1 / 14

Windows on the World Economy

Windows on the World Economy. CHAPTER 1. Introduction. Task we take up in this book — discovering the nuances of globalization Will try to explore the world economy and globalization in as balanced a manner as possible Will help us develop informed views and opinions.

bella
Download Presentation

Windows on the World Economy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Windows on the World Economy CHAPTER 1

  2. Introduction • Task we take up in this book—discovering the nuances of globalization • Will try to explore the world economy and globalization in as balanced a manner as possible • Will help us develop informed views and opinions

  3. International Economics • Typically divided into two parts • International trade • International finance • This book approaches things a bit differently • Will explore four different windows on the modern world economy • International trade • International production • International finance • International development

  4. International Trade • Refers to the exchange of merchandise and services among the countries of the world • Typically imagined as trade in merchandise • Significant portion of world trade is composed of trade in services • Financial services, architectural services, engineering services • Trade in services is about 1/4 the magnitude of trade in merchandise

  5. Figure 1.1 Industrial Production and Exports in the World Economy

  6. International Production • Production of a product in multiple countries • Can take place through • Contracts • International licensing and franchising • Foreign direct investment (FDI) undertaken by multinational enterprises (MNEs) • Involves firms based in one country owning at least a controlling interest in firms producing in another country

  7. MNEs • Account for approximately ¼ of world gross domestic product (GDP) • The sales of foreign affiliates of MNEs now exceed the volume of world trade • Are involved in approximately ¾ of all world trade • Approximately 1/3 of world trade takes place within MNEs • Account for approximately ¾ of worldwide civilian research and development

  8. International Finance • Refers to the exchange of assets among countries • Individuals and firms around the world conduct international transactions in • Currencies • Equities • Government bonds • Corporate bonds (commercial paper) • Real estate • Plays increasingly important role in the world economy

  9. Figure 1.2 Annual Exports and Daily Foreign Exchange Market Turnover

  10. International Development • Hoped that the processes of international trade, production and finance will contribute to improved levels of welfare and standards of living throughout the world • Major issues involved • How we conceptualize levels of welfare or standards of living • How the processes help to determine international development

  11. International Development • Measure of these differences in living standards is the human development index (HDI) • Per capita income • Average life expectancy • Average levels of education

  12. Table 1.1: Measures of Living Standards, 2000

  13. Connecting Windows • Each offers a view, but each has a frame • Each offers some insight into the world economy • An insight that needs to be supplemented by one or more of the other windows

  14. Figure 1.3 Connecting Windows

More Related