Global Economy

3 Pages 852 Words

Effect of Global Economy on Different Regions of the World
Global economy affects the regions of the world in that it can be the source of many economic benefits. The international economic integration of a region improves economic performance. The import and export of goods offers the region goods that may not be available within the region. Transfer of services, goods, technology, and ideas leads to development of the region’s economy. Also, international economic integration strengthens the relationship between regions and can reduce poverty, hence, improving the quality of life. Global economy affects regions in different stages of development in many different ways.
By participating in the global economy, third world countries are able to improve their economic performance, improve the quality of life and reduce poverty levels. New efforts in regional free trade in some areas of Middle and South America can fuel economic growth for the region and for the individual countries. Middle and South America export a variety of goods around the world: rice, sugarcane, fruits, vegetables, grains, and minerals are some of the resources offered by this region. In the past, the import of sheep, oxen, cattle, donkeys, horses and mules helped strengthen the agricultural industry in Middle and South America. This region produces many of the world’s supply of plants, which has become an essential component of agricultural economies across the world. North Africa and Southwest Asia export a large percentage of the world’s supply of oil, along with tobacco, tea, livestock, food crops, furnishings and cotton. Although third world countries have a lot to offer the rest of the world, these regions have a long way to go. Middle and South America are at a big disadvantage in the global economy because profits from the region’s industries tend to go elsewhere because of foreign or government controlled companies. As a result, po...