Assalamu'alaikum wr wb
Ladies and gentlemen, let me stand
infront of all the audience to talk about global economy.
It is a widely accepted view that
globalization would not only benefit all countries across the world but would
also work towards the betterment of the economy as a whole. Globalization was
not only loosed of boundaries of each countries but associated with many
complex thing in a country including economic. A global economy is
characterized as a world economy with an unified market for all goods produced
across the world. It thus gives domestic producers an opportunity to expand and
raise capacity according to global demands Likewise, it also provides an
opportunity to domestic consumers to choose from a vast array of imported
goods. A global economy aims to rationalise prices of all products
globally.
While a global economy or
globalization has the distinct advantage of raising world productivity and
incomes and bringing about an improvement in the standards of living for all
people at a global level, it has the dangerous side effect of growth with
inequality. This has been evidenced in the less developed economies of India,
China and Brazil where the benefits of globalization have not percolated to the
lowest levels. This has brought about a wide divide between the have-nots and
the have-lots.
A Global Economy also leads to a
shifting of jobs from the developed countries to the Third World Countries as
wage rates are much lower here. This allows companies of the advanced nation to
grow exponentially. For example, we might find computer chips produced in China
be exported to USA for designing which may be subsequently used in Japanese
computers supplied across the world. This process is called “outsourcing” and
leads to exploitation of workers in Third World economies where income
inequalities already exist.
The last, nonetheless, a global
economy may be beneficial for the world at large. This may result in the
economies of the world fighting issues such as global warming or maybe climate
change.
Thank you for your kind attention.
Wassalamu'alaikum wr. wb
