What is the global market?
Global market is an exchange of goods or services that span the national borders that include the whole world or almost the whole world. This term can be used to refer to the sum of the total market that takes place in the world. It can also refer to a market in a particular commodity product or currency, as in the "global oil market". The markets on this scale are influenced by a complex combination of international economic forces and combined and interaction results of regulation in all countries that make up the market. The world economy was highly integrated before the First World War, but the chaos caused by this conflict damaged the world market and almost crippled it. Over the following years, the idea of an autarkling or national economic independence was quite popular with the economic theorists and planners. The real global market for all goods and services began to reappear at the end of the 20th century with the rise of free trade policy, the collapse of the Eastern Bloc and the rapid opening of China of the rank.Annic trade and investment.
The modern global market is characterized by a very fast flow of capital from the sector to the sector and the nation to the nation in an effort to profit. Shares and bond markets strongly affect each other. In some cases, this intensifies the economic impact of events, because government bonds or regional stock markets can be exposed to quite intensive pressure from global investors at a time of perceived crisis. This phenomenon can put huge pressure on national currencies and debts.
In 2011, the commodity market is one of those that has greatly influenced globalization. Economic development in each nation now tends to have the impact of commodities in the entire global economy. The oil sector is almost an ideal example of a global commodity market. The demand and supply of oil are highly inflexible. This lack of flexibility on the market means that a relatively small decline in production or increase in demandKy anywhere in the world can bring a great shift in the value of oil all over the world.
Global monetary markets are a particularly extreme example of this diversity of the market. Trading in currencies, by its very nature, tends to include rapid flow of wealth, because investors are looking for more profits for a very short term. This phenomenon has led to several efforts to reduce the functioning of the global market in currencies, because a rapid, largely speculative purchase and sale of currencies can have a significantly disturbing effect on markets in real physical goods.