Global Economy and its Effects
In the globalisation period world and its activities have a global impact; the economic sector is not an exemption for this. Freedom in the field of economic activities encourages the use of the term global economy. Technological advancement, on world concept in the political world is creating a supporting atmosphere for the global economy. The economic transactions in this era have no boundaries with the introduction of free trade and economic policies. It can be considered as a natural growth in the social and economic scenario in the modern world and these benefits the people across the world to improve their standard of living.
Changes in the world’s political environment help the multinational giants to gather benefits. The policies in this field of free trade are dominated and controlled by the interest of the powerful countries. Liberalisation and globalisation are the two terms going together while liberalisation allow free trade and business across the world globalisation promote a global thinking in all the area especially in the economic activities. The concept of global economy is aimed to the benefit of all the participating countries but the large corporate are expanding their business to the big markets in the world by using the conditions of the free economic policies. They accumulate more capital to their country and produces goods for cheaper cost in other parts of the world. Communication and other technological advancement help these companies to control and organise the global activities.
Privatisation is another term which goes along with this global economy, governments are withdrawing from the responsibility of infrastructure development and investments. This enables the private investors to take over the public companies and trigger the economic activities worldwide. Since the private investors give preference to the profit the ecological and environmental consideration are weakening during this period. Global economy concept aims to bring the world together for the total growth of the world economy.