GLOBAL INTERDEPENDENCE
Interdependence is one of the most vital characteristics of the global economy. The term refers to reliance of people on products, knowledge and resources from other parts of the world. Production, consumption and trade are activities that lead to economic globalization that further links places around the globe.
Global interdependence literally means mutual dependence at a global level. Wherein, a country depends on the other for something and that country further depends on another country, this leads to a situation of global interdependence.
The main contributing factors to this kind of interdependence are imports and exports of goods and services. Some products like oil, tea, coffee, gold to name a few, have created a network of global interdependence between countries that produce and those that consume these precious commodities.
In early times, exchanges like these occurred throughout the ancient Middle East, Silk Road from China and with great civilizations such as Byzantine and the Islamic Empires.
Since the 1950s, as the potentialities of the national economies expanded, it led to an increase in the number of exports produced for trade. Post World-War 2 the world has increasingly become dependent. Mainly due to the establishment of multinational banks, financial markets and corporations have economically …show more content…
It has led to the expansion of industries, with reduced production cost and technological advancement. But this kind of interdependence does not benefit everyone equally. The richer countries mainly enjoy the advantages while the poor nations remain poor. Eradication of extreme poverty still remains a distant dream in few nations. Due to this reason organizations like, The Global Interdependence Center (GIC) are required that aim at enhancing the global trade maintaining the cooperation and peace among different
Interdependence is one of the most vital characteristics of the global economy. The term refers to reliance of people on products, knowledge and resources from other parts of the world. Production, consumption and trade are activities that lead to economic globalization that further links places around the globe.
Global interdependence literally means mutual dependence at a global level. Wherein, a country depends on the other for something and that country further depends on another country, this leads to a situation of global interdependence.
The main contributing factors to this kind of interdependence are imports and exports of goods and services. Some products like oil, tea, coffee, gold to name a few, have created a network of global interdependence between countries that produce and those that consume these precious commodities.
In early times, exchanges like these occurred throughout the ancient Middle East, Silk Road from China and with great civilizations such as Byzantine and the Islamic Empires.
Since the 1950s, as the potentialities of the national economies expanded, it led to an increase in the number of exports produced for trade. Post World-War 2 the world has increasingly become dependent. Mainly due to the establishment of multinational banks, financial markets and corporations have economically …show more content…
It has led to the expansion of industries, with reduced production cost and technological advancement. But this kind of interdependence does not benefit everyone equally. The richer countries mainly enjoy the advantages while the poor nations remain poor. Eradication of extreme poverty still remains a distant dream in few nations. Due to this reason organizations like, The Global Interdependence Center (GIC) are required that aim at enhancing the global trade maintaining the cooperation and peace among different