are influenced by common developments.

In the past 100 years, the world has shifted enormously. Once, a world that only communicated when one nation was trying to take control of another, is now connected more than ever. This transformation began with the Industrial Revolution in a period from around 1760 to 1840. Thinking back to that time, we can easily think of noticeable differences between how the world was and how it is today. The United States was a small, developing country, still trying to overcome the effects of a costly revolution. Across the ocean, once the United States’ major rival, Great Britain, was still the greatest power in the world. And around the world, China and Japan were nowhere near the economic leaders they are today. However, the biggest changes weren’t the countries with the greatest power and size.

According to our reading assignment 'Globalization 101', globalization is "a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology."

The last century has brought dramatic changes to the world. The globe has become more integrated, linking countries together economically, socially, and politically. Yet, as a result of this globalization, the world economy has become

The world today is as interconnected and interdependent as never before mainly due to rapid globalization. The process of globalization has long began with human migration and trading of goods (Chanda). More recently, the world has experienced three rapid globalization periods. First, from the Industrial Revolution in Europe that opened up new resourceful lands in many other countries which encouraged the flow of people and foreign investments for productions (Salvatore and Dominick, page 2). The second phase of rapid increase in international trade happened during post WWII when heavy trade protections during the depression period were dismantled (Salvatore and Dominick, page 3). Present, globalization is at another peak development as

Globalization is a process in which barriers (physical, political, economic, cultural) separating different regions of the world are reduced or removed (removal of barriers is called liberalization), thereby stimulating exchanges in goods, services, money, and people. As these exchanges grow, nations and the businesses involved, become increasingly integrated and interdependent, promoting mutual reliance between countries. ⁵

Answer: The world economy has shifted dramatically over the past 30 years. We have been moving away from a world in which national economies were relatively self- contained entities, isolated from each other by barriers to cross- border trade and investments; by distance, time zones, and language; and by national differences in government regulation, culture, and business systems.

Globalization is the process of development on an international scale as well as the interaction among people, exchange of ideas, companies, cultures, government and many more around the world.

Globalization, as a concept, refers to the increased interconnectedness of the world. Globalization is the integration of economic activity across borders. Other forms of integration—above all, the spread of people and ideas—accompany it. Three interacting forces—technology, institutions, and policy—shape it.

To consider all the aspects of a global network for the Little Country Store, you need to understand what globalization represents. Globalization is the interconnected movement of information, commerce, trade, people and services among nations on the global scale. Specifically, globalization in terms of information systems is global-scale movement of communication, information and technology world-wide among various cultures. It is connecting individuals from various and diverse backgrounds, languages, and ways-of-life to work and come together through aspects of technology to communicate information and share ideas and resources for the betterment of all.

The affect of globalisation can be measured by the following; Growth of international trade as a proportion of output in services and manufacturing, which is attributed to a greater world wide connectectedness, second aspect is the changing scenario of the World Financial markets, where large amount of data is transferred

A critical shift is occurring in the world economy. The world is moving quickly away from a world in which national economies are mostly reliant on goods from within their own country; stay isolated from each other by barriers trade across national borders, and by national differences in government regulation, culture, and business systems. It is moving toward a world where barriers to trade across national borders are dropping, perceived distance is shrinking due to advances in transportation and telecommunications technology, and national economies are

” These distinct systems would also prevent global financial crises from happening as the systems would not be dependent on each other. As time progressed, so did the policies and practices of free trade. Citizens felt that as long as financial systems were separate, global free trade was safe. Soon, the barricades to open, flowing capital began to disappear and citizens forgot the lessons of the past and became more comfortable with global commerce exchange. Some drivers of globalization are economic policies, political changes and technological innovations.

“Globalization is the process by which everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world.” Presently, the world is considered more globalized than it has ever been. The world today has embarked on strong world relations through trade, exchanging both knowledge and goods. According to the World Trade Organization there are ten benefits of trading systems; the first entails the idea that “people are usually reluctant to fight their customers.” This is the foundation our world is constructed on. Globalization’s effects in the world presently has allowed for a reduction in armed conflicts and warfare.

The implications of globalization are greatly felt in every part of the world. One of its effects is encouraging the movement of financial capital, trade, and direct and foreign investments. This refers to the economic exchange of goods and services internationally and international financial flows. (Carr and Chen, 2001). Through the perspective of an optimistic globalist, trade has brought an increase in the volume of trade, whereas, pessimistic globalist suggests that globalization on the world economy has made the world less diverse and homogenous. ( Textbook). Under these two major themes, there are four major concepts that will guide in understanding how globalization and economics relates; stretched social relations, intensification