Summery for <the contemporary global economy> - Essay Example

The Contemporary Global Economy Summary The article “The Contemporary Global Economy” explores world trade andinterdependence of national economies. According to the author, globalization is shaping the world economy into an interdependent system. The author goes ahead to assess the impacts of globalization by examining how multinational firms have actively engaged in exploring foreign markets, which have high growth potential. Through globalization, even small business with no global operations can purchase inputs from international suppliers.

Globalization has dissolved national barriers and made international trade restrictions in many countries defunct as most economies work to motivate international trade. Because of its potential benefits, governments and other stakeholders as well as advancements in technology have ensured sustainable globalization. However, critics argue that globalization is responsible for adverse socio-cultural, economic and environmental conditions in developing nations.Critically assessing chapter four, this article relates to the production of cocoa for export in Ivory Coast.

The arguments in the article resonate with the story of cocoa production in Ivory Coast. In Ivory Coast, cocoa produced finds its way to foreign market, mainly the United States because of globalization. However, the cocoa is produced from small farms under forced child labor and is subject to fluctuating world market price. Farmers in Ivory Coast have no say on the prices paid for their cocoa. As such, they are compelled to seek cheap labor, which has been found on forced labor. From the article, it is apparent that globalization promotes international trade by opening up new markets for products of countries and firms.

However, developed countries seem to benefit more from globalization than developing countries. As such, it would be better to implement international trade laws checking on unhealthy competition, price stability and equal benefit of all participants in international trade.