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TRP 511: Project Management

Ai’da Fazihrah Binti Nazri

Abstract

Growth is now more distributed and broad-based with the emergence of multiple centers of growth spearheaded by countries such as India andChina. As emerging economies continue to grow, they must be involved inthe process of global governance. People in India and China are looking fora better life and mobility and higher incomes, and no one can deny themthose aspirations. In the unpredictable changes of global shifts that areconstants most organization are seeking to improve existing goods andservices through continuous improvement and innovation breakthroughstrategies.

Recent Trends of Worldwide Economy

The movement of the Worldwide Economy from a Tradition Economy to aGlobal Economy has come through the technological advancementsstrengthened by modern technological discoveries starting from theIndustrial Revolution in England. However, due to rapid globalization, theimportance of national economies along with rules and regulations aredecreasing. Mergers between multinational corporations are in vogue asevery organization wants to exercise total control over the World Market. The developed nations control the World Economy aided by their superiortechnological advancements. Countries that foremost in World Economythat reflected in their higher status in the United Nations Organization, areUSA, Japan, China, U.K., Germany, France, and Canada.Inreasing in globalized world economy, all companies are focusing onderiving the highest profits from the investments. To that end these arebecoming multinational, having realized that affordable products can becirculated in the market of developed nations by outsourcing theproduction to the underdeveloped and developing countries.Several international regulators such as World Trade Organization (WTO),International Monetary Fund (IMF), and World Bank, however are aimed atkeeping all profit-focused companies under a check.

Bach. of Town and Regional Planning (hons.),

Semester July – November 2008

(1)

TRP 511: Project Management

Ai’da Fazihrah Binti Nazri

The World Wide Economy though highly influenced by the developedcountries shows signs of turning into a fair ground through the outsourcingof jobs to developing and underdeveloped nations, by most multinationalcompanies based in the developed nations. This points towards a futurebalanced World Economy.

Global Economy

The term Global Economy refers to an integrated world economy withunrestricted and free movement of goods, services and labortransnational. The concept of a global economy cannot be understood inisolation. Globalization need to be defined first as the integration of production and consumption in all markets across the world.Global economy is a characterized as a world economy with unified marketfor all goods produced in the entire world. Domestic producers have theopportunity to expand and raise capacity according to global demands andit’s also provides opportunity to domestic consumers to choose from avast array of imported goods. A global economy aims to rationalize pricesof all products globally.Reduction in level of tariff and quotas under new WTO (World TradeOrganization) restrictions, free flow of goods between the developed andthe developing countries has become a distinct possibility. Globalizationhas boosted productivity and capacity of these companies to astronomicalhigh because of the stiff competition at the international level.Improvement in technology in the developed countries such as UnitedStates of America and Japan has permeated to those of the developingeconomies of Asia, Africa and Latin America. This has enable the people of the developing countries acquire requisite technical skills and knowledgefor operating sophisticated equipments that percolate throughout theeconomy and improves the general productivity of the labor in thesecountries by increasing the income levels.While a global economy or globalization has the distinct advantage of raising world productivity and incomes and bringing about animprovement in the standards of living for all people at a global level, ithas the dangerous side effect of growth with inequality. This has been

Bach. of Town and Regional Planning (hons.),

Semester July – November 2008

(2)

TRP 511: Project Management

Ai’da Fazihrah Binti Nazri

evidenced in the less developed economies of India, China and Brazilwhere the benefits of globalization have not percolated to the lowestlevels.A Global Economy also leads to a shifting of jobs from the developedcountries to the Third World Countries as wage rates are much lower here. This allows companies of the advanced nation to grow exponentially. Forexample, we might find computer chips produced in China be exported toUSA for designing which may be subsequently used in Japanese computerssupplied across the world. This process is called “outsourcing” and leads toexploitation of workers in Third World economies where incomeinequalities already exist.Nonetheless, a global economy may be beneficial for the world at large. This may result in the economies of the world fighting issues such asglobal warming, climate change and environmental degradationcollectively and effectively. The global economy of today revolves around the issues of more tradeliberalization, competition as a model of efficiency and the search for anintermediate between laissez-faire and too much state intervention whichwould help in achieving high rates of growth but not with sacrificing equity.Global economics or the global economy can be defined as thehomogenization of the world economy into single large economy with thebeginning of globalization. Globalization and the mechanisms of globaleconomics are thus closely interconnected. The essential feature of globalization has been the widespread diffusion of technology andtechnological developments across all the countries of the world. As astudy of the global economy, global economics concentrates itself on thefactors of global supply and demand transcending mere nationalconsiderations.Globalization is argued to bring about better productivity and higheramounts of produced outputs for all commodities across the worldbecause of widespread diffusion of advanced technologies. Countriesspecializing in their areas of comparative advantage can also increase the

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