Globalization was the buzzword of the 1990s, in the last two decades, the mount of money and goods moving between countries has been rising steadily. At the same time, trade barriers across the world have been lowered. So how close are we to a true global economy and what effect is it likely to have
Anyone who doubts that global financial markets control national economies need only look at the cr facing the "tigers" of the Far East. Last year, the value of their currencies plummeted, after investors decided their economic policies were no tough enough. Now the region is suffering slower growth, lower living standards and rising unemployment. The situation in Asia shows how power has shifted from individual governments to the markets. In theory, governments are free to set their own economic policies; 41.______________________
The trend towards globalization began in earnest in the early 1970s when the system of fixed exchange rates, set up after World War Ⅱ, was dismantled. This meant that the value of currencies would now be determined by the markets instead of individual governments. Over the next two decades, countries slowly began to remove their exchange controls. 42. ______________________
Other factors contributing to tile rise of globalization are new communications technologies, and better transportation systems, these have enabled companies to grow into multinational producing goods on one side of the planet and selling them on the other. Lower costs have also helped the price of telephone calls, for instance, is cheaper now than at anytime in history. But adjusting to this new "economic order" is proving difficult. In the developed world, and in particular the European Union, globalization is facing widespread public resistance. Critics complain that, without the protection of trade barriers, jobs are being lost to workers in poorer countries, and wages for employees in rich countries are falling. Opponents in the European Union point to the effects that globalization has had in the US and Britain. In those countries, wages are stagnant except for a privileged few and taxes and welfare benefits have been reduced to help companies compete with industries in the developing world.
43. ______________________.
Those in favor of globalization accuse their critics of being short-sighted protectionists. They claim a more integrated global economy will ultimately benefit everyone because it will enable countries to specialize in those areas where they perform best. Developing countries, with their higher populations and lower wages, will concentrate on labor-intensive industries, such as raw materials manufacturing, in much the same way as western countries did during the industrial revolution. 44. ______________________.
The effect of this, say supporters, will be to improve productivity in all countries, leading to higher living standards. The free movement of capital will also help poorer countries develop so they can play a full and active role in the world economy.
45. ______________________.
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 still a long way to go.
[A] Even supporters of globalization acknowledge, however, that there will be losers. At present, those suffering most are people working in labor-intensive industries in the developed world~ Already, they are facing rising unemployment and falling wages, as companies struggle to compete with manufacturers in developing countries. They argue that, without the protection of trade barriers and the welfare state, their chances of improving their skills and living standards will disappear, resulting in a growing divide between rich and poor.
[B] Foreign investment is also extremely small, amounting to little more than five percent of the developed world’s domestic investments.
[C] A global economy would mean complete of movement of goods and services, capital, and labor. Yet, even ignoring the tariffs and other restrictions still in place, cross-border trade remains tiny compared to the volume of goods and services traded within countries.
[D] In practice, they must conform to a global economic model or risk being penalized by the markets.
[E] The richer countries, on the other hand, will diversify into hi-tech industries, where high productivity and specialist knowledge are paramount.
[F] Opponents of globalization also point to its effects on workers in poorer countries. They agree that multinationals may be helping to reduce unemployment in the developing world, but they argue that jobs are hardly worth having since they are low-paid and exploitative.
[G] By 1990, nearly all world’ s major economics had got rid of restrictions on how much money could be moved in and out of their countries.

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Globalization was the buzzword of the 1990s, in the last two decades, the mount of money and goods moving between countries has been rising steadily. At the same time, trade barriers across the world have been lowered. So how close are we to a true global economy and what effect is it likely to have
Anyone who doubts that global financial markets control national economies need only look at the cr facing the "tigers" of the Far East. Last year, the value of their currencies plummeted, after investors decided their economic policies were no tough enough. Now the region is suffering slower growth, lower living standards and rising unemployment. The situation in Asia shows how power has shifted from individual governments to the markets. In theory, governments are free to set their own economic policies; 41.______________________
The trend towards globalization began in earnest in the early 1970s when the system of fixed exchange rates, set up after World War Ⅱ, was dismantled. This meant that the value of currencies would now be determined by the markets instead of individual governments. Over the next two decades, countries slowly began to remove their exchange controls. 42. ______________________
Other factors contributing to tile rise of globalization are new communications technologies, and better transportation systems, these have enabled companies to grow into multinational producing goods on one side of the planet and selling them on the other. Lower costs have also helped the price of telephone calls, for instance, is cheaper now than at anytime in history. But adjusting to this new "economic order" is proving difficult. In the developed world, and in particular the European Union, globalization is facing widespread public resistance. Critics complain that, without the protection of trade barriers, jobs are being lost to workers in poorer countries, and wages for employees in rich countries are falling. Opponents in the European Union point to the effects that globalization has had in the US and Britain. In those countries, wages are stagnant except for a privileged few and taxes and welfare benefits have been reduced to help companies compete with industries in the developing world.
43. ______________________.
Those in favor of globalization accuse their critics of being short-sighted protectionists. They claim a more integrated global economy will ultimately benefit everyone because it will enable countries to specialize in those areas where they perform best. Developing countries, with their higher populations and lower wages, will concentrate on labor-intensive industries, such as raw materials manufacturing, in much the same way as western countries did during the industrial revolution. 44. ______________________.
The effect of this, say supporters, will be to improve productivity in all countries, leading to higher living standards. The free movement of capital will also help poorer countries develop so they can play a full and active role in the world economy.
45. ______________________.
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 still a long way to go.
[A] Even supporters of globalization acknowledge, however, that there will be losers. At present, those suffering most are people working in labor-intensive industries in the developed world~ Already, they are facing rising unemployment and falling wages, as companies struggle to compete with manufacturers in developing countries. They argue that, without the protection of trade barriers and the welfare state, their chances of improving their skills and living standards will disappear, resulting in a growing divide between rich and poor.
[B] Foreign investment is also extremely small, amounting to little more than five percent of the developed world’s domestic investments.
[C] A global economy would mean complete of movement of goods and services, capital, and labor. Yet, even ignoring the tariffs and other restrictions still in place, cross-border trade remains tiny compared to the volume of goods and services traded within countries.
[D] In practice, they must conform to a global economic model or risk being penalized by the markets.
[E] The richer countries, on the other hand, will diversify into hi-tech industries, where high productivity and specialist knowledge are paramount.
[F] Opponents of globalization also point to its effects on workers in poorer countries. They agree that multinationals may be helping to reduce unemployment in the developing world, but they argue that jobs are hardly worth having since they are low-paid and exploitative.
[G] By 1990, nearly all world’ s major economics had got rid of restrictions on how much money could be moved in and out of their countries.