Global Economy

How is the current Global Economy?

Introduction of Global Economy
The global economy has been formulated to many definitions. As a basic one that has been defined as the increasing integration of fragmented national markets for goods and services into a single global market. For instance, in a national market, the materials, labors, whole process of production, selling service and so on that are all within a country. By contraries, in such a global market, companies may from country A, conduct research and development in country B, take orders in country C, and sell wherever there existence demand regardless of the customer’s nationality. (Answers. Com, 2008)

Nowadays, global economy has been promoted by the rapidly growth of globalization, what impulses more international trades and events, enhances countries’ corporation and communication, reduces tariff barriers between nations, accelerates development of technology etc. Once again, “A global economy is one whose strategic core activities, including innovation, finance and corporate management, function on a planetary scale on real time” has been expressed by Carnoy. (Carnoy, 1999)

History of Global Economy
Global economy had started from 1800 when the system of global capitalism took shape once the British economy went ‘underground’ and began to draw its energy and, increasingly, its raw materials from mineral resources. (Shahid Alam, 2003) There are three phases of the new mineral-based global economy: the first phase was in a small number of core areas (French, British, Germany and United State) during 1800 to 1913, the second phase was in the late 1940s when the world economy opened the door of other countries’ economy (Asian) except core countries, however the power decentralized from core to the periphery, and then the third phase was starting in 1980s, when the power recentralized in the core countries. ((Shahid Alam, 2003)
In general, the global economy has had been developed and diffused... [continues]

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