To begin to talk about the subject 10 Economy of 1 high school, begin by making a small introduction and then, after defining it, breaking it down to go up to reflect the advantages and disadvantages of Globalization of the Economy.
When Christopher Columbus meets America in search of India, in Europe the development of capitalism had led their countries to unwrap under the domination of capital, some were more developed than others, specifically Spain and Portugal were those who left in search of a new route from the Atlantic and found that they were not the most developed and see that despite finding significant resources across the world, their economies did not go ahead as other countries in the region. international trade reasons
There are varying degrees of openness of a country to international trade. The narrower, absolute autarky, would refuse any import a small degree of openness would allow imports of products which could not be manufactured within the country would be finally complete freedom of trade, one would expect that only are imported products could be manufactured locally at a cost too high. But what observe in the real world is more advanced, more often as products that could be easily made by the importing country (cookies, shirts) but it is more advantageous to buy abroad.
One of the advantages of international trade is due to economies of scale: to increase the quantity produced to satisfy a wider market, average costs decline. Then there are the advantages of specialization: when an individual is specialized in performing a particular job, acquire more skill and expertise in it that made it so possible, that argument is valid for an individual worker, is also valid for a company and a country.
But why a country specializes in a particular product? The answer seems obvious: each country will specialize in products that can produce advantage over other countries. And what does produce profitably? Adam Smith responded to these questions by stating that countries will specialize in producing those goods for which they have an absolute advantage, ie capable of producing the same number of goods using less labor. His disciple David Ricardo went a step further, showed that all countries can benefit each specializing in the production of goods even though they have absolute advantage in them enough that they have comparative advantage, ie they are able to produce at a lower price.
Hence his famous principle of the free trading system .. "In a system of completely free trade, each country naturally invest their capital and labor more profitable jobs. This pursuit of individual advantage is admirably connected with the universal welfare. Distribute the work in the most effective and economic way to stimulate industry, to reward the talent and make more effective use of unique skills with which nature has endowed him, to increase the general mass production, spreading the benefit of all nations joining them with the same loop of common interest and exchange. It is this principle which determines that wine produced in France and Portugal, where cereals are grown in America and Poland, and England produces hardware and other items. " (David Ricardo, Principles of Policy and Taxation Eq , 1817)
Therefore, if one of the countries set up trade barriers that impede trade both countries would suffer. English pressure groups may request the establishment of such barriers in defense of the domestic industry of shoes. Similar groups in France would demand protection of their coats industry. These trends unfortunately are often protectionist social well received. But supporters of protectionism citizens do not realize that the protection of inefficient industries is done at the expense of more efficient industries will be affected. In our example, the protection of the English shoe industry hurt the English industry of coats. In general, all citizens of the country would be harmed by the establishment of trade barriers since the availability of products would be lower.
IMF system
After the Second World War in July 1944, delegates from forty-four countries met in Bretton Woods, United States, to establish a monetary system to put order in the foreign exchange markets and promote international trade. One of the resolutions adopted at that meeting was the creation of the International Monetary Fund, whose purpose is the establishment of a multilateral system of payments to provide stability in exchange rates.
From there arose a system of fixed exchange rates but adjustable in the dollar played a central role. United States fixed the price of gold in dollars and pledged to buy and sell gold to be supplied or demanded at that price. Other currencies fixed their exchange rates against the dollar. The central banks of countries adhering to the system is committed to intervene in currency markets to keep the exchange rate of its currency.
If imports are higher than exports, the country will be demanding more than the amount of foreign currency which foreigners are demanding. Such behavior in the currency markets pushes the depreciation of the currency. In these situations the central bank should intervene to prevent the fluctuation in exchange rates, selling foreign currency reserves in exchange for its currency. But that solution was valid only in the short term as foreign reserves are limited. If the causes of the excess of imports over exports remained the long term, the country must devalue the official exchange rate of its currency. Note the different use of the words depreciation-pressure exerted by market forces, and devaluation-policy decision by the authorities. 
In the event that exports exceed imports, the volume of the country's reserves to increase. If this flow was excessive the authorities could revalue the currency. But as is generally considered that trade surpluses indicate an efficient economic policy and lead to higher living standards, governments were reluctant to take that decision.
IMF system (photo IMF President Dominique Strauss-Kahn) had many drawbacks. Where there were doubts about the stability of a currency and created expectations of a possible devaluation (or revaluation), the supply (or demand) of such currency in the currency markets pressed so hard that the adjustment required, to confirm expectations , speculators obtained large profits by what they were encouraging international capital movements were abrupt and destabilizing.
growth International trade required a large liquidity that could not continue to rely on monetary policy in the United States. In 1971 it suspended the dollar's convertibility into gold as the metal has ceased to have any legal relationship with the financial systems. For a couple of years the international system continued to have the dollar as the standard, until in 1973 he decided to let the currency float freely on currency markets.
The formation of the European Union
The origins of the European Union can be traced to the formation of the European Coal and Steel Community (ECSC) in 1951.
Then in 1957 he created the European Economic Community (CEE. Formed initially by six countries-Germany, Belgium, France, Italy, Luxembourg and the Netherlands, the EEC was expanding the number of its members.
With the Act of Accession of Spain to the European Communities, a treaty that Spain joined the European Economic Community, now the European Union, which was signed on June 12, 1985 in the Hall of Columns at the Palacio Real de Madrid to enter force on January 1, 1986. This merger was made at the same time as that of Portugal. After the accession, there was in Spain period of economic prosperity, in which for five consecutive years achieved the highest growth rate throughout the Community. This was the most comprehensive and systematic process of liberalization, openness and rationalization of the English economy after the National Economic Stabilization Plan in 1959. In addition to economic progress involved the departure of international isolation suffered from the Potsdam Declaration of August 1945 and the stabilization of the newly established democracy.
The European Union's 27
Once the Single European Act, signed in February 1986 entered into force in July 1987, this mission was to revitalize the building of Europe, setting the consolidation of the market in 1993 and also allowing the free movement of capital and services. By this treaty, the Community's powers are extended to the domains of research and technological development, environment and social policy. The Single Act also establishes the existence of the European Council, which brings together heads of state and government and promotes a common initiative in foreign policy (European Political Cooperation) as well as cooperation in security matters.
The Maastricht Treaty signed in February 1992, entered into force in 1993 under this agreement, the European Union continues the common market and EEC, European Community transformed into marks a new stage in the process of union. The treaty establishing the European citizenship and allowed to move and reside freely in the community, and the right to vote and be elected in a home state for European and municipal elections. It decided to create a single European currency, the Euro, which will enter into circulation in 2002 under the control of the European Central Bank.
The euro is the official currency of sixteen countries of the European Union (EU) (Germany, Austria, Belgium, Cyprus, Slovakia, Slovenia, Spain, Finland, France (St. Pierre and Miquelon and Mayotte), Greece, Ireland, Italy, Malta, Luxembourg, the Netherlands and Portugal), and 3 European microstates which have currency agreements with the EU (Monaco, San Marino and the City Vatican), it is also used in Andorra, Montenegro and Kosovo
The name "euro" was chosen by the Heads of State or Government European European Council meeting held in Madrid in December 1995.
In 1999 comes into force the Treaty of Amsterdam which states the principles of freedom, democracy and respect for human rights, explicitly including the principle of continuous development. Two years later he signed the Treaty of Nice, which would come into force in 2003. Meanwhile, in 2002, extinguished the ECSC, established for 50 years, and its scope is enclosed in the European Community. Organs and Institutions
are five institutions each with a specific function:
European Parliament (EP) is the parliamentary assembly, elected by direct universal suffrage by the citizens of the Union.
Council of the European Union (CEU), formerly the Council of Ministers is the principal legislative and decision making in the EU. Representing the governments of the Member States.
European Commission (EC), political institution body representing and defending the interests of the Union as a whole, proposes legislation, policies and programs of action and is responsible for implementing the decisions of Parliament and the CUE. Is the body with executive power, and initiative.
Court of Justice of the European Union (ECJ) ensures compliance with EU law, since it is subject judiciaries of the Member States.
Court of Auditors (ECA), performs the control of legality and regularity of the management of the EU budget.
EU also has six main organs: the European Central Bank, the Economic and Social Committee, the Committee de las Regiones, el Banco Europeo de Inversiones, la Defensoría del Pueblo Europeo y la Europol.
Trascurrido más de medio siglo desde que se produjo la Declaración Schuman, la UE enfrenta retos como el controvertido proceso de adhesión de Turquía, la ampliación en los Balcanes y la ratificación del Tratado europeo de Lisboa que se espera entre en vigor en 2009 y que introducirá modificaciones en los tratados vigentes.
La Unión Europea está compuesta de 27 países soberanos independientes que se conocen como los Estados miembros: Alemania, Austria, Bélgica, Bulgaria, Chipre, la República Checa, Dinamarca, Estonia, Finlandia, Francia, Grecia, Hungría, Irlanda, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the UK
There are three official candidate countries, Croatia, Former Yugoslav Republic of Macedonia, and Turkey. The Western Balkan countries, Albania, Bosnia and Herzegovina, Montenegro and Serbia are officially recognized as potential candidates. Kosovo is also regarded by the European Commission as a potential candidate, but this institution is not listed as an independent country, because not all Member States recognize it as a separate country of Serbia.
To join the EU, a country must meet the criteria Copenhagen, defined in 1993 by the European Council in Copenhagen. These require a stable democracy that respects human rights and the rule of law, a viable market economy able to compete within the EU and accepting the obligations of membership, including EU legislation. The assessment of compliance with the criteria of a country is the responsibility of the European Council. The current framework does not specify how a country can leave the Union (although Greenland, a territory of Denmark, retired in 1985), but the draft Lisbon Treaty contains a formal procedure for withdrawal.
Four Western European countries have opted not to join the EU are committed in part to the EU economy and its regulations: Iceland, Liechtenstein and Norway are a part of the common market through the European Economic Area and Switzerland has similar ties through treaty relations bilaterales.Las between the EU and microstates like Andorra, Monaco, San Marino and Vatican City include the use of the euro and other cooperation.
Globalization, advantages and disadvantages
According to International Monetary Fund (IMF) "Globalization is a growing economic interdependence of all countries, caused by the increased volume and variety of transactions in goods and services, as well as international capital flows, while the widespread diffusion of technology accelerated .
The international success of the free trade system is generating a critical reaction agglutinates as anti-globalization movement . Critics of globalization believe that although this phenomenon is proving favorable for economic prosperity is definitely contrary to the objectives of social equity. The protest is manifested in fighting international agencies, IMF , WTO and others, is in fact a reaction against the excessive triumphalism economic liberalism should be taken into account. The voice of NGOs and other participants in the anti-globalization movement is having an echo within these international organizations are showing increasing awareness of the need to address global social problems both with the same interest financiers.
To assess the advantages and disadvantages of globalization is necessary to distinguish between the various forms it takes. Some forms may lead to positive results and others negative. The phenomenon of globalization includes the international free trade, the movement of capital in the short term, foreign investment direct the migration, the development of communication technologies and their cultural impact.
Some advantages and disadvantages are:
Advantages: economy and global market, which can lead to better utilization of resources. Universal access to culture and scientific-technical ciencia.Mayor. More room to maneuver against fluctuations in national economies. Ternacional.Sistema global cooperation to protect human rights. Open markets. Development of mass communication and transportation, especially the Internet. Growth and mergers between companies. Públicas.Desregulación privatization international financial system.
Disadvantages: Lack of control over markets and companies multinacionales.Aumento economic imbalances, social and territorial. Concentration of wealth and increased social inequality. Failure to meet minimum labor standards (precarious). Damage to the environment. Threat to biological and cultural diversity. Increased risk of disease transmission and spread of Economics infecciosas.Predominio financial-speculative on the real economy. 
In general, as argued in previous sections of this issue, international trade is positive for all economic progress and social goals of eradicating poverty and social exclusion. However, trade liberalization, but beneficial to the whole of the country concerned, it causes seizures in some sectors that require state intervention. If you want the progress of globalization are Pareto improvements, ie, without diminishing the welfare of anyone, is it necessary for governments and international agencies redistributing the benefits and compensating the losers.
Still, there is a phrase that is effective ...." I'm absolutely convinced that no wealth in the world can help humanity progress. The world needs permanent peace and lasting goodwill. "
Albert Einstein (1879-1955) German Scientific American citizen.
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