Economic Growth and Development in the Global Economy

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Economics
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Introduction
The global economy is the economy of the humans of the world that is considered as
the international exchange of the goods and services which is expressed in terms of monetary
unis. The economic growth is basically quantitative change in nature, however, the economic
development can be both quantitative as well as qualitative in nature. Economic system is
known to be composed of all the entities which is known to describe the system.
The alterations in the economic system is known to take place during the time of economic
development. These changes are known to be qualitative in nature since the new entities are
known to be completely different and also non comparable with the existing ones. It have
also found out that the economic development is known to be accompanied by the changes in
the composition of the economic system.
The technological innovation are known to create qualitatively new entities. The presence of
the qualitative change in the development of economy is known to responsible for modelling.
It has also been found that the term of qualitative changes are rarely used by the neo
Schumpeterian economists. However, the qualitative changes of global economy plays an
important role in the work of Schumpeter. The existence of the change in quality among the
products is known to be present since the beginning of modern economics.
Countries like Malaysia, Indonesia as well as Thailand is known to display extremely huge
growth of manufacturing growth. The importance of the East Asian economies is known to
be marked in the sphere of exports. The entry of the massive labour force of china in the
global economy is known to prove the most profound change for 50 years. The development
of china is a powerful driver of the global growth and its impact on the other economies is
also known to be far pervasive in nature. On the other hand, the Latin America as well as the
Caribbean region is known to face a crisis development whose growth. the modest economic

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performance contrasts markedly with that of East Asia. However, the average growth of the
gross domestic product from 200 had been slightly higher than the world average. Most of the
national level quantitative data does not reflect the qualitative changes taking place in the
global economy. There is an existence huge transformation in the nature and the
interconnection degree in the world economy. There have been also a change in the speed in
which this connectivity takes place which includes both stretching as well as intensification
of economic relationships. Therefore, the world economy is known to be a qualitatively
different place from what was there 60 years ago. The international economic integration
before the 1900s, had been quite shallow in nature where only small portion of trade in goods
and services used to take place between the firs. However, presently, there is a presence of
deep integration between the geographically extensive and the complex global production
networks through various mechanisms increasingly. Such kind of qualitative changes are not
captured in aggregative data of trade and investment. In the modern world there had been a
huge increase in both the intra firm as well as intra industry trade. Both of these are the more
functionally fragmented as well as geographically dispersed process of production. Moreover,
there had been a dramatic change in the operation of financial markets where money moves
electronically round the world at an unprecedented speeds. One of the main characteristics of
the global economy is the qualitative transformation of the economic relationships across the
geographical space. The development of the US investment bank is also known to change
qualitatively since the 1980s.
The key characteristics of globalization are technological change, economies of scale,
changes in the tax system, reduction of protectionism, growth in both the transnational as
well as multinational companies.
The forces which surrounds the global system of production are: