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Midterm exam - Essay Example

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The post WWII period was significant in its decentralization of European power and emergence of America as superpower of the world. It was during this…
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Midterm exam

Download file to see previous pages... were primarily formed to support the rebuilding processes of the nations and provide a world forum that can provide mediation. The central banks play critical role and national political and economic agenda main revolved around low interest rates, regulation of industries, labor unions to strengthen the business environment with the countries.
Neo-liberalism, on the other hand, can broadly be defined in terms of emerging new economic paradigms in the changing socio-political scenario across the world that favors opening of domestic market for global business powers. But 1975 onwards, the world economy has increasingly become more market driven and trade across geographical regions has become more attractive to developed and developing countries.
In the new-liberalism era, the economic conditions had drastically changed through de-regulation of industries, privatization and curb on union power. America came into the forefront of global political and economic front. With Ronal Reagan, as President of America in 1980, the demise of old economic order became a certainty. The role of central bank was significantly curbed and privatization became the major propellant of new economic order. The strong economy and advanced stature of United States, subsequently, made sure the success of US Dollars as Global Currency. This system greatly facilitated international trade and investment but restricted the capital movement so as to maintain certain extent of control by few dominant countries (Harvey, 2005).
The advent of neo-liberalism primarily relied on economic liberalization. It promoted more capitalistic approach that favored the rich and made the poor nations as the scapegoat for getting exploited by the developed countries and multi-nationals. The monopoly of American influence in all the leading international financial institutes like World Bank and IMF, have followed the American ...Download file to see next pagesRead More
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