International economic condition

economy

International economy means the Relationship Between economic ties and exchange thing. This economical ties and exchange can be massive or shorter range. Economy of All the country in the world are relevantly attached with international economy Such as exchange money and foreign investment. In short, the Business occurring between country’s with each other is know as a international economy. The main Route of money exchange is international economy. Economy of a country to correlate with internation economy has to pass way through this following steps
The following condition are:

Any currency of a country can be use massively in the internation economy. For this it is needed to gain the political and economical trust for this currency to use world wide in international economy.
It should be easily accessible for Exchange between people
Has no restriction of international economy on this currency.
To buy goods from different country and shipping the product to It’s destination.
History:
Guessing that Italy, France and Europe country are come together to establish this international economic currency in 1600-1800 A.d. In 1600-1700 italy becomes the most valuable place for internation economy. In 1900A.d london was the largest economical zone. Pounds was the most Valuable currency in that time. And the Britain was successful to keeping their currency so much stronger. Which helps then to become economical superpower at that time. But after the first world war Britain becomes weak due to heavily damage. The Economic crisis start at Britain. As a result the currency value of pound starting dorp. So their economic status could not carry their legacy of economic super power. Which become worse after the second world war. After the second world war new currency treading established. And that was Usa doller. Immediate after that the Usa bank started to creat the transection system on their bank for doller transection for international transaction.
Different pathway for the internation economy:
From 1971 the exchange of gold become prohibited in the world Trade. So the world economic become unstable. In 1950 the doller spread world wide and become the main economical currency of world tread. The doller treading system started. London become the power house of europ. In 1981 there was established the international banking system in New York, USA. To easier the process of money transsection from exporter to importer. In 1975 Chicago has established the profit margins system in currency. Tokyo Financing money exchange is the largest money exchange agency in today’s world, Which was established on 1985.

Present condition of international Economy :
Today The American market are giving all the facility of trading system to the international companies. In today’s Trading currency is dollar. It capture almost all field or marketing. One country treaders deal with another country treader thorough dollar. There are also bond market consist of 35% and Stokes market consist of 50% of total transfer or money. By analysing the international economic condition we clearly understand the Importance of international economic in our residence economy. International Economy are very much depended on the stable condition of the world. When the world condition become unstable then the international economy become unstable. And the beginning of the economical crisis start. The unstable economical condition can bring down a country to It’s knee. Because without a stable economic condition one country broke for inside. The basic need of its population can’t be full fill. Daily using thing and the basic product cost become so much high that a normal person can’t effort it. People losses their job and become unemployment. Which force them live in severe poverty life style. GDP of a country also depends on the international economy. Each Country depends on supply chain of some product. Share market, stock market are depends on the stable condition of the world. This instability Downfall the stoke market and share market.

Which has the direct effect on a country GDP. The GDP growth rate attract many international company to invest on a country. Many company attracted because of some reason, and most common reason is they feel safe to invest on the country who’s GDP growth rate is stable and rising. If many international company comes to a country and make product and export it to other country this country get the huge profit margins along with company. And people get job in this company and the unemployment of this country reduced. So if the international economic status become stable one Country can grow easily. The effect of international Economy in the world development :
There are numerous effect of world ecomony in the civilization. In recently the man made Disaster are effecting the world ecomony. Srilanka consider them as a bank rupt. Because world stability is on theart. Which badly effect the economy of srilanka. They can’t import their daily nessasary thing from out side. Because they have no reserve. Which cause civil war condition in srilanka. Before this man made Disaster covid pandamic already broke the economic back bone of same small growing country. If people can’t work or can’t buy thing from market the GDP of a country will automatically down. After this pendamic the world trying to recover and immediately after the war start. This break down the supply chain. Food crisis shown is poor country. Food become so much expensive that a low income family person can’t afford. Ultimately world is faceing a big problem. The international economy stability leads to grow a country somthly. Conclusion:
The world need stability to grow. This stability can make the economy of a Country stable and ensure that the GDP is growing.. International economy are the main backbone of a country growth. If world economy is danger, all country are affected either it is rich country or poor country, It does not matter. So stability of world the must me confirmed. Only this way international economy can be stable. Once world economy is become stable the growth of the world become more and stable. So there is a great relationship between world economy and demostic Economy. One is greatly depended on other. Rich country usually does not get so much effected but the economic condition of a poor country become fragile. There is also chance of bankrupt of this conutry. So there should be close monitoring of international economy and if needed the economical policy also should change of a country.

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