International Trade & Banking Essay Example | Topics and Well Written Essays - 1000 words

International Trade & Banking - Essay Example According to Mishkin, globalization is essentially about economic integration, which implies the opening up of national economies to the external inflow of goods, services. Contrary to earlier beliefs, globalization is hardly a new phenomenon, dating back to the end of the 19th century and the age of industrialization. â€Å"The globalization system, unlike the Cold War system, is not static, but a dynamic ongoing process: globalization involves integration of markets, nation-states and technologies to a degree never witnessed before — in a way that is enabling individuals, corporations and nation-states to reach around the world farther, faster, deeper and cheaper than ever before, and in a way that is also producing a powerful backlash from those brutalized or left behind by this new system†. Yet, even today it is too early to say that globalization has achieved its peak. Central banks are still in their way but far from achieving real financial globalization. The lat ter presupposes having a single global currency and a single global financial authority. According to Way, â€Å"independent central banks produce sharply lower inflation rates where Left cabinets are prevalent but at a cost of increasing unemployment†. In the absence of financial stability and global financial homogeneity, central banks acquire a new role of adjusting their decisions and exchange rates policies to the needs of the international financial community, including the issues of currency convertibility.

Constraints on Developing Countries Essay Example | Topics and Well Written Essays - 1500 words

Constraints on Developing Countries - Essay Example This essay declares that the future for a level playing field and the transition of developing countries appears to already be underway since the majority of the World Trade Organisation is composed of developing countries which are striving to take part in the international industrial trade setup. These countries are following the guidelines given by the United Nations to increase their ability to produce as well as the quality of their production. In the industrial world, much like the business world, the wishes of the client reign supreme. Since the clients of these nations are industrialised countries, the developing nations will have to bring up their standards of production to remain competitive. The future of economic liberalisation does not move as much towards opening of markets and free trade. In reality, it is moving towards a trade of technology and industrial know-how which will allow industrial production to take place at the same level in a developing country as it doe s in developed countries. This paper makes a conclusion that constraints do exist and developing countries are at a significant disadvantage when compared to industrialised nations but the author also thinks that the world is becoming more equal. Just a few decades ago the American Empire reigned supreme in all aspects of advancement and culture but the future leadership of the world could belong to the European Union. It is clear to me that industrial relationships and the volume of industrial trade will form a significant portion of the equation in determining which country leads the world into the 22nd century.