Today people are increasingly aware that what happens in their countries depends on forces contributing to the internationalization of the reproduction process and public relations. These forces determine the increasing interdependence of events in different parts of the world. Living conditions and life of each person increasingly depend on regional and global trends. According to many researches and some interviewed Phoenix Translation Services workers the development of production forces and the use of objectively existing comparative advantages bring international division of labor, which results in internationalization of economic processes. The development of the reproduction process on an international basis has functionally linked economic activity in various countries and regions of the world, giving rise to qualitatively new trends in the economy, and thus – its globalization.
What is World Economy?
According to the Seattle Translation Services workers, the world economy is not just a collection of national economies of individual countries. We can define it as: a system of interconnected heterogeneous business entities. It is the product of the development of human society and the international division of labor. World-economy appears with the development of capitalism and is closely linked with the industrial revolution and the emergence of large industrial production. Here we must also note the important role of the development of infrastructure and communications.
In this sense, the world economy is one of the events in the development of economy and economic systems and a new stage of organizing the reproduction process. The uneven development of the countries gives them different places in the world economic system. This results in creation of industrial centers, known as factories of the world (e.g. UK), and later U.S., Germany and others. Important functions acquire financial services sector in which France, Switzerland, London, New York, Tokyo, Hong Kong have developed rich traditions.
The structure of the world economy incorporates companies, government economic unions of countries and international organizations. TNC also have an important place.