World Economy Research Paper Example | Topics and Well Written Essays - 3000 words

World Economy - Research Paper Example The industrial revolution had produced marked differences between developing and developed countries based on the extent of their overall production and growth. Broadly speaking, the entire global economic literature has been studied under two broad headings namely macro or meso level. The former emphasizes on the role of transnational organizations. The later treats countries and firms as the building blocks of the global economy and engages in their analysis (Baylis, Smith & Owens, 2013). The main aim of this paper is to uncover two things. The first one is to discuss the general characteristics of the world economy and the second one is to find the main factors which are responsible for the smooth function of the global economy. Most of the researchers who had considered world economy as their subject of research had pointed out this topic is rather interdisciplinary and cannot be treated in isolation (Gereffi, 2005). Increasing trade between nations can be considered to be the first step of integration between nations. The origins of trading can be dated back to as early as the period of 15th century. It is this historical period of beginning of trade which had automatically rendered some nations stronger than the others. The capitalist system of production had become quite dominant in the 18th century and this has become the basic state of the world economy (Gereffi, 2005). Economists like Adam Smith had focused on the idea of division of labour and the way it fits into the capitalist regime of production. Different countries had begun to specialize in different forms of economic activity and some of them were considered as industrial countries while others came to be known as agricultural countries. The period of 1940’s was particularly very important in the history of the world economic development because this era had witnessed some of the most important changes that had occurred in