The global economic system refers to the arrangements and institutions that unite the world's economies in one global marketplace. Developments in international economics since World War II have led to the global system that exists today.
The global economic system allows nations to engage in international trade, exchanging goods and services. The system also allows labor and capital to move more freely around the world
International organizations such as the International Monetary Fund and the World Trade Organization are important institutions in the global economic system.
Global trade agreements such as the North American Free Trade Agreement and the General Agreement on Tariffs and Trade helped accelerate globalization, opening markets around world to an expanding range of goods and services.
The global economy has allowed consumers access to an expanding range of goods and made it possible for investors to seek opportunities around the world.
Does globalization promote the removal of production and jobs from developed to underdeveloped countries? What are the social costs of both groups?
The implications of globalization for a national economy are many. Globalization has intensified interdependence and competition between economies in the world market.
Firms tend to move their industry in LEDCs which brings to local people jobs whereas in MEDCs, unemployment is increases. In LEDCs they would be paid poorly and firms can pull out at any time.
By moving in a developing, industries bring with them the same production techniques and their technology knowledges. By introducing them to local workers, it will increase their skills. Globalization in developing countries had a favorable impact on the overall growth rate of the economy. Gross Domestic Product growth accelerated due to