Describe the shifts in the world economy over the last 30 years. What are the implications of these shifts for international businesses based in Britain, North America, and Hong Kong?
1 Describe the shifts in the world economy over the last 30 years. What are the implications of these shifts for international businesses based in Britain, North America, and Hong Kong?
Although the question is talking the shifts of the world economy over the past 30 years, however, since the end of World War II, global trade has grown faster than global income. Globalization is the trend in these 30 more years because of the technological change. According to the textbook, globalization is defined as the shift toward a more integrated and interdependent world economy. Telecommunication, transportation technology and information transition (including World Wide Web) has been developed rapidly in the past years. These upgrades have made many firms to go globalization.
We can see the Evolution of world trade and global gross domestic product in 1981 and in 2010 in the following two diagrams. In 1981, United States (U.S.) was in dominance in the world trade. She exported products of 12.3% of the total exports while China exported 1%. However it was changed sharply in 2010. U.S.’s export decreased from 12.3% to around 10% while China’s total export was dramatically increased from 1% to nearly 10%.
Also, we can find some figures from the textbook Table 1.2 which showed the demographical change of world Gross domestic product (GDP) and trade. Both of them indicated that U.S. is still in the leadership of export in the world. However, some emerging countries like China, India, and Brazil are continuous growing their economic power. It is optimistically believe China will become the leader of the world’s largest exporter in the future.
Another reason for the change is the changing foreign direct investment picture. U.S. firms were the dominance of the foreign direct investment in the 1960s. British firms were the second. It was changed afterwards as the barriers of the free trade of goods, services and capital decreased. Many firms changed their
Although the question is talking the shifts of the world economy over the past 30 years, however, since the end of World War II, global trade has grown faster than global income. Globalization is the trend in these 30 more years because of the technological change. According to the textbook, globalization is defined as the shift toward a more integrated and interdependent world economy. Telecommunication, transportation technology and information transition (including World Wide Web) has been developed rapidly in the past years. These upgrades have made many firms to go globalization.
We can see the Evolution of world trade and global gross domestic product in 1981 and in 2010 in the following two diagrams. In 1981, United States (U.S.) was in dominance in the world trade. She exported products of 12.3% of the total exports while China exported 1%. However it was changed sharply in 2010. U.S.’s export decreased from 12.3% to around 10% while China’s total export was dramatically increased from 1% to nearly 10%.
Also, we can find some figures from the textbook Table 1.2 which showed the demographical change of world Gross domestic product (GDP) and trade. Both of them indicated that U.S. is still in the leadership of export in the world. However, some emerging countries like China, India, and Brazil are continuous growing their economic power. It is optimistically believe China will become the leader of the world’s largest exporter in the future.
Another reason for the change is the changing foreign direct investment picture. U.S. firms were the dominance of the foreign direct investment in the 1960s. British firms were the second. It was changed afterwards as the barriers of the free trade of goods, services and capital decreased. Many firms changed their