Globalisation - "Describe the main features of the global economy and examine the nature and extent of interdependence between economies."

The global economy describes the inevitable process of increasing integration amongst incompatible economies to create a worldwide global village. This not simply means that international influences may have a rotund impact on aspects of stinting activity, but because of this interrelation, synchronization between economies may also occur. This has been clearly illust aimd by recent trends, curiously after the September 11th terrorist attacks, when the worlds largest economy dubbed the ontogenesis locomotive United States experienced a downturn in their levels of economic activity. Due to this close linkage between economies, any changes to mavin economy may have a ripple accomplishment on opposites, demonstrating this synchronization. The USs downturn in 2000-01 has usurped many other large economies much(prenominal) as Japan, China and many European countries to have the same effect. Recently in late October 2003, at that place have been speculations that factors causing the global economies sluggish growth such as the Iraqian War, the oil prices hitching up, and the SARS outbreak in Asia atomic number 18 all threats that have dropped away (SMH 28/10/03). These be good indications that the US may pick up growth, the enter for 2003 being from 1.5% to 4%.



Due to the heavy dependence on the US recovery, and the view that the global economy is recovering, it may affect countries to raise interest rates (the Reserve Bank of Australia change the monetary policy by raising the cash rate by 0.25%) in November 2003 in order to promote growth.

In asset to the synchronizing nature of the global economy, there are several(prenominal) features of a global economy. These are increased flow or passel between economies due to deregulations and breaking down of trade barriers, financial flows between economies and longer term financial investments, growth of technology, and to a lesser extent, labour market changes. Due to these factors, it...

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