The Global

Economy
refers to the increasing interdependence
of world economies as a result of the
growing scale of cross-border trade of
commodities and services, flow of
international capital and wide and rapid
spread of technologies.
The trade routes were made over the
years so that goods from one kingdom or
country moved to another. The well
known silk-route from east to west is an
example of historical factor.
The cost of goods and values to the end
user determine the movement of goods
and value addition.
The natural resources like minerals, coal,
oil, gas, human resources, water, etc.
make an important contribution in
globalisation.
Utilisation of built up capacities of
production, sluggishness in domestic
market and over production makes a
manufacturing company look outward
and go global.
The political issues of a country make
globalisation channelised as per political
bosses. The regional trade
understandings or agreements determine
the scope of globalization.
The technological development in the
areas of production, product mix and
firms are helping organisations to expand
their operations.
The stage of technology in a particular
field gives rise to import or export of
products or services from or to the
country.
Immanuel Wallerstein
aimed at achieving “a clear
conceptual break with
theories of
‘modernization’ and world
system.
What is ‘world system’?
is a social system, one that has
boundaries, structures, member
groups, rules of legitimation, and
coherence.
 World System
has the characteristics of an
organism, in that is has a lifespan
over which its characteristics change
in some respects and remain stable
in others