I would like to have answers for the last two questions. CASE Emerging Economies
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Question
I would like to have answers for the last two questions. CASE Emerging Economies: Comebacik H or Collapse? An epochal shit in the center of gravity of the global economy is un- FIGURE 4.1 Emerging Markets Make a Comeback omred~hofit -ey 2050, burofthe six largest economies i,the word- India,Japan, and Russia will be in greater Asia Their growthy sodey's eloped conoes suchas he U Chi create a second tier of robust eoonomies among their Asian Stes Getmay and a gerned neary acu for mo tha neighbors, such as Singspone, the Phillppines,South Korea, indonesia, wan, Kyrgyzstan, Wetnam, and Thailand Countries in other, once ndng iick stuggish parts of the world, like Africa and Souh America, will developECT N Po along with their Asian counterpartsAthough the pace varies, all are moving trom She periphery to the center of the plobal economy Extrapolating from 2017 to 2050 is, undeniably, more specula tion t han specitication. Stil, many emerging economies are applying potent pro-growth policies. Hard data confirm their success so far. In 1980, their combined output accounted for 36 percent of global GOP They crossed a milestone in 2009, accounting for more than halt of s total world GOP Similarly, emerging economies' share of world ex 40 ports exceeds more than 50 percent, versus 20 percent in 1970. The 30 MF reports that the 10 fastest-growing markets in the years ahead are in emerging economies. Others sugpest that 400 midsine emerg ng-market cites, many unfamiliar in the West, such as Abidjan, Cit agong Kartun Kinshasa, Luanda, and dungadugou, wil prodce ? 60 20 1000 1500 1820 1913 1950 2005 2025 2050 about 40 percent of global growth over the next 15 years. Institution ally, the G-7, long a U.S.-Europe stronghold, has expanded into the G-20, thereby giving members lke China, India, Brazil, Mexico, and South Korea greater say in global governance. These new stakehold- economic might from Asia to the West, today's emerging economies rs advocate different views of trade promotion and investment regu dominated world output. From 1000 to the mid-1880s, they produced lation Moreover, emerging economies build institudions, such as the on average, 70 to 80 percent of world output (see Figure 4.1). Over Asian Intrastructure Investment Bank, to champion their agenda. Col this span, China and India were the world's two biggest economies ectively,the accelerating rise of emerging economies signaled that China alone generated one-third of global gross domestic product in he weathier counties of the twendeth century would not dominate 1820. n 1850, China produced the highest percent of all the goods consumed in the world. Britain, riding the Industrial Revolution, soon The past generation of progress and prosperity in emerging mar- claimed this tite before ceding the top spot to the United States The ambition to improve around the beginning of the twentieth century. By 1950, emerging productivity, create jobs, and alleviate pov economies' share of global output had fallen to 40 percent, China's the global economy in the twenty-first century kets ntfastucture, incresse erty has put into motion what will lkely be the biggest stimulus in to 5 percent. Many floundered as internal political failure, aggravated history. The last transformation of similar magnitude-the Industrial by colonialism and dubious trade agreements, spurred isolationism Revolution-invorived far fewer people in far fewer nations, but sbll and xenophobia. Consequently, the Industrial Revolution benefited powered a century-and-a-half expansion that attered lives every. the West while bypassing today's emerging markets where. Today's revolution spans the globe, includes far more people Presently, the ambition of emerging economies is straight- in far more countries, and represents the biggest opportunity in the forward: Restore their historic stature as the engine of the global hstory of capitalsm The transfer of the leadership baton from economy. This goal will culminate in their comeback, where, once wealthy countries to emerging markets, for better and for worse, again, they account for more than 70 percent of global output? Sym evolutionizes our interpretation of economic environments PRECEDENTS AND PREDICTIONS Before the steam engine and the power loom drove the transfer of bolizing this change, in 2009 China reclaimed the top spot it last hek in 1850-producing about 20 percent of all the goods consumed i the world; the United States, leader for the previous 110 years,fell t second. Likewise, the IMF reported that China has become the ce Tracking the past millennium puts the current drama into perspective. tral trading power in the world-it is the biggest or second-bigge trading partner for 78 countries.Explanation / Answer
Answer:-
The best financial and investment opportunities are mainly offered to the emerging countries and thus the best opportunities for the coming decades are also represented by these. This is quite significant for all of us as with the growing economy, more job opportunities will be available both at national and international level. In the coming deceased, the expected growth of emerging economies is almost 6.8% per year. In addition to this, the total growth of the international economy will be contributed by 70% by these emerging economies and two countries China and Indian will be having their contribution of almost 40% and countries such as Brazil, Indonesia, Russia, and South Korea will contribute a 15% share in this growth.
The beginning of the revolution is indicated by the emerging market economies. This will result in the improvement of infrastructure, increase productivity, create job and alleviate poverty. This kind of similar revolution was witnessed during the industrial revolution, however, there was a limited number of individuals who were benefited by this
Answer:- The collapse of the merging economy can really have a negative impact on the lives of common individuals. There can be a loss of jobs, increased inflation and the sense of uncertainty. The purchasing power of individuals would decrease drastically due to loss of business and thus lack of a job. The people will be looking to migrate from one country to other in search of a job which could result in social tensions. The collapse of these economies will be having a very negative impact on the lives of a common person due to increased inflation The products will become costly and the buying power of money will be reduced.