All of these effects have led to an increase in global economic prosperity and rising living standards in many countries around the globe. While these benefits are indeed substantial, there are naturally also risks and challenges that need to be clearly identified.
The ever closer integration of national economies and the rise in capital mobility have made the international system more vulnerable to changes in investor sentiment. Furthermore, international trade and financial links intensify the transmission of shocks from one country to another and amplify cross-border spillovers. A cost-benefit-analysis of the global economic trends clearly shows that the benefits outweigh the costs by far.