Globalitation in Terms of Cooperation: A New Global Agenda
9 Pages Posted: 15 Apr 2019
Date Written: April 12, 2012
In the developing countries the own currency is used as currency of habitual use, but not as a saving currency (the currencies are used). This translates into a decrease in the interest rates of developed countries as a result of the massive flight of capital from developing countries (developing countries put their capital in developed countries, increasing the supply of capital in the latter and , therefore, reducing its price to maintain the demand). This means that in order for national banks to grant loans, they must be requested from foreign banks, -> [Author: A], so that the risk of devaluation of the national currency could cause bankruptcies in the national bank, in addition to the consequent indebtedness.
Keywords: development, globalitation, world affairs. cooperation
JEL Classification: J10
Suggested Citation: Suggested Citation