The Structures of
Globalization
Agenda
The Global Economy
Market Integration
The Global Interstate System
Contemporary Global Governance
The Global Economy
HENRIETTA MITCHELL, FOUNDER & CEO
AVERY DAVIS, FOUNDER & CTO
9 MAY, 2023
The Global
Economy
refers to the interconnected worldwide economic activities
that take place among multiple countries. These economic
activities can have either a positive or negative impact on the
countries involved.
Characteristics of The Global Economy
INTERNATIONAL TRADE
GLOBALIZATION
Globalization: Globalization describes a International trade is considered to be an
process by which national and regional impact of globalization. It refers to the
economies, societies, and cultures have exchange of goods and services between
become integrated through the global network different countries, and it has also helped
of trade, and communication. immigration, and countries to specialize in products which
transportation. These developments led to the they have a comparative advantage. This is
advent of the global economy. Due to the an economic theory that refers to an
global economy and globalization, domestic economy's ability to produce goods and
economies have become cohesive, leading to services at a lower opportunity cost than
an improvement in their performances. its trade partners.
Characteristics of The Global Economy
INTERNATIONAL FINANCE GLOBAL INVESTMENT
Money can be transferred at a faster rate This refers to an investment strategy that is
between countries compared to goods, not constrained by geographical boundaries.
services, and people; making international Global investment mainly takes place via
finance one of the primary features of a global foreign direct investment (FDI).
economy, International finance consists of
topics like currency exchange rates and
monetary policy.
WHY IS THE GLOBAL
ECONOMY IMPORTANT?
We can understand the importance of the
global economy by looking at it in relation to
emerging markets.
Economic importance at a micro
and macro level
The increase in the world's population has led to emerging markets growing
economically, making them one of the primary engines of world economic
growth. The growth and resilience shown by emerging markets are a good
sign for the world economy. Before delving into the next point, you need to
understand the concept of microeconomics. It refers to the study of the
behavior of households, individuals. and firms with respect to the allocation
of resources and decision-making. In simpler terms, this branch of
economics studies how people make decisions, what factors affect their
decisions, and how these decisions affect the price, demand, and supply of
goods in the market.
Economic importance at a micro
and macro level
Therefore, from the perspective of microeconomics, some of the
largest firms with high market value and a few of the richest individuals
in the world hail from these emerging markets. which has helped in the
higher distribution of income in these countries. However, many of
these emerging countries are still plagued by poverty, and work still
needs to be done to work towards eradicating it.
long-term world
economic outlook:
According to financial and economic projections based on demographic trends
and capital productivity models, the GDP in emerging market economies in 2019
will likely keep increasing positively. According to an emerging markets
economic forecast for 2019 conducted by Focus Economics, the economy is set
to increase by 7.5% in India, 6.6% in the Philippines, 6.3% in China, 5.3% in
Indonesia, 5.1% in Egypt, 4.9% in Malaysia, 3.8% in Peru and 3.7% in Morocco.
Who controls the
global economy?
Although governments do hold power over countries' economies, it is
the big banks and large corporations that control and essentially fund
these governments. This means that the global economy is dominated
by large financial institutions.
