Understanding the International Economy Essay Example | Topics and Well Written Essays - 4000 words

Understanding the International Economy - Essay Example The essay "Understanding the International Economy" represents an overview of the book â€Å"Globalization in Question† by Pole Hirst in the context of the international economy. It was brought forth in the book that it is an often-used word, globalization, used in social science to explain, describe and refer to a broad range of international, business, management and other disciplines. At the heart of their argument is the recent spread of interlinked economic ties between countries as heightened by a loosening of border restrictions as well as the Internet that has brought accessibility in terms of product availability and knowledge to consumers that did not exist in the early 1990s for the public at large. The increased sales and offering of services across national boundaries has intensified activity in the banking arena in terms of business to business transactions brought forth by the flow of funds in importation, export, direct sales and other exchanges that have called for increased banking interaction to finance these types of activities. As a result of heightened banking activities and risk the increased financial flows between countries from all quarters has seen the International Bank for Settlements out of Geneva, Switzerland make adaptations to the Basel Accords via Basel II that has set forth new capital adequacy standards for European as well as large banks in the United States and Asia. The implications of the foregoing are found in the central word of the subject of this study ‘economics’.