Introduction

• Overview
• The Economy and the Government
• The Economy and its People

 

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Overview

“It is yet another Civilized Power, with its banner of the Prince of Peace in one hand and its loot-basket and its butcher-knife in the other.” Mark Twain describes the risks of a globalisation.

The world’s economic fortune is directly related to the land, the people, and resources on every corner of the earth. Globalisation factors into every nation’s culture and economy as environmental resources are consumed, people fight for basic working rights, and equitable trade is upheld to foster growth.
 
Saul Wilen provides a clear understanding of what globalisation involves:

“Globalisation, technology, the “instantaneous” nature of international commerce, the advent of immediate communication, and rapid international travel and transport of people, plants, animals, and goods have all contributed to a world that functions as though it were shrinking in size. Globalisation has resulted in increased dependence especially in the spheres of information, business, economics, and finance.”

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The Economy and the Government

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Nations depend upon their governments to regulate stable economies that are conducive to success and growth. Governments, when fulfilling this goal to the fullest extent to achieve macroeconomics, must accomplish broad employment, growth in the economy, stable pricing, and a comfortable ratio between imported and exported goods.
 

The US Treasury (above) is chiefly responsible for ensuring the economic stability of the United States. Virtually every other country has a similar institution.

Governments, ranging from dictatorships to democracies to communism, regard distribution of finances in different respects. Capitalist approaches of the 1900’s regulated manufacturing and trade, and eventually proved unsuccessful in managing stable economies in countries such as the Soviet Union. Each nation has unique approaches to finances; the government’s ability to satisfy and provide for all classes of society truly reflects the style of leadership.

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The Economy and its People

The status of an economy has a significant effect upon the livlihood of the citizens within it. A market scene in India (above) emphasizes this point due its relatively primitive nature by western standards.

Economics can result in extreme wealth or poverty for civilians of a country or a region. At the start of the new millennium, the nation with the largest Gross Domestic Product is the United States, followed by Japan and Germany. As Europe and America remain strong areas of development, regions encompassing Africa and South Asia have populations living in extreme poverty. Events in the world have direct correlation in the fluctuations in economic trends. Technological innovations have also lead to an improved international trade and regulating system. The trends in certain nations now have a ripple effect on all other nations in this stronger, interconnected climate.
 
As the national economies begin to merge on a worldwide level, globalisation has resulted. Cultures are spread across seas to new continents with improved transportation, trade laws, and communication. Globalisation has resulted in a more singular worldwide economic system. By the end of the 20th century, multinational companies controlled over thirty percent of the world’s products. Companies have begun to seek out inexpensive resources and labor in different regions in order to maximize income revenues. Many argue that globalisation will encourage nations still developing and provide further opportunities in the lives of their populations. Conversely, it can be argued that globalisation limits competition and provides little benefits and rights for the masses employed by multinationals. Interestingly, the Organisation for Economic Cooperation and Development researched the wages of workers for multinational and national corporations and found that those working for multinationals made significantly more money. In Turkey, these employees were found to earn about 125% more than local employees. Deregulation has now also begun to unify national economies. Globalisation sees economic value in weak regions.

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