When different nationalities begin to manage their economic decisions along the same procedures or guidelines or when the economy becomes internationally interconnected globalization of economy is believed to have taken place.
There are different viewpoints as to whether the globalization of economy is beneficial or not. In a study conducted by IMF it was discovered that in the last two decades income inequality has risen thanks to financial globalization and technological advancements (which is a factor of Economic Globalization). However it was also discovered that the per capita income has also seen an increase even in the poorer classes. Inequality is on the rise between the different income classes as the well-to-do have a steeper rise in their per capita income as compared to the middle classes. Globalization has raised the eyebrows of even its supporters as they believe that its gains must be more widely distributed to actually encourage other countries to promote globalization. (Falk, 2007)
Initially the responsibility of national governments was to protect the citizens of the state by outsiders, provide shelter and to take care of their needs. ...Show more