Russian Ruble Crisis

In: Business and Management

Submitted By pr22
Words 555
Pages 3
This discussion in turn boils down to the question “what is globalization?” According to me globalization is a word which has its origin from the process of transformation from self-sufficient civilizations to modern countries having specializations and doing trade. Globalizations finding its way back from 3000BC to the most recent times; it can be defined in various ways depending upon time. Gunder Frank’s theory of dependency explains it all. Globalization was always need driven, more was the need more was globalization in terms of trade, people, colonies, power, labor, etc. so it can be said that in a world of self-sufficiency globalization dies, only when the markets are volatile, globalization has its pace and when a particular segment becomes saturated in every economy there would be no exchange of this good or service or technology from one another and the scope for globalization ceases. When each country has a holiday destination like Miami nobody would be ready to come all the way spending more money. This is very much a reason for more south to south trade and south to north trade rather than north to south. With this transition or reform in the economic flow we can say the world is being pulled apart.

The question “the world is still not flat?” is a comparative term and drawing back the lines to the 3000BC, I would say the world is flat.

Russia is a young economy with great scope of development. After its economic reform in 1999 it faced a huge inflation because of improper regularization schemes, much of the nation’s wealth has been concentrated in hands of very few individuals which gave its name as land of billionaires. It has abundant natural resources like oil and metals which accounted for 70% of its exports and 40% of its GDP. It was listed as fastest recovering economy by IMF during 1991 -2000 which was mostly because huge disposable income…...

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