07 Jun PAD 540 Week 7 Discussion Global Economics NEW
Global Economics” Please respond to the following:
The International Monetary Fund (IMF) and World Bank have played a major role in globalization and socio-economic reform. Tax incentives to many developing countries in exchange for making economic reforms have helped widen globalization. The Liberalization, Privatization, Globalization (LPG) approach received a big boost due to IMF and World Bank policies. The GATT (General Agreement on Tariffs and Trade) also played a significant role in ushering in globalization-minded economic reforms (IMF, 2008).
China, Romania, and India have successfully implemented economic reforms in the era of globalization. China’s economy has been socialist in structure while India holds to a traditional, agriculture-oriented, feudalistic economy (The World Bank, 2015). Both economies implemented numerous reforms over recent years. The results in both cases have been highly encouraging and have set a high standard for other developing economies. On the other hand, Greece has not faired out as well. Read a “A very short history of the crisis,” located here. Next, go to CNN’s Website and read the article titled, “Q&A Greece’s financial crisis explained,” located here.
Provide your opinion on how the Greece-Euro became such a big problem. Determine who is most exposed if Greece defaults and speculate on what a Greek default would mean for you. Recommend two (2) potential policy solutions to the Greek debt problem. Provide a rationale for your response.
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