Why would it be useful for international traders to build up knowledge of the global distribution of income and wealth and how it is changing over time?

The global economy has been divided the world into two.

The command and operate in the industrial, technological and finance environment. And on the other side we have the natural resources who are resistance to the environmental regulation. However bare in mind the policy measures restricting trade flows. Now day’s government officials are involved in importing and exporting tax and other measures like government revenue to limit the competition. Businesses expand these days faster although governments do get involved and the governmental regulations also expand. The market economy of Europe and the US is seen as capitalism. In the business environment you have different groups that you have taken in to consideration, including businesses consumers and governments. Each with there own interests. For starting up an organization or a company you have take governments responses and national economic forces into consideration for they can influence your business plans. Marrewijk, Charles van (2007). International economics. Oxford: Oxford University Press. p4-388

Although economic growth with healthy capital investments doesn’t mean that reflexes the wealth of the whole society, especially in countries where the population is still growing. Like china or India the opportunities and income between different groups are enormously. The economic environment has explored, businesses invest in developing countries also known as outsourcing. Only by industrialization and investments a countries economic wellbeing can growth. The economic growth of the EU has had up as and downs as like Japan who is recovering from its recession and Germany after the WOII.

After the Great Depression of 1929 the Western government introduced a social security system into the market economy it gives a social justice dimension to the capitalist model also known as the mixed economy. It protects some companies them form takeover, or if they should fall down the government /state will help them. Morrison, Janet. (2006). The international business environment . New York: Palgrave Macmillan. p135-223

After the Second World War important aspects like economic, social, and political has been developed, Global exchange of capital, goods, and services. In the last decades global marketing has developed feather, they become globalized. After the Great Depression of 1929 the Western government introduced a social security system into the market economy it gives a social justice dimension to the capitalist model also known as the mixed economy. It protects some companies them form takeover, or if they should fall down the government /state will help them. Marrewijk, Charles van (2007). International economics. Oxford: Oxford University Press.

Since 1970 the US fallowed by Japan influence the trade around globalization, The US has been for centuries influential national economy. They invest in foreign countries. For centuries the US has enormous influence on the financial market around the world. Japan and US they also influence and dominated the foreign investments. These days’ governments across the world are making changing to attract investments. New competitive environment ha been developed and they influence the societies. In 1990 the South and easting countries where showing some economic growth but are now far behind because of financial crisis. Morrison, Janet. (2006). The international business environment . New York: Palgrave Macmillan. p167-383

In the last century the European Union (EU) has been developed. Different counties combined together for political and financial reasons, the EU promotes trade and cooperation between different countries. Between the EU countries there is the freedom of trade, investing and travelling and workers. The EU is as wealthy as the US. The Euro has the same value as the Japanese Yen and the U.S Dollar. However china’s economic is still growing enormous. Although these day economics are not certain about china’s economic future because of the costs of the natural sources and the Chinese exports especially of the fact that the Chinese policies dominate the business and the media and the government encourages entrepreneurial activity. Trough the economic development businesses are investing in china, private enterprises are settling their business in china and that creates new jobs which is relevant for the Chinese economy.

Supply and demand makes companies compete, the demand and the supply determine the price. Morrison, Janet. (2006). The international business environment . New York: Palgrave Macmillan. P135-388

To summarise thru the innovation of technology, transport and communication globalization was introduced. Globalization had an impact and combined people, business and governments using improved technology. They improved the financial, legal structure around national economies. The improvement from these factors has made global trade essayer and faster. This had effected on the global economy by innovate the political, social cultural and technological environments .Relationships between different countries and business had expanded. Businesses are exploring other countries and investing in foreign countries as a result workers in their own countries loss jobs to low-wage countries. But at the same time changes in the financial sector have also a positive side they attribute to the process of globalization and creating new jobs in the countries where business are investing in it. As a result Asian countries have embraced these opportunities and they have adapting to the changes of the western social and cultural values.

Reference/Sources

Marrewijk, Charles van (2007). International economics. Oxford: Oxford University Press. p4-388

Morrison, Janet. (2006). The international business environment . New York: Palgrave Macmillan. p135-223

Marrewijk, Charles van (2007). International economics. Oxford: Oxford University Press.

Morrison, Janet. (2006). The international business environment . New York: Palgrave Macmillan. p167-383

Morrison, Janet. (2006). The international business environment . New York: Palgrave Macmillan. P275-348

Morrison, Janet. (2006). The international business environment . New York: Palgrave Macmillan. P135-388