Global economy is the incorporated world financial system with unobstructed and liberated movement of commodities, services and employment across nationals. This term can not be discussed in any of the today content minus appreciating the value of the globalisation in the society (Jones, 2006, pg 95). With this, we have to start by defining globalisation so that we may have to understand what is meant by the global economy that the paper will be discussing about in the later stage of it. Thus, globalisation is the incorporation of fabrication and utilization of various goods and services that do exist between the markets worldwide.
As explained earlier on that, global economy can not be separated for m globalisation, the papers thus can then come up with a hypothesis it paper has to analyse and then later on prove whether the hypothesis it true of false. Thus, the hypothesis of the paper is: “The higher the globalisation in the world the higher the global economy in the markets across the world”. With this hypothesis in place, the paper will major in seeing on the ways in which globalisation has affected the global economy and to which extent that the economy is at present.
In order to achieve all these, the paper looks forward in discussing on the extent to which this particular global economy exists in the society. With this, we will discuss on the history of the global economy, and then this will be followed with a discussion on the way in which the globalization has affected the economy in the world, and then will later look on the stage at which the economy is at present as compared to the past. In order to be able to accomplish all these, the paper has come up with some of the questions that it will major on so that to facilitate its study in global economy extent.
The questions include; 1. How has been the past global economy? 2. How has the globalization affected the economy over the years? 3. How does the present global economy look like? 2. 0 Literature review Global economy is the built-in world financial system with unhindered and enlightened movement of commodities, services and employment across nationals. This term can not be discussed in any of the today content minus appreciating the value of the globalisation in the society.
With this, we have to start by defining globalisation so that we may have to understand what is meant by the global economy that the paper will be discussing about in the later stage of it (Jones, 2006, pg 95). Thus, globalisation is the incorporation of fabrication and utilization of various goods and services that do exist between the markets worldwide. Thus this is the basic idea of the global economy as globalisation, other than just enhancing the living style of the people across the world, it also do enhance the economy of the nations in the world and thus determining the global economy.
With this idea in mind, we can then say that, global economy is featured as the worldwide financial system that possesses the integrated market for every commodity manufactured all over the world. Thus, the global economy offers the local manufacturers with an opportunity to develop and upgrade their capacity of production to the worldwide level so that they can be able to attain the world demand and be able to meet the needs of the people in the world (Dickens, 2007, pg 68).
This also has given the local producers the chance to decide on the commodity that they want to deal with from the broad selection of the imported goods in the market. Other than giving the manufacturers more and better chances for their business, the global economy also have had an advantage to the local people, in tat it has enabled the stabilization of the costs of the items all around the world.
This has also lead to the transfer of works or activities as well as job from the established nations which are also known as the developed countries to the developing countries as income rate are seen to be reduced in this particular situation. With this factors of the globalization, it has enabled the change of the global economy over the years and thus, the paper will look at the past, the effects of the globalization for its change to the present stage of the global economy, so as to enable it to be able to evaluate on the extent at which it has evolved to its present existence.
2. 1 History of the Global Economy According to Alam (2003), global economy came up as the result of the British economy going subversive and then it started to attain power and advancevely its raw material form the mineral resources that they had in place at that particular time. This usage of the raw material enabled the economy to grow fast to the extent that it was able to free the world economy from the slim possessions constrictions of an organic and the plant based economy of the world (Clark, 2007, pg 33).
This resulted into the introduction of cheaper materials of which were able to be transported to the various nations in the world at cheaper cost regardless of the location. To do this, the world was able to experience the effect of the economy in which it facilitated their growth of the economy. This resulted to the economy to be split into three segments of which the first segment constituted the concentration of power together with use of the technology in relation to producers in little capacity (Palmer, & Colton, 1971, pg 264).
At this stage , the powerful countries such as those of Us and the prance had power over the little countries such as those in Africa and Asia in that, the powerful countries were forced to open their economies in the lees fortuned countries so as to facilitate they economy in the region. This resulted in the slow movement to the second segment of the global economy in which the other countries in Africa and Asia had started gaining power and thus had some of the influence in the economy of the worked in such a way that they could offer the labour needed in some of the activities worldwide. 2. 2 Globalisation in Relation to Global Economy
Globalisation over the years has been the centre of discussion whenever the issue of global economy rises up, this has been because of the reason that it is directly connected to the economy of the world as with the better relations in the world markets, it means that the business will be to the advantage and thus increasing the level of the economy globally. With the result of the introduction of the new technology in the nations as the result if the globalisation in the nations, it has enabled the countries to experiences the increase or even the reduction on their economy status in the country (Pierre, 2000, pg 133).
This has been attributed by the fact that technology has been able to facilitate the speed at which the nations relate to the other and thus, do the invention of the computers, the nations have been able to relate with the other in amore faster way and thus increasing the rate at which the affect their respective economy of which usually have a fraction I the global economy as well.
2. 3 The Present Global Economy In today world, the global economy has been termed as the neo-colonialism, this is the relationship between the developing countries and the advanced countries in term of their effort to participate in stabilizing the economy of one another, it is mostly occurs in the result of their relationship in the business sectors (Vasquez, 2001).
When we take an example of the United States together with that of the Japan, we finds out that their economy has been to the decrease side over the past time but still they have the hope to improve as regard to the fact that they are hoping for the stabilization of the world wide financial market and thus, with this, will enable them to at least regain their economic status and thus increasing the power of it.
The same down fall in the economy have been experienced by the developing countries have been over the years, this has been to the fact that the countries have been undergoing the interference in their financial flow which could allow then to participate fully in the growth of the economy (Browning, Halcli & Webster, 2000, pg 270). This has also been to the result of the declining of the oil as well as non-energy goods costs.
None the less, with the stabilisation of their currency flow, they are expected to increase in their economy status. Conclusion In the finale, we can say that the global economy has been increasing over the years and this has been to the fact that the globalisation in the nations in the world has been gaining power with time due to the increase in the technology usage in their majority of their activities in the nations. Bibliography Alam, M. S (2003). The Global Economy since 1800.
Retrieved 16th December 2008 from http://www. counterpunch. org/alam07262003. html Browning, G. K. , Halcli, A. & Webster, F. (2000). Accepting Contemporary Humanity: Theories of the Present. Pp 267-280. United Kingdom: SAGE Clark, G (2007). A Departure to Alms: A Concise Economic Account of the World. Pp 133-144. United States: Princeton University Press Dickens, P. (2007). Global Shift: Relocating the Changing Shape of the World Economy, pp 65-75. New York: Guildford Press
Jones, A. (2006). Dictionary of Globalisation, pp 90-105. United Kingdom: Polity Publisher Palmer, R. R. & Colton, J. G. (1971). A History of the Contemporary World, pp 264. New York: Knopf Publisher Pierre, J. (2000). Assessment Governance: Authority, Navigation & Democracy, pp 110-137. United States: Oxford University Press. Vasquez, I. (2001). Come Back of a Global Financial System. Retrieved 16th December 2008 from http://www. cato. org/research/global/vas-0011. html