world economy

The World Economy is driven by the developed economic powers who set the stage for bull or bear markets and greatly influence the economies of less powerful nations. The global economy is influenced by a wide variety of economic factors, especially the rates of supply and demand throughout all major sectors of trade within the larger, more influential countries. Economic conditions within these countries play a major role in setting the economic atmosphere of less well-to-do nations and their economies. In many aspects, developing and less developed economies depend on the developed countries for their economic wellbeing. International organizations such as the World Trade Organization (WTO), the International Monetary Fund (IMF), and the World Bank try to bring about economic integrity among nations across the world. Globalization and the subsequent liberalization initiatives undertaken by the national governments of different countries have brought about a sea of changes in the world economy. One case in point was the US subprime market collapse which started in 2007. This meltdown started in America but is having major impact on economies across the world. The US subprime failure is also predicted to have adverse effects on global employment scenarios. As a result of the trickle down effect, there have been immediate setbacks in global economies. Before this specific crisis, world economies were growing at a rate of over 5% a year in the first part of 2007. However, the subprime failure of 2007 caused the Dow Jones Industrial Average to slip from 14,000 on July 19, 2007 to 13,000 by the middle of August. The ups and downs in the crude oil prices have also had a major impact on the growth rate of world economies. Another factor of huge importance in this context are the prices of essential food products. Exchange of food items constitutes a substantial share of world trade and can greatly influence global markets.