The primary focus of this chapter is the global economic flows which turn to an examination of

these flows, especially as they relate to production and consumption of trades and goods which
in central to the global economy. The global trade used economic chains and network which
include the supply chains, international products network chains, global commodities chains and
global value chains which concern to the full range of activities to bring a product from its
conception to its end use and beyond. In terms of global value chain of America and china, I
think that US heavily depend on China in global supply chains for materials and also for the
production of products such as T-shirt and not because they can not develop its own supply chain
for producing its product but because it is efficiency of time and cost.

US technology industry has 50% survival Chance without China's supply chains, because It is
efficiency of time and cost, although America can develop its own supply chain for strategic
products, but won't go for full coverage of all industrial categories.
A changing nature of the world economy, particularly in the expansion of global value chains
and increasing concentration are giving rises to increasing global competition for various
commodities such as Oil and gold. Because of increasing demand of commodities that needs by
the developed country is no longer fueled like US and those developing country are
industrializing at Rapid pace like china. Oil flow has a big impact to economy such as oil
demand increase, price increases which generally thought to increase inflation and reduce
economic growth. Increasing in demand can be cause by lack of oil resources and difficulty to
procure oil which can decrease the supply of oil. In that situation providers of oil will start
importing instead of exporting to provide the needs of their country.

China really accomplished is quiet turnaround, i can not think of any third world country that
has turned around like china for the couples decades. Oil flow has a big impact to economy such
as oil demand increase, price increases which generally thought to increase inflation and reduce
economic growth. Increasing in demand can be cause by lack of oil resources and difficulty to
procure oil which can decrease the supply of oil. In that situation providers of oil will start
importing instead of exporting to provide the needs of their country.

The global economy is evolving, and the growth of global value chains in particular is causing a
rise in global competition for different commodities like oil and gold. Due to rising commodity
demand, developed nations' needs, like those of the US, are no longer met, and developing
nations, like China, are industrializing quickly. Oil flow has a significant impact on the economy.
For example, when oil demand rises, prices rise. This increase in demand may be brought on by
a lack of oil resources and the difficulty of obtaining oil, which may reduce the supply of oil. In
that case, oil suppliers will start importing rather than exporting to meet domestic demand.
Outsourcing is pragmatic function of economics for multinationals Such as hiring a party outside
a company or even a country( offshore outsourcing) to perform services or create goods. In other
words, outsourcing is now possible due to the globalization. I think that practicing outsourcing,
allows business or even country to keep things simple yet with maximum productivity, and even
makes the country more flexible. But outsourcing is an important global economic flow, because
it can caused high unemployment, loss of income and loss of competitive advantage that's why If
a country’s productivity is world competitive, it need not outsource.