Friday 12 July 2013

The Changing Demographics of the Global Economy

                Globalization defined as the integration of production and consumption in all markets across the world. Including developed and developing nations the demographics of the world economy has undergone a rapid change in the past 30 years. The changes have strong economic implications, and many of them have already begun taking place.

                Actually there are 3 trends that describe the demographic in the global economy which is dominance of the large multinational firms, change in population of the world and the changing world output and world trade picture.

               Multinational enterprise is a firm which control and organize production using plants from at least two countries (Caves, 1996:1). Multinational corporations operate at the crossing point between production, international trade and foreign investments such as Apple, Microsoft ,Google, IBM, BMW, amazon and so on. These companies are in the middle of the debates about economic globalization and have the ability to set the market price for their products so that they can control the profit and availability. It will help them to have the chance to control other country economies. For example, US dominance in world economy control the supply of products ranging from financial to hardware, from defense to personal use and from electronics to mobile technologies. Marketing of these produce are done to spur the demand, specially in large consumer markets of China, India and USA itself.

               Next, the second trend is changing in population of the world. According to the Internet World Stats( Usage And Population Statistics), it shows that the top 2 population in the world are China and India.
The difference in the projection for the two countries populations at the end of the century is because of the difference in the nature of their growth. India's population will continue to grow at a positive rate for several decades and its population is expected to become more than China's by 2050.























The problem of the demographic phenomenon of rapid population growth in high-fertility countries not being accompanied by the economic phenomenon of sustained high growth for creating job and generating employment is not a concern only for Africa. It also applies to populous Asian economies like India and China.


              Lastly, most of the world economies activity is measure by Gross Domestic Product(GDP). GDP is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered an indicator of a country's standard's living. Actually many good things happening in or being experienced by people living in a certain country are strongly correlated with the level and growth rates of that country's GDP per capita. Some of those good things are also directly or indirectly connected to human rights issues. For example, when a country's level or growth rate of GDP increases, its average standard of living, the quality of education and the health of its population also increase. And standard of living, education and health are all human rights. 




   






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