Global+Economy

=What is Global Economy=

A global economy is a new reality signified by dominant activities that have the potential of working as a unit in real time on a global scale. Manuel Castells stresses that this is different from of world economy. Here, advanced business services, media and technological innovations are inter-connected on a global scale. This has been enabled by the innovations in information and communication technologies whereby research and dissemination of information is at an all time high.

This evolving economy has been influenced by a number of factors 1. Decreasing transportation and communications costs 2. New political structures and economic alliances (such as the European Community, North American Free Trade Agreement) 3. Homogenization of tastes influenced by media and travel 4. The most important influence is the emergence of flexible, information-based technologies (Compiled by Sandra Kerka)

This deep economic and social changes are creating new market standards and integrating producers and consumers into networks for delivering goods and services globally or locally. The organizations involved try to produce as much as they can efficiently for a certain target market. New technologies are applied in the production line resulting in a loss of certain jobs and deteriorization of political boundaries where an organization extends to more than one country and its workers can move from country to country.

Networking is what has brought the different regions of the world together, it has helped the global economy become more of an active reality. At the core of this is the internet due to its vast amount of information and spread across the globe. Those that do not have access to the internet are unable to participate actively in the new global economy.(Digital Divide) Lack of internet, and digital participation has led to social polarisation, and a significant distancing of disadvantaged individuals from partaking in the global economy.


 * __Works Cited

__**The Global scene, Sandra Kerka. Available online at http://www.ericdigests.org/1993/global.htm