global economy

Global Economy

Abstract

This sets out global scenario of state of affairs of different major national economies of the world . The emergence of a global economy indicates or presupposes interconnectedness of the different national and regional economies . The formal opening a global economy was started by formation of International monetary fund soon after the world war Because of this , giving of surplus resources of the wealthy countries to the needy ones supplemented by free trade among nations became a reality thus fostering international brother hood and extenuating war possibilities . After

all , wars were mostly for economic reasons though there were ideological excuses being argued for the wars so far held After seeing that global economy is mainly to reduce regional imbalances , it has been concluded that because of some ideologies though may be real and inevitable due to natural laws , the present tempo of globalizing the economy should not be given up

Global Economy

Global economy is what emerged as result of unified free markets of the world following the Bretton Woods Conference by which multilateral trading system characterized by banking regulation and dollarization of the monetary standards and Keynesian economics came into being International Monetary Fund , International Reserve Bank and other international agreements of the Breton Woods Conference also paved way for growth of Global economy . The General Agreement on Tariffs and Trade (GATT ) and World Trade Organization (WTO ) also made Global economy an inevitable development . The world trade witnessed an increase of 15 percent each year during the period between 1953 and 1973 which resulted in betterment of individual national economies . Since there was a set back for the United States ' economy after the oil crisis in 1973 Bretton woods system and Keynesian policies lost their importance . After 1973 , multinational business organizations started emerging all over the world thus making global economy an irreversible phenomenon . Subsequent revolutions in communications , emergence of computers and fiber-optic technology that facilitated instantaneous international transactions made global economy with practically no national boundaries keeping in view the cost-efficiency alone as the guideline . Globalization and Foreign Direct Investments made global economy as a concomitant feature (Abrahams

Global Economy signaled transition from economic activity in agriculture to services . Because of this , GDP grew at a rapid rate for OECD and advanced counties . Before the advent of Global economy which gives power to market goods and services across nations , United States of America was controlling the entire economy of the world . Now the power of the U .S .A has been reduced to 25 of what it was before the emergence of world economy (economywatch

Hence Global economy is no longer driven by the U .S . though slow down of its economy will hurt some countries according to the economist Ed Yardeni of Yardeni Research , New York . Many countries from China to Persian Gulf States have strengthened their economies by paying off their external debts and built up their huge cash reserves to boldly absorb any future shocks to their economies as opined by Maria-Laura...