"Globalization and the World Economy"

"Globalization and the World Economy" Essence and concepts of International economic integration Impact of the integration on the economy of national states.

INTEGRATION AND ECONOMIC GLOBALIZATION

Mirazam Mirsolikhov

World Economy

What is Globalization?

• Globalization is the integration of economic activities through a market and across borders
• The creation of a single world market

What Has Caused Globalization?

• Technology
• Improved transportation of goods
• Improved communication around the world
• Government Policies
• Can set policies to open up or close trade with other countries

How can the government affect globalization?

• Barriers to free trade and globalization
• Limiting imports
• Embargos- refusing to trade with a particular country
• Tariffs- taxes on any goods that are imported into a country
• Used to make these goods equal to prices of domestic goods or higher than domestic goods prices
• Quotas- limit the number of certain goods allowed into a country at a specific time
• Restricting workers- limiting work permits for migrant workers

How can the government affect globalization?

• Developing Free Trade and Globalization
• Cutting Tariffs
• Usually will increase exports as well as imports
• Other countries become more willing to trade and will drop their own tariffs

How can the government affect globalization?

• World Trade Organization (WTO)
• The World Trade Organization (WTO) deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.
• Protects trade on goods and services
• Services include: Insurance, telecommunications, hotels etc.
• Helps develop the economies of other countries
• Protect intellectual property- ideas and designs (copyrights)