Definition of economic globalisation

Economic globalisation has two main elements: the mobility of goods, services, capital, technology, and people in the world economy as a whole; and a given country’s integration into the world economy.  In the 19th Century in the world economy as a whole, capital and people, but not goods, tended to cross borders easily; in the 21st century world economy, goods, capital, and technologies, but not people, crossed borders relatively easily.  The member countries of the European Union have gone further than any others in opening their economies to labour, capital, goods, and services within the bloc.  The few surviving relics of the Soviet model – North Korea and Cuba  in particular – are among the world’s most isolated and autarkic countries.  A country’s integration into the global economy generally brings increased national wealth, but globalisation is at least initially frequently associated with increased inequality.[1]

 

economic globalisation in the news

In September 2013 a news report commented on banking solvency concerns in the United States. The Federal Reserve was repoted to be concerned it could have  to beg other central banks for help if a foreign bank in the US suffered a funding crisis. "Goodbye, globalisation. Hello, Balkanisation" the author wrote.

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