What has lead to integration of economies worldwide cannot be just a simple, single phenomenon? From the angle of ‘globalization,’ world economy cannot be bifurcated. It has to be viewed as a single market even at the macro 'global' level. This beautiful vast concept that has come to the shore after the signing of WTO in April 1990, can best be compared to a string of multi-colored beads that has incorporated different flowering economic divisions round the seven seas together. The International Monetary Fund defines globalization as a “historical process” involving “the increasing integration of economies around the world, particularly through trade and financial flows.” (“Globalization: Threat or Opportunity?” January 2002.)
“Globalization and deregulation of finance capital had happened so fast and so massively and so recklessly as well that more than stable investment for productive activity and trade, what was experienced was huge flow of destabilizing speculative capital. By 1990, it became the very force driving the world economy.” (Sundaram, N M. May 2006.)
It has become a catch-up concept to describe a range of trends and forces leading to openness, integration and interdependence of economies. In short, LPG process—liberalization, privatization and globalization—has engulfed the earth, ignoring the international boundaries to quiet an extent.
Cost-benefit estimate and discussion of policy measures to mobilize the global response is a routine for economists that can never be termed as mundane with minute-to-minute new developments. They cannot afford to ignore it as these days production area is not regional or sub-sectoral, rather it’s a set of national economies linked by trade and investment flows.