Fielding DillardModule 1 Critical Thinking AssignmentDue:1/14/18 1. Describe the shifts in the world economy overthe past 30 years. What are the implications for international businesses basedin Great Britain? North America? Hong Kong?a. The world economy has changed vastly over thepast 30 years. During this time the internet has caused massive improvements tothe way we interact globally. We are now more interconnected than ever and thisis thanks to the world wide web.
Trading is done almost entirely online. Youcan buy a product from Great Britain and have it shipped to the United Stateswithin a few days. As globalization’s effects have gained traction, the UnitedStates no longer has as much influence in the global economy as it once did.Companies can now outsource their labor to other countries for pennies on the dollar.
Great Britain is in a similar position to that of the US. They need to trytheir best to keep labor within their own country. Hong Kong has benefittedfrom globalization because China possesses most of the worlds labor market. Chinacan now export worldwide with ease.3.
How have changes in technology contributed tothe globalization of markets and production? Would the globalization ofproduction and markets have been possible without these technological changes?a. Advances in technology have made it much easierto trade, communicate, and gather data. The internet allows us to purchasegoods from anywhere in the world and have them shipped to a specific location.Companies have better data about consumer behavior and can tailor theirproducts to satisfy those needs. Lastly, communication has never been easier.
You can instantly message someone else through email or instant message to getquick information from a business or corporation. Without these advancements our internationalmarket would not be possible because businesses are now equipped with bettertools to execute trade deals.6.
If current trends continue, China may be theworld’s largest economy by 2030. Discuss the possible implications of such adevelopment for (a) the world trading system, (b) the world monetary system,(c) the business strategy of today’s European and U.S.
– based global corporations,and (d) global commodity prices. a. China is already the biggest exporter in theworld and if they continue to grow they would likely dominate the world tradingsystem. Their GDP would increase greatly and they would become one of thewealthiest, most established countries.b. Currently China is classified as a developingcountry but if trends continue this will have to change. I would argue thatthey are a very established world power today. They would need to establish asingular currency to ensure that they dominate financially.
c. The U.S. and European countries would need tobring back labor and create their own products. Increasing coal production andoffshore drilling would help us maintain some independence and also the rise ofelectrical transportation would help.
The main issue the US and other countriescould have is that they do not produce their own products.d. Again, countries would need to focus on creatingtheir own products so that they do not have to rely on outsourcing. China’s riseto a world super power would increase production among other countries to keepup. Commodities would become more inexpensive due to the increased production.