Question

Define globalization and emerging economies and explain the critical role of emerging markets to globalization and overall International Trade today.   

Answer 1

Globalization refers to the integration of the economic political and cultural systems across the world.From an economic standpoint it can be expressed as the interdependence of nations across the globe which is a result of inter trade .Globalization involves cross border movement of goods labor and capital .Globalization is intended to develop a new economic order with participation from different nations across the world.Globalization has resulted in the creation of more jobs and has boosted economies across the world.

Emerging Economy refers to the economy that pertains to a developing country.An emerging market will exhibit some but not all characteristics of a developed market.The main focus of an emerging market will is to transform into an economy with higher standard of living and income level.Emerging economies tend to turn their focus from agriculture focused activities to industrialization and manufacturing activities.

Globalization has played a huge role in boosting growth in emerging economies.The very nature of globalization that's built on cross border movement of labor capital and goods has resulted in major growth in productivity or emerging economies.As more and more countries have opened up their economies to open trade there has been a decline in trade barriers and as a result a decline in economic distortion..Certain advanced economies have suffered from economic stagnation and the blame has been placed on globalization, however the real reasons are transition towards a digital economy and concentration of wealth in the hands of a select few.International trade that we witness today is the result of years of globalization process.