The Global Economy 's Impact Essay example

1039 Words Nov 11th, 2016 5 Pages

The Global Economy’s Impact
Global economy is defined as the economic activity between intertwined countries, which can be either positive or negative (What is global economy, n.d.). The global economy is product of globalization and includes the trading of goods and services on the global market. There are many positive aspects of the global economy for both developed and developing countries. These include less restrictions on trade and the movement of labor, which allows for a more open market between countries, which encourages economic growth and opportunity. Increased investment in developing countries by developed countries to promote industry has improved the chances of opportunity it areas that are otherwise economically depressed. The greater competition has also given alternative to local monopolies for either goods or services. The downside is the risk of exploitation of less developed countries for their natural resources and labor, which can damage the developing economies. The environmental cost of the exploitation of a resource in the absence of less standardized environmental protection is a significant concerns as the unintended consequences may be bigger than originally thought. Growth can favor one group over another creating inequality (What is global economy? Definition and meaning, n.d.). Globalization has generated a brain drain in many developing countries, the young and educated choose to relocate to an area…

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