Integrated and Interdependent Global Economy Essay

Integrated and Interdependent Global Economy - Essay Example It not only saves time, energy and money, but also induces overall growth to the economy. It is not one country that will be benefitted, but all the countries who are involved in the bilateral trade will be immensely benefitted from the same.   Globalization has made a major impact on the world economies. The shift has been mainly towards a more integrated and interdependent economy. Here the market and the production unit must be merged together to give an integrated effect. Also, the geographical factor has been considered when this interdependency aspect has been implemented. This is a good concept because the economy has been merged to source the local services and products and make it available to the huge global market and also to take advantage of the individual national distinctiveness and the other factors of production like energy, land, capital, and labor.   In this perspective, the matter of outsourcing refers to the concept of sharing of the production and service operations in an overseas country and also it helps in hiring the employees in a different location rather than employing the people in-house. The processes and functions, which   are being outsourced most often, are supply chain by 36%, learning - training by 31%, information technology by 43%, finance and accounting by 21%, human resources by 25% and customer relationship management by 13%.   The free trade generates gains for all the countries which take part in the system of free trade, but as the factor of globalization moves throughout the U.S. financial system, many people dispute the effect of outsourcing on the jobs they hold.