In the world economy today, we can see many changes from how the world use to be. People from all different places have integrated into a society where their cultures and values are welcomed no matter where the come from. This assignment will identify four factors that determined the modern world economy, describe the shifts over the past 30 years with examples, and discuss the implications in Britain, North America, and Hong Kong. In addition the current economy in Mexico will be introduced. Analysis:
“The four factors that determined current modern economy are land, labor, energy, and capital. These are also the four factors of production.” (Hill, 2011) Over the last 30 years, national economies shifted far from what they use to be. National economies use to be relatively self-contained entities, isolated by barriers to trade and investment, with differences in government regulation, culture, and business systems. Now it has shifted toward a world where barriers to trade and investment are declining, cultures are converging, and national economies are merging into an integrated, interdependent global economic system. “Today, there are more than $3 trillion dollars in foreign exchange transactions taking place everyday as well as over $12 million dollars of goods and $3 trillion dollars worth of being sold across the boarders.” (Hill, 2011) Places like the United States use to be the dominant country but now because China and Japan are becoming so successful, The dominance of the United States has diminished.
These shifts manifest themselves in the world economy in many ways. For example, he now have international institutions. People can actually attend school in a different country and with the technology nowadays, they can do it online. Other examples of the shift includes “what people wear, the car people drive, the food people eat, and the jobs where people work.” (Hill, 2011) You...