Globalisation
Globalisation
GLOBALISATION: THE DEVELOPMENT OF A COUNTRY
Globalisation: The Development of a country
Abstract
Globalisation plays a very integral part in today’s world. This article will show how globalisation has affected the foreign trade between countries. It will tell us about the types of economy that a country follows, that is Open Economy and Closed Economy along with an example of each country. This essay will critically evaluate the pros and cons of each economy and will come to a conclusion which is the best economy from both of them for a country. In the end of my essay I will conclude by providing the readers with a broad understanding on the topic of globalisation and trade which help them to understand the importance of globalisation in the 21st century.
Globalisation: The Development of a Country
According to IMF (1997) ‘Globalization refers to the economic interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology’.
Due to development in the economic, social, technological and political segments globalisation has been rapidly increasing over time. Eventually, globalisation started affecting not only the lives of the people but also the business and service sectors. As there has been a rapid increase in globalisation trade not only takes place personally but also takes place on internet like e-business from one country to another (Mufwene, S. 2002). This shows how trade and technology are interlaced as a result of globalisation. Research studies have shown that before 1870 hardly there was any positive growth in the GDP per person. One source (Maddison, 2001) showed that after the 2nd World War there has been 3% growth in the GDP per year compared to the rate of percentage during 1820-70 which was only about 0.5% per
GLOBALISATION: THE DEVELOPMENT OF A COUNTRY
Globalisation: The Development of a country
Abstract
Globalisation plays a very integral part in today’s world. This article will show how globalisation has affected the foreign trade between countries. It will tell us about the types of economy that a country follows, that is Open Economy and Closed Economy along with an example of each country. This essay will critically evaluate the pros and cons of each economy and will come to a conclusion which is the best economy from both of them for a country. In the end of my essay I will conclude by providing the readers with a broad understanding on the topic of globalisation and trade which help them to understand the importance of globalisation in the 21st century.
Globalisation: The Development of a Country
According to IMF (1997) ‘Globalization refers to the economic interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology’.
Due to development in the economic, social, technological and political segments globalisation has been rapidly increasing over time. Eventually, globalisation started affecting not only the lives of the people but also the business and service sectors. As there has been a rapid increase in globalisation trade not only takes place personally but also takes place on internet like e-business from one country to another (Mufwene, S. 2002). This shows how trade and technology are interlaced as a result of globalisation. Research studies have shown that before 1870 hardly there was any positive growth in the GDP per person. One source (Maddison, 2001) showed that after the 2nd World War there has been 3% growth in the GDP per year compared to the rate of percentage during 1820-70 which was only about 0.5% per