The changing world economy Dr. Truong Thi Kim Chuyen

Slides:



Advertisements
Similar presentations
Center for Emerging Market Enterprises
Advertisements

Fair Trade: Social Movement – improve conditions of direct producers in Third World (raw materials, agricultural goods) 1960s Europe Less that 1/100 of.
Innovation Economics Class 6.
The Theory of Trade and Investment
G LOBAL S ERVICES Lesson 1: Shift from Manufacturing to Service Oriented Economies.
Comparative Advantage of a Region May 11, Comparative Advantage of a Region I.Alfred Marshall’s industrial cluster II.Michael Porter’s diamond.
International Trade.
International Trade Theory
UNIT VI: Economic Geography. Core: -wealthy -industrialized -MDC’s U.S., W. Europe, Japan Semi-periphery: -developing -newly industrializing (NIC) China,
Prepared By Prof Alvin So1 SOSC 188 Lecture 14 The Development Project (II): Unravels.
Other Assumptions: two countries, two factors, two products; perfect competition in all markets; Free trade; Factors of production are available in fixed.
International Trade Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall.
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Business Environments & Operations
Regional Industrial Development Problems Smith’s 3 categories of problem regions: –Underdeveloped regions (lack industrialization or are backward - lack.
Chapter 2: The External Environment: Opportunities, Threats, Industry Competition and Competitor Analysis Overview: The firm’s external environment.
Economic Growth IN THE UNITED STATES OF AMERICA A County-level Analysis.
Industrial Change Innovations in production = manufacturing boom Henry Ford = mass-production assembly line Allowed for the production of consumer goods.
GLOBAL SOURCING & MANUFACTURING LOGISTICS: Superimposing Complexities
Development and Trade The Geography of the Global Economy.
WORLD GEOGRAPHY December 5, Today Unit 9 (Industry and Service – Economic Geography) - Introduce Unit 10 (Human Environment)
Glossary of Key Terms balance of payments. An account of the flow of goods, services, and money coming into and going out of the country. capital. Money.
Globalization The world economic globalization process
The Multilateral Trade System Lecture 17. Snapshot of U.S. Trade How Much? 1998: $1,587.4 Billion Imports and Exports of Goods and Services 1998 GDP $8,760.0.
The Strategy of International Business
Globalization, Knowledge and Regions Philip McCann University of Waikato NZ and University of Reading UK.
Figure 8.1 Opportunities and Outcomes of International Strategy
Chapter 5 International Trade. © Prentice Hall, 2008International Business 4e Chapter Chapter Preview Discuss the volume and patterns of world trade.
Developing Countries and Globalization Lecture 20.
LECTURER: TRUONG THI KIM CHUYEN. Service: definitions 1.The general way 2.Sectors of service 3.Subjects of service 4.Characteristics of service Outsourcing:
Economic Growth IN THE UNITED STATES OF AMERICA A County-level Analysis.
Global Business Management (MGT380) Lecture #19: Global Strategy.
Vivianne Ventura-Dias LATN (Latin American Trade Network )
The Global Economic Environment Global Marketing.
October 29, 2015S. Mathews1 Human Geography By James Rubenstein Chapter 9 Key Issue 4 Why Do Less Developed Countries Face Obstacles to Development?
Firms, Trade and Location Chapter 5. Distance in economics  The relevance of transportation costs ( Box 5.1 )  CIF (cost, insurance, freight)  FOB.
Economic Growth IN THE UNITED STATES OF AMERICA A County-level Analysis.
Global Connections: Industry. Objectives Identify the different types of industry sectors. Explore the spatial relationships of trade. Consider location.
SAMPLE QUESTIONS. Pages you may skip BOX 7.2 – P 312 BOX 7.3 –PP PP PP BOX 9.1—PP PP (DO READ THE CONCLUSION.
Economic Geography 1. What Influences Economic Activity? 2. Sectors of the Economy 3. Location Factors in Services.
The Global Marketplace Global Marketing in the 21 st Century The world is shrinking rapidly with the advent of faster communication, transportation,
NIC’s (Newly Industrialized Country)  Developing very quickly  South Africa  Mexico  Brazil  Malaysia  Philippines  Thailand.
Chapter 6 Help Wanted: The Changing Geography of Jobs.
Trade and Factor Mobility Theory
Economic and Industrial Geography Terms Foreign direct investment The total of overseas business investments made by private companies.
Industrialization #2 The future of Industry.
8. Global Marketing Strategies
Downsides of Specialisation and Trade
Human Geography, Vogeler
International Trade Theory
Portfolio Committee on Trade and Industry
Economic and Industrial Geography Terms
Opportunities and Outcomes of International Strategy
International Trade Trade Patterns
Review Econ Test.
INTRODUCTION : key and brilliant period, convergence with Europe
Key Issue 1 Where did Agriculture Originate?
Why Study Services? Service Economy
Knowledge Objectives Understand the 4 strategies for foreign expansion
UNIT VI: Economic Geography
Economic Geography – Development Strategies
Bellwork What are some sources of pollution in Arizona?
South, Southeast, and eastern asia
International Economy and Globalization
The Theory of Trade and Investment
International Strategy
The Theory of Trade and Investment
Chapter 5 International Trade
External economies and international distribution of production
Chapter 5 International Trade
Presentation transcript:

The changing world economy Dr. Truong Thi Kim Chuyen

1. Studying Economic Geography 2. Economic Organization and Spatial Change Evolution of Capitalism Technology and economic Development Spatial Divisions of labor Globalization and changing spatial divisions of labor Outsourcing and global commodity chains

1. Studying Economic Geography Less developed countries (LDCs): Countries that are not fully industrialized or do not have sophisticated financial or legal systems. These countries, also called members of the Third World, typically have low levels of per-capita income, high inflation and debt, and large trade deficits. Newly industrializing countries (NICs): Developing country whose economy is supported to a greater or lesser degree on exports from internally generated industrial production, such as Argentina, Brazil, South Korea, Mexico, and Taiwan, rather than on agricultural products or commodities.

Interrelationships surrounding economic organization and spatial change

The point emphasize at the moment is that all these direct, indirect and interaction effects are important to an understanding of spatial change. They are all implicated, in other words, in accounting for both the general and the unique.

2. ECONOMIC ORGANIZATION AND SPATIAL CHANGE Mode of production: the way in which human societies organize their productive activities and thereby reproduce their socioeconomic life.

Subsistence Slavery Feudalism Capitalism Socialism. 5 forms of economic organization: Subsistence Slavery Feudalism Capitalism Socialism.

Merchant capitalism (or mercantilism) Competitive capitalism Organized capitalism Advanced capitalism

Factors of production: land and other natural resources, labor, physical and human capital. Different modes of production are also characterized by different forces of production (technology, machinery, means of transportation) and by different social formations (made up of specific proportions of different social classes).

Machinofacture: industrial production that was based less on handicraft and direct labor power than on mechanization, automation and intensively used skilled labor.

Bussiness services Transnational corporations (TNCs) Flexible production systems Disorganized capitalism

The most important economic sectors in this informational economy are: High-technology manufacturing Design-intensive consumer goods, ranging from high-fashion footwear to entertainment products. Selling in market niches around the world. Financial and business services.

Technology and economic development Geographical path independence Creative destruction Technology systems Initial advantages Competitive advantages Diminishing returns Increasing returns to scale

Once dominant technologies emerge in a region, they become progressively more “locked in”. Small initial advantages in the use the critical new technologies and subsequent refinements in them bring much larger or increasing returns to those firms (and places) that have them.

3. Spatial divisions of labor Spatial division of labor (new) International division of labor External economies of scale Agglomeration: is a major feature of economic organization across a large number of manufacturing industries.

Components or specific services are ‘sources’ or obtained from multiple suppliers in different countries (Outsourcing) and assembled in several. Offshoring Neoclassical economics Captive outsourcing Offshore outsourcing Economic of scale Offshore financial centres