АНГЛИЙСКИЙ ЯзЫК Globalization is the buzz word of our time. In the last two decades, the amount of money and goods moving between the countries has been rising steadily. At the same time, trade barriers across the world have been lowered.

It is becoming clear now that power in the world shifted from individual governments to the markets. In theory, governments are free to the set their own economic policies, in practice they must conform to a global economic model. The crises of ¢tigers¢ in the Far east some years ago showed that financial marketscontrolnational economies.

The trend towards globalization in the early 70s, when the system of fixed exchange rates, set up after World War II, stopped functioning. This mint that the value of currencieswould now be determined by the markets instead of individual governments. By 1990, nearly all worlds¢ major economies had got rid of restrictions on how much money could be moved in and out of their countries.

Other factors contributing to the rise of globalization are new communications technologies, and better transportation systems. These let companies grow into multinationals goods on one side of the planet and selling them on the other.

But adjusting to this new ”economic order” is rather difficult. In the developed world, and in particular the European Union, globalization is facing widespread resistance. Critics complain that, without the protection of trade barriers, workers in poor countries are low-paid and exploited, and wages of workers in rich countries are foiling, especially in labour – intensive industries.

But how close are we to a truly global economy? For the losers,probably too close. But in terms of real economic integration, there is a long way to do. A global economy would mean complete freedom of movement of goods and services, capital and labour. Yet, even ignoring the tariffs and other restriction still in place, cross border trade is very small compared to the volume of goods and services traded within countries. Foreign investment is also extremely small, a little more then five per cent of the developed world¢s domestic investments. But what is really holding globalization back is the lack of labour mobility. Labour markets remain mostly national, even in the European Union, where people can and work in any country of the European Union.

Tasks

Write questions to these answers

1. ?

It is globalization.

2. ?

Yes, the amount of money and moving and goods moving between the countries has been rising steadily.

3. ?

Yes, trade barriers across the world have been lowered.

4. ?

It has shifted from individual governments to the markets.

5. ?

Yes, governments are free to set their own economic policies.

6. ?

It showed that financial markets control national economies.

7. ?

It began in the early 70s, when the system of fixed exchange rates, set up after World War II, stopped functioning.

8. ?

This meant that the value of currencies would now be determined by the markets instead of individual governments.

9. ?

By 1990.