The Greatest Failure of the Current Wave of Financial Globalisation Essay

The Greatest Failure of the Current Wave of Financial Globalisation - Essay Example Those countries that are able to integrate with the environmental changes will be experiencing more economic growth while others will be experiencing the economic recession. Globalisation has resulted from many years of human inventions and technological improvement. It pertains to the integration of economic activities all over the world through endless trading of products and services as well as the exchanging of cash flows. Sometimes, globalization relates to the constant movement of technology and business people including the skilled and unskilled workers. Even intangible thing such as knowledge and skills are also being transferred from one country to another. During globalization, the local and international markets are promoting efficiency because of the tight competition worldwide. Even the workforces have to become more competitive and flexible so they could keep up with their job. The global markets open a wider opportunity for these people to tap into larger markets all over the world. The global business cycle that we are dealing today is actually creating huge imbalances between UK’s cash inflow and outflows. As globalization contin uous, the global financial trend also changes. These changes will eventually be considered as one of the greatest failure of the current financial trend due to globalization. The effect of international trade on a country’s economy can be examined and measured by looking at the changes in the ratio of international trade, the total export plus the total imports to the output of GDP of an economy. According to Dollar and Kraay (2001), globalization reduces poverty.