World Economy

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There is no gainsaying the fact that within the last thirty years, there have been gradual but steady shifts in the world economy. The key words have been globalization and convergence. Economies are no longer dependent on their own governments' macro and micro policies, but are now influenced to a large extent by the economies of the outside world.


Certain pressures are being exerted on nation- specific factors by this global phenomenon, and left in its trail are transformations in the economy. Any organization that wishes to compete globally and maintain its relevance in the international scene must necessarily be involved in strategic planning.
It is also a truism that there has been a rise in the importance of worldwide relations both in quantitative and qualitative terms. These global factors have led to an increase in the flow of information, knowledge, commodities and capital among nations. Liberalisation is another way of defining these shifts in the global economy, many economies of the world today have opened up their economic space rather than being conservative, as was the practice in the pre-globalization years. Governments are reviewing their economic system in line with today's global realities. In a bid to be relevant in today's world, alignments and re-alignments have taken place and continue to take place globally. The evolution of the European Union is one major reference point in this regard.
It is important to note that in a capitalist economy, also known as a free-market economy; where the means of production belongs to private individuals or firms; there has been a dramatic change in the mode of operation of these firms.
Ordinarily within a domestic economy, organ ...
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