The Global Economic System
Global economy is the subject I am going to learn next semester from the University of Texas at Dallas. What do I know about the global economy now? I should summarize what I know already so that I could take my current view to compare with that of the professor.
The current global economy has three characteristics: one world, two modes, and three kinds of capital.
One world means that the political boundaries are reducing its roles to give path to the global economic exchanges. Each country strives to join the global economic systems. One of such systems is the WTO or the World Trade Organization. The WTO originally formed by the major economic powers such as the United States, European nations, and Japan. China joined it a few years ago. Now Vietnam and Russia are going to join it.
Two modes are the developing modes of the global economy. There are developed economies such as the United States, western European nations, Japan, and Australia. Developed means industrialization. Developing nations are those countries are still in the process of industrializing their economies. Brazil, China, India, and Russia are example of developing nations.
Three kinds of capital include the land, labors, and capital. Land is associated with agricultural production first. In the agrarian society, land and labor are the only resources needed for production. In industrial society, land, labor, and capital are needed for production in factories. In the current society, financial resources are the most critical resources for the smooth function of the global economy. Land, labor and capital are securitized for easy transaction. One can purchase and sell land, or labor, or capital within seconds. So one main characteristics of modern global economy is financial transactions.
The current global economy has three characteristics: one world, two modes, and three kinds of capital.
One world means that the political boundaries are reducing its roles to give path to the global economic exchanges. Each country strives to join the global economic systems. One of such systems is the WTO or the World Trade Organization. The WTO originally formed by the major economic powers such as the United States, European nations, and Japan. China joined it a few years ago. Now Vietnam and Russia are going to join it.
Two modes are the developing modes of the global economy. There are developed economies such as the United States, western European nations, Japan, and Australia. Developed means industrialization. Developing nations are those countries are still in the process of industrializing their economies. Brazil, China, India, and Russia are example of developing nations.
Three kinds of capital include the land, labors, and capital. Land is associated with agricultural production first. In the agrarian society, land and labor are the only resources needed for production. In industrial society, land, labor, and capital are needed for production in factories. In the current society, financial resources are the most critical resources for the smooth function of the global economy. Land, labor and capital are securitized for easy transaction. One can purchase and sell land, or labor, or capital within seconds. So one main characteristics of modern global economy is financial transactions.
posted by Unknown at 8:56 AM
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