This website uses cookies to ensure you have the best experience. Learn more

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

The global economy is the world economy. It reflects the total amount of economic activity which can be measured by GWP (Gross World Product) and PPP (purchasing Power Parity). PPP aims to get a more accurate method to compare the value of different currencies. This is done by focusing on the quantity of goods and services that can be purchased by one unit of the currency. For a global economy to exist there should be a rising share of economic activity in the world between people living in different countries. This process is known as globalization.Globalization refers to the increasing integration between countries. This occurs when national boundaries are reduced or removed and world wide changes are taking place to things such as; trade, investment, finance, labour and technology. Globalization means that people in different countries are becoming increasingly linked by common 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 different methods of measurements and units of measure. The figures may vary because inflation rates vary from country to country, differences in exchange rates, variations in statistical methods for calculating asset values, government policies relating to taxation can vary from country to country and inaccuracies in collecting data all contribute to the varying statistics of total GWP.In the table on the previous page, we can see a clear domination by a few economies. In 5 nations which make up 45.3% of the world's population, over half the world's products are produced by them. Australia is ranked 16th in the globes major producing nations which is a great figure considering the mere 20 million population, compared to competing countries.The table shows which countries export goods and services compared to the total output of every contributing country. The USA, China and Germany have been clearly the biggest exporters of the world's goods and services. Australia's economy is ranked 25th largest in the world even though it is less populated than many other countries in the world. For example India has a population of 1080 million and is in position 29.Economic globalization can be identified when trends appear in areas such as; trade, investment, technology, finance, labour and business cycles. These trends involve:* When there is an increase in trading of goods and services beyond national boundaries this is known as a global market.* The increase in movements of capital, labour and technology between nations which is also known as global flows of factors of production.* The related increase in interdependency between...

Find Another Essay On 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?

To what extent will globalization help the poor? Globalization and its Effects on Poverty

1616 words - 6 pages part of the world are increasingly available in all parts of the world. International travel is more frequent. International communication is commonplace. This phenomenon has been titled "globalization". It cannot be denied that globalization has had an overwhelming positive influence. Millions of jobs have been opened up through the ever increasing productivity and efficiency of the global economy(MConnell and Brue 93). However, as we see

Effects of Globalization: Globalization and the Effects on the United States Economy

2136 words - 9 pages GLOBALIZATION. Zonguldak Karaelmas University Journal Of Social Sciences, 4(8), 173-188. Champy, J. (2008). Is Global Trade a Threat or Opportunity? (cover story). Financial Executive, 24(1), 36-41. Did Manufacturing Ever Leave the US? And How Do We Get it Back?. (2011). Financial Executive, 27(7), 65. FOX, R. (2010). Some Effects of Globalization on U.S. Employee Health Care Benefits. Michigan Academician, 40(1), 39-52. Friedman, T. L. (2005). It's a

What are the positive and negative effects of globalization? Why do people fear the movement to create a one-world government?

1223 words - 5 pages Choice 3: What are the positive and negative effects of globalization? Why do people fear the movement to create a one-world government?Globalization is a concept used to describe the changes in society and the economy in the world. It was created by the growth of linkages and exchanges between countries, organizations, or individuals in the cultural, economic, and social on a global scale. Nature of globalization is the extended the market

What is Globalization? What are its negative and positive benefits?

753 words - 3 pages and the former Soviet have not been able to keep up with the worldwide phenomenon. Low income countries have not integrated with the global economy because of policies and outside factors beyond their control. These factors are not fault of globalization; however, there has not been much effort to strengthen these countries financial systems. Globalization is lacking processes in which to increase trade and aid to the poorest countries which would

The Globalization of Trade

1214 words - 5 pages looking closely at several trends affected by globalization. First, the development of trade-related global governance (e.g., the General Agreement on Tariffs and Trade, or GATT, its successor the World Trade Organization, or WTO, the World Bank and the International Monetary Fund) has shaped the course of the health sector worldwide. Second, globalization of trade has led to the increasing interconnectedness of individuals and countries; this

Globalisation What difficulties are there in defining globalisation? To what extent is globalization in the late twentieth century a new trend? Outline the debates regarding the economic benefits of...

1241 words - 5 pages the "International Conference on Globalization" in Ghent, Belgium on October 30, 2001: "when it comes to rich countries, rules are for other people"(Fences and Windows, 82). Free trade has resulted in the ruin of many impoverished countries as stated by Naomi Klein and a profound example is that of Argentina. She narrates the evolution of many different groups around the globe, that are working in order to achieve their vision of a world free of neo-liberal market orthodoxy and full of vivacious, local participatory democracies.

What is meant by the term foreign exchange risk and explain and illustrate those strategies that are available to a multi-national enterprise to deal with such risk

2286 words - 9 pages 160 countries. (Toyota website, 2004) Toyota is exposed to the fluctuation in foreign currency exchange as it operates mainly in America, Europe and Britain. It is therefore affected by the fluctuation in the value of the US dollar, the Euro and to a lesser extent the British pound. Toyota's consolidated financial statements, which are presented in the Japanese yen, are affected by the foreign exchange fluctuation, as all the amounts in the various

Globalization and the Effects on the United States Economy

969 words - 4 pages program along with conducting an extensive interviewing process to ensure the personnel chosen for the assignment are capable of representing the business in professional manner. Works Cited Ateş, D. (2008). CIVILIZATION AND UNIVERSAL HISTORY IN CONCEPTUALIZING GLOBALIZATION. Zonguldak Karaelmas University Journal Of Social Sciences, 4(8), 173-188. Champy, J. (2008). Is Global Trade a Threat or Opportunity? (cover story). Financial

Effects of Global Warming: What is global Warming? What causes it? What are the consequences? What can be done to prevent it?

1033 words - 4 pages Global warming is the gradual increase in global temperatures caused by the emission of gases that trap the sun's heat in the Earth's atmosphere. Gases that contribute to global warming include carbon dioxide, methane, nitrous oxides, chlorofluorocarbons (CFCs), and halocarbons (the replacements for CFCs). The carbon dioxide emissions are primarily caused by the use of fossil fuels for energy.Energy from the sun drives the earth's weather and

The Effects of Globalization

747 words - 3 pages In the book Globalization: A Very Short Introduction by Manfred Steger and the reprint Globalization and the Impact of American Popular Culture Abroad by Carl Guarneri, the point is made how recognized globalization has become and how much it has affected citizens around the world. Some of the debates over the effects of cultural globalization are: the West and its multinational corporations after World War II, what it promotes to the world’s

Globalization: Disjuncture in the Global Cultural Economy

1359 words - 5 pages , people are frequently confused when deciding what to believe and follow in the contemporary global society. Furthermore, we can examine new chaos within cultural globalization society by relating Appadurai’s suggestion of global disjuncture flows throughout Robeson Taj Frazier’s article “China’s Chocolate Girl Wonder: Lou Jing and Anti-Black Racism.” Frazier introduces a Black Chinese girl, Lou Jing, who receives countless racial comments on her

Similar Essays

What Is Meant By Globalization? To What Extent Has The Authority Of Nation States Been Eroded By Globalization?

2130 words - 9 pages With the turn of the 21st century, most nation states around the world accelerated their rate of opening their economies to global trade. With such a proactive approach, these domestic economies hope to not only develop their GDP but also create new market opportunities. By integrating their national economy into the global market they also look towards expanding trade, and political alliances (.However, to join the international franchise of

What Is Meant By The Term 'process Theology'? Who Are Some Of The Theologians Who Have Taught It, And What Are Their Main Views?

1510 words - 6 pages ? Because humans have creative freedom and aim.All explanations of the sociological functionings of mankind include aim as an essential factor in explanation...In fat we are directly conscious of our purposes as directive of our actions (Whitehead 1938: 155).And following on from this logic of Whitehead The whole antecedent world conspires# to produce a new occasion (1938: 164). God is the brain of the Universe. All experience is experienced in

4. What Is Meant By 'the New Economy'? Identify Some Of The Advantages And Disadvantages Of The New Economy. Use Examples

3216 words - 13 pages with new class divisions and power redistributions between groups, regions and nations' (Lofgren, O., R. Willim. 2006, 1).As the New Economy paradigm is not articulated clearly by a single idea or author, to hypothesize its implications, any discussion must begin with a clear and precise description of what is really meant by the New Economy. This essay will discuss the New Economy vision in terms of Speed, Connectivity and Intangibility- three

What Is Globalization, Drivers Of Globalization, Effects Of Globalization

673 words - 3 pages Globalization:The following will elaborate on globalization, and some theories on traditional trade. AlsoGlobalization as defined by Charles Hill, of the University of Washington"… refers to the shift toward a more integrated and interdependent world economy. Globalization has several facets, including the globalization of markets and the globalization of production". Free trade is an example of a situation where government makes no