The Changing Demographics of the Global Economy

The Global Economy
Name:
Institution:
Course:
Date:
Abstract
Over the years international trade has evolved into a sophisticated element thanks to development of trading policies and integration of services across the global platform. Before the First World War, most of the national economies relied on immobile factors of production, however after the war most of the factors of production became mobile. Elaborate networks were also developed ensuring proper integration of services. As such, the global economy is a mesh of interconnected economies at the national level. This means that if one of the economies is affected by financial difficulties the rest of the countries highly dependent on the same are bound to suffer (Hill, 2015). Globalization of the trading system has allowed economies to outsource goods and services that they do not produce in plenty or have limited capabilities to do produce. This has led to the formation of the global trading system, where countries rely on one another. However there are some ethical issues associated with the international trade; among them exploitation of the weaker economies, pollution and dumping among other vices (Hill, 2015). This paper evaluates the demographics of global economic trade and the ethical implications.
Introduction
The global economy has continually evolved over the last century, with much of the changes coming from innovation, technology and social political issues. As a result, there have been changes in demographics of the global economy (Hill, 2015). The global markets have experienced low cost in communication networks such that people can easily interact with one another across the globe creating a global communication mesh. Innovation and technology have also played a great part in the development of the global economies. As countries adopt technology, they develop their industries and ability to connect with other countries outside their economies (Hill, 2015). Using technology, it is now much easier for companies to source markets and labor among other aspect of business processes. As a result, large and small companies now have a level playing field to expand to other uncharted territories. In the past, western companies and by extension the western nations have been at the helm of the global economy. Although they are still leading in a number of elements, there are some upcoming economies that have in the past been relegated to the lower tiers of the third world.
Countries such Brazil, Taiwan and China have been poor performers in the past but are now rising to the occasion and taking a leading role. At the moment china’s is economy is the fastest growing in the world. If this trend in China continues for another two decades, it is going to be at the top of the most powerful economy in the world and will have risen to the top faster than japan. Out of the largest multinational corporation in the world economy have in the past come from the western nations with America leading the pack followed closely behind by Europe (Hill, 2015). However, companies from emerging markets such as china have also made their way to the top. It is also no longer a norm that only the largest corporation that make the largest impacts within the gl...