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Write essay on globalization and 21st century answer

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Answered by Shahniz
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The global financial crisis began to show its effects mid 2007 and into 2008. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and even the wealthiest of governments have had to develop rescue packages to bail out their financial systems. Many people are concerned that those responsible for the financial problems are the ones being bailed out. However, a global financial meltdown will affect the livelihoods of almost everyone in an increasingly inter-connected world. This problem could have ultimately been avoided if ideologues supporting the current economics models weren’t so vocal, influential and inconsiderate of others’ viewpoints and concerns.

Globalization in the 21st Century

Recent decades of globalization have created a more inter-connected, interdependent and complex world than ever witnessed before. While global policy has focused on facilitating integration, the implications of growing interdependence have been largely ignored. The acceleration in global integration has brought many benefits, but it also has created fragility through the production of new kinds of systemic risks.

As the turn of the 21st century, liberalization of capital markets and technological innovation resulted in the development of an increasingly complex “financial network”, where the speed, value and volume of financial transaction had increased sharply both domestically and internationally. In particular, the pace of change and innovation in financial markets between 1998 and 2007, known as the “Golden Decade”, saws the explosive growth of sophisticated financial instruments such as credit default swaps, collateralized debt obligations and an increase in resale markets for capital. Whereas the trading of derivatives had been marginal in the three previous decades, by the turn of the century the global over the counter derivatives market had reached $1 billion of outstanding deals. By the end of the “Golden Decade” in 2007, the market had expanded to $6 billion; 16 times the global equity market capitalization and 10 times the global gross domestic product. Global integrated markets and innovation had led to a transformation of the financial landscape. mark the brainliest and good luck
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