The Impact of Global Economy Shifts In Our World - Article Example

Modern technology and improvement in communication coupled with decrease in tariffs and trade barriers have contributed to the global economy. Across the world many countries and regions have formed trade groups aimed at promoting the movements of goods and services across borders, and making each group a stronger body among existing competing markets. These trade groups range from the European Union in Europe, to North American Free Trade Agreement and several different regions and countries becoming attached to at least one agreement.

These try to cultivate an economic bloc to deal as one entity with the rest of the world. During the Cold war era the United States and its allies controlled the western market while the Soviet Union dominated the markets of Eastern Europe as well as those countries that were sympathetic to the communist cause. Capitalism was seen by many as the means by which financial and economic stability could be obtained. However, with the fall of the Soviet Union the power of the United States in the global economy began to decrease.

At about the same time many countries, in Latin America, for example, began to form themselves into trading blocs that did not project the Unites States of America and other major industrialized countries as their main trading partners. In recent times China and India have been emerging as the countries of global economic influence. The large workforce of both countries and the ever increasing technology exports of India have caused pushed both countries to the forefront. There will be several implications, however, as these countries take on added dimensions.

One great impact that this will have is on the developing countries in the world. Based on the trend in recent years developing countries are becoming potentially major gainers from improvements in the economic performance of other developing countries (Winters, Yusuf 2007). The countries in the western world will become less relevant to