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The Global Economic Shifts Since 1930 Economics Essay

Over the last 30 years the world economy has experienced various economic shifts. U.S the world largest economy had many conflict with Soviet Union especially during cold war (1945-1991). The tension between these two superpowers was mainly on political, military and economic issues. Each of these countries endeavored to establish relations with as many countries as possible in the world. US sought to have allies especially with Western Europe and many developing countries in Africa and Asia. It is the activities of these two superpowers that dictated many shifts in the world economy.
The recent economic up rise of China also has a apart to play in world economic shifts. China has sought to intensify its economic relations with many countries in the world. The nowadays flow of China goods and services especially to African economies speaks a lot about China efforts to create more economic relations with Africa which constitute a large market to many of her products. Many countries have become members of various economic and political blocs which have regional and international scope. Many economies have realized that they cannot make it on their own. International trade among members of various international bodies has been intensified. Great innovations have also occurred due to high competition among different world economies.
Global Economic Shifts
Hill (1999) postulate that various global economic shifts have taken place over the past 30 years. The protectionism ideologies have no place in our current world economies. Many countries have liberalized trade and eliminated most of barriers to trade. Embargos, legal restrictions, tariffs and custom duties have been lightened to allow free flow of goods and services. Capital flow among various world economies has also been intensified.
Trade and investment across world economies has greatly increased. Developed economies like U.S, Germany, Britain, Italy, Sweden, Japan and Spain have been trading with developing economies especially with many African and. Asian countries which have deficit in capital stock. The integration of national economies to a global economic system is on progress. All players in international trade are being aided to exchange goods and services in the easiest way possible in terms of time and cost. Telecommunication has gradually been improved to ease communication among various people who are many miles away from each other. Telecommunication systems have been improved a great deal. An economic agent in Africa can trade online with an economic agent in America.
Hill states that the liberalization policies and market mechanism have been embraced by many economies. Restrictions and regulations that hinder international trade have been reduced or scrapped off. Foreign investors are faced with fewer regulations from the host countries. Government controls have been minimized to a level that will ensure smooth flow of economic activities without compromising free market mechanism.
Shifts and global economy
It is apparent that many global economic shifts have been characterized with great transport and telecommunication innovations. One of these innovations is the development of microprocessor. The functions of computer’s Central Processing Unit are incorporated in a microprocessor. Microprocessors have been used in information processing and carrying out various functions like calculations and arithmetic which has made work easy. Microprocessors have improved information processing. Huge data entered into a microprocessor can be
Processed into meaningful information in seconds. This has aided in making decisions concerning international trade.
The development of internet has also aided globalization of world economies. The internet simply defined as the worldwide interconnection of computers has converted world into a global village. Many economic agents in different economies have utilized trade opportunities offered through internet. An economic agent located in Asian economies can post his/her orders in the internet. These orders can be processed online by an economic agent located in U.S and transactions made online and international trade take place.
The development of jet air travel has reduced travel time. International trade on highly perishable goods like flowers has been made possible. Transportation of goods and people has been made faster. International labor mobility has been improved and made faster.
The change in world order
The democratic revolutions against communism saw the fall of Soviet Union which was dissolved by the former Russian president Boris Yeltsin in 1991. East Germany was reunited with western Germany and communism rule was done away with. Communism rule could not withstand great revolution in countries like Poland, Hungary Czechoslovakia, Romania, Bulgaria and Romania. The revolution against communism regimes was lead by political groups and civil societies who were opposed to the communism ideologies. U.S. policies to hinder expansion of Soviet Union in eastern and central Europe had succeeded. This marked the end of cold war. U.S economy has since sought to expand its economic and political relations with the countries which were under Soviet Union. She has been intensifying her support in terms of scientific and information technologies. Her culture has also been imparted to these countries. Many countries which were under Soviet Union have become independent. They are also no longer one political bloc. Ukraine, Lithuania, Georgia, Azerbaijan, Tajikistan, Belorusse, Estonia, Latvia, Kazakhstan, Moldova, Uzbekistan, Russia, Armenia, Kyrgyzstan and Turkmenistan are no longer under Soviet Union. Czechoslovakia also split into two states which are Czech and Slovakia republics. Yugoslavia was split in 1991 after Slovenian and Croatia declared their independence. Bosnia, Serbia and Montenegro were also formerly part of republic of Yugoslavia which was allied to Soviet Union. All these marked the disintegration of the powerful Soviet Union. Since then, U.S has become a superpower and she has a great influence to world economy.
Major non — violent demonstrations have occurred in China and Latin America. In China the civil activists have been pressurizing for more political freedom, extension of individual rights and shaping of national policies. They have been resisting forceful invasion and occupation by oppressive by communism regime. In Latin America many non-violent revolution have been witnessed. These revolutions have been pressurizing for political reform, eradication of corruption and dictatorship. Non-violent demonstration in Ecuador saw the overthrow of Lucio Gutierrez as a president. This pressure has lead to embracement of political systems which are more democratic. Free market economies have consequently been embraced in these countries. Free market economies on the other hand has encouraged global trade and eradicated many trade regulations.
The cease of U.S Domination Era
In our contemporary that many multinational companies have U.S as their mother country. In fact 60 to 70 percent of international business has been dominated by U.S. originated companies. These constitute 2/3 of direct investments to foreign countries by the US. However things have changed especially by 2002.The world has seen the rise of multinational companies from some developing countries which have also offered employment to people of the host countries. China and Brazil has contributed to this by 30% and 7.6% respectively.
Mini-Multinationals corporations have also been on rise. Their involvement in global trade has been on increase. Some multinational companies have been specializing in luxury lifestyle groups i.e. quintessentially. Multinational company like Lingo 24 has been offering translation services in various languages with employees in European countries, China, New Zealand and Parma. China, Brazil, India and Russia are examples of economies which have remarkably challenged US dominance in international trade.
China and India
Much of today manufactured goods, services and employees are offered by either India or China. In fact big multinationals corporations like Adidas, Reebok and Nike have China as their country of origin. China is rated number three in export of auto manufacturing in the world.
The chain of global innovation also has much to count on Indians. HP, Cisco System, Computer simulation with3D, Google principal lab in Bangalore, General Motors, Boeing Co. and Motorola are some of these innovations. These innovations are playing a great role in global economy.
Russia and Brazil
These two countries have gradually been dominating raw materials supply. Russia is rated among the largest producers of gas, oil and aluminium which are spearheaded by Gazprom, Lukoil and RusAl respectively. The dominant producer of iron ore and soy is Brazil. DuPont, Dow Chemical Company and Monsanto Company uses soy beans from Brazil in manufacturing of chemical.
It is apparent that for the past 30 years notable global economic shifts have taken place. Market mechanism has been developing in many economies of the world. The past world order with U.S and Soviet Union as contending super powers is gone. Great innovations in transport and communication sectors have made the world to be like a small village where transactions can be carried within a second. Regional and international blocs have been formed to enhance economic integration. The change in world order following disintegration of Soviet Union has enhanced economic globalization. The period of US Dominance Era has been widely being threatened and in fact its existence have become a thing of past. Developing economies have registered big growth in global economic contribution. The futures that await the world is world of high quality goods and services, great integration and dependence, great innovation and inventions

Unemployment in india and methods of overcoming

In this assignment iam planning to do about the unemployment in india, And how the government overcome this unemployment here, and what are the cost of of unemployment, For more details we can see the following:
UNEMPLOYMENT IN INDIA India is a nation with massive unemployment problems faced. Unemployment can work as a state of inactivity for a man fit and ready to be defined. It is a condition of involuntary and voluntary idleness. Some features of unemployment were identified as follows:
1. The incidence of unemployment is significantly higher than in urban areas in rural areas.
2. The unemployment rate for women than for men.
3. The incidence of unemployment among the educated is much higher than the overall unemployment.
4. There is more unemployment in the agricultural sector than in industry and other important areas.
Economists and social scientists, thinkers have divided into different types of unemployment. Generally, unemployment can be divided into two types:
(1) Voluntary unemployment
predominate in this type of unemployment a person not from the work of his own desire on the prescribed wages, or work. Either he wants higher wages, or does not want at all.It does indeed social problem to social disorganization. Social problems and forces, such as a revolution, a social revolution, a class struggle, a financial or economic crisis, a war between nations, mental illness, political corruption, mounting unemployment and crime, etc. threaten the smooth functioning of society. Social values ​​are often seen as the dynamic forces of society. They contribute to the strength and stability of social order. But due to rapid social change come new values ​​and decrease some of the old values. At the same time, people are not able to reject the old and fully accept the new total. Here is the conflict between the old and new, the inevitable result that leads to social disorganization imposed in situation. In economic terminology, this situation is voluntary unemployment.
(2) voluntary unemployment
In such a situation, the person who is unemployed is to say nothing. It means that a person is separated from the supply of employment without pay, although he is able to earn his wages and also trying to earn it. Forms and types of unemployment are to Hock.
(3) Cyclical unemployment – This is the result of the economic cycle, which is a part of the capitalist system. In such a system there is more unemployment and depression when it made a large number of people unemployed. Since such an economic crisis is the result of the economic cycle, unemployment is a part of it.
(4) Sudden unemployment – If at the point where workers have been employed, there are some changes, a large number of unemployed persons. It all happens in industry, trade and business, where people are employed in a job and suddenly, when the job is finished they will be asked to leave.
(5) Unemployment caused by failure of some industries – in many cases, to close a business, a factory or an industry has. There, various factors may be responsible there are disputes between the partners, companies may be huge loss or the business can not prove to be useful and so on.
(6) Unemployment caused by a deterioration in business and industry – in different industries, trade or business, sometimes there are worse. This deterioration is due to various factors. In efficiency of the employer, sharply lower profits competitions etc. are some of the factors leading to a deterioration in the industry and the company.
(7) Seasonal unemployment – certain industries and traders involved workers for a given season. If the season has ended the workers are made unemployed. Sugar industry is an example of this type of seasonal unemployment.
The problem of unemployment has a colossal. Various issues have caused this problem. There are individual factors such as age, disability and physical disabilities, to limit the people. External factors include technological and economic factors. There is enormous increase in the population. Each year India adds to its population again. be more than this every year about 5 million people are eligible for securing jobs. Business area is subject to ups and downs of economic cycles and globalization. Economic depression or sick industries are often close compelling their employees become unemployed. Technological progress contributes to economic development. But unplanned and uncontrolled growth of technology is havoc on job opportunities. The computerization and automation has led to technological unemployment. Strikes and lockouts are inseparable aspect of the industrial world. Because these industries often face economic and production is lost. Since the employee does not receive any salary or wages during the strike they are suffering from economic difficulties. You are permanently or temporarily unemployed. Today young people are not ready to jobs that are considered socially or degrading low increase. Our education system has its own irreparable defects and their contribution to the unemployment is preparing an open truth.Our education is not the minds of the young generation to become self-employed, on the contrary, it makes them dependent on government agencies, which are difficult to obtain. Our state of the start of the five-year plans has several employment measures and programs over the years, but generating, in the absence of proper implementation and monitoring have failed, introduced to achieve the required goals. Recently UPA government with Rural Employment Guarantee Programme, to come provide the minimum days of employment to people living in the villages. This is a laudable program, if sincere, because it will provide employment for people reacted during natural disasters such as drought, floods, etc. The measures to reduce unemployment may be more emphasis on creating opportunities for self-employment, increase productivity and incomes of the laity the working poor, trying to shift emphasis from the creation of relief type of employment for the construction of durable productive assets in rural areas and, instead, something can be accelerated back to protectionist measures, the pace of privatization
HOW THIS UNEMPLOYMENT OVERCOME Problem of unemployment can be resolved in India by launching corporate agriculture system, improving the marketing system, social security for farmers, subsidiaries
Indian agriculture is an area that can solve future unemployment situation in India, but this is the most neglected area of ​​politicians and government officials.
Now I will list down a few key points, this can be done.
Introducing Corporate farming system
The Soviet method of farming can not fit. The solution could be corporate agriculture, in which corporations invest their money and share technology in agriculture, the gains are with the farmers. Improving the most important thing, the agricultural scene in India, is water. For this we need to build large dams.
Agriculture in India needs more support from industry. Food processing machinery too.In India, only 2% of agricultural production is processed. In developed countries it is as high as 80%. This is better to give back to the farmers from their fields and also to remove, as the industry middlemen buy direct from the farmers. The government also needs to irrigation to invest technology and more efficient, reliable and cost-effective credit system.
Improving the marketing system and social security
The marketing system should also be improved. Social Security must be brought in for every person in India. That will mean at least that people do not live in acute poverty if their crop fails or they lose their jobs. But at the same time it should be clear that without employment generated by the services and manufacturing sectors.
We can also help farmers, where traditional cultures have been a failure due to water shortages by offering them help plant crops such as jatropha, which needs only a small amount of water, and would also help direct the corporate world, as in the productionhelps biofuel.
Subsidization of farmers and implement crop insurance scheme
Other suggestion would be complete crop insurance and farm subsidies are used instead of the consumer. The government needs to subsidize farmers heavily in order to reduce the situation, the price of food, and it is on the market at a competitive price available, rather than the procurement of the farmers and sell them cheaply to the public.
Government has to subsidize everything at first. Improved irrigation system must be created. We are good at production, but if an efficient system is down, it would be much better. Irrigation is the key. We have the natural resources so that we have to use it better. For example: completed in Gujarat, after the Sardar Sarovar project, it would not only drinking water to Saurashtra / Kutch region, but also opportunities for a better agricultural products in the not-so fertile land in the region. So there must be an increased effort on the part of government in the layout of a better infrastructure for agriculture.
Increasing storage
The government should create more storage for the harvest, as Indian granaries are overflowing and rot, while people can not afford the food die of starvation. We need to figure out a system by which we can better process the food business and better.
Why do farmers commit suicide?
Most farmers who commit suicide make a bad choice of plants and grow high-risk crops such as cotton, tobacco, etc. drought and pests, these plants much more easily than others devastate. The government can do about it much (and I know it’s working).You should read our research and counseling services and advice to farmers to plant what and what not. In addition, much emphasis should be placed on research to find the plants that are grown to diversify. Fruit crops, some cereals, pulses need less water and less resources sensibly. The education of farmers about these “non-traditional” opportunities and possibilities is really important.
Tightening of agricultural credit system
The agricultural credit system should be so tight that farmers credit only if they get to make informed decisions. In this way, farmers will not be in serious debt and not be forced to kill himself.
I think if these steps are implemented effectively in agriculture, then the agriculture in India can provide employment for millions of people in rural and urban areas of the country as the people, the urban areas have come to gain employment in other areas will return to their villages and hard work in agriculture, the basic living conditions of their business in their area to do.
I invite all of not only the Indian community, but also the global Internet community, the inputs to share in this concern.
COST OF UNEMPLOYMENT Most economists agree that high unemployment is not only costly to individuals and families directly affected, but also local and regional economy and the economy as a whole. We can distinguish between the economic costs of people without work and the social costs of making the often follow.
Lost output of goods and services Unemployment leads to a waste of scarce economic resources and reduces the duration of growth potential of the economy. An economy with high unemployment is to produce within its production possibility frontier. The hours that work the unemployed can not never be won.
But if unemployment can be reduced, total national output to rise, leading to an improvement in welfare.
Fiscal costs of government High unemployment has an impact on government spending, taxes and the amount of debt each year
A rise in unemployment leads to higher pension payments and lower tax revenues.When individuals are unemployed, they receive not only treatment but also pay no income tax.
Because they spend less they contribute less to the government in indirect taxes.
This increase in government spending and the decline in tax revenue can lead to higher public debt requirement (known as a public net cash requirement) Score
Welfare loss of investment in human capital
Unemployment waste some of the scarce resources in the training of workers employed. Furthermore, workers who are unemployed for long periods of de-skilled as their skills are increasingly in a rapidly changing labor market dates. This reduces the chances of employment in the future, which in turn the economic burden for the state and society. Check out the review on page Long-term unemployment
Social costs of UNEMPLOYMENT Rising unemployment is a social and economic disadvantage are – there is some relationship between rising unemployment and rising crime and increasing social dislocation (increased divorce, the decline in health and lower life expectancy).
Areas with high unemployment and a decline in real income and expenditure and a growing number of relative poverty and income inequality. Than younger workers are more geographically mobile than older workers, there is a risk that areas with higher than average unemployment is suffering from an aging workforce potential – making them less attractive as investment locations for new businesses.
CONCLUSION From the above we can see what are the unemployment take place in india and what are various type of unemployment in india, and what are the steps taken by the government to overcome this unemployment in india and also we see what are the cost of unemployment