GLOBALIZED ECONOMIES

Globalized Economies

Globalized Economies

Introduction

The entire global financial system, together with its main elements is subject to the general trends of the world economy, the primary of which is globalization. The IMF experts define this process as a growing economic interdependence of countries around the world as a result of the increasing volume and diversity of international transactions in goods, services and global capital flows and also due to more rapid and wide diffusion of technology.

Globalization can be seen as a process or even as a tool, but the economic results sought by the capital, is economic growth. Furthermore, if globalization is needed for this medium, the condition for accelerated economic growth has always had access to the resources such as finance and human resource. Another resource, which is perhaps the most important, is the access to markets. The struggle for control over resources has been consistent over the period of time. It results in its capital with the help of national states, that is, by political means (Gupta, 1997).

Discussion

The globalization of national economies has become part of the global market economy and, consequently, smoothes the legal institutional and technological barriers. The economic world is taking on the traits of integrity on a global scale.

Countries such as the US and China, in a macroeconomic perspective, have become interconnected, interdependent, and largely integrated markets, which have no boundaries. In addition, these countries have a market where there are financial services, everywhere convergence, similarities, and finally the identity of one and the same time of its characteristics as price and quality. The economies of US and China are characterized by globalization, the introduction of modern electronic technology, communications and information access of non-residents, as well as deregulation processes associated with the abolition of legal restrictions on the conduct of operations. The result is a huge increase in financial flows. The main factors in the globalization of economies include (Welfens, 1999):

The development of information technology.

The processes of liberalization and deregulation of markets and their participants.

Protection of property rights.

Standardization of operations, which simplifies the operation of markets and unifies the terms of transactions and the basic characteristics of financial services.

The potential volume of investments of individuals. The importance of this factor depends on the number of working-age population of the world, the level of income and consumption of this population.

The international movement of capital.

The emergence of new dynamic developing countries.

Financial innovation.

Modern theories of investment.

Globalization is ...