University Essay: Shifts in the Global Economy and Its Implications

This essay provides an overview of the significant shifts in the global economy over the last three decades. It highlights the transition from a national-centered to an international context, impacting business objectives, strategies, and regulations. The essay discusses the rise of developing countries in the global market, the decline of dominance by countries like the U.S. and Great Britain in manufacturing, and changes in foreign investment trends. It also explores the role of small multinational companies and the impact of the decline of Communism. The essay concludes by analyzing the implications of these shifts on international business and the opportunities presented for cities like Hong Kong.

Running head: SHIFTS IN GLOBAL ECONOMY
SHIFTS IN GLOBAL ECONOMY
Name of the University
Name of the Student

1SHIFTS IN GLOBAL ECONOMY
The world of economy has switched rapidly over the last 30 years. The global economy
has moved to the national centered to the international context. The change is seen nit only in the
context of the business, but also in the objectives and the strategies of the business. The business
has crossed the border of government trades rules and regulation, culture, language, distance and
the investments.
The basic traits of the economy began to change after 1970, when the developing
countries started to open their business in the global competitive market. The world economy
started shifting from the dominance of the U.S and spread itself throughout the world (Knox,
Agnew and McCarthy 2014). The developing countries, for example started taking the place in
the business and the countries like Great Britain, North America started losing their ground in the
manufacturing industries. The comparative advantages are no longer can be seen in the industries
of these countries (Topik and Pomeranz 2014). The foreign investment trends have also been
changed over the years. Though the shift as not created much trouble in the economical
background of the America, but a huge change can be seen the growth of industrialization of the
developing countries. The growing number of the medium and small sized multinational
companies in the developing countries like Japan, India, South Korea needs to be counted as the
global economical shift in the international business.
The transformation in the economy on the global business context started from 1960 and
flourished in its full form in the late 1970. Apart from the emergence of the small multinational
companies and technologis in the developing countries, the diminish of the Communism in the
Eastern Europe and the former Soviet Union Republic is considered to be the final shift in the
global economy. It is found that many of the initial communist countries are committed to
democratic politics and therefore are investing in the economy of the free market. Asia, countries

2SHIFTS IN GLOBAL ECONOMY
in the Eastern Europe and the Latin America are seemed to share the same commitment for the
present global economical trend (Cox 2012). The continuation of the trends can open up the
opportunities in the international business. Similar implication can be seen in the business trends
of the Great Britain and the North America. The North America and Great Britain are in the past
found to be the dominant business entity in the world economy (Alford 2014). The shifts in the
world economy have created a challenging and the competing perspective and context in terms
of international business. However, the present business trend and the economy for the same are
in favor of the cities like Hong Kong. The location of the city, vibrant labor and the declining
influence for the U.S and Britain’s market are providing opportunities for the for the economical
growth to the companies in Hong Kong.
It can be concluded that in the late 1960’s, the global economy was dominated by the U.S
and Britain. The shifts in the economy for the global business has diminished the dominance and
paved the way for the developing countries to make footprint in the international business.

3SHIFTS IN GLOBAL ECONOMY
Reference:
Alford, B.W., 2014. Britain in the World Economy since 1880. Routledge.
Cox, M., 2012. Power shifts, economic change and the decline of the West?. International
Relations, 26(4), pp.369-388.
Knox, P., Agnew, J.A. and McCarthy, L., 2014. The geography of the world economy.
Routledge.
Topik, S. and Pomeranz, K., 2014. The world that trade created: Society, culture and the world
economy, 1400 to the present. Routledge.