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International Economy

In: Business and Management

Submitted By stalley91
Words 1385
Pages 6
INTERNATIONAL ECONOMY
Globalisation, World trade, Multinational, Exports and imports.

Advances in transportation and communication has made the exchange of information and goods and services much more efficient between people and countries, thus making the world seem like a small place. This is referred to as globalisation. The world has become connected in many different ways such as in a cultural, religious, and economical way. Two centuries ago countries only traded within their boarders and the only thing closest to international trade was when explorers such as Vasco Da Gama and Christopher Columbus sailed to undiscovered lands and traded goods such as copper, diamonds, gold and spices. In later years international trade within Europe started to grow, for example neighbouring countries such as France and the U.K traded consumer, capital and military goods with each other. International trade today is enormous, in 2010 global exports and imports were $37 trillion, which is 58 percent of the value of global production. The United States is the largest global trader as it accounts for 10 percent of world exports and 13 percent of world imports, China comes second then Germany third. World trade has made all individual national economies heavily dependent on each other, for example the fall of the United States economy or the appreciation and the depreciation of the United States dollar affects all other economies. A good example of international financial dependency will be the global economic crisis of 2008 that is considered to date to be one of the worst financial meltdowns since the 1929 great depression. The crisis occurred due to the collapse of the U.S stock market and banking system, which led to the appreciation of the dollar. The global effects of this U.S financial crisis were such as less economically developed countries that were...

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