Introduction:
Economic globalization is the tendency of countries to be less involved less in their domestic markets, and taking a more active part in international markets especially with regard to the import and export trade of goods, services, technologies, and capita.
Characteristics of a globalization:
Globalization has several key characteristics such as economic integration which deals with abolition of tariffs and taxes between countries. This leads to the development transnational trade which reduces the cost of goods for consumer. Globalization of economic activities is another key feature of globalization. In this case, the domestic and international markets control economic activities which leads to the synchronization of a country’s economy and the global economy.
The presence of shared economies eliminates trade monopolies set by governments leading to reduced or no taxes at all thus encouraging free trade between countries. Globalization has also miniaturized the world leading to breaking of national boundaries, and the formation of economic links between different countries and societies. These links serve to enhance connectivity and promoting trade. Other key features of globalization include the fusion of national markets, economic growth, globalization of technology, and liberalization.
The dominant institutions and industries in the globalized economy are the services sector, telecommunications, technology, and knowledge-based industries with the fastest growing among them being the services industry. However, electronic commerce is gaining approval and growing rapidly in developed countries.
Conclusion:
The world does not really need an economic hegemon for the economy to remain stable. In fact, the concept of globalization has eradicated the need for a hegemony. Interdependence between countries has reduced the power of one country dominating the economic scene. The presence of international multilateral institutions such as the UN, IMF, World Bank, World Trade Organization(WTO), and the European Union (EU) helps keep the international economy and politics more stable, open and with less conflict.
Bibliography:
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Kumar, Arvind. "What are the Characteristics of globalization?." What are the Characteristics of globalization?. http://www.preservearticles.com/2011100314528/what-are-the-characteristics-of-globalization.html (accessed February 1, 2014).
Milner, Helen. "International Political Economy: Beyond Hegemonic Stability." International Political Economy: Beyond Hegemonic Stability. https://www.mtholyoke.edu/acad/intrel/milner.htm (accessed February 1, 2014).
