...Review Essay Global Political Economy The World Economy and the Logic of Economic (Under-) Development Table of content 1 Table of Content Introduction Summary Critical Discussion Conclusion Reference 3 3 4 5 6 Based on the following three articles: · Immanuel Wallerstein, „The Rise and Future Demise of the World Capitalist System“, Comparative Studies in Society and History 16 (1974), pp. 387-415. · Jagdish Bhagwati, „Free Trade: Old and New Challenges‟ The Economic Journal, 104(423) (1994), pp. 231-46. · Alice Amsden, „The State and Taiwan‘s Economic Development,‟ in George Crane & Abla Amawi (eds.) The Theoretical Evolution of International Political Economy (Oxford: Oxford University Press, 1997), pp. 193-207. 2 1. Introduction This paper is a critical discussion of the central aspect: „The World Economy and the Logic of Economic (Under-) Development“ in the Global Political Economy. The foundation of this paper is based on three pieces: Wallerstein (1974), Bhagwati (1994) and Amsden (1997) which all provide different views about the world economy in terms of political and theoretical approaches. The introduction will be followed by a short summary concerning the protectionism that is evident throughout and the resulting ethical issues. The critical discussion will compare and evaluate the assumptions and concepts of each article which will then be concluded with the addition of my point of view. 2. Summary Immanuel Wallerstein‘s: „The Rise and...
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...INTRO – -world econ growth definition -Firstly it can benefit the uk economy -this in turn benefits the individual within the UK Point 1 -Increased trading oppurtunities for uk companies, potentially leading to a more balanced UK -Due to the UK have a large export market for innovation and ideas as new country’s develop this market may increase as more firms may want to use their ideas, however this may also produce a much fiercer competition and other country’s will begin to develop their own ideas and their export market could decrease. China is becoming much more innovative and can use its own cheap manufacturing base giving them a large competitive advantage which the UK may not be able to exploit as easily if the economy continues to grow -less developed countries which often supply will gain more power over buyer so cheap production may be less available pushing up uk general prices causing inflation, Chinas cheap manufacturing may become more expensive Point 2 -Individual -Increased exports as a result of more trading opportunities may increase employment opportunities for individuals as more production is needed to supply for other countries -philips curve, increased employment may lead to inflation making UK prices more expensive, however inflation does also trigger a devaluation of the pound boosting exports more which can boost the economy and make the UK richer and more competitive in the export market which could increase the individuals standard...
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...Asian Economic Miracle: The Wisely Chosen Economic Policies and The Economic Trend of 20th Century Van Nguyen Keystone College Abstract: Asian economic miracle refers to three groups of East Asian countries making miracle in transforming their economies from the third world to the first world ranking. There are three generations of Asian miracle. Starting with Japan, the first generation of what called Asian miracle, following with the second generation including South Korea, Hong Kong, Singapore, and Taiwan, and final generation consists of some Southeast Asian countries such as Thailand, Malaysia. This paper is going to talk about the second generation of Asian economic miracle. By showing their economic achievement, illustrating their economic policies, and analyzing how the economic trend of 20th century reflected on those policies, this paper will argue that Asian miracle was the result of the wise choices of how to manage an economy. Furthermore, developing countries should learn the lessons of how to choose the right economic policies to make economic miracle. Asian Economic Miracle: The Wisely Chosen Economic Policies and The Economic Trend of 20th Century Introduction According to the East Asian Miracle (EAM, World Bank, 1993), “East Asia has a remarkable record of high and sustained economic growth. From 1965 to 1990 the twenty-three economies of East Asia grew faster...
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...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...
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...The Economy of the Philippines and Its Neighbors: Indonesia and Malaysia By Larry Gulley In Partial Fulfillment of Requirements for MGMT 220: Individual Project 3 AIU June 30, 2012 Abstract The economy of the Philippines, as well as that of its neighbors, Indonesia and Malaysia, has weathered some rough patches. This area of the world has not lived up to its potential in spite of its naturally rich resources. But they are showing improvement, especially Malaysia. These countries compete with tourism and the services area. They also have strengths in agriculture and manufacturing. Table of Contents Economy of the Philippines Speaker Notes……………………………………………...1 Introduction………………………………………………………………………………4 Economy of the Philippines…………………………………………………………....4 Economy of the Philippines 2012……………………………………………………..4 Philippines Economic Strengths………………………………………………………4 Economy of Indonesia………………………………………………………………….5 Economy of Indonesia 2012…………………………………………………………...5 Indonesia Economic Strengths………………………………………………………..5 Economy of Malaysia…………………………………………………………………...6 Economy of Malaysia 2012…………………………………………………………….6 Malaysia Economic Strengths…………………………………………………………6 Impacts of Economic Strengths………………………………………………………..7 Investing in the Philippines: Management Issues……………………………………7 Investing in the Philippines: Management Issues……………………………………8 Conclusion……………………………………………………………………………….8 References…………………………………………………………………………………..9 Economy...
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...milieu is typified by rapid, simultaneous expansion and shrinkage as the world grows close together in terms of pursuing the same goals; yet drift farther apart with regard to achieving progress and development (Akram, Faheem, Dost & Abdullah 2011, p. 293). The increasing irrelevance of national borders, including social, economic, cultural and technological borders, is one of the fundamental characteristics of the incident of globalization. Innovative technologies such as the Internet have facilitated the dismantling of national boundaries. As a consequence, the world is rapidly turning into one massive village; not only in political terms, but economic terms as well (Kemeny 2011, p. 17). At present, global exchanges and interactions continue to be the order of the day. All areas of society, including the economic aspects, are constantly being reshaped by the process of globalization as forces that outweigh and transcend national borders exert their influence. The rate of global change is quite rapid today; consequently, the emergence of global economies makes national economies, as well as strategies geared towards national economic management, irrelevant or entirely obsolete. Economic globalization has resulted in the proliferation of global economies, which surmount the powers held by national economies to influence economic occurrences within their national borders. Fundamentally, national economies are interdependent as they depend on the cross-border movement of capital...
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...Global economic issues Globalization in Economics and Its Consequences Introduction The contemporary world is slowly getting more integrated socially, economically and politically. Economic globalization encompasses the entire world and a growing amalgamation of the global production, consumption and the fiscal markets with a simultaneous harmonization of global cultures. Globalization of the transitional monetary system was manifest after WWII and the Great Depression of the 30s in US. The evolution of Multinational enterprises was a resultant phenomenon of globalization. In principle, globalization on the fiscal front submits to the assimilation of merchandise, prices, labour incomes, revenue rates and proceeds toward industrialized nation standards (Garrett, 2000). The emergency in the volume of business between industrialized nations and the developing nations, augment in cross-border dealings, increase in immigration and transfer of skill are fundamental issues of globalization. In simple words globalization is analogous to making the entire world function as a huge country. Globalization: The term globalization can broadly be defined as a process through which global networking of communication, trade, and transport leads to integration of regional economies and cultural societies. The process is a result of a combination of factors like culture, technology, politics, and economics. Economic globalization refers to “the integration of national economies into the international...
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...establishment of a single global economy. China is current the world’s second largest economy and in the past two decades has been the worlds fastest growing economy, sustaining an average rate of growth in real GDP of 10% per annum. The effect of globalisation on China’s economy can be seen in the areas of economic growth, economic development, quality of life, economic stability and environmental sustainability. Economic growth refers to the increase in a country’s GDP over a period of time. The influence of globalisation on China has been profound with economic growth being sustained between 8 and 10 percent in the past 2 decades. This is due to China moving away from being an ecnomy with a domestic focus to a trade oriented economy, highly integreated with the global economy to take advantage of globalisation. This increased integration has seen China’s share of world exports in goods and services rise to 9.4%, and its share of world GDP estimated at 14.3%. The effect of this increased integration is evident as China is now the worlds second largest economy in the world measured by the nominal value of GDP in US dollars. Economic development can be measured through growth in GDP per capita as well as other qualitative measures. China’s rapid rate of economic growth has been based on its export oriented strategies financed by foreign investment which has increased substantially as a result of China’s involvement with the global economy. This has resulted in a rise of 9...
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...in Global Economy Dinara Zhangabayeva 145075 International business (MGMT 550) Submitted to ASSOC. PROF. DR. AKER SULE 28- 12- 2015 Introduction At the turn of 20-21 centuries, the world economy has entered a new phase of internationalization of economic life, which is defined as globalization. Globalization of the world economy as multidimensional process manifests itself in substantially all major aspects of modern economic life. The world is getting united through globalization. This is happening because of the technological advancements in the recent decades and the global organizations that made trading and capital movements easier. Regulations from various countries supported free trade, which made the countries more integrated with each other. Various entities were created to facilitate the trade between countries and to reach a more global economy (World Trade Organization, International Monetary Funds, The World Bank, European Union…). Efforts were made to get the financial markets integrated between each other as we have indexes for the whole world such as BBC Global 30, S&P global 100 … etc. and indexes for the European union like FTSE Euro 100, FTSE Euro Top 100… etc. The independence allowed Kazakhstan to establish economic relations with many developed and developing countries, to rebuild relationships with former partners and to advance on the path of integration into the world market. The liberalization of foreign economic activities...
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...EC3010 - Economic Policy Assignment 1 The nature of the ongoing financial crisis merely confirms what Economists have known for some time, namely, that the interconnectedness of global economic activity renders macro-management by single governments redundant. Their function is now to regulate markets to ensure economically efficient solutions. Module Leader :Paul McKeown Student Name: Chen JiaHui Student number: G20555142 1.0 Introduction This report argues that the ongoing financial crisis merely confirms the global political consideration what economists have known for some time. Firstly, it briefly explains how the financial crisis spread around the world in such a short time by globalisation. This report points out that the global financial system is inherently flawed, showing how economies go from stability to instability. Subsequently, it focuses on the link between economic globalisation and macro-management by single government, considering whether Macro-management of a country’s economy is redundant, given the global interconnectedness economy’s activity and business. This report shows government policy has reduced the effectiveness of interconnected economies, such as fiscal policy and monetary policy. After that, it emphasizes that it is imperative for governments to regulate financial markets so as to ensure economically efficient solutions. Consequently, this report concludes that although macro-management by single government is less effective...
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...numerous focal points of this exchange process. The economics and producers effectiveness measured by absolute advantage for these economics/producers. For example; if the producer needs lesser amount of contributions/inputs to provide specific product, then this producer has an absolute advantage in producing process. Comparative advantage discusses the economy/producer ability to produce a specific product with a minimum opportunity cost comparing to another producer. "There is a possibility of each nation to have an absolute advantage in producing and delivering the products; however; the different nations could in any case have distinctive comparative advantages". The international trade theory based on two dynamic concepts; "Absolute and comparative advantage". The main difference between these concepts is that the absolute advantage measure nation ability to produce more profits per unit of beneficial input than another. However; the comparative advantage measure the ability that one nation has an absolute advantage in each kind of produce. Analyze measures of economic growth, and comparative and absolute advantage in international trade for the following countries: USA The economic growth indicates that the U.S economy has expanded by an annual 1.1 percent in the first quarter of 2016 which is higher than the projections of 0.8 percent. Based on the data given by the Bureau of Economic analysis, the positive economic growth...
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...Risks to the Global Economy 3 Exit Strategy from Policy Stimulus 4 Repair and reform of the financial sector 4 Fiscal Crises and underinvestment in Infrastructure 4 Socio and Political Implications of Unemployment and Private Demand 5 Asset Price Collapse and the risk appetite of investors 5 Return to Previous Growth Path or Not 5 Will the current crises be “DÉJÀ VU ‘” for the world wide economy? 6 Fundamental Changes in Origins & Nature of Economic Activity 6 Global warming / Climate Change: 7 Population Growth: 7 Power shift to the east: 7 Innovation: 7 Economic Activity: 7 Impact of Global Crisis on South Africa’s Growth Outlook 8 Conclusion 8 BIBLIOGRAPHY: 10 STRENGTH OF THE RECOVERY All of the world’s high-income countries returned to positive real GDP growth during the fourth quarter of 2009 and the Economist Intelligence Unit’s forecasts for 2010 indicate a return to marginally below the growth trajectory that was achieved prior to the recession. Developed Countries: UNITED STATES Economic recovery in the US has been remarkably strong, with fourth quarter real GDP growth of almost 6% suggesting the presence of a “V”-shaped trend. Further, news emanating from recently published official data includes a recovery of private sector investment in capital formation, particularly on information technology software and machinery & equipment. A recovery of growth in labour markets has also been reported, with the Federal Reserve latest economic overview describing...
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...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...
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...struggle in the world of economics between those who believe the market should have complete control of the economy and those who believe that the government should regulate the economy. Two of the most famous and influential economists of the modern world, John Maynard Keynes and Frederick Von Hayek, stand on opposite sides of the battle lines drawn between the two positions. Keynes is a staunch believer of the government intervention and regulation of the economy, whereas his personnel friend and ideological rival Hayek believes in the markets ability to control the economy. The differences in economic theory have spilled over into political debates, heated division within countries, and war. The battle between these two ideologies goes beyond sheer economic theory and spills over into individuals beliefs on how the world should be run and organized. John Maynard Keynes was an English economist who was educated at Cambridge University. He was considered by his peers and elders to have incredible potential as an influential world leader in the field of economics. During the First World War he served as an advisor to the government of the United Kingdom on how to organize their economy in the time of war. Keynes economic theory was based on the fact that in order to be successful an economy needed to be regulated and planned, to an extent, by the government. Based on his theory slight inflation was good, and necessary in order to keep unemployment down. The economy should be mixed...
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...a socialist economic structure, you can see some similarities to the United States – but there are some really stark differences. Below, you will see some of the most socialistic 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...
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