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

Describe the shifts in the world economy over the past 30 years. What are the implications of these shifts for international businesses based in UK.

Extracts from this document...

Introduction

Question 1 Describe the shifts in the world economy over the past 30 years. What are the implications of these shifts for international businesses based in UK. The world economy consists of many different factors. One of the most important ones is the GDP (Gross Domestic Product) of all countries. This factor is influenced by each countries performance in respect to the level of trade, investment and government spending. It is hard to identify an exact definition of the World Economy, since it consists of a vast amount of variables. "It is inseparable from the geography and ecology of Earth, and is therefore somewhat of a misnomer, since, while definitions and representations of the "world economy" vary widely, they must at a minimum exclude any consideration of resources or value based outside of the Earth." 1(wikipidia) An analysis of some of the major factors affecting the Worlds Economy will be examined. These will differ between human decisions, such as wars and conflicts between nations and natural disasters. Furthermore a summary of the fluctuation of the world economy will be produced. In this sections a few examples will be given of major nations influencing the economy, aiming to gain a vaster understand of the shifts in the World Economy. ...read more.

Middle

Such terrorist attacks have affected the mentality of many individuals; holidays planned by families have been cancelled due to the fear of further attacks. Over the last 30 years, there has been a huge transformation in China's export rate. Its production of goods has had a great impact on the world's economy. The manufacturing of goods have increased from an average of 50 per cent to an astonishing 90 per cent, becoming the manufacturing centre of the world. Technological gadgets, such as digital cameras, mobile phones and computers are some of the products produced by China. Most of this production is exported, increasing to $400 billion dollars since 1990 the exporting ratio. In the last 20 years, there has been a transformation in the composition of China's export trade. The share of manufactured goods has risen from 50 percent to more than 90 percent, with primary goods contracting to a share of just 9 percent. As China is increasingly becoming the manufacturing centre of the world, there Is another nation becoming the centre of information technology and services, India. Between 2000 and 2004, India increased dramatically their software exports, being about $6 billion in the year 2000, reaching an astonishing $16 billion in 2004. ...read more.

Conclusion

Furthermore, as the rising oil prices continue there is less consumption because the basic necessities of heating, food and travelling to work will overrun general consumer consumption and this will have a negative effect on the Multinational Enterprises, such as Tesco. Consequently, consumer products will not be wanted causing a reduction in production. There have been added global pressures on the economy, effecting directly Tesco's, on top of the oil prices spiking. The July attacks on London by Al-Queda terrorists have created further instability and fear. Due to this factor potential customers fearing another attack avoided going out, reducing incredibly purchases. In conclusion, its understandable that the shifts in the world economy, have a substantial impact on international businesses. Furthermore, due to natural disasters terrorist attacks and on going conflicts between nations, the world economy will be under constant fluctuation, which will greatly affect international businesses both domestically and internationally. Ultimately, at present time business growth in the world is evolving; within the European Union growth is solid with China and India continuing to be engines of growth. 1 Wikipedia, www.wikipedia.org 2 World Bank statistics , http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0,,menuPK:232599~pagePK:64133170~piPK:64133498~theSitePK:239419,00.html 3 World Bank statistics, http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0,,menuPK:232599~pagePK:64133170~piPK:64133498~theSitePK:239419,00.html 4 Deloitte, http://www.deloitte.com/dtt/section_node/0,1042,sid%253D5863,00.html ?? ?? ?? ?? 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies 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 University Degree Management Studies essays

  1. economic analysis of tesco

    Both solutions combined should take no more than five months to operate, and will increase staff efficiency and also increase demand. Converting the checkouts would add to the fixed cost but will produce more revenue, as demand will increase. Problem 3: Availability of products Some stores are located in a

  2. Influences of the Chinese macro environment on the past, present and future employment these ...

    Another important aspects of taxation reform is foreseen to be the unification of the current dual track income tax system where foreign invested enterprises and domestic enterprises are governed by different tax laws. Although the corporate tax rate for both is 33%, tax holidays and other incentives (as described above)

  1. Marks & Spencer China

    The costs of housing, medical services and education amounted to a very high level, which has an effect on consumption. There are 20% of Chinese who would have 80% of the rich of the country. The reality worried the government and so it has decided to encourage the consumption of the inhabitants.

  2. Business analysis of uk no-frills airline industry

    Ryan air and Easyjet grew dramatically in the late 1990's focusing on cost reduction and cheaper flight tickets and also extending their current operations beyond existing markets to cover routes across Europe. In Europe, No-frill carriers' benefit from a 28% in market share which is a significant increase from the 13.6% occupied in 2002.

  1. Factors affecting International Business

    External factors affecting the growth of an international business * General economic and industry conditions . Economic conditions play a vital role in the development of an international business. Any general economic, business or industry conditions that cause potential customers to reduce or delay investments in the industry could have a negative effect on the company's strength and profitability.

  2. China, India and the World Economy

    It begins with indicators of the extent of integration of China and India with global markets for goods and services (Subsection 3.1). Subsection 3.2 focuses on Global GDP Growth and Shares of China and India. Subsection 3.3 is devoted to sources and sustainability of growth using conventional decomposition of growth,

  1. Explain what is meant by market globalization(TM). Identify and analyse the key drivers of ...

    adding Tariffs, quotas, subsidies, etc. Although these types of measures appear to protect a countries economy, it only does so in the short-term as other countries will respond with the same tactic, this results in companies finding it increasingly difficult to export their products so as a consequence world activity falls.

  2. Contemporary Business Issues - the main two topics I will discuss in more depth ...

    Business Ethics. Business ethics is basically the behavior a company shows in the daily runningâs. It is not only based of how it treats the world but also customer wise. Being a business people seem to think that they are only interested in one thing and that is the financial side and increasing its sales and revenue at all costs.

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