What is 'Globalisation' and why is it said to be so important for Essay

What is 'Globalisation' and why is it said to be so important for current international relations - Essay Example Globalization of Economy has taken place thanks to the improvement in transportation technology, and due to the concept of a Free-market society which the WTO is currently promulgating. When different nationalities begin to manage their economic decisions along the same procedures or guidelines or when the economy becomes internationally interconnected globalization of economy is believed to have taken place. There are different viewpoints as to whether the globalization of economy is beneficial or not. In a study conducted by IMF it was discovered that in the last two decades income inequality has risen thanks to financial globalization and technological advancements (which is a factor of Economic Globalization). However it was also discovered that the per capita income has also seen an increase even in the poorer classes. Inequality is on the rise between the different income classes as the well-to-do have a steeper rise in their per capita income as compared to the middle classes. Globalization has raised the eyebrows of even its supporters as they believe that its gains must be more widely distributed to actually encourage other countries to promote globalization. (Falk, 2007) Initially the responsibility of national governments was to protect the citizens of the state by outsiders, provide shelter and to take care of their needs. But as the global scenario has been changing over time the responsibility of the governments has also included becoming members of global organizations for their survival. This has been due to the global ecological changes, an integrated global economy and other global trends decision making has progressed to the global arena. Institutions such as IMF, European Union, United Nations, and World Bank are the major decision makers and enforcers of policies which should be established by member countries. This factor of globalization is the most related to International Relations. With the entrance of America into

East Asian Financial Crisis Essay Example | Topics and Well Written Essays - 2750 words

East Asian Financial Crisis - Essay Example The intention of this study is the East Asian financial crisis of 1997-98 that culminated into one of the most devastating global shocks in the twentieth century. Its far-fetched effect could be compared with nothing less than that of the Great Depression of 1930s which had entwined the US economy into stagflation. In fact, what prevented the 1930s depression from spreading out throughout the world was the lack of ample networking among various economies. On the other hand, the impact of the East Asian crisis by the end of the millennium was more brutal or burgeoned due to a close-knitted financial relationship already been accomplished between them. The link was especially prominent among the underlying economies in South East Asia, bound together by a regional pact ASEAN that aimed at strengthening and shielding at the same time, the international trade position of the East Asian tigers. These economies had secured massive as well as exemplary economic growth rates that awed many o thers. When these economies were recording a growth in real income equal to 7 percent per annum, the US economy lagged behind at a modest 2 percent. Many nations tried to imitate the fiscal configuration of policies being framed by these nations. However, the cheap labor that the economies in the South East Asian region were endowed with, could not be equaled anywhere else in the world. Hence, it was infeasible for others to carry on their production and supply their outputs at competent prices in the world market.