Global History: The Historical Background Of The World Economy

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Historical Background of the World Economy There has been a shift in the world economy over the past 30 years. It started after the end of World War II when the global trade started to grow faster than global income. Globalization has served as the direction of the change because of technological change. Telecommunication, transportation technology and information transition (including World Wide Web) has been developed rapidly and have contributed significantly to the globalization. The global economy has experienced an evolution of world trade and global gross domestic product in 1981 and in 2010. In 1981, the world trade was dominated by the United States of America (U.S.). The country exported products of 12.3 % of the total world exports while China exported only 1% of the world exports. In 2010 it changed as the U.S.’s export decreased from 12.3% to around 10% while China’s total export was dramatically increased from 1% to nearly 10%. IMF statistics indicate that U.S. is still in the leadership of export in the world. However, some emerging countries like China, India, and Brazil are continuously growing in their economic power. It is also believed that China will become the economy leader and world’s largest exporter in the future. Considering foreign direct investment the U.S. firms were dominating international foreign direct investment market in the 1960s. British firms were the second. It was changed afterwards as the barriers of free trade of goods, services and capital decreased. China has emerged into the world market in the last 30 years and became in that time a major player on the global economy market. Chinese workers work in worse conditions for less salary than workers in almost any other country. China has ... ... middle of paper ... ...s 1990-2000. Taiwan and India became much more powerful than in the past while France and Italy - very powerful countries till 1990 - lost their primate in last 10 years of 20th century and are not even on the list anymore. We can notice the tendency Europe loosing primate in world's economy and quick rise of Asian countries, specially China. Rank Country Incremental GDP (billions of US$) Share of Global Incremental GDP — World 10,321.649 100.00% 1 United States 4,310.175 41.76% 2 Japan 1,627.500 15.77% — European Union 1,492.890 14.46% 3 China 808.198 7.83% 4 United Kingdom 472.048 4.57% 5 Mexico 393.570 3.81% 6 Germany 344.908 3.34% 7 South Korea 262.980 2.55% 8 Brazil 179.730 1.74% 9 Taiwan 161.188 1.56% 10 India 147.296 1.43% Table 2: 10 largest economies by incremental nominal GDP between 1990 and 2000 (Source: http://en.wikipedia.org/wiki/Global_economy)

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