Question

Some fairly dramatic changes have taken place in the demographics of the global economy over the past three decades. Several factors have played a significant part in shaping this change. Since the 1960’s, four major factors have contributed to the changing world economy &the world trade picture. These factors are U.S. dominance in the world economy, U.S.dominance in world foreign direct investment, dominance of large multinational U.S.firms, & lack of trade with centrally planned economies. All of these have either changed,or are rapidly changing the global economy today.

Mach each element with the change associated with it.

1. The Changing World Output & World Trade Picture
2. The Changing FDI Picture
3. The Changing Nature of theMultinational Enterprise
4. The Changing World Oder

a. Developing nations
b. China
c. Toyota
d. Hisense

Answer 1

1. The Changing World Output & World Trade Picture ⇒ Developing nations

Developing nations have steadily been improving their contribution to the world economy and will eventually become major trade partners.

2. The Changing FDI Picture ⇒ Toyota

Toyota has gone from producing in and exporting from Japan to producing in several countries as a form of FDI which shows that companies apart from those in western nations can now engage in FDI.

3. The Changing Nature of the Multinational Enterprise ⇒ Hisense

Hisense was originally a radio manufacturer from China but has now taken to the world as a Multinational Enterprise spanning markets across the globe.

4. The Changing World Order ⇒ China

China has gone from a country devastated by civil war and internal strife to an economic juggernaut that through trade and aid, is imposing its will on other nations and challenging the US thus signifying the changing world order.