POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

OFFICE OF THE VICE PRESIDENT FOR BRANCHES AND

CAMPUSES
MULANAY, QUEZON BRANCH
BACHELOR OF ELEMENTARY EDUCATION 1

GEED 003 The Contemporary World

Prepared by: Nancy D. Calica

7 FEATURES OF THE NEW WORLD ECONOMY

By Professor Peter Liesch

Professor Liesch says: “New markets are being created all the time – in fact, a lot
of entrepreneurial activity is about creating markets that didn’t exist. For example,
Amazon created a global market for book deliveries while Facebook and other sites
created a market for social media that was not there before.
“At the same time, obstacles to business are being removed. Improved
communications and transportation, the internet, new global payment systems, and the
dismantling of trade barriers make engaging in international business easier. The world
is becoming more interconnected.”

1. More options for production

- refers to the increased opportunities and choices available in terms of
manufacturing and producing goods or services
- advancements in technology, globalization, and other factors have expanded
the ways and locations where production can occur, providing more flexibility
and possibilities for businesses and industries

2. The chance to create new markets

- These days, people are typically not prevented from implementing ideas by a
lack of finance. Entrepreneurs can open up new markets, and they frequently
do it with very little financial outlay.

3. Small firms can think big

- Big enterprise is no longer the only way to succeed internationally.
- Professor Liesch asserts that "small firms can be just as international as big
ones." "Multinational companies will still exist, but small and medium-sized
businesses will have more and more opportunities, which is good for local
economies because it creates jobs."

4. A more level playing field

 - Opportunities are not restricted to individuals in science and technology
thanks to the democratizing impact of the new global economy.
- Professor Liesch says, "Although there is potential for development, it's also
about making better use of things, doing things in a different way that can
give firms a competitive advantage." In a similar vein, creative ideas can
originate from anywhere in the world and are no longer exclusive to
developed economies.

5. Networks are important

- Networks assist businesses in learning about and becoming recognized in the
industry. Because of connections that expand beyond their immediate
networks, businesses must have a solid awareness of both their internal and
external networks.

6. Culture is no constraint
- Companies don't have to conduct business in the same manner or speak the
same language, according to Professor Liesch. Although cultural variations
provide a bigger challenge for consumer businesses than for businesses to
businesses, any company can nonetheless overcome them. While they
shouldn't be culturally oblivious, managers should also avoid becoming
culturally constrained.

7. Regionalization not globalization

- The term "globalization" may be deceptive since economic relationships
frequently take place on a regional rather than a global scale.
- The term "globalization" may be deceptive since economic relationships
frequently take place on a regional rather than a global scale.