The idea of global stratification is one that looks at inequality or stratification between whole countries. In short, countries became rich or poor for many different reasons: how quickly they industrialized, leading to greater imperialism; whether they became dependent on other countries; what type of economic system they use; and how much of the population lives in poverty, since poverty is so self-perpetuating. Like individuals, countries can become trapped by this stratification, limiting their potential for growth. Global stratification is maintained in two major ways. Neocolonialism is the argument put forward by sociologist Michael Harrington, that the Most Industrialized Nations could not control weaker ones through imperialism any more and so they turned to economics as a form of control. The richer countries can choose how much to pay for goods and services from poorer ones, and turn them into international debtors by allowing them to have goods and services on credit. Multinational corporations (Wal-Mart) play a major role in ensuring that global stratification continues to plague society. They exploit the Least Industrialized Nations for cheap goods and labour while pouring their profits into the Most Industrialized. In some cases, however, moving operations has proven to bring prosperity to poorer countries therefore, a global economic system may be one of the best solutions to social inequality.

Golbal econmoy is the interdependent economies of the world’s nations, regarded as a single economic system.

The “global economy” gave business the ability to market products and services all over the globe. It has also allowed them to develop partnerships and alliances throughout the world, which has become essential for success in today’s business. Prior to Globalization, the United States dominated the global economy. In recent years, however, the U.S. share of the global economy has shrunk to approximately 25%. This trend is expected to continue as the economies of many newly industrialized countries continue to grow at a faster rate. There are numerous advantages in the shift to a global economy including the possibility to increase benefits from economies of scale. The breaking down of global barriers allows companies to benefit from the largest and cheapest workforces, raw materials, and technology. For example, many North American publishers actually write and produce much of their software in countries such as India. Other advantages that companies benefit from include: the opportunity for smaller companies to quickly expand globally, having more choices when recruiting a workforce and the opportunity to target a larger customer base (which translates to greater earning potential). This increase in globalization has created many new opportunities, such as niche markets, and requires everyone to keep up with globalization in order to stay competitive.