Global
interaction and the Transformation of the world Economy took place in the
second half of the twentieth century.
After WWI and the Great Depression international trade, investment, and
labor migration dropped sharply as major states turned inward. Technology also contributed to the
acceleration of economic globalization with shipping and air services
dramatically lowering transportation costs. Also having powerful international lending agencies such as the
World Bank and the International Monetary Fund imposed such free-market and
pro-business conditions sent the globe in a positive direction until some
places weren’t able to pay off their loans. After WW11 occurred the nation made a point to not let the
economy fall like it once had and instead strived for reglobalization. World trade was a main contributor to
keeping the economy a float.
There
are three different forms of capital movement. The first is foreign direct investment. This is when one
country will open up a business or factory in a country other then his or her
country. The second is the
short-term movement of capital.
This is when investors buy foreign stocks then sell them quickly. The third is the personal funds of
individuals like credit cards.
Currently there are millions or people who travel the world to find jobs
because the country they live in is outsourcing their companies which forces
the average citizen to venture out to find a job. These flows of migrating laborers often represent a major
source of income and provide inexpensive source of labor for their adopted
countries. For corporations to be
outsourcing their labor workers and taking advantage or their determination and
will to work is a depressing.
America is the main culprit for abusing their power to build where they
please resulting in their ability to pretty much run the world. Even though, ironically enough America
is the one suffering from the biggest debt.
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