• 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...

Introduction

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.

Middle

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.

Conclusion

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. Chinese economy sets for soft landing in 2005.

    The electrolytic aluminum sector, one of the identified prominent overheated sectors, is also cooling down. "Since last August, no enterprises have unveiled plans to design and build new electrolytic aluminum projects. Construction of certain projects has been stopped or suspended," said an official from the China Non-ferrous Metals Industry Association.

  2. Examine the significance of the effect of the Chinese economy to the future prosperity ...

    Such figures as are mentioned in the graph can be seen as leading indicators for an emerging economy. Another very relevant factor that is worth considering is that of the Chinese exchange rate. Normally when an economy grows quickly and businesses 'steal' markets from rivals, wage rates rise or exchange rates go up, or both.

  1. Examining the world through Economic

    Thus quantity demanded will fall. The income effect: A rise in the price of a good results in a decrease in the consumer's real income which in turn decreases demand and vice-versa. Aggregate demand curve is the sum of all demands for all the goods and services in all markets also known as the Gross National Product.

  2. Globalisation in Malaysia

    According to the 2006 United Nation's 'Asia-Pacific Human Development Report-International Country Risk Guide' Malaysia's score declined from 4.00 in 1996 to 2.28. The declining score signifies greater corruption. This can have a negative effect on Foreign Direct Investment as companies are less likely to invest in countries involved in fraudulent and corrupt business, thus slowing down economic growth.

  1. Split Votes: A Nation Divided on the Marijuana/Drug Legalization Debate

    This interracial trio is a strong supporter of marijuana legalization, and they promote it strongly in their lyrics. Cypress Hill advocates replacing alcohol use with marijuana in songs like "I Wanna Get High" and "Insane in the Brain." Their song "I Wanna Get High" is pretty straightforward with its message.

  2. What makes a country wealthy.

    The entrepreneur possesses special abilities which always motivate him to innovate new goods, or to adopt new techniques or to find a new market. Thus entrepreneur is one of the important factors in economic development of a country. TECHNOLOGICAL: Technological changes relate to changes in the methods of production which

  1. China or India? Many companies ask themselves this question. Due to saturated markets, increasing ...

    the government will take these actions, but in China it would be easier for them to do so. Companies could join with domestic companies, to prevent these actions. These risks are closely connected to the political risks and the best recommendation is to pay close attention to political events and trends.

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

    particularly EME debt, thus, it will be interesting to see if it also affects US corporate debt liquidity. Higher inflation erodes the return of bonds. Both EME and US high-yield bonds are dollar denominated, therefore the US Consumer Price Index (CPI)

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