what is Global economy Full note of International accounting | Commerce Study Notes

NET/JRF Exam Booster ( Paper I + Paper II )

what is Global economy Full note of International accounting

What is the global economy The world economy or global economy is the economy of the world, considered as the international exchange of goods and services that is expressed in monetary units of account (money).[5] In some contexts, the two terms are distinguished: the "international" or "global economy" being measured separately and distinguished from national economies while the "world economy" is simply an aggregate of the separate countries' measurements. Beyond the minimum standard concerning value in production, use, and exchange the definitions, representations, models, and valuations of the world economy vary widely. It is inseparable from the geography and ecology of Earth.
what is the global economy - international accounting mcom 4ths sem

​This Definition explain exactly what is the Global Economy 

Source : Wikipedia 
What are the Advantage and Disadvantage of Global Economy

Advantage of globlisation 

Improved Quality - 

Free transportation  of goods and services across borders will wonders in rising the standard of the products and services. This can be attributed partially to the enhanced competition. Logically, a local manufacturer are going to be forced to supply higher quality product as a result of currently the shoppers have the choice of shopping for from foreign corporations, which ar doubtless to be of high quality since they're exports. Likewise, the same manufacturer will got to up their game if they're to possess any probability of penetrating foreign markets.

Growth the market

No one can dispute the very fact that a world economy ends up in high growth. It is very simple: a bigger marketplace for producers and a wider selection for shoppers. There is increased client wealth and therefore additional trade, leading to even further growth. So its very important to understand what is the global economy 

Uniform standards

Thanks to the world economy, a shirt is now doubtless to value simply concerning an equivalent in capital of India because it would in the big apple. This makes it easier to set the standards for goods and services, with only slight discrepancies in totally different countries, thus creating trade abundant easier and reducing the probabilities of exploitation.

Disadvantages o

However, it is true that a world economy isn't without its faults. 

What is the global economy and Its disadvantage 

Growth with inequality

First of all, because there ar opportunities across borders, there is always a danger of there being high economic process with lots of difference. This is because the rich in society ar typically higher placed to require advantage of the opportunities, thus growing wealthier and exploit the poor with very little or nothing.

Exploitation of labor

Along with globalisation comes a replacement concept: outsourcing. Outsourcing involves delegating labor from developed countries to the developing ones wherever the value of labor is far cheaper. This helps the multinational corporations in the developed world to chop on the price of labor, and make larger profits. Essentially, for the worker in the underdeveloped country, this is unfair exploitation.

The benefits of a world economy can not be unheeded, but neither will the flaws of globalisation. Perhaps it would be useful to possess effective checks and balances for the world economy if the goals of globalisation ar to be accomplished.

So it describe what is the global economy. Its enough for mcom 4th sem paper of international accounting/..
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