Question

We often hear of the global economy as a recent development. Explain why this isn't necessarily true.

a) The global economy has only emerged in the last decade.
b) Global economic interactions have been happening for centuries.
c) The global economy is a futuristic concept.
d) The global economy is a myth.

Answer 1

Global economic interactions have been happening for centuries, and the concept of globalization has been shaping the world economy for a long time.

Step-by-step explanation:

Global economic interactions have been happening for centuries, so it is not accurate to say that the global economy has only emerged in the last decade. The concept of globalization, which refers to the process of integrating governments, cultures, and financial markets through international trade into a single world market, has been ongoing for a long time. Throughout history, people have explored, migrated, and traded with each other, creating networks and economic relationships.

In modern times, globalization is evident in the activities of multinational corporations like Walmart, McDonald's, and Ford, which trade across international borders, use labor and resources from different countries, and sell products and services in the global marketplace. This interconnectedness has significant effects on the economy, including increased international trade, financial capital flows, and the influence of multinational corporations on political decisions.

To summarize, the idea that the global economy is a recent development is not true. Global economic interactions have been occurring for centuries, and the concept of globalization has been shaping the world economy for a long time, with multinational corporations playing a significant role.