• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Economics Article Analysis : Going global

Extracts from this document...

Introduction

International Baccalaureate Economics Higher Level Inter Community School of Zurich Marc Fleming Extract Title: Going global Source of Extract The economist Page: 75 Extract date: December 08 2001 Word Count: 450 Syllabus Links: 4, 5 This article discusses how more globalised poor countries have had higher economic growth over less globalised poor countries. Globalisation referring to the process by which there is increased trading of goods and services and increasing integration in world capital markets. The economist more simply defines globalisation as a rise in the ratio of trade to national income. The economist in plane terms is saying that increased trade (globalisation) ...read more.

Middle

Thus in the end the country makes more money then if it were to produce a wide variety of goods. Economies of scale with free trade are not limited to the domestic market. As economies of scale grow the average cost of production falls thus enabling more production and thus more growth. International competition increases growth in that it increases allocative efficiency, for firms will competing on the world market thus making them more efficient because they have to compete with low prices. And lastly the spread of technology, this increase growth because new methods of production reduce cost and thus more can be produced. ...read more.

Conclusion

Further more the article is bias in that it states that China, India, and Mexico had a higher GDP per capita growth compared with countries in Africa where GDP per capita shrunk, claiming that this has come about because trade in African countries has decreased. What the article does not take into account is that China, India, and Mexico are for a start more economically developed than the Africa. In addition, Africa may be experiencing barriers to growth such as; Poor natural resources, untrained and poorly educated work force, rapid population growth, and a lack of an effective financial system. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Comprehensive Anatomy of China

    28,159,000 Secondary Technical 2,690 184,000 1,082,000 Teacher Training 570 46,000 195,000 Agricultural, Vocational 7,802 306,000 1,850,000 Special Schools 1,531 28,000 56,000 Higher Education 1,225 532,000 2,683,000 Prior to 1949, before the new education policies went into affect, approximately 80 percent of China's population was illiterate.

  2. Where does the World Trade Organisation fit in the overall scheme of international public ...

    Least Developed Countries Again, there is much exhortatory language in the Ministerial Declaration. WTO members endorse the Integrated Framework for Trade-Related Technical Assistance to least Developed Countries (IF), and urge all involved to "explore the enhancement of the IF..." The Director-General and other heads of agencies are requested to provide

  1. Why has GDP growth been so slow in Somalia?

    However, in-between foreign governance and democracy a disturbing habit developed among the Somali officials: corruption. In 2009 Somalia was perceived to be the most corrupt country on the planet27. It had marred every aspect of Somali society. When Africa had been ruled by Western nations (after the 'scramble for Africa')

  2. Environmental Economics HSC Notes

    The findings of the commission defined ESD as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs". I.e.: current development and growth should not inhibit the ability of future generations to enjoy resources and the environment in the future.

  1. This article review is done for the course of Trends in Global Marketing Strategies. ...

    Porter explains that by saying that to motivate organizational change, capable competitors and respected rivals can be seen a common enemy. The third policy introduced is to establish early-warning systems. According to the article early-warning signals can be translated into early-mover advantages.

  2. European background to the scramble for Africa (1850 to 1900)

    The region is secured by 1984. * 1896 - The world is getting more and more glimpses of what Leopold's regime is like, when natives from Britain's colonies who worked in the CFS are asked about the condition of the state.

  1. Business Risk Analysis Global Business Plan for Global Builders - Manufactured Low Income Housing ...

    External credit will remain dispensable to Argentina for a period of about two years. In 2001, after 2 years of stagnation, caused by the financial crisis of emerging markets and the Brazilian devaluation, the Government has launched an economic plan aiming to invigorate the economy, based on two main concepts:

  2. Provide an analysis of the evidence which

    still dominate levels of trade vastly in terms of amounts produce and consumed. Furthermore, in the past twenty years the world has experienced vast growth in international finance growth; that is cross boarder financial flows. The main driver behind this growth is financial deregulation that has occurred within individual countries

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work