...and space with huge intensification of economic, cultural, social and political interconnections on the global scale. A New Geo-economy by Peter Dicken (2003) Dicken (2003) believes that ‘something’ is happening out there. More industries are orientated towards global markets nowadays in which the increasing of internationalisation and globalisation can be considered as one of the most important development in the world economy. As a result, global division of labor has evolved to a specialisation of labors in different parts of the production processes without being limited by geographical constraints anymore. It leads firms in the industrial countries focus to produce manufactured goods, meanwhile the non-industrialised countries are specialised to supply raw materials or agricultural products to them. This process is not as simple as the theory because the fragmentation of production processes and geographical relocation has been involved in the present trade flow, however. In addition, the emergence of a new international financial is inevitable as well since the development of technologies of transport and communications has accelerated the global transactions (Dicken, 2003). But, there is no consensus whether that ‘something’ is a new thing or not. Some believe that a new globalised world economy has risen, while the others argue that the world economy is still internationalised rather than globalised. Furthermore, the processes of internationalisation and globalisation...
Words: 2931 - Pages: 12
...Discuss how and why China’s relations with the world economy change after 1993? The economic reforms of China, called “open doors policy” starting in 1978 with Deng Xiaoping –the leader of the Communist Party of China (CPC) - marked the beginning of a new era where China initiated to open its economy to the world. (Nolan, 2005) In 1992, during his Southern tour, Deng Xiaoping introduced the term of “Socialist Market economy” to describe Chinese economy and in 1993 the term was added to the Constitution, which means that socialism was still the basis of the economical system but that the State also protected the market economy from now on and therefore was ready to go international. This essay will discuss to which extent 1993 was the changing year for China’s international economic relations. Naughton (2007) refers to the 1990s reform in China as a “reform with losers” meaning that at this point, Chinese economy was moving towards a transformation to capitalism. They started to strengthen the institutions of market economy and began to privatize the State sector. The State-owned Enterprises (SOE) reform - specifically the “grasping the big, letting go of the small” strategy - was aimed to improve the efficiency and corporate governance of the State companies by keeping the key resources (such as infrastructure construction, telecommunications, financial services, energy and raw materials) (GENG, X., YANG, X. and JANUS, A. 2009) and the big companies and let go the...
Words: 1169 - Pages: 5
...Globalization and the Information Economy: Challenges and Opportunities for Africa1 Derrick L. Cogburn, Ph.D. University of Michigan School of Information and Global Information Infrastructure Commission – Africa Catherine Nyaki Adeya, Ph.D. United Nations University Institute for New Technologies Prepared as a working paper for the African Development Forum '99 24-28 October 1999, United Nations Conference Centre United Nations Economic Commission for Africa Addis Ababa, Ethiopia 1 Copyright © 1999 Derrick L. Cogburn (dcogburn@umich.edu) and Catherine Nyaki Adeya (nyaki@intech.unu.edu). This paper reflects the opinions of the authors and not necessarily those of the institutions represented. Comments on the paper are welcome, and an updated version can be found at: www.si.umich.edu/~dcogburn/info_econ.htm. and www.intech.unu Derrick L. Cogburn and Catherine Nyaki Adeya ii ACKNOWLEDGEMENTS The authors would like to thank the officers and staff at the United Nations Economic Commission for Africa for their untiring patience and assistance on the st preparation of this paper. Special thanks to the team organising the 1 African Development Forum. Dr. Cogburn would like to thank his colleagues at the Global Information Infrastructure Commission for their assistance and support on the paper. Also, at the University of Michigan, he thanks his friends and colleagues at the School of Information, the Alliance for Community Technology, and the Centre for AfroAmerican...
Words: 24263 - Pages: 98
...Views on The World Financial Crisis: Will It Continue To Deepen? Introduction The Great Recession of the 21st Century (Wesel, 2010), which began in 2007, has affected the entire world economy; admittedly, some countries have been hit harder than others but few nations can really say that they have been entirely spared from the crisis. What is more, the devastating repercussions of the financial crisis can still be observed to this day, more than five years since it first began, as numerous countries around the globe are still struggling to get back on track. The road to recovery from the financial crisis has been more difficult than initially anticipated and, with the dawn of a new year, it is still hard to say whether things will start looking better for the world economy or not. The question on everybody’s mind is whether the world financial crisis will continue to deepen or not. Background Though still a somewhat a highly debated matter, the onset of the world financial crisis can be pinpointed to 7 August 2007, when BNP Paribas terminated withdrawals from three hedge funds, on grounds of a complete lack of liquidity (Elliot, 2012). For the two years that followed this incident, the world economy was on a continuous downward spiral. Economies around the globe started to slow down, some faster than others, stock markets began to drop, international trade declined, and credit tightened. In the United Kingdom for example, the catalyst for the economic crisis that engulfed...
Words: 3267 - Pages: 14
...a free-flow of information and knowledge throughout the organization. In order to understand how these two areas are related, we need first to understand the knowledge-based economy: What is it, and how do we know it is happening? Is it really new or unique? What are its effects and what does it mean to us? We begin by looking at four emerging trends now occurring in the global economy: Trend 2 A New, Globalized Market Infrastructure is Emerging Growing Global Competition CENTER FOR The reason that new computing and telecommunications technologies are so economically revolutionary in their nature is that they allow ideasin the form of techniques, research results, diagrams, drawings, protocols, project plans, chemical formulae, marketing patterns, etc.to be distributed instantaneously and in a comprehensive way to anyone, anywhere around the world. As a result, an interconnected global environment is emerging. This unbounded economic framework, in turn, provides organizations not only with vast new market opportunities, but also with an enormous potential pool of labor worldwide as improved communications and low-cost transport allow direct access to both high and low-skilled workers globally.But this trend has gone well beyond simply allowing advanced economies to take advantage of low labor costs in foreign countries. Developing...
Words: 6916 - Pages: 28
...fastest growing and largest emerging market economies. The countries of Brazil, Russia, India and China are becoming ever larger forces in the world economy. They account for almost three billion people, or just under half of the total population of the world. In recent times, they have also contributed to the majority of the world GDP growth. For some time their growth rates have been faster than those experienced in the western economies, and they have been able to withstand the recent economic crisis with greater resilience (Geoff, 2010). According to various economists’ projections, it is only a matter of time before China becomes the biggest economy in the world. China is expanding its reach all over the world. For instance, they are making in-road into most African countries which use to be a reserve place for the west, thereby stopping the monopoly that the western economies had in this part of the world. Most African nations with their leaders prefer to do business with China because of their poor ethical standard and the wiliness to do anything just to win the hearts of these leaders who are less concerned about the well-being of their people. In fact, Goldman Sachs believes that by 2050 these BRICs countries will be the most important economies in the world thereby relegating the US to fifth place (EconomyWatch, 2010). By 2020, economists’ project that all of the BRIC countries should be in the top 10 largest economies of the world. Manufacturers and service providers have...
Words: 1409 - Pages: 6
...www.sciedu.ca/rwe Research in World Economy Vol. 2, No. 2; October 2011 An Analysis of Emerging China’s Economy and its Influence on World Economy Zhijun Sheng (Corresponding author) School of Economics and Management, Changchun University of Science and Technology Changchun 130022, China Tel: +86-135-0445-7191 Email: shengzhijun412@126.com Jing Ma School of Economics and Management, Changchun University of Science and Technology Changchun 130022, China Email: majingdoll@hotmail.com Received: July 22, 2011 Accepted: August 21, 2011 doi:10.5430/rwe.v2n2p21 Abstract Since entering 21st century, the Chinese economy has obtained unprecedented development opportunity, growing rapidly. We emphatically analyze the remarkable performance and the immense changes of the Chinese economy in economic output, foreign trade, foreign investment and enterprise strength, etc. Finally, we point out the reality and potential influence and contribution of emerging China on world economy. Keywords: China’s Economy, Emerging Market, World Economy At the end of 2010, China’s Social Science Institute issued “World economy Yellow Paper” and “International Situation Yellow Paper”, which pointed out China has become the second biggest economy in the world, and has been in the leading position on many aspect. For instance, China ranks second on multinational merger and acquisition and surpasses UK, France and Germany to become the International Monetary Fund's third...
Words: 2550 - Pages: 11
...legacy in social theory does not lie in his predictions of future utopias but rather in his analyses of the workings and contradictions of capitalism. Within contemporary sociology this tradition is very much alive in world-systems analysis, a perspective developed by Immanuel Wallerstein in the 1970s. According to Wallerstein, the modern nation state exists within a broad economic, political, and legal framework which he calls a “worldsystem.” Just as individual behavior cannot be understood without reference the sociocultural system in which they are members, individual societies or nation states cannot be understood without reference to the world-system in which they are embeded. Modern nation states are all part of the worldsystem of capitalism, and it is this worldsystem that Wallerstein seeks to understand. Wallerstein believes that there are only three basic types of social systems. The first he terms as “mini-systems,” these are the small, homogenous societies studied by anthropologists. Hunting and gathering, pastoral, and simple horticultural societies are relatively self-contained economic units, producing all goods and services within the sociocultural system itself. The second type of social system is a “worldempire.” This system has an economy that is based on the extraction of surplus goods and services from outlying districts. Much of this tribute goes to pay for the administrators who extract it and for the military to ensure continued domination, the...
Words: 1136 - Pages: 5
...After World War II The United States of America decided on a path different from the one they chose at the end of the last global conflict. This time the US picked the role of the new world defender as opposed to reverting back into itself. This decision to remain involved with the affairs of the larger world changed many things about America well into the 2000’s. One of the new roles America chose was greater involvement in the world’s economy. This decision had immense outcomes for the future of the American economy, however some aspects of the economy managed to remain the same. In the 40’s and 50’s America made its first voyage into the world of free trade. In the 60’s and 70’s America honored its commitments to free trade but also started down the path of dependency and outsourcing. In the 80’s to 2000 America remained on the path from the previous two decades, but finally experienced the effects of the internet on the global economy. Therefore, Globalization...
Words: 812 - Pages: 4
...Status of China The Google definition of an economy is the wealth and resources of a country in terms of the production and consumption of goods and services. When looking at China from an outsider’s perspective the first three words that come to mind are innovative, growth, and mass-production. This is because over the last thirty years, Chinese economic growth in Gross Domestic Profit (GDP) has been a steady 8 to 10 percent making it the second largest economy in the world after the United States. China’s economy has been the envy of many nations and it will continue to grow and serve as a key player in industrial production. This research paper will discuss China’s current economy by looking at its advantages and disadvantages during its development. According to IndexMundi.com, a website that offers an economic overview of china’s economy as of 2012, in 2010 is when China became the world’s largest exporter. China is rapidly becoming a dominant world power. Its economy grew fascinatingly fast and they now have the second largest economy in the world. Even though this growth is very remarkable, China still faces a lot of issues. A major issue is that of the urban rural disparity gap. With a population of 1.3 billion, China is still considered a developing country. “China’s gross national income per capita of $4,940 ranked 114th in the world; and over 170 million people still live below the $1.25-a-day international poverty line”(The World Bank). The year 2005 proved to be another...
Words: 950 - Pages: 4
...nations in the world today: China Denmark Finland Netherlands Canada Sweden Norway Ireland New Zealand Belgium Despite popular myths, there is very little connection between economic performance and welfare expenditure. Many of the countries on this list are proof of that, such as Denmark and Finland. Even though both countries are more socialistic than America, the workforce remains stronger. China In China the government manages and controls the economy. Many of the domestic companies are owned and run by the government. Recently, the Chinese economy has become more geared towards capitalism, but is still officially socialist. Life in China remains relatively less stressful and more relaxed than life in capitalist countries like America. Denmark Denmark has a wide range of welfare benefits that they offer their citizens. As a result, they also have the highest taxes in the world. Equality is considered the most important value in Denmark. Small businesses thrive, with over 70 percent of companies having 50 employees or less Finland Finland has one of the world’s best education systems, with no tuition fees and also giving free meals to their students. The literacy rate in Finland is 100 percent. Finland has one of the highest standards of living in the world. Like Denmark and other European countries, equality is considered one of the most important values in society. Whereas in the Netherlands, government control over the economy remains...
Words: 3736 - Pages: 15
...The world we live in today is a strong reflection from the events and changes that took place in the 1920’s. During this span of ten years, America went through great developments that ranged from the film industry, music to politics. This era brought new perspectives towards life and the economy that resulted in a milestone towards financial growth. It was during this time that great inventors and scientists developed life-changing inventions. This essay focuses on the events and their effects on the American legacy. After the end of World War 1, America focused on normalization. Normalcy was vital following the crumbling state of the American economy caused by the war. Warren. G. Harding, the president of the United States at the time,...
Words: 645 - Pages: 3
...The world is changing like never before. Globalization is affecting every aspect of our lives. It affects our culture, our economy, and even our politics. We face new challenges and old challenges dressed up in new clothes. As economies become more intertwined, we find that they can also become more vulnerable to unexpected shifts and new forms of opaqueness. This isn’t a reason to turn away from globalization, but it is a reason to be vigilant. This essay will look at the way countries have become more dependent on other through the process of globalization. Of course, with current economic events shaking the world economy, we begin to see some of the potential negative effects of globalization for various countries’ economies. In a recent visit to the United States, UK Prime Minister Gordon Brown was keen to point out that the problems started in the U.S. as the result of bad regulations and greed. He said that the “global banking collapse needed a global solution. He called for the same standards in banking ‘of remuneration, accountability, transparency and disclosure all round the world’, saying this would lead to a restoration of confidence in banking.” 1 The problems point to one of the serious drawbacks of globalization: when you open your economy up to the other economies of the world you can get very rich as long as they do well—but you also become very vulnerable to their problems too. ...
Words: 554 - Pages: 3
...The world economy has changed greatly since the beginning of man. As a species we evolved each generation socially and especially economically. In the caveman days we traded basic things for food. An example of a trade would be wood for food. As we evolved we then developed a currency system trading gold or silver for items. Today the whole globe has a base economy and every nation is involved in the world economy. Economic globalization refers to the intensification and stretching of economic interrelations across the globe. Gigantic flows of capital and technology have stimulated trade in goods and services. Markets have extended their reach around the world, in the process creating new linkages among national economies. The world economy was developed by the emergence of the global economic order, internationalization of trade and finance, the power of transnational corporations, and the enhanced role of international economic institutions. The economy of the world really started to become internationalized after World War 2. There was an economic conference held in New England to help develop the new international economic order. Under the leadership of the United States and Great Britain, the major economical powers of the time in the north, both countries decided to reverse their protectionist policies of the interwar period. The countries at the meeting all arrived at a firm commitment to expand international trade, the participants at the conference also agreed to...
Words: 819 - Pages: 4
...New Delhi: As chief economic advisor, Kaushik Basu has a bird’s eye view of the Indian economy and is at the same time a key member of the A team of finance minister Pranab Mukherjee. Given his vantage position, the viewpoint of the chief economic advisor is always critical, more so now than ever when the global economy is going through a turbulent phase. Basu took some time off to speak to Mint, just ahead of a key G20 meeting in Seoul, to provide an overview of how India perceives global economic trends. Articulating his thoughts on the latest round of monetary quantitative easing, he proposed a radically different long-term fix for the global economy, held out hope that the persistent domestic inflation would ease and painted a positive economic outlook ahead of next year’s Budget. Edited excerpts: What do you think is the outlook for the global economy? The outlook is best described as mixed; it changes from week-to-week, month-to-month. European unemployment has deteriorated slightly, while US unemployment has held steady at a high of 9.6% for three months. So the expectations on the global front continue to be uncertain. The somewhat risky move that the US has made with the second round of quantitative easing—something that is akin to printing money—is a gamble. It is not all negative, as some make it out to be. But it is a risky move, given the changed structure of the world economy. The relatively benign interpretation of what is happening in the world is that this...
Words: 2315 - Pages: 10
