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Global Economy

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Submitted By stfischer07
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The world economy has changed greatly since the beginning of man. As a species we evolved each generation socially and especially economically. In the caveman days we traded basic things for food. An example of a trade would be wood for food. As we evolved we then developed a currency system trading gold or silver for items. Today the whole globe has a base economy and every nation is involved in the world economy. Economic globalization refers to the intensification and stretching of economic interrelations across the globe. Gigantic flows of capital and technology have stimulated trade in goods and services. Markets have extended their reach around the world, in the process creating new linkages among national economies. The world economy was developed by the emergence of the global economic order, internationalization of trade and finance, the power of transnational corporations, and the enhanced role of international economic institutions. The economy of the world really started to become internationalized after World War 2. There was an economic conference held in New England to help develop the new international economic order. Under the leadership of the United States and Great Britain, the major economical powers of the time in the north, both countries decided to reverse their protectionist policies of the interwar period. The countries at the meeting all arrived at a firm commitment to expand international trade, the participants at the conference also agreed to establish binding rules on international economic activities. The meeting in New England also set up the institutional foundations for the establishment of three new international economic organizations. The International Monetary Fund was created to administer the international monetary system. The World Bank was initially designed to provide loans to Europe’s postwar reconstruction. Finally,...

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