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As Truly Global Economies Emerge Distinct National Economies Are Increasingly Irrelevant

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The modern milieu is typified by rapid, simultaneous expansion and shrinkage as the world grows close together in terms of pursuing the same goals; yet drift farther apart with regard to achieving progress and development (Akram, Faheem, Dost & Abdullah 2011, p. 293). The increasing irrelevance of national borders, including social, economic, cultural and technological borders, is one of the fundamental characteristics of the incident of globalization. Innovative technologies such as the Internet have facilitated the dismantling of national boundaries. As a consequence, the world is rapidly turning into one massive village; not only in political terms, but economic terms as well (Kemeny 2011, p. 17). At present, global exchanges and interactions continue to be the order of the day. All areas of society, including the economic aspects, are constantly being reshaped by the process of globalization as forces that outweigh and transcend national borders exert their influence. The rate of global change is quite rapid today; consequently, the emergence of global economies makes national economies, as well as strategies geared towards national economic management, irrelevant or entirely obsolete. Economic globalization has resulted in the proliferation of global economies, which surmount the powers held by national economies to influence economic occurrences within their national borders. Fundamentally, national economies are interdependent as they depend on the cross-border movement of capital, technology, and goods and services to facilitate growth and intensification (Giddens 2000, p. 157). In essence, the establishment of global economies is geared towards obliteration of deterrents to global trade, for instance, tariffs, taxes, and international trade regulations. This results in the occurrence of a single, global world market. In truly economic economies, competition, markets, production, industries and technology are essentially globalized. In 1944, 44 countries took part in the Bretton Woods Conference that envisaged the establishment of an international economic order. Eventually, this heralded the establishment of a closely-knit global economy governed by a global financial system. Consequently, instead of national economies influencing their own economic strategies, international organizations such as the International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO) take charge of managing, monitoring and influencing globally interconnected economies. Ultimately, this undermines the input of individual countries’ economic management strategies.
Prior to the establishment of global economies, individual nations were responsible for monitoring their economic relations with other countries, as well as resolving all ensuing conflicts. However, today, global economic organizations have taken over this responsibility. Consequently, power has been transferred from individual nations to the array of global economic regulatory bodies. For instance, economic management strategies such as settling disputes and establishing negotiation forums are no longer the responsibility of individual nations. Instead, organizations such as the WTO oversee such negotiations and dispute resolution (Christopherson, Garretsen & Martin 2008, p. 345). This speaks to the growing irrelevance of national economies and their distinct management efforts. Additionally, WTO is responsible for reviewing and propagating national trade policies such as transparency (Bossche 2005, p. 73). Therefore, efforts of national economies to implement trade policies may prove futile with regard to operating within the global economic milieu. Furthermore, today, the efforts of developing and underdeveloped nations aimed at saving their financial situations are largely inadequate if they do not adhere to the provisions of global economic bodies such as the IMF and WTO.
In essence, global economic vehicles establish rules and principles to which they expect national economies to adhere, thereby undermining the relevance of national economic management strategies established by individual nations. Since global economies advocate technical cooperation, fiscal management strategies of national economies, which do not meet the threshold of such cooperation, are unlikely to achieve optimal economic results (Palmeter & Mavroidis 2004, p. 245). Today, global economies are responsible economic management strategies such as analysis and research, and the global scope of such efforts makes such strategies by national economies essentially irrelevant and futile.

References

Akram, M, Faheem, MA, Dost, MK & Abdullah, I 2011, “Globalization and its impacts on world economic development”, International Journal of Business and Social Science, Vol. 2 No. 23, pp. 291-297.

Bossche, P 2005, The origins of the WTO: The law and policy of the World Trade Organization: text, cases and materials, Cambridge University Press, New York.

Christopherson, S, Garretsen, H & Martin, R 2008, “The world is not flat: Putting globalization in its place”, Cambridge Journal of Regions Economy and Society, vol. 1, no. 3, pp. 343-349.

Giddens, A 2000, Runaway world: How globalization is reshaping our lives, Routledge,
London.
Kemeny, T 2011, “Are international technology gaps growing or shrinking in the age of globalization?” Journal of Economic Geography, vol. 11, no. 1, pp. 1-35.

Palmeter, ND & Mavroidis, PC 2004, Overview: Dispute settlement in the World Trade
Organization: practice and procedure, Cambridge University Press, New York.

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