The global economy refers to an economic system where state borders are not the primary framework for economic activity due to factors such as multinational companies operating across borders and the globalization of trade, production, and finance. Major effects of economic globalization include restructuring of traditional industries in Europe and America and changes to labor markets. While some developing countries have benefited from economic growth and modernization, many suffer negative consequences of globalization without receiving advantages.

1. GLOBAL ECONOMY
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2. What does mean the expression "
Global economy "?
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We might define the global
economy as an economic system in
which the state borders are not
the basic frame of activity.

3. Why is current economy defined
this way?
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The globalization of the economy is visible
in three aspects:
- The practice of the legal record of the
companies in countries that are not that of
origin.
- The existence of multinationals.
- The globalization of the trade, the
production and the finance.

4. Which are the principal effects of
the processes of economic
globalization?
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The most showy effect has been the crisis
of the European and America industries
most traditional and consuming workforce
that have had to suffer hard processes of
restructuring.

5. For example...
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- In The United States a modification of
the labor market has taken place.
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- In Japan the State has increased the
traditional intervention in the economy.
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- In Europe an increase of the
unemployment has taken place.

6. Which is the position of the
countries in development in the
new situation?
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The underdeveloped countries have a revenue per capita
low, that in most cases does not reach 2000 annual
dollars, a scanty industrial development, a low level of
consumption, and a strong dependence of the exterior in
technology, trade and credits. The economic evolution of
the countries most dynamic and industrialized of the third
world has turned into one of the principal factors of the
evolution of the economy. The great majority of the
countries of the Third world, which have not initiated a
process of growth and modernization, only suffer the
negative consequences of the economic globalization
without receiving any of the advantages.

7. Where does global economy
appear? Part I
●
The global Economy appears for the
interconnection between countries to
satisfy the needs of the population and for
the technological development; already be
in transport, in communications as the
Internet, etc.

8. Where does global economy
appear? Part II
●
Where the trade does not need a physical
place; it is enough with an Internet portal and
a number of credit card.

9. Different meanings of globalization.
- The first: Is a phenomenon that implies that there is
increasingly a greater degree of interdependence between
different regions and countries of the world, in particular in
the areas of trade, financial relations and communication.
- The second: A theory of development, that is, a higher
level of integration is taking place between the different
regions of the world, and that that level of integration is
affecting the social and economic conditions of the
countries.

10. Advantages of the globalization.
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The costs of the consumer diminish.
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An internationalization happens.
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There is a major market.
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The companies can manufracturar in other
countries.
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Consolidations of brands take place.
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There is a major quality.

11. Disadvantages of the globalization.
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Increase of administrative expenses.
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Fewer sensibility to the needs of the client.
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Increase of risks of creating
competitiveness.
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Increase of risks for fluctuation of
currencies.

12. Realization.
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Ana María Salazar Ávila.
●
David Escalona García.
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Ana Rosa Navarrete
Mariscal.