Global Economic Issues

1. Global Economic Issues Gregory W. Stutes

2. Global Village • Do we live in a global village? • Do events around the world affect us as quickly as if they happened in our own village? • Events can be experienced simultaneously throughout the world. • How does this affect economic globalization?

3. Overview of the Recent History • 1950s—Not Global

4. Our Starting Point to Examine the WorldPer Capita GDP

5. The Economy’s Income, Expenditure, and Production • Gross Domestic Product (GDP) • Measures the total income of everyone in the economy • Measures the total expenditure on the economy’s output of goods and services • Measures production in the economy • For an economy as a whole • Income must equal expenditure must equal production

6. Measurement of Gross Domestic Product • Gross domestic product (GDP) • Market value of all final goods and services produced within a country in a given period of time • “GDP is the market value…” • Market prices - reflect the value of the goods • “… goods and services…” • Tangible goods & intangible services • “… produced…” • Goods and services currently produced • “… within a country…” • Goods and services produced domestically, regardless of the nationality of the producer • “… in a given period of time” • A year or a quarter

7. Real Versus Nominal GDP • Total spending rises from one year to the next • Economy - producing a larger output of goods and services • And/or goods and services are being sold at higher prices • Nominal GDP • Production of goods and services • Valued at current prices • Real GDP • Production of goods and services • Valued at constant prices • Designate one year as base year • Not affected by changes in prices

9. World Economy and Population in 1950

10. How are we measuring the size of these economies in US$

11. International Comparison Project

13. For Example: China

14. Can we do this?

15. Were we always this disconnected?

16. Export/GDP Ratio in 1950 • USA— • Europe— • France— • China, India, Japan, Taiwan— • Korea— • Latin America—

17. Roots of Modern Globalization • New Global Institutions • National Commitments to Globalization • Changes in Technologies

18. New Global Institutions • General Agreement on Tariffs and Trade (GATT) • International Monetary Fund (IMF)

20. New Global Institutions • International Bank for Reconstruction and Development (IBRD)

22. National Commitments to Globalization

23. National Commitments to Globalization

25. Changes in Technology

27. What was it like at the start of the 21st Century?

28. Population • 1950 • 2006

29. Population • 1950 • 2006

30. Population • 1950 • 2006

31. Population • 1950 • 2006

32. Population • 1950 • 2006

33. Economy

34. Who were the gainers/losers

35. Economy • 1950 • 2006

36. Economy • 1950 • 2006

37. Economy • 1950 • 2006

38. Economy • 1950 • 2006

39. Economy & Population • 1950 • 2006

40. Economy • 1950 • 2006

41. Population & Economy • Taiwan • 1956 • 2011

42. GDP/Capita 2x to 1/3 above • 1950 • 2006

43. GDP/Capita 4X to 1/3 above • 1950 • 2006

44. GDP/Capita 20X to 9X • 1950 • 2006

45. GDP/Capita 14X to 14X • 1950 • 2006

46. GDP/Capita 10X to 25X • 1950 • 2006

47. Asia’s Rise—Africa’s Fall • 1950 • 2006

48. Trade in Goods and Services

49. Will we continue?

50. China • China has had a HUGE transformation • They have been growing at 8 – 10% • At that rate you double every decade. • Imagine a 20 year old worker in 1980 • Doubles in the 80s • Doubles in the 90s • Doubles in the 00s • That is a factor of 8 and the worker is in her 50s!!!