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A Case Study on The Global Economy.

The Limited Success of Free Trade.

For many countries still practicing free trade, most of the senior economists have

played a big role in educating people to realize its importance. The ideas seemed to have

commenced with logical precision since they proved to be elegant and powerful.

Nevertheless, the influence brought about by these economists seemed to vary across many

territories and time (James and Paul, 53). Even when the entire 19th century was well known

for free trade. The only United Kingdom countries have managed to maintain free trade

policies over a very long time.

In spite of the distinctive explosions in the trade, globalization is not only based on

free trade, but also on other trade policies (Roser and Max, 946). For instance, empire

policies whether informal or formal can also promote trade within a country. However, they

are mainly addicted to the naked exercises of power by the metropolitan nations across the

world (James and Paul, 53). On the other hand, liberalization has not performed well in most

domestic economies of major economies in the world. In some territories, across the world
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like America has never tried to embrace free trade policies in their country. Whereas other

European countries have returned to the high levels of protection after many centuries (James

and Paul, 53).

The Financial Globalization and The Gold Standard Currency.

During the 19th century, the gold standard was a financial and monetary regime that was

widely used during trade which based on a few simple rules. As Roser and Max state that,

‘’each national currency had its gold parity, and whose value-based entirely on gold’’ (Roser

and Max, 946). For example, the American dollar was equivalent to 23.220 grains whereas

the British sterling to 113.0 grains (James and Paul, 53).

Limitations Of Economic Globalization.

According to James and Paul, ‘’the governance issues and the globalization of the economic

activity is often believed to have appeared after world war II, specifically during 1959 to

1960’’(James and Paul, 53). However, International trade and the Multinational Corporation

emerged immediately after the 1960s regime. There was an expansion of the money markets

which rapidly become international after the Bretton Woods exchange rate collapsed from

1970 to 1973. Therefore, international economic relations became more complex (James and

Paul, 53).

According to UNDP, ‘’it is not easy to measure the degree of economic integration

theoretically, empirically and in financial markets’’(UNDP). The idea of the efficient

financial market theory, therefore, helps us in the economic analysis in this area.

Furthermore, for one to allocate international savings to equal to the returns on capital, then

capital Markets have to compete (Roser and Max, 946).

The Global Transformation Leader.

Under this text, it gives its analysis on the strenuous public debates about the global economy

across the world (James and Paul, 53). In the middle of this public debate, may of the
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conflicting claims have shown up, especially about the extent, form and the consequences of

globalization. In this paper, many globalists have argued that the world is fundamentally and

more irreversibly being transformed by globalization. In contrast, many other people believe

that the claims of those globalists are being poorly substantiated (James and Paul, 53). They

are also claiming to have the same idea about globalization. They also tend to argue that

national Governments, geopolitics, and nationalism remain the major determining factor of

the current generation (Roser and Max, 946).

Conclusion.

To sum up, the global economy has seemed to have tremendously transformed the world by

globalization (UNDP). Many countries have changed from traditional trade to free trade

across the world. According to James and Paul believe that although some powerful countries

have used slaves in their industrial development, free trade policies seem to have worked for

them (James and Paul, 53). On the other hand, liberalization has not performed well in many

domestic economies, and this has to be looked into to enhance free trade. All in all, the global

economy has been widely practiced by many countries (Roser and Max, 946).
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Works cited

James, Paul; with Magee, Liam; Scerri, Andy; Steger, Manfred B. Urban Sustainability in

Theory and Practice: Circles of Sustainability. London: Routledge. p. 53, 2015. 

 Roser, Max; Crespo-Cuaresma, Jesus. "Borders Redrawn: Measuring the Statistical Creation

of International Trade". World Economy. Vol.35, No. 7, p.946, 2012.

UNDP. "Human Development Report 2013 - The Rise of the South: Human Progress in a

Diverse World" (PDF), 2013