Reference no: EM131643976

Global economy

For the past several decades, the world economy has increased rapidly. However, according to the World Bankthere are many people that are living in poverty.

The World Bank argues that the current form of neoliberalism today is globalization political economy that is harming both the global north and the global south. For instance, the condition of the workers in the undeveloped countries that produce goods for theMultinationalCorporation( MNCs) is not reviewing their fair share of benefit.

These people that live in the third world countries are working long hours, for less money and in unsafe conditions or environments. It is for this reason that major global corporations such as Nike,Walmart, and Nestle have production plants in extremely poor parts of developing countries. By doing so, these large corporations are taking advantage of the cheaper labor and longer working hours.

An international economic institution had helped these trade systems become more open across borders that allowed traders to exchange goods easier. Even though they are mediating the trade system, they are also unable to control the illicit economy that occurs as a result.