The paper "The Main Features of an International Economy" is a perfect example of an article on macro and microeconomics. The term International Economy refers to the integral economy of the world with transnational movements of labour, services and goods that are not restricted (Grieco, 2000). It makes a projection of a picture of a world that is increasingly interconnected with free capital movements across countries. The international economy as a concept cannot, therefore, be understood in an isolated manner. Globalization is defined as consumption and production integration in each market across the world.
Globalization is viewed as a fact that will lead to the betterment of the economy of the world as much as it will benefit all countries (EconomyWatch, 2010). The political and country-specific economic decisions are taken on a global scale in the world today. The global considerations are becoming more essential than the narrow, provincial ideas. This article will pertinently discuss the main features of an international economy sighting facts that led to such an economy in the 19th century (Grieco, 2000). The main features of the international economyThe capital flows and international trade intensificationSince the Second World War, an international economic integration increase is observed regarding the trends in finance, foreign direct investment, and trade. Trade-The national economies integration via cross-border exchanges of services and goods has greatly increased since the Second World War (Grieco, 2000).
In 1946, the countries that were industrialized reduced the tariffs they had after the Second World War from 40% to around 5% by the end of 1990s. That helped in spurring world exports boom. The United States of America is the perfect example of a country that experience international trade integration.
Within the international trade integration general framework since the Second World War, there are three indicated developments. To start with, there has been an intra-industry trade increase (WTO. 2014). Rather than exchanging of a shoe for a computer, for example, people often saw cross border exchanges of goods that are similar. Second, several developing countries, mostly in Southern and East Asia, have successfully integrated into the economy of the world.
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