GLOBALIZATION AND FINANCIAL CRISIS

Globalization and Financial Crisis



Globalization and Financial Crisis

Introduction

In recent times the word " globalization "has been gaining ground in the stands to scale world, which is due in large part to the obvious concern of governments, national, and community in general, the growing economic interdependence of countries and the adverse consequences that may be associated with this process, as evidenced by the transmission of the effects of the crisis Mexican and Asian to other regions(Ghosh, 2001, 172-180).

However, it must mean that it is an oversimplification to associate the process of globalization exclusively with economic activity, since it influences to a greater or lesser degree in all spheres of human activity and, therefore, its characterization is of great importance as it allows for action aware that reduce the negative impacts of their presence. In this context, an important aspect for the characterization of this process and further elaboration of strategies of confrontation, is whether a law of social development or process consciously introduced by the man.

Taking into account the aforementioned aspects, this work proposes a model that supports the character of law in the globalization process and provides information on the causal and quantitative behavior (Cerutti, 2006, 52-64).

Links with the external environment have always gravitated to the development of Latin America. Capital formation, technological change, resource allocation, employment, income distribution and macroeconomic balances are in fact strongly influenced by relations with the international system. Globalization raises fundamental questions whose resolution depends on the development and Latin American integration. In other words, the answer to the dilemma of developing networked world is the first challenge we must address the economic policy of our countries (Amyx, 2004, 85-98).

Increasing Globalization Leading to Financial Crisis

The global economic slowdown is beginning to transcend the major world financial markets, with real impact on employment. The unemployment figures that were released this week in the UK show that slightly more than 1.8 million people are now without work, i.e. 140,000 more than three months. The picture is similar elsewhere: unemployment figures in the U.S. provide a stark reading of reality and this is compounded by news that Germany - the world's largest exporter - is officially in recession. The slowdown has an impact everywhere because of the nature of the interconnected global economy(Fernandez, 2000, 145-159).

The concern, uncertainty and confusion are already installed in all areas related to financial and economic world. The strong cohesion between global markets means that a crisis in any part of the planet to have immediate influence the economy of any country, first by the financial side and then part of the real economy of all individuals within it(Ghosh, 2001, 172-180).

In order to interpret the origin and effect of this financial crisis, which should be vigilant, since everything is indicating that we are only the tip of an iceberg and probably we find a larger crisis in history. Some people compare it to the depression of 29 'and others going ...