Say how economic globalization contributes to the increasing interdependence of world economies.

I agree with this statement, because economic globalization refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies.

 

3. Say whether international trade organizations & agreements encourage international trade and which of them in your opinion are the most efficient.

International trade organizations & agreements encourage international trade. There are clear benefits of world trade organizations and agreements:

1. They encourage rapid economic growth in developing nations.

2.They allow prosperous nations to control developing nations' economies.

3.They can lead to rising standards of living.

4.They lead to immediate benefits for the workers of the nations involved.

5.They can support the increased need for education and public services.

Also being open to international trade allows countries to produce what they produce best and to consume the great variety of goods and services produced around the world. As we are know the most important macroeconomic variables are export, import, investment and trade balance.

In my opinion one of the most efficient trade organizations is WTO. The World Trade Organization (WTO) is an organization which control and liberalize international trade. The organization deals with regulation of trade between participating countries; it provides a formalizing trade agreements

The WTO has 153 members, representing more than 97% of the world's population

The WTO’s overriding objective is to help trade flow smoothly, freely, fairly and predictably by creating agreements that outline the rules guiding international commerce, encouraging producers of goods and services to participate in global economy The General Agreement on Tariffs and Trade (GATT). GATT was signed to liberalize trade, to create an organization to administer more liberal trade agreements, and to establish a mechanism for resolving trade disputes. More than 110 nations have signed the general agreement, which originally was signed by 24 nations, including the United States.

It is also important to say about European Union that has twenty-eight member countries, allows workers, goods and services to travel freely across borders within the union, is a US trading partner and competitior.

These are the most efficient organizations and we often see the results of their activities on television and on the Internet.

 

Prove that globalization of the financial sector has become the most rapidly developing and most influential aspect of economic globalization.

Globalization of the financial sector has become the most rapidly developing and most influential aspect of economic globalization. International finance came into being to serve the needs of international trade and investment activities. However, along with the development of economic globalization, it has become more and more independent. Compared with commodity and labor markets, the financial market is the only one that has realized globalization in the true sense of ‘globalization’. Since 1970’s, cross-border flow of capital has been rapidly expanding. In 1980, the total volume of cross-border transactions of stocks and bonds of major developed countries was still less than 10% of their GDP. However, this figure had far surpassed 100% in 1995. The value of the average daily transactions of foreign exchanges has grown from US$ 200 billion in the middle of 1980’s to the present US$ 1,200 billion, which is 85% of the foreign exchange reserves of all the countries in the world and 70 times as large as the value of the daily export of commodities and services.