The Global Economy

Rising technology has allowed our environment to be characterized as a global one. “The global economy" gave business the ability to market products and services all over the globe. It has also allowed them to develop partnerships and alliances throughout the world, which has become essential for success in today’s business.” Prior to Globalization, the United States dominated the global economy. In past decades, however, the U.S. share of the global economy has shrunk to approximately 20%. This trend is expected to continue as the economies of many newly industrialized countries continue to grow at a faster rate, this is called the balancing of the equilibrium. For the moment, however, the global economy is still largely tripolar in nature, as North America, the European Union and Asia are the main areas of business and finance, with New York, London and Tokyo respectively as the three main financial centres of the world.
While these business practices allow companies to save money, leading to larger returns for investors and more affordable products for their clients, at the same time balancing the world economy, some believe they also serve as a motivation for governments in developing nations to keep their legislation lax when it comes to labor and environmental laws. These transnational corporations often lobby governments in order to gain access into these developing countries. Still, many developed countries have protectionist policies that do not enable developing countries to export their goods into developed markets. While some believe these activities should be curtailed with increased government legislation, proponents of economic liberty argue that the governments themselves are the reason for most of the economic problems attributed to globalization.
Trade barriers more often hamper economic development in the Global South, as compared to the North. New technologies like the internet may speed up the reduction of trade barriers. Critics of the expanding global economy argue the reduction of trade barriers will create harder competition for the previously protected companies in developing countries, while its advocates point to the new possibilities in global markets for emerging market companies such as Haier (China) and the Tata Group (India).
Historical Origins
Although a global economy is generally associated with the late 20th century and early 21st century, it may be argued that a global system of exchange existed before that.
Some possible dates for its origins are:
- The along the Mediterranean Sea (12th to 8th century BC),
- The Roman to Han trade system along the Silk Road (1st to 2nd century AD),
- The Arabian global trade system across the Old World (7th to 13th century AD),
- The Global maritime navigations across the Earth (15th to 18th century AD),
- The New Imperialism (19th century) and Neo-Colonialism (20th Century)

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