The specifics of global economy and economic system functioning

Abstract

Purpose: this article examines the development of international relationships in an era of globalization based on theoretical and practical achievements in the field of Economics. Discussion: it argues that the allocation and availability of factors of production are influencing the balance of wealth distribution. Therefore, at some point there has to be done something towards new world economy development strategy for world GDP contentious growth. The future of economics and all parties involved, including governments, institutions, corporations, nations are now developing in the field of economics that will develop a new approach for new stage of evolution that is emerging before our eyes. Results: the article gives a comprehensive and clear idea of the current understanding of disproportionality occurring with every year. The priorities for investors have shifted from real economics towards financial sector – somehow redistribution and financial gains are becoming more valuable than the creation of goods. This denotes the process of capital centralization in the hands of the global corporations. This tendency of inequality might become the new gamechanger in the world in terms of technological and social drawbacks in the world connected with the lack of capital and other factors. Meanwhile the reality of today’s economy is that national markets are interconnected in such a manner that inequality on markets is a huge factor for unsustainable economic growth on a big scale. Draining the national economies of weakening countries might become a new market failure phenomenon causing government defaults all over the world. To avoid the new market failure Governments, companies, people should adapt to this new reality of interconnectivity through the knowledge of science in economic matters.