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Issues in global economy - Essay Example

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For discussing all the issues related with the operation of this global nucleus, we should analyze the structure of this nucleus regarding politics, finance,…
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Issues in global economy
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Issues in global economy

Download file to see previous pages... . Doctrine of invisible hand as also reflected in the thought of Adam smith mainly talked about the power of market economy over the state governing economy. He spoke about market mechanism that ultimately leads to the equilibrium. Any gap between demand and supply will be automatically adjusted through the mechanism of market. The role of government here is nothing but to facilitate the process.  Breaking of Soviet Union in the 20th century strengthens this thought of ‘power of market over state’. This thought was the founding stone of today’s globalization and global economy. However the economists and the historian thought that there are many factors those facilitated the process of globalization. According to them, in 19th and 20th century many countries across the world faced the European imperialism that first makes them known about the world economy. Besides this the period saw a rapid development of sophisticated technologies that was never seen before. Rising of machine gradually cleared the new methods of reaping more profit. All this factors was seeking a process through which they could merge for functioning global economics, trade and politics. The stage was prepared for processing of the global issues through the hand of the ‘process of globalization’. With respect to recent period there emerge some more aspects that control and assist the globalization process more rapidly. Today the progresses of international trade are mostly dependent on international commercial agreements such as FTTA, CAFTA, NAFTA etc. Such agreements have opened the door to the northern export and give more opportunities to the developing nations. Nowadays the export processing zones operate as productive vicinities for overseas ventures, investments and employments. These zones are playing their role in many ways to support the economies by ...Download file to see next pagesRead More
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