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Recent Trends in World Wide Economy
The movement of the World Wide Economy from a Traditional Economy to a Global one has come through the technological advancements strengthened by modern technological discoveries, beginning from the days of the Industrial Revolution in England.
However due to rapid globalization, national economies along with rules & regulations are losing importance.
Mergers between multinational corporations are in vogue as every organization wants to exercise total control over the World Market.
Disasters
The crash of the New York Stock Exchange in October, 1929 that led to almost a decade long depression in the US adversely affected the World Economy.
The Political Revolutions of 1989 in Central and Eastern Europe bringing about the overthrow of Communist governments in Poland, East Germany, Czechoslovakia, Hungary, Bulgaria and Romania.
The East Asian Financial Crisis of 1997 mainly affecting Indonesia, South Korea and Thailand along with Hong Kong, Malaysia, Laos and the Philippines.
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Major Players
The developed nations control the World Economy aided by their superior technological advancements. U.S.A., Japan, China, U.K., Germany, France, and Canada are the countries that are foremost in World Economy. This is reflected in their higher status in the United Nations Organization.
Trade and Commerce
In the increasingly globalized World Economy all companies are only focused on deriving the highest profits from the investments made by them. To that end these are becoming multinational, having realized that affordable products can be circulated in the markets of developed nations (which are more profitable by huge margins) by outsourcing the production to the underdeveloped and developing countries (for cheap labor as well as liberal regulations).
Several international regulators like the World Trade Organization, International Monetary Fund, World Bank, and OECD however are aimed at keeping all profit-focused companies under a check.
Conclusion
The World Wide Economy though highly influenced by the developed countries shows signs of turning into a fair ground through the outsourcing of jobs to developing and underdeveloped nations, by most multinational companies based in the developed nations. This points towards a future balanced World Economy.
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