Globalisation "Describe The Main Features Of The Global Economy And Examine The Nature And Extent Of Interdependence Between Economies."

2246 words - 9 pages

The 'global economy' describes the inevitable process of increasing integration between different economies to create a worldwide global village. This not only means that international influences may have a large impact on aspects of economic activity, but because of this interrelation, synchronization between economies may also occur. This has been clearly illustrated by recent trends, particularly after the September 11th terrorist attacks, when the world's largest economy dubbed the "growth engine" United States experienced a downturn in their levels of economic activity. Due to this close linkage between economies, any changes to one economy may have a ripple effect on others, demonstrating this synchronization. The US's downturn in 2000-01 has affected many other large economies such as Japan, China and many European countries to have the same effect. Recently in late October 2003, there have been speculations that factors causing the global economies' sluggish growth such as the Iraqian War, the oil prices hitching up, and the SARS outbreak in Asia are all threats that have dropped away (SMH 28/10/03). These are good indications that the US may pick up growth, the forecast for 2003 being from 1.5% to 4%. Due to the heavy dependence on the US recovery, and the view that the global economy is recovering, it may affect countries to raise interest rates (the Reserve Bank of Australia tightening the monetary policy by raising the cash rate by 0.25%) in November 2003 in order to promote growth.In addition to the synchronizing nature of the global economy, there are several features of a global economy. These are increased flow or trade between economies due to deregulations and breaking down of trade barriers, financial flows between economies and longer term financial investments, growth of technology, and to a lesser extent, labour market changes. Due to these factors, it can be illustrated that economies are becoming increasingly dependent on one another. Although globalization has had an impact on most economies, it has affected different countries to different extents. Countries such as North Korea have been affected much less by the global market than by a country like China who are able to export commodities such as clothing and cooking utensils to its geographical neighbours and around the world, such as Australia. And while Germany has been able to take full advantage of being able to tap into the diverse global market, smaller economies may not be affected as much by globalization. This can be illustrated by the fact that despite the United States and Japanese recessions, Australia's Gross Domestic Product (GDP) in 2001-02 has continued to grow at 3.9%, while the US and Japan experience 0.8% and -1.9% respectively. Similarly, comparing the GDP of Australia against the world's annual growth in the past two decades, it can be seen that there are obvious trends. In 1991-92 when the world's Gross World Product - GWP (the aggregate value of...

Find Another Essay On Globalisation - "Describe the main features of the global economy and examine the nature and extent of interdependence between economies."


1176 words - 5 pages •Globalisation the process of increased integration between different economies and the increased impact of intnl influences on economic activity and all areas of life•Global economy the situation where the economies of the world are increasing linked to each other, and changes in one economy have ripple effects on other economiesI) INDICATORS OF GLOBALISATION•Economic integration can be seen inoIntnl trade flows- growing at 2

Explain the main features of the Spartan Economy. This essay explains the features of the Spartan economy in ancient sparta that contributes to their austere lifestyle

1181 words - 5 pages In Sparta, the economy meant two things : the system of wealth creation and the state of the countrys prosperity. The economy has four essential features, natural resources, economic objectives (military state), distribution of land and the roles of Perioikoi and Helots. These features are inter-related and work together in order to achieve the economic objective, which was to maintain a military dominance. This priority of maintaining a

Main features of the dyadic relationships between babies and their primary caregivers, and the importance of such relationships for children's psychological development

2207 words - 9 pages caregivers allow infant-mother interactions and thus, a crucial determinant in children's psychological development. This essay aims to examine the main features of such relationships, as well as, the effects of such relationships on the children's psychological development. The starting point will be using Vygotsky's social constructionist perspective to describing features such as intersubjectivity and guided participation, which involve elements such

What is meant by the term globalization? What are the features of the new global economy? What effects as globalization had on world trade and financial flows?

1259 words - 5 pages technologies (for example: Internet, fax, etc.) and through goods and services sold on a global basis rather than national.The size of the world economy can be measured with GWP (Gross World Product). The result of GWP is reached by adding together the outputs of the world economies. In simpler terms you add all the contributing countries GDP (Gross Domestic Product) together.The total world GDP is hard to measure accurately because each country has

Decentralization, Globalisation and China's Partial Re-Engagement with the Global Economy

9560 words - 38 pages brings us to the importance of China's gradual process of re-engagement with the global economy. Initially, the main importance of this process for understanding the relationship between political and economic space in China was in the way that external sources of investment (primarily in the four SEZs) helped(n33) local authorities (particularly Fujian and Guangdong) to establish significant financial autonomy from the central authorities. However

The Main Features of Weimar Germanys Golden Years Between 1925-1929

791 words - 3 pages The Main Features of Weimar Germanys Golden Years Between 1925-1929 There where many events between the years of 1925-1929 in Weimar Germany that were seen as golden years. The diplomatic skills of Gustav Stresemann, the foreign minister allowed Germany to excel in foreign affairs. Politically Stresemann wanted to improve relations between Germany and the rest of Europe and also the USA. In 1925 the Locarno Treaty took

The main features of Communism and how far these principles were put into practise by one Communist ruler between 1900 and 1990

868 words - 3 pages Communism follows the ideology of Karl Marx. It is a way of leading a country completely opposing the capitalist view of private ownership and free market. In Communism, the State owns everything and controls markets strictly. Marx had the idea that after implementing the ideology, the State and social classes would "wither away". These are reasons why Communism is so hated by Capitalists; it is the end of free ownership and upper-class rule.An

Free Trade and The Global Economy/A comparison between the United States Chamber of Commerce and the AFL-CIO

1107 words - 4 pages Free Trade and The Global EconomyWhat is free trade? How does free trade help the global economy? Are the current free trade laws helping the United States economy? The United States Chamber of Commerce views on free trade and the global economy differ from the AFL-CIO views. While the government seems determined to stay with the current trade issues in place, the AFL-CIO is demanding changes be made to protect workers worldwide.An arrangement

The Relationship between Human Nature and Global Warming

1115 words - 4 pages The Relationship between Human Nature and Global Warming According to the National Academy of Sciences, global warming over the past century has caused a rise in Earth's surface temperature of about 1 degree Fahrenheit. There is evidence to substantiate attribution of the increased rate of this warming phenomenon over the past 50 years to human activities. Human activities have altered the chemical composition of Earth's atmosphere through

In this essay I will describe two sociological perspectives; I will also explain the similarities and differences between two of the main theories functionalism and Marxism

882 words - 4 pages criticised and this can apply to both theories. It offers an over socialised view of individuals. The deterministic nature of structuralism concentrates on external social causes and ignores the importance of individual actors and their subjective experiences. A criticism of the Marxist theory is that it tends to place too much emphasis on the economy. Consensus theorists also maintain that conflict is abnormal and undesirable.It can be concluded

Discuss the main features of Australia's recent Balance of Payment performance & the impacts of a high current account deficit on the Australian economy

1012 words - 4 pages Australia's balance of payment is a record of all transaction between Australia & the rest of the world (over a period of one year). It consists of two account, the current account (which measures money flows from exports/imports, income and current transfers) and the Capital & Financial Account (Financial assets or liabilities). The BOP is an indicator on the health of the economy because it records financial transactions coming in and

Similar Essays

Describe The Main Features Of American Federalism

2296 words - 9 pages it is failing in the modern environment. American federalism is a system of dual-sovereignty between two levels of government. It is a constitutional feature that power is divided between the national government and the governments of the states, and that both are mutually dependant on the other for their existence while both being removed from any fear of dissolution from the other. However, “The Framers left many questions relating to

The Achievements, Failures And Main Options For The Eu In The Management Of Global Interdependence

1883 words - 8 pages Introduction The phenomenon of global interdependence began to be widely observed not without astonishment in the early 1970s of the 20th century, although it had been present much earlier reaching the beginnings of colonial era. Global interdependence, as well as European integration process started in the area of economy and, to some extent, still exist mainly on the level of economic cooperation. It is widely known that the role of the

Globalisation "Examine How Global, Regional, And Bilateral Trade Agreements Can Impact On The Global Economy."

2315 words - 9 pages of tariffs, subsidies and quotas.A subject of debate is whether trading blocs assist or hinder trade liberalization - preferential trade agreements between countries within a particular block may obstruct our path to global free trade as they divide the global market into separate divisions. However economists agree that trading blocs act as a stepping stone to free global markets, as they remove protective barriers, encouraging countries to open

Describe The Main Features Of Qualitative Research And Compare The Advantages And Disadvantages With Experimental Research

1575 words - 6 pages IntroductionThis essay describes the main aspects of relativist qualitative research in social psychology. Generalised comparisons will be considered between the methodology of relativist qualitative and experimental research, reflecting their different epistemology's (what can be known about human behaviour), via issues of validity, reliability and generalisability.In accordance with a logical positivist epistemology, experimental researchers