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

The global economy is an uneven playing field. Evaluate this term with reference to the main economic groups that have developed historically and politically.

Extracts from this document...


By: Liz Haigh The global economy is an uneven playing field. Evaluate this term with reference to the main economic groups that have developed historically and politically. The word 'Global Economy' is defined as the 'world-wide exploitation of resources and the world-wide production and marketing of goods and services'. This is broken down into each individual countries economy. A countries economy is 'the amount of money within the country and how it is linked together by such things as business'. However what makes the global economy such an uneven platform is the breakdown of the worlds economies and the types of countries. The Brant report is the basic way of showing how the world in reality is split into two areas the north and south regions. The north is predominantly first world country. A first world country is one, which comprises mainly of more economically developed countries (MEDC's), where capitalism prevails. Examples of first world countries are Western European, North American or Australian. Australia is the exception of the north /south divide because the line drops just east of Indonesia. ...read more.


Many of the LEDC's are in debt and are unable to pay it back in conjunction to the interest rates. During the world recession LEDC's were able to large sums of money from the World Bank and other financial developments to start building their own economy. When these interest rates rose again in the 1980's they were unable to repay their debts. If as stated in the economic diagram (above) the first world countries and the world bank drop debts towards the LEDC's and LLEDC's then the unstable south would be able to work its way towards improving their economies. This would then in turn make the balance of the worlds economy more even and the north and south regions becoming closer together. This is because as an LEDC's economy improves its stability it will create new markets for the multinational companies to build factories, thus providing jobs and a positive income to countries finances. An increasing loop will appear as the countries start to emerge form debt. Countries, which have already started the long process and are slowly emerging from debt and towards economic stability, are known as RIC's (recently developed countries) ...read more.


In conclusion I can say that yes the global economy is an uneven platform. This is mainly due to the north/south divide as stated in the Brant report. However I believe that it is caused mainly by the history of a countries development over the last few centuries. If for example the country was initially self sufficient, developing their own resources and becoming economically strong they have developed into the strongest and most wealthy countries in the global economy today. Whereas if a country was colonised or taken in as part of a communist regime they have bee held back in development by having a different political power to their own. Then as these have broken down the countries are left with nothing and start to build up debts. Therefore making these countries the poorest in the world, as they effectively have nothing to offer the first world countries anymore. This fact is what makes global economy so uneven because the poorest countries are in a cycle of debt whilst the richest countries are growing larger and richer widening an already large gap between the two. ?? ?? ?? ?? ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & 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 GCSE Economy & Economics essays

  1. Retailing In India - A Government Policy Perspective

    that has become a national showcase, India is increasingly coming under the investment radar of major foreign players. The ATKearney global FDI Confidence index recently upgraded India to 6th rank as compared to the 15th rank we had last year.

  2. An Empirical Investigation into the Causes and Effects of Liquidity in Emerging

    The conclusions reached are that both yield on US Treasury securities and S&P 500 have an impact on US corporate liquidity and through the cross-liquidity mechanism have an effect on emerging market bond liquidity. Thus, the second hypothesis that similar variables affect the liquidity of each type of bond is proven, although perhaps in a more indirect fashion.

  1. Causes of the Great Depression

    When the war came to an end in 1918, all European nations that had been allied with the United States owed large sums of money to American banks, sums much too large to be repaid out of their shattered treasuries.

  2. The Social Balance - The Mixed Economy.

    The growing complexity of government has tended to obscure the relationship. Keynesian economics taught the there was nothing particularly virtuous about a balanced budget. Further, some politicians have encouraged electors to think that 'the rich' could be made to pay for additional state spending.

  1. Globalisation in Malaysia

    in fundamental areas of science and technology, limiting the country's growth and R&D capabilities. The government therefore has to increase public spending in education to provide a variety of courses in universities, especially courses specialising in Science and Technology to strengthen R&D in the economy.

  2. Discuss the extent to which the economic theories in the Market's Reader can be ...

    This competition was created by Joseph Schumpeter. Schumpeter views market as a dynamic model characterized by innovations which reduces costs and improves quality. Furthermore, costs can be reduced through achieving the economies of scales and this can be realized only by large and successful firms. Moreover, firms who do not go for innovations go bust, where firms reach market failure.

  1. Discuss the extent to which the economic theories in the Market's Reader can be ...

    * The potential for failure as well as success. Anyone can acquire the "means of production", i.e., the knowledge required for the job, but not everyone can win. Companies, by using research techniques like data mining, communication networks and databases can turn information into knowledge.

  2. Scarcity and Unlimited Wants.

    Democratic. Committee may lack business experience. Liability The owners are liable or responsible for the debts of a company. * Unlimited liability means the owner may have to sell some or all of his personal possessions to help pay off the company's debts. * Limited liability means that the owner loses only the money he has put into the company and no more.

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