Factors Influencing the Current and Contemporary Economy
Factors like entrepreneurship, capital goods, human capital, and natural resources influenced the current and contemporary economy. Most nations are now able to participate in international trade and export due to changes in the economic sector experienced on a global scale. This endeavor to end a few countries' monopoly on the global market has secured fair and competitive business practices, resource distribution, and the production of capital goods. This has given countries the chance to engage in international trade, which has improved their economic performance (Esping-Andersen and Gosta, 2012).
Shifts in the World Economy over the Last 30 Years
For the last 30 years, the economy of the world has shifted dramatically. In the late 1960s, situations and stylized facts revealed the demographics of world economy. For example, the United States dominated in the trade and economy worldwide. Secondly, U.S managed to dominate in the foreign direct investment globally. Another related fact is the supremacy of multinational United States firms in the global business scene. Further, most of the central planned economies, which were about fifty percent of Communist world, were proscribed to businesses in western international. The above mentioned demographic facts have drastically changed. Despite Unites States still being dominant economic power, their shares of world exports and output have significantly declined since 1960s. This trend reflects growing industrialization among developing countries like South Korea, Indonesia, India and China instead of revealing the troubles in U.S economy (Avakian, & Martin, 2005).
Economic Implications for Former Communist Nations and Britain and North America
Former communist nations in Asia and Europe appear to share commitment to free market economies and democratic politics. On the other hand, similar economic developments are witnessed in Latin America. International business may provide enormous opportunities if this trend continues. Similarly, the implications of economic shifts are felt in Britain and North America. Britain and United States used to enjoy luxury because of their dominant players worldwide with little or minimum competition from developing countries of the world. The current economic situation is now different. Today, both Britain and United States must compete effectively with other competitors across the world to gain orders. Besides, Hong Kong is one of the cities that have benefited by shifting demographics of the global economy. Hong Kong that is under the Chinese rule is currently well located and able to access markets in Asian, Indonesia, South Korea, and other Japan markets. In other words, Hong Kong has the capacity due to their vibrant labor to compete well with the industrialized countries globally (Esping-Andersen and Gosta, 2012). Therefore, the declining influence of Britain and United States on the world economy has provided opportunities for businesses in Hong Kong to pursue export markets.
Economic Changes and Growth in Mexico
In the past 30 years, Mexico has greatly realized economic change and growth in the country. In addition, the country has diversified its industrial and commercial policies. The economic history of Mexico was characterized by relatively underdeveloped industrial sector, agriculture and resource extraction. Before the shifting of world economy, in 1950s, Mexico did not attain proper economic growth because of the dominance of few countries like Britain and U.S in the international trading and exporting market. The economic growth has been attained through openness, liberalization and encouraging the contribution of private sector by increasing their role. Shifting of the world economy facilitated the implementations of Mexico strategies that entailed advancements on liberation of financial flows, removal of barriers, fiscal conservatism and control of government expenditure (Avakian, & Martin, 2005).
References
Avakian, B., & Martin, B. (2005). Marxism and the call of the future: Conversations on ethics, history, and politics. Chicago [u.a.: Open Court.
Esping-Andersen, Gosta (2012), The Three Worlds of Welfare Capitalism, Cambridge University Press, United Kingdom.
