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Encyclopedia > The Global Economy

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Economic systems
An economic system is a particular set of social institutions which deals with the production, distribution and consumption of goods and services in a particular society. ...

Ideologies and Theories

Capitalist economy
Communist economy
Corporate economy
Fascist economy
Laissez-faire
Mercantilism
Natural economy
Primitive communism
Social market economy
Socialist economy
For other uses, see Capitalism (disambiguation). ... This article is about communism as a form of society, as an ideology advocating that form of society, and as a popular movement. ... Historically, corporatism or corporativism (Italian: corporativismo) refers to a political or economic system in which power is given to civic assemblies that represent economic, industrial, agrarian, social, cultural, and professional groups. ... The economics of fascism refers to the economic policies implemented by fascist governments. ... Laissez-faire is short for laissez faire, laissez passer, a French phrase meaning to let things alone, let them pass. First used by the eighteenth century Physiocrats as an injunction against government interference with trade, it is now used as a synonym for strict free market economics. ... Mercantile redirects here. ... Natural economy refers to a type of economy in which money is not used in the transfer of resources among people. ... Primitive communism, according to Karl Marx and Friedrich Engels, is the original society of humanity. ... The Social market economy was the German and Austrian economic model during the Cold War era. ... Socialist economics is a broad, and sometimes controversial, term. ...

Sectors and Systems

Closed economy
Dual economy
Gift economy
Informal economy
Market economy
Mixed economy
Open economy
Participatory economy
Planned economy
Subsistence economy
Underground economy
Virtual economy
An autarky is an economy that limits trade with the outside world, or an ecosystem not affected by influences from the outside, and relies entirely on its own resources. ... A dual economy is the existence of two separate economic systems within one country. ... A gift economy is an economic system in which goods and services are given without any explicit agreement for immediate or future quid pro quo. ... A market economy (also called a free market economy or a free enterprise economy) is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets guided by a free price system. ... A mixed economy is an economy that has a mix of economic systems. ... An open economy is an economy in which people, including businesses, can trade in goods and services with other people and businesses in the international community at large. ... Participatory economics, often abbreviated parecon, is a proposed economic system that uses participatory decision making as an economic mechanism to guide the allocation of resources and consumption in a given society. ... This article refers to an economy controlled by the state. ... Media:Example. ... This box:      The underground economy or shadow economy consists of all commerce that is not taxed. ... A virtual economy (or sometimes synthetic economy) is an emergent economy existing in a virtual persistent world, usually in the context of an Internet game. ...

Related articles

Anglo-Saxon economy
American School
Global economy
Hunter-gatherer economy
Information economy
New industrial economy
Palace economy
Plantation economy
Token economy
Traditional economy
Transition economy
Anglo-Saxon economy or Anglo-Saxon capitalism (so called because it is largely practiced in English speaking countries such as Australia, the United Kingdom and the United States) is a capitalist macroeconomic model in which levels of regulation and taxes are low, and the quality of state services and social... The American School, also known as National System, represents three different yet related things in politics, policy and philosophy. ... In anthropology, the hunter-gatherer way of life is that led by certain societies of the Neolithic Era based on the exploitation of wild plants and animals. ... Information economy is a loosely defined term to characterize an economy with increased role of informational activities and information industry. ... Countries currently considered NICs. ... A palace economy is a system of economic organisation in which wealth flows out from a central source (the palace), eventually reaching the common people, who have no other source of income. ... A plantation economy is an economy which is based on agricultural mass production, usually of a few staple products grown on large farms called plantations. ... A token economy is a system of behavior modification based on the principles of operant conditioning. ... A traditional economy is an economic system in which resources are allocated by inheritance, and which has a strong social network and is based on primitive methods and tools. ... A transition economy is an economy which is changing from a planned economy to a free market. ...

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The rise of technology has allowed our environment to be characterized as a global one. “The global economy" gave business the ability to market products and services all over the globe. It has also allowed them to develop partnerships and alliances throughout the world, which has become essential for success in today’s business.”[1] Prior to Globalization, the United States dominated the global economy. In recent years, however, the U.S. share of the global economy has shrunk to approximately 25%. This trend is expected to continue as the economies of many newly industrialized countries continue to grow at a faster rate. Image File history File links Portal. ... By the mid 20th century humans had achieved a mastery of technology sufficient to leave the surface of the Earth for the first time and explore space. ... In economics, a business is a legally-recognized organizational entity existing within an economically free country designed to sell goods and/or services to consumers, usually in an effort to generate profit. ... A KFC franchise in Kuwait. ... Countries in green are considered NICs. ...

Contents

Advantages

There are numerous advantages in the shift to a global economy including the possibility to increase benefits from economies of scale. The breaking down of global barriers allows companies to benefit from the largest and cheapest workforces, raw materials, and technology. For example, “many North American publishers actually write and produce much of their software in countries such as India.”[1] Other advantages that companies benefit from include: the opportunity for smaller companies to quickly expand globally, having more choices when recruiting a workforce and the opportunity to target a larger customer base (which translates to greater earning potential). The increase in output from Q to Q2 causes a decrease in the average cost of each unit from C to C1. ... The workforce is the labour pool in employment. ... A Raw material is something that is acted upon by human labour or industry to create some product that humans desire. ... By the mid 20th century humans had achieved a mastery of technology sufficient to leave the surface of the Earth for the first time and explore space. ... Computer software (or simply software) refers to one or more computer programs and data held in the storage of a computer for some purpose. ...


Many have argued a global economy also helps in promoting international cooperation and peace (source?). If countries are dependent upon one another's economic success then armed conflict would be less likely. For instance, India and Pakistan are often in dispute over land territory such as Kashmir. It is argued that it would be less likely that these two countries will enter into combat due to the severe negative effects on their economies. Kashmir (or Cashmere) may refer to: Kashmir region, the northwestern region of the Indian subcontinent India, Kashmir conflict, the territorial dispute between India, Pakistan, and the China over the Kashmir region. ...


The Global Economy

This increase in globalization has created many new opportunities, such as niche markets, and requires everyone to keep up with globalization in order to stay competitive. As David Shane points out in his article entitled "Youth must learn skills to succeed in Global Economy", “Technology and trade separate the economy into two camps -- those with the skills to participate in the global economy and those who lack them.” Shane indicates that advances in technology are giving developing countries the ability to compete directly with developed countries in terms of education and skills. With the ever increasing Global Economy and widespread use of the internet, people and businesses are realizing that they are often competing with people around the world for contracts and business deals.


The global economy has created an environment in which many large corporations are becoming transnational firms. Critics of this trend say it has caused a worldwide ‘race-to-the-bottom’ where companies are so focused on staying competitive that they often outsource production to developing countries with the lowest labor, environmental and economic standards.[2][3] While these business practices allow companies to save money, leading to larger returns for investors and more affordable products for their clients, at the same time balancing the world economy, some believe they also serve as a motivation for governments in developing nations to keep their legislation lax when it comes to labor and environmental laws. These transnational corporations often lobby governments in order to gain access into these developing countries. Still, many developed countries have protectionist policies that do not enable developing countries to export their goods into developed markets. While some believe these activities should be curtailed with increased government legislation, proponents of economic liberty argue that the governments themselves are the reason for most of the economic problems attributed to globalization.


Trade barriers more often hamper economic development in the Global South, as compared to the North. New technologies like the internet may speed up the reduction of trade barriers. Critics of the expanding global economy argue the reduction of trade barriers will create harder competition for the previously protected companies in developing countries, while its advocates point to the new possibilities in global markets for emerging market companies such as Haier (China) and the Tata Group (India).[4] In 2006 the global economy continued to expand so that most individual, corporate and government borrowers are making good on their obligations, which in turn has kept financial markets in clover.[5] For the Jamaican reggae band, see Third World (band). ... Haier (Chinese: ; pinyin: ) is a producer of household appliances (white goods), including air conditioners, laptops, refrigerators, etc. ... The Tata Group is Indias largest conglomerate, with revenues in 2005-06 of Rs. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...


Historical Origins

Although a global economy is generally associated with the late 20th century and early 21st century, it may be argued that a global system of exchange existed before that.


Some possible dates for its origins are:


- The Phoenician global trade system, Phoenicia (or Phenicia ,[1] from Biblical Phenice [1]) was an ancient civilization centered in the north of ancient Canaan, with its heartland along the coast of modern day Lebanon and Syria. ...


- The Roman to Han dynasty trade system, Silk Road (1st century AD), Han Dynasty in 87 BC Capital Changan (202 BC–9 AD) Luoyang (25 AD–190 AD) Language(s) Chinese Religion Taoism, Confucianism Government Monarchy History  - Establishment 206 BC  - Battle of Gaixia; Han rule of China begins 202 BC  - Interruption of Han rule 9 - 24  - Abdication to Cao Wei 220...


- The Arab global trade system (10th century AD), Photo taken from medieval manuscript by Qotbeddin Shirazi (1236–1311), a Persian Astronomer. ...


- The Great navigations (15th to 17th century AD), “Round the world” redirects here. ...


- The New Imperialism (19th century) & Neo-colonialism (20th Century) The term New Imperialism refers to the colonial expansion adopted by Europes powers and, later, Japan and the United States, during the late 19th and early 20th centuries; approximately from the Franco-Prussian War to World War I (c. ... Neo Colonialism is the belife that former colonies of European powers have never recieved economic freedom from their former rulers. ...


Notes and references

  1. ^ a b Haag, Stephen (2000). Management Information Systems. ISBN 0-7600-1091-9. 
  2. ^ Chan, Anita (2003-03-01). "A "Race To The Bottom": Globalisation and China's labour standards" (PDF). China Perspectives 46: 41-49. Retrieved on 2006-09-16. 
  3. ^ Rich, Schucking & Zuniga, Bosshard, Sohn & Durbin, Norlen, van Voorst (1999-03). "A 'Race To The Bottom': Creating Risk, Generating Debt and Guaranteeing Environmental Destruction, A Compilation of Export Credit & Investment Insurance, Agency Case Studies" (PDF). Retrieved on 2006-09-16.
  4. ^ Engardio, Pete, Geri Smith, Ram Charan, Michael Arndt, Stanley Reed. "Emerging Giants", Business Week, 2006-07-31, pp. 40-49. 
  5. ^ Petruno, Tom. "2006 takes a soft bounce", The Baltimore Sun, 2006-12-26, pp. 1. 

PDF is an abbreviation with several meanings: Portable Document Format Post-doctoral fellowship Probability density function There also is an electronic design automation company named PDF Solutions. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 259th day of the year (260th in leap years) in the Gregorian calendar. ... PDF is an abbreviation with several meanings: Portable Document Format Post-doctoral fellowship Probability density function There also is an electronic design automation company named PDF Solutions. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 259th day of the year (260th in leap years) in the Gregorian calendar. ... BusinessWeek is a business magazine published by McGraw-Hill. ... The Sun is the newspaper of record for Baltimore, Maryland, with a daily press run of 247,193 copies and a Sunday run of 418,670 copies (9/30/05 Audit Bureau of Circulations report). ...

See also

The world economy can be evaluated in various ways, depending on the model used, and this valuation can then be represented in various ways (for example, in 2006 US dollars). ... A KFC franchise in Kuwait. ...

External links

  • "The global economy: organization, governance, and development", by Gary Gereffi
  • "The ABCs of the Global Economy" from Dollars & Sense Magazine
  • The United economic encyclopedia

  Results from FactBites:
 
The Global Economy - Wikipedia, the free encyclopedia (1105 words)
Another disadvantage of a shift towards a global economy is the argued loss of domestic jobs.
Economies of Scale are unit cost reductions associated with a large scale of output.
In 2006 the global economy continued to expand so that most individual, corporate and government borrowers are making good on their obligations, which in turn has kept financial markets in clover.
  More results at FactBites »

 
 

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