CONTEMPORARY

1.The term "economic globalization" describes the rising interdependence of nations.

economies as a result of the expanding volume of commodity commerce across borders and

services, a global capital flow, and the wide-scale and quick adoption of technologies. It exhibits

market borders' ongoing expansion and mutual integration, which is a permanent

trajectory for the global economy's growth at the turn of the millennium. The

information's importance is increasing quickly in all forms of productive activity, and

The two main causes behind economic globalization are marketization.

Summarization: economic opportunities, including faster and more informed

analyses of economic trends around the world, easy transfers of assets, and
collaboration with far-flung partners.Globalization is deeply controversial,
however. Proponents of globalization argue that it allows poor countries and their
citizens to develop economically and raise their standards of living, while
opponents of globalization claim that the creation of an unfettered international
free markethas benefited multinational corporations in the Western world at the
expense of local enterprises, local cultures, and common people.
Resistance to globalization has therefore taken shape both at a popular
and at a governmental level as people and governments try to manage the
flow of capital, labor, goods, and ideas that constitute the current wave of
globalization.

2.Globalization is an ongoing process that dates back to the 15th century. Following World War 2, it
started to prosper as a result of a surge in international trade and the entrance of direct foreign
investment. Due to the availability of technology, the liberalization of investment, and the growing
economic clout of transnational firms, globalization has accelerated since the 1970s and is now a
highly integrated system. Is this a definite sign that national economies are linked or "the
strengthening of global social interactions," as Anthony Giddens put it? (1990: 64).

Summarization: Globalisation is not a new phenomenon but continuation of development from the
15th century. It began to flourish due to a boom in global trading and introduction of direct foreign
investment post World War 2. Since the 1970s globalisation has accelerated becoming a highly
integrated system with the availability of technology and increased economic power of transnational
corporations.
3. Divergence typically denotes the movement of two things apart, whereas convergence denotes
the movement of two forces simultaneously. Divergence and convergence are terms used to
describe the directional relationship of two trends, prices, or indicators in the fields of economics,
finance, and trade.

Divergence

The linked asset, indicator, or index moves in the opposite way when the value of an asset, indicator,
or index changes. Divergence is the term used to describe this. Divergence signals that the price
trend may be waning and, in extreme situations, may even result in a price reversal.

Divergence may be favorable or unfavorable. Positive divergence, for instance, happens when a
stock is about to reach a low but its indicators begin to rise. This would be a sign of a trend reversal
and could present a trading opportunity. Negative divergence, on the other hand, occurs when
prices increase while the indicator indicates a new low while Convergence The opposite of
divergence is the concept of convergence. It is used to explain the phenomena of the underlying
commodity's futures price and cash price edging closer together over time. Most frequently, traders
use the term convergence to describe the price movement of a futures contract. Theoretically,
convergence takes place because an efficient market forbids a product from trading for two prices at
once. Because traders must take the security's time value into account, the actual market value of a
futures contract is less than the contract price in question. The time value premium decreases as the
two prices converge as the contract's expiration date draws near.

Summarization: Divergence and convergence are terms used to describe the directional relationship
of two trends, prices, or indicators in the fields of economics, finance, and trade. Divergence signals
that the price trend may be waning and, in extreme situations, may even result in a price reversal.
The opposite of divergence is the concept of convergence. It is used to explain the phenomena of
the underlying commodity's futures price and cash price edging closer together over time.

4. The well-designed International Monetary System (IMS) controls international currency valuations
and exchange rates. It is a well-run system that controls capital mobility, currency rates, and cross-
border payments. The principles and guidelines of this system aid in calculating the exchange rate
and terms of foreign payments. In other words, the International Monetary System facilitates trade
by mobilizing capital from one country to another. The International Monetary System has a large
number of participants, including MNCs (Multinational Corporations), investors, financial
institutions, etc. Today, the primary goal of the International Monetary System is to promote global
rapid growth with stable price levels. Prior to this, the scope exclusively included exchange rates.
Taking into account financial stability has given the system a wider reach. The World Bank and the
International Monetary Fund (IMF) were founded by the International Monetary System in 1944.

Summarization: International Monetary System regulates the valuations and exchange of money
across countries. It is a well-governed system looking after the cross-border payments, exchange
rates, and mobility of capital. The main purpose of the International Monetary System today is to
enhance high growth in the world with stable price levels. There are many participants like MNCs
(Multinational Corporations), Investors, Financial Institutions, etc., in the IMS.

5. The gold standard is a system of monetary measurement that establishes the value of money
using gold. It guarantees that money issued under a gold-standard regime can be converted into
gold. The gold standard denotes a consensus among society's financial institutions that the money
people use and earn is a substitute for gold.

Summarization: The gold standard is a currency measurement system that uses gold as a way to set
the value of money. The gold standard signifies an agreement between society and its monetary
institutions that the currency they spend and earn is a stand-in for gold. It ensures that currency
under a gold-standard system can be exchanged for gold on a daily basis.

6.