Global economy essay

Global economy essay

The global economy refers to the sum of all the commercial relations between economic agents whether they are state or private or of other mixed forms. This distinctive concept of the global economy comes from globalization theorists and researchers who have identified globalizing corporations and their local affiliates, not states, as the dominant economic forces in the world Estimated Reading Time: 4 mins Excerpt from Essay: Global Economy Key Player & Background As the spokesperson for an interest group representing an economic think tank, I am issuing this policy statement to detail the implications for the U.S. economy of a sovereign default in the Eurozone. As Reich notes, the financial crisis in Europe is threatening to spread to the United States Global Economy Essay The global economy refers to the increasing economic interdependence of the countries and regions of the world. The most recent form of the global economy emerged in the s as a result of advancements in information technologies combined with expanding neoliberal, political-economic philosophies and blogger.comted Reading Time: 10 mins

Global Economy - Essay - words

The global economy refers to the increasing economic interdependence of the countries and regions of the world. The most recent form of the global economy emerged in the s as a result of advancements in information technologies combined with expanding neoliberal, political-economic philosophies and policies. The extent of the global economy is very uneven, with some regions of the world largely bypassed by the process. A functionalist perspective of the global economy views these trends as virtuous because of the economic efficiencies gained through the global division of labor based on comparative advantage combined with the advancement of democracy worldwide. From this perspective the global economy is a natural evolution of the modernization of societies.

This evolution reduces social inequality and enhances the living standards of people across the globe. This process results in the decreased ability of nation-states to coordinate their internal economic and political affairs and in a reduction in substantive democracy, global economy essay. From this perspective, the global economy has led to an increase in stratification within countries of the North, as well as between the North and South. The global economy is grounded in a global economy essay historical process of increasing political and economic integration of the countries and regions of the world. The spice trade of the s led to the first global economy, global economy essay.

This process accelerated in the s as a result of the industrial revolution in Europe and the accompanying colonization of much of the non-European world. At its peak in the early s, this global economy divided the globe into a system of two unequal components based on asymmetrical power relations of trade, imperialism, and racist ideologies. Capitalist development in the core countries produced underdevelopment in the periphery. The second global economy was linked to World War I and the Russian Revolution of As the core countries focused on the war, global economy essay movements grew in the global economy essay colonies.

The Soviet Union served as a model and ally for colonial nations to challenge their core counterparts. These events began a reversal of the global concentration of capital, power, and manufacturing in the core, global economy essay. World War II accelerated this process. Italy and Japan lost their colonies and England, France, Global economy essay, and the Netherlands realized that they could not quell the rising liberation movements. Several former colonies tried collective ownership and centralized planning. It was in this setting that China embraced the path of communism. Several other former colonies did not reject markets but abandoned most of the laissez-faire doctrines of the colonial system and adopted a variety of state-managed interventionist measures to support development.

A decentralization of power occurred, resulting in the second global economy centered on the bipolar communist and capitalist models of development. After World War II numerous events set the stage for the current form of the global economy. First, in political and economic officials from the United States and Great Britain developed a management plan for the postwar global economy. The Bretton Woods Agreement led to the creation of the World Bank, the International Monetary Fund IMFand the General Agreement on Tariffs and Trade GATT and linked the U. dollar to the gold standard as the basis for global economy essay currency exchange rates.

Second, the United States created the Marshall Plan to rebuild Europe and the McArthur Plan to rebuild Japan. Both of these plans instilled neoliberal economic policies and democratic political systems in these regions. Similar initiatives were taken in Korea in the s, Vietnam in the s, and other countries throughout the world, global economy essay. The creation of the North Atlantic Treaty Organization cemented the military alliance between the United States and the rebuilding countries in Europe to counter the growing power of the USSR. In the late s the USSR broke apart due global economy essay economic bankruptcy and social unrest; the capitalists won.

The Bretton Woods system of global management, based on neoliberal economic policies, laid the groundwork for the blossoming of the current global economy. At the same time the GATT worked to decrease trade and tariff barriers and foster increased foreign direct investment. Over time these loans included requirements that developing countries liberalize their political and economic systems. This neoliberal restructuring peaked in global economy essay s, as debt crises led to structural adjustment programs that included the deregulation of national protectionist policies and a privatization of national industries, two processes that facilitated increased foreign direct investment by the transnational corporations of the North. A similar process also occurred in the North, especially in the United States.

In the s and s, the rigidities of the Fordist system of socioeconomic development fostered a fiscal crisis of the nation-state and an accumulation crisis of capital. The long run of economic prosperity that began after World War II weakened, as the Fordist system of mass production linked to mass production coordinated via an interventionist state could no longer provide for economic accumulation and societal legitimation, global economy essay. Profits for corporations in the North were constrained global economy essay powerful labor unions, environmental regulations, growing competition from Asia Japan and Koreaand the rise of a third world social movement in the form of OPEC Organization of Petroleum Exporting Global economy essay. Additionally, the high costs of the cold war Vietnam and other venues and the War global economy essay Poverty generated a fiscal crisis of the state in the United States, as well as a legitimation crisis, as anti-war, environmental, and civil rights movements protested government policies.

The fluctuations led to currency speculations that became a central aspect of the current global economy, global economy essay. In response to the more tightly regulated economies and strength of unions in the North that limited corporate profits, many major corporations expanded their global business ventures in an attempt to revive economic accumulation. Capital flight, the decentralization of production, the informalization of labor, and global sourcing became the dominant strategies of transnational corporations. Information technologies global economy essay for the development and coordination of global-commodity chains. The sphere of influence of the polity no longer matched that of the economy. Through the hypermobility of capital, the economy went global, global economy essay, but the nation-states remained constrained within their jurisdictional boundaries.

In the s the Thatcher and Reagan administrations introduced neoliberal restructuring programs centered on deregulation of government global economy essay and privatization of government-owned enterprises, thereby weakening unions and environmental protections while lessening regulations limiting corporate expansion and concentration. These actions were attempts on the part of the highly regulated nations in the first world to open their economies to re-attract capital investment to the North. The final pieces of the current global economy are the emerging global governance structures, global economy essay.

Inthe GATT was reconfigured as the World Trade Organization WTOthe supranational state-like coordinating mechanism for the global economy. The WTO continues the function of the GATT in lowering tariffs but also acts as a governance body regarding trade disputes. Similarly, the European Union, North American Free Trade Agreement, and Association of South East Asian Nations are examples of the emergence of regional state-like entities that emulate the historical functions of the nation-state in mediating economic accumulation and societal legitimation. Anti-globalization activists resist both the regional organizations and the WTO.

This example Global Economy Essay is published for educational and informational purposes only. If you need a custom essay or research paper on this topic please use our writing services. com offers reliable custom essay writing services that can help you to receive high grades and impress your professors with the quality of each essay or research paper you hand in. Essay Examples. Essays on Controversial Topics. ORDER HIGH QUALITY CUSTOM PAPER Always on-time. FREE INQUIRY. ORDER NOW. Special offer! Promo code: cd1a Related Posts, global economy essay.

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Global Economy Essay ⋆ Essays on Controversial Topics ⋆ EssayEmpire

Globalization is the main feature of modern global society. It is the emergence of a global society in which economic, political, environmental, and cultural events in one part of the world quickly become significant for people in other parts of the world. Moreover, it leads to the growing of economic linkages between businesses and governments The global economy refers to the sum of all the commercial relations between economic agents whether they are state or private or of other mixed forms. This distinctive concept of the global economy comes from globalization theorists and researchers who have identified globalizing corporations and their local affiliates, not states, as the dominant economic forces in the world Estimated Reading Time: 4 mins Global Economy Essay The global economy refers to the increasing economic interdependence of the countries and regions of the world. The most recent form of the global economy emerged in the s as a result of advancements in information technologies combined with expanding neoliberal, political-economic philosophies and blogger.comted Reading Time: 10 mins