http://www.your-wealth-blueprint.com/current-global-economic-issues-their-causes-and-the-influence-of-globalization/ (source)
(Article)
Broader Economic Effects
If you would like a clearer understanding of the current global economic issues that have led to this present recession then it is necessary to take a look at some of its history. Only as we identify the trends and their influences on local economic health and around the globe can we look for solutions.
A number of critics have shared their ideas about globalization. Open criticisms of the policies and other reasons point to the fact that this program has made the poor poorer and the rich richer. There is some compelling evidence for this perspective. You may start by looking over the current economic recession in America. The middle class is disappearing and there are now more billionaires per capita than ever before in the nation’s history. What some call a recession others describe as a massive transfer of wealth.
A Little Bit Of History
Global economies have always had a place in human history. Once men could sail the seas, they quickly understood the potential for global trade. Trade during the Middle Ages moved between China and Europe along the Silk Road.
At the end of the 18th century, the Industrial Revolution had transformed trade by the introduction of machines that could produce goods at a rapid pace and the steam ships to carry various good to global markets. Production and the delivery of goods encouraged the impulse that would become modern globalism.
Following the 1980s, globalization grew as incentives were offered to promote a global economy. The North American Free Trade Agreement (or NAFTA) and the founding of the World Trade Organization were highlights in this gradual globalist agenda. For the very first time in history, the global economy was supervised by a single system.
What Is Globalization
Globalization allows various nations to focus on and specialize in certain areas of production. For example, if one country can manufacture steel at lower cost with better delivery, another country can concentrate on buying rather than producing steel.
Currently, the United States is being affected by one of globalizations’ consequences: job losses. Large numbers of businesses and corporations have used various state and federal tax incentives and cheaper labor in other poorer nations to outsource their operations. The costs of the current global economic issues are far too high particularly for smaller and more vulnerable nations.
Moving Forward
There are so many ethical and economic problems that have been caused by globalization. There are those that believe it is a direct cause of our current global economic issues. Decide for yourself where all of this is taking us. Learn what you can about the causes of recession and other economic situations. You’ll be better prepared for the unstable future ahead.
REACTION:
Local economy is tied up to world economy. If there is global economic problems, then we're in deep trouble too. We're already poor; we will be poorer so that's bad news for us. Think of it, how much more damage will a much poor and a more populated country like ours would endure? From what I know, a relatively big part of our gross income is remittances from our OFWs, thus making the US financial crisis more of a bad news for us. In our economy today, almost all the prices are rising. Being an already poor country as not helped either. The only fact is that the US dollar has gone up because of two factors: (1) The pesos has gone down substantially. (2) All major banks excluding HSBC buy almost exclusively the US dollar compared to other currencies. As a part of the economy, I suggest that many would open up small businesses. It stimulates more growth and creates more jobs for those unfortunate to not have one.
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5:59 pm
It sucks to make another blogger because you've forgotten your password of your old one. I better remember my password and e-add before because I wouldn't want to put that to waste.
Ciao!
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12:52 pm
Tenchi. Alyssa. 
Wednesday 13 July 2011