EconomicGlobalization has Reduced the Role of the National State

Question: Describe about the Issues in Global Economy? Answer: Economic globalization has reduced the role of the national state Globalisation ha splays one of the pivotal roles in shaping up the most of the economies in recent times. The concept of free trade and liberalization has been change the trading system between the nations. Although the globalization has created integration among the nations and economies but it has reduce their capacities to deal with existing demand (Tanzi , 1999). The nations and state today are squeezed by the existing and growing forces global economies. On the other hand, growing power of global economies has increases the devolution of power of the existing economies. Globalization has made the nations to make their choices of economies and freedom of speech. Economic globalization has reduce the role of national state for good because the globalization has made the world local which also known as Glocal. Globalization has helped the economy to get self sufficient without the interference of national state (Stiglitz, 2009). As per the report of IMF , economic globalisations has made encourage the free trade, allowed FDI and secondary market flows that has made the world economies to self sufficient due to which the burden of the national state of managing the market has reduced. Developing countries is currently receiving about quarter of world FDI inflows starting from 1988-1998 (Gamber and Hung, 2001). Increases in FDI from 10% in 1988 to more than 75% in 2009 have made these developing nations improve its economic condition. It has also been found that, around 40% of the funding within the African nations is catered by the European nations. Apart from that, globalization has not only integrated the nation but also improve the quality of products and services for the consumer worldwide. Improvement in technological field has made the sharing of information and communication inexpensive that has affected the styles of politics, culture and social organisations (Wolf, 2001). Globalisation has reduced the threat of the monopoly for the national and state government. With lots of options and expansion of educational opportunities has made the explosive growth of the poor nations. With the information from the worldwide, citizen of the nations are joining hands to improve the nations demand via introducing usual services from the existing local authority. During the events occurred in Genoa at the G8 summit, in Prague in September 2000 during the meeting globalization and its changing culture is been one of the major discussion during the summit. Some of the major instance of new way of managing transitional organised activit ies and has made the globalization to take charge of current economies. Globalization has made the national state to improvise more and bring the world class facility in terms of transportations, consumer products and services. For instance, public transport in recent times has been decreased, specifically in the air and water shipment charges has also improve the globalization association with citizens across the world. As noted by Stiglitz (2009), apart from that national and state has to invest lower in NGOs and other charity in order to improve the life of sick, orphanage and homeless populations. For instance, UN reports show that more than 45,000 NGOs function globally. In addition to that, most of the international NGOs take part in these forums that have helped the local authorities and poverty based nations to improve their current situations. Globalization has also made the national and state intervention lower because in term of sustainability. In current contemporary business scenario, nations and state does not have to make effort, companies are coming with new ideas and innovative way to reduce the wastage and control the pollution via GO green, manufacturing recyclable products, Plastics are banned in order to create sustainable development as the customers today are very much associated with that companies that are very much eco friendly. Reference List Journals Tanzi ,V .(1999). International Monetray Fund: Fiscal Affirs depart,net , Journals of demise of the Nation State, Vol:12, pp-3 to 16. Stiglitz ,J (2009), Globalization and economic role of the state in the new millennium , Journals of Industrial and Corporate change , Vol:12 , pp-3-26. Gamber, E. and Hung, J. (2001). Has the rise in globalization reduced U.S. inflation in the 1990s?. Economic Inquiry, 39(1), pp.58-73. Wolf, M. (2001). Will the Nation-State Survive Globalization?. Foreign Affairs, 80(1), p.178.