The Changing Demographics of the Global Economy

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The Changing Demographics of the Global Economy Globalisation may be defined as the integration of production and consumption in all markets across the world. Which in turn also is connected to the concept of global economy. The demographics of the global economy have under gone rapid changes in the past 30 years. There are four trends that describe the demographics in the global economy. Globalization has played a dramatic role in the global economy. The first trend was the U.S. dominance in world economy. Follow up by the U.S. dominance in world foreign investment. Next is the Dominance of large, multinational U.S firms on the international business scene and lastly the centrally planned economies of the communist world were not within reach of the western world. This essay will focus mainly on the changing demographics of the first two trends. Basically, around 30 years ago, the U.S. was dominating the world economy, as they were the super power in that era. Gross Domestic Product (GDP) measures the world economic activity. According to the measurement in the GDP in the 1963, 40.3% of world economics were dominated by the U.S. That’s almost half of everything that the world has. In year 2006, the U.S. and along with other countries like France, Germany and the United Kingdom that first industrialised were faced with a significant drop of GDP. The U.S. dropped from 40.3 percent to 19.7 percent, however still remained the largest in the world. This was due to the faster economic growth of several other economies in Asia. (Jones, 2010) China would be the best example to describe the situation. Basically, China today, increased to a marginal amount of 15.1% from the 1960s. Perraton, J. and Goldblatt, D. also agrees that major transformation in post war trade has been the rapid growth of manufactured exports from a range of developing countries, which have risen
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