Interconnectedness

Interconnectedness is part of the terminology of a worldview which sees a in all things. A similar term, interdependence, is sometimes used instead, although there are slightly different connotations. Both terms tend to refer to the idea that all things are of a single underlying substance and reality, and that there is no true separation deeper than appearances. Some feel that 'interconnectedness' and similar terms are part of a contemporary lexicon of mysticism, which is based on the same core idea of universal oneness.

The economic interconnectedness, so called economic globalization, has evolved and developed ever since the time immemorial with the countries bartering in prospect of finding mutual interests and gains. The development and advancement of transportation and information technology have contributed to international trade by allowing countries to take advantage of comparative advantage, enlarging financial revenue by making business with other countries to the country. This push towards the globalized society with the rise of China and other rising countries to the world economy has shifted the world market to the more globalized economy than ever.

There are number of categories on economic interconnectedness. Generally economic interconnectedness refers to the procedure towards economic integration through the elimination of trade barriers or connecting of financial potential as the one big economy based on international trade. Furthermore, it also applies to the foreign investment and ownership of nation and industry as the considerable amount of goods produced by multinational corporations in the country is from outside.

Economic interconnectedness has been leading the global market with the advancement in communication, transportation technology, and free-market paradigm, allowing for dynamics for goods, capital, people, and services. However, economic interconnectedness does not necessarily construct positive economic globalization as it brings about some major concerns associated with economic shocks and spillovers. Asim Erdilek, a professor Emeritus at Case Western Reserve University, Weatherhead School of Management and a business columnist at Today's Zaman, clames that,

"Globalization means international interdependence with disadvantages as well as advantages. Managing that interdependence among sovereign nations through alignment of domestic and global goals to minimize the disadvantages and maximize the advantages is one of the most critical challenges of our time. Spillovers refer to how policies in a major country or region, such as the US and the Euro Area, affect other countries or regions through trade, financial, and commodity price linkages in our interconnected global economy."

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