Global economy has shown a conscious shift in economic activity from agriculture to service in both the developed and the developing world. There has also been a growth in total as well as per capita GDP (Gross Domestic Product) mainly in the OECD (Organization for Economic Co-operation and Development) or the advanced countries, Eastern Europe and Asia. However, measuring poverty remains one of the most contentious issues and although numbers of people in poverty have declined in East and South Asia, freeing the world totally of poverty still poses the most challenging question.
The global economy has equipped the economy with the power to market goods and services across different countries in the globe. Before the global economy came into existence, the entire economy was ruled bu the United states. But with the stings of global economy the power of the United States has shrunk to about 25%. The monopoly of United State would continue to lose its vigor as more and more industrialized states come to the fore.
Advantages of Global Economy
The global economy can reap the benefits of increasing economies of scale. With the opening up of the economy the industrial sector has benefited with the attainment of cheap labor, capital and technology. Small companies also witness rapid growth owing to a wider customer base. Many opine that the global economy has promoted international peace and cooperation.
Disadvantages of Global Economy
The global economy has encouraged transportation on a wider scale for the free flow of goods and services across nations. This has , in turn, led to the emission of greenhouse gases. The global economy has also resulted in the loss of domestic jobs. The labor intensive industries of the developed countries find it profitable to shift to third world countries where wage rates are low. This leads to the displacement of labor in the developed countries. Further, it is difficult to formulate regulations and legislations that are undifferentiated across the globe.
Find various aspects of global economy:
Global Economic Trends
The Global Economic Trend shows a better economic development these days. Find the trend of various economic indicators of the global economy.
Global Exports Global Exports for the year 2006 was lower mainly due to the poor performance of some developing nations over the world. Get detailed data and statistics on the global exports.
Global Economic Growth Increasing productivity among the various sectors of the economy has led to a faster rate of global economic growth. Get detailed trend on the global economic growth.