Login with Facebook

Macroeconomics: International Economic Issues

Towards the end of 2007 and through 2008, the world economy went through a severe sock that brought many markets to a standstill. And for those trying to interpret trends, challenges, and opportunities, this may be a good opportunity for them. Every nation in the world has concerns about their economies, and they set in place laws that keep things flowing. But the 2007/2008 recession hit the whole world. There were concerns about energy security and environmental sustainability, which converged in a single bucket bringing agreements and consensus among many stakeholders who sort action in the USA. Even then, they were still not enough to give the world the economic peace they need. The economy is altogether quite a sensitive matter; issues like unemployment will never fully go away. While many developing countries are succeeding in elimination poverty, there are many other who are still in the depression of poverty, conflict, and diseases, even with all the technical steps the world has taken, and a large number of philanthropists, advocates and global corporations that have fueled significant development.

It is amazing, however, how some of these countries are doing pretty well. Consider China; for instance, it has a projected annual growth of 9.6% and working with the smallest nations in the world. The nation has managed to spread its wings to the furthest corners of the world, which has helped it create opportunities. Even though many economists argue that they do so with a significant risk, it is still seen as a way of growing its economy.

And despite their 'quick action,' they are yet to reach the United States, which has remained in the "green zone." However, it leaves many to wonder why the US has continued to entertain borrowing abroad. In contrast, many of its citizens continue to complain about widening inequality, whereas opportunities continue to deteriorate. The nation has continued to invest in military warfare, working in the Middle East. In contrast, many leaders across the region continue pressuring the younger generation to work so that they can increase the productivity of their nation.  

The biggest question still lingers around the challenges economies face and what can be done to mitigate them. Every nation has to struggle with these challenges and offer the most appropriate way out. When the financial depression came, the Federal Reserve and the Treasury, among other bodies, rushed to save the crushing markets. It all about finding short term solutions as well as a long term one for a problem that would probably never fully go away. In the capital of America, there are often many short-run political wrangles that overwhelm the most important long-term changes. And it is the same situation in many other regions where politics is often the number one determinant of general economies.

Over the years, the world economy has gone through a lot of changes. They have all followed the previous financial crisis, which brought in increasing inequality. Among other 

issues, the pressures of immigration, emerging technologies, environmental issues, and geographical shifts have continued to impact national economies.

The History of the modern economy

Many experts feel that the reason went into the Great Recession was because the markets, especially the housing industry, was not careful enough. Who could have blamed them anyway? By the beginning of 2007, the economic bubble was so high everyone was excited. Things were going well in the United States economy. Banks were giving out loans without going through many details since they were not the ones holding the loans. But then, it happened in summer, when the housing industry fell. Immediately, lenders realized the securities which has been used to secure the loans started depreciating rapidly. And since the lenders have not thoroughly vetted the borrowers' abilities to repay the loans, they could not get back their investments. Markets collapsed, and households and firms lost their faith in the financial systems. And 24 months later, entire Europe was sailing in its own crises. The financial markets went confusion as some major institutions collapsed or nearly collapsed.

Amazingly, the recovery progress has been a fairly steady one ever since. Despite this, the world economy has failed to recover fully. In 2016, for instance, there were worrying trends in North America and the European region. Some major entities started to become less committed to multi-lateral cooperation, as they showed criticism of open and free trade as well as reducing the concern for climate change. With such a landscape, it was obvious that uncertainty would increase, and a major threat would soon be facing macroeconomic and financial processes. As if that is not enough, the relations between major international stakeholders may not be as strong as it should be, extending the effects of citizens and domestic participants. The situation split the society into two major economies like the USA and the UK, which risked the collapse of many years of an international corporation.

And when it begins from the ground, international organizations feel the pressures. They are constantly called on to re-explain the roles they play in ensuring the programs and processes remain relevant even as political and macroeconomic worlds continue to shift. They often are compelled to improve the status of a nation's citizens. But they cannot get fulling to involve in everything since that would overburden citizens in terms of taxes and enhancing efficiency, effectiveness, and service delivery.

When it comes to the world economy, it is all about who is who? And when things are not working well with economic powers, then the pressure flows down to even the lowest nations. No matter, some of the issues that affect global economies are general. Consider the following:

Increased social Gap in Income

It is normal to find people comparing themselves to their neighbors, more so in terms of wealth. In the modern world, there seems to be a high competition for everyone to show what they have and what they can do. Everyone is less thoughtful about their obsolete wealth; rather, we often compare what others around us have or don't have. In 2016, it was recorded that the Global private wealth reached $166.5 trillion, which has been the largest increase (5-3%) compared to the previous year, as reported by the Boston Consulting Group (BCG). The growth was recorded at 4.4% in 2015, whereby the growth was attributed to an increase in economic growth and stock prices.

Despite such incredible growth, which should be celebrated, you will notice it is not spread equally. According to the Analysis from the BCG, the private wealth in Asia-Pacific could be more than what is in Western Europe in the next few years. Should this happen, it will come as a great shock to the known western economic giants. However, such a shift cannot be taken lightly. It has to be handled well to avoid tilting even political power.

As Sir Halford, a British geographer and a politician, stated, such unparallel growth in these states seems to bring about hegemony in the world every ten decades. It this is right, then it would mean the world economy is a risk or shifting slowly. And things are not getting any better, as inequality keeps getting worst. In 2015, we witness the tip when the 1% riches seemed to own almost all humanity. The trend has only kept surging. There are just eight men in the world now from whose arms 3.6 billion people across the globe are feeding. This is more than half of the human population, as reported in the 2017 Oxfam report. An increase in income inequality has been reported in every corner of the world as the 'haves' continue to gain more wealth, mostly by stepping on the poor.

In his book, "Dream Hoarders" pointed out that apart from the 1%, we should also be concerned, not only the 1% as there is more to society now than we could ever imagine. For instance, in a country like the US, there is an ever-widening gap between the upper society and other people. And in this case, anyone whose income features in the top 20% of the US society is in the middle-class. These differences can be seen through many parameters, including family structures, neighborhoods, attitudes, and way of life. And those who are rich often pass their stature to their children.

It is paradoxical that as much as countries have been fighting to eradicate poverty since the 1980s, there has been a constant increase in inequality. And today, nearly a third of the global inequality begins from in-country features where voters have different feelings about their statuses in society.

Technological and scientific innovations

We are living in a world where everything is driven by technology. This raises the question of how far the effects of globalization and technological advances will change the world, especially the labor market. For the last thirty years, there has been a shift in the labor-intensive markets of advanced economies towards emerging markets. In many cases, technology has completely eliminated human labor. And according to a report by the United Nations Conference on Trade and Development, robots can make two-thirds of jobs obsolete, especially in the developing world.

And the shift is already in effect, considering the most significant global companies like Apple, Alphabet, and Facebook, among others. These companies have employed more than 720,000 people. Comparing to PetroChina, Exxon Mobile, General Electric, China Mobile, and Bank of China, which were the biggest five years ago and employed more than 1million people, we can say technology companies are the biggest players in the global economy. And market capitalization of today's top 5 companies, which are technology firms, is 30% above what top companies half a decade ago had. And what more, they achieve this capitalization with 44% fewer workers. This means they have a great impact on the global labor market. And as you can imagine, this trend is bound to affect the carrier choices. Millennial and future job seekers say they are receiving conflicting information from everywhere. On one side, they are told they need hands-on skills to compete in the job market. On the other hand, they are told job robots may replace their jobs in the future.

It is also extending to those seeking to create job opportunities. They have put aside traditional works like banking, accounting, and similar job and instead opting to become YouTubers, Vloggers, or Instagram photographers. They are paid on commission by sponsors; people visit their sites and promote the intended brand. And while this is happening, they are new jobs in professions that have been ignored for many years. Opportunities like old merchant jobs, organic bakers, and so on have been re-opened. Yet, it remains that 45% of the world's working-age has not been fully utilized.

Energy and Environmental Security

Since 2007, there have been issues and concerns regarding energy and environment, and it has become a global agenda. And recently, involved parties have reached a consensus on the possible long-term effects of different factors, including economy and technological advances on the environment. The potential use of technologies with low-polluting and secure energy sources have been widely discussed. Despite what has already been done, fossil fuels continue rocking the world with greenhouse gas emissions still affecting environments.

High oil prices continue to feature among the biggest issues on international policy even as global warming continues to threaten the world. In this case, some countries enjoy it because they have been shielded, while others have to take in more rapid changes.

Conflict/poverty

The world faces a threat from different factors, some of which include internal conflicts on boundaries and borders. It seems distant threats can change into major problems even as many governments tighten their fight against poverty and global insecurities. For instance, American policymaker view traditional security threats in terms of bombs and bullets, when has contributed more to the relationship conflict has with poverty. When any country is involved in the war, they put aside any economic progress, instead choosing to focus on defending their borders.

From the issues discussed above, we can conclude that when a major economy in the world faces external and internal issues, the rest of the world feels the impact. In other words, when there are any issues with the US economy, other nations go through the same stress. HenceEconomic Issues, it is important to study these economies so that we can learn how to deal with situations when they arise. 


Comments




Send Comment

Need a custom
essay?

We will write it for you.
Order now

Free Essay Examples

Free essays:

Analysis of Consumption and Investment
Analysis of Business Cycles
Analysis of Fiscal and Monetary Policies
An Overview Of Economic Studies
Biosensors for cancer diagnosis
Business Analysis: Pricing strategies and Demand Curve
Broadcasting: How to Be Good In Front of the Camera
Bioconjugates for the Drugs Delivery
Cells of Immune system
Challenges that IT Managers are facing
Cochlear implant: what it is and how it works
Current challenges to the health of women
Doppler ultrasound or simply eco Doppler
DNA extraction
Dynamic Systems Modeling with Machine Learning
Digital Imaging: What Is It?
Economy analysis: Business Cycle and Economic Trends
Exchange rate and foreign currency risk
Economic Factors Affecting Decision Making In A Business
Economy Analysis: Inflation, Unemployment And Policies
Factors Influencing Interest and Exchange Rates
Fiscal and Monetary Policies in Response to 2008/2009
Fermentation: how it works and what it is used for
Financial Markets and Functions
Genetic regulation networks: modeling in biology
How does the economics of war affect society?
How can immigrants blend in the American society?
How to make your business survive at economic crisis
Importance of corporate sustainability
Interaction of Consumer and Firm Choices in Markets
Introduction to Microeconomics
Introduction of Microfabrication techniques
Journalism: What is News?
Journalism: Broadcast media and Television Presenters
Journalism: Sources of News
Journalism and Law
Key Determinants of National Income
Key Factors That Affect Pricing Decisions
Kinetic models in biology and Related fields
Know about the different forms of traditional African dances
Latest technology trends
Latest dance trends
Methods of labeling of nucleic acid that enable their detection
Macroeconomics: International Economic Issues
Neuromuscular disorders
National Economies, Fluctuation, and Responses to Fluctuations
Neurotransmitters: what they are and different types
Nanomedicines to target tumors
Overcoming Hiring Challenges for Nonprofit Organization
Principles of Microeconomics - Producer Theory
Principles of Microeconomics - Consumer Theory
Principles of Economics
Role of media in wartime.
Role of technology in the modern business environment
Role of Homeostasis in Human Physiology
Role of a digital artist
Skills in Journalism: Effective Interview
Systems biology - An understanding the functioning of biological systems
Self-assembly for biological systems
School of American Ballet
Types of corporate responsibility
The Role of Government Policy in Improving Economic Outcomes
Types of bioreactors and their applications
Technological perspectives and reflections of neural engineering
Understanding Perfect and Imperfect Competition
Ultrasound: physical principles and image formation
Understanding social entrepreneurship
Understand the importance of investigative journalism
Various theoretical perspectives of sociology
Virtual reality, what it is and how it works
What is MBA with Concentrations
What are the Causes of financial instability?
4 Facts about Origin of Mathematics!
5 techniques to create an animation
10 strategies to maximize corporate profits
13 Best colleges for political science in the world
6 Medical Technologies that revolutionized the healthcare in 2020
All you need to know about the ACA Code of ethics
Architecture and Democracy: An Introduction
Architecture and Democracy: Democratic Values
Architecture and Democracy: Democratic Procedures
All You Need to Know About a Synthesis Essay
An essential guide to understanding Film Theory
Application of Artificial Intelligence in Cyber Security
Applications of electrical engineering
Augmented reality: what it is, how it works, examples
Advantages And Disadvantages Of Social Networking
All you need to know about Cryptography
Applications of astrophysical science
All you need to know about architecture engineering
Applications of geological engineering
Artificial intelligence and medicine: an increasingly close relationship
An insight into Computational Biology
ACA code of conduct
A Rose for Emily
Applications of Mathematics in daily life
Architecture mistakes to avoid
All you need to know about Toxicology
All you need to know about Holistic Medicine
All you need to know about linguistics
An introduction to Linguistics and its subfields
All you need to know about Anxiety disorder
All you need to know about Drones
A Brief Insight into Political Science
Assumptions related to feminism
All you need to know about Byzantine emperors
All you need to know about labour economics
An insight into xenobots -the first-ever robots
An ultimate guide about Biomaterials
A Comprehensive Introduction to the Mona Lisa
Analysis methods of Transport through biological membranes
An ultimate guide about biochemical reactions
Analysis of brain signals
Artificial Gene Synthesis
Application to synthetic biology of CAD methods
All you need to know about metabolic pathways
Applications of BIOMEMS
All you need to know about the epidemiology
Asian vs. western leadership styles
All you need to know about Smart prosthesis
Analysis of Economy: Output of Goods and Services (GNP), and GDP on Economic success
A Guide to Pricing Strategies
An Overview Of Economic Studies
Analysis of Fiscal and Monetary Policies
Analysis of Business Cycles
Analysis of Consumption and Investment
How to Write a Personal Essay
Housing Needs in America
How to Write a Description Essay
How to Create an Excellent Scholarship Essay?
How to write a cause and effect essay
How to Hire the Best Essay Writing Service Provider?
How to Write a College Application Essay?
How to get the most out of your English lectures
How to write Expository Essay
How to succeed in your psychology class?
How to Write an Academic Essay in the Shortest Time?
History of Journalism
How Different Sectors are Using Artificial intelligence (AI)
How to write an informative essay
How to deliver persuasive essays?
How to Give a Convincing Presentation
How to write an essay on leadership?
Historical Art Still Around Today
Humanoid robot: what it is, how it works and price
History of Chemistry
Healthcare Advanced Computer Power: Robotics, Medical Imaging, and More
Healthcare AI: Game Changers for Medical Decision-Making and Remote Patient Monitoring
How to understand different types of English
How to Cope with Chronic Pain
How African American choreographers and dancers have influenced American dance
How mobile robot can do in logistics or in production
How To Become a Successful Entrepreneur
History of the Philosophy of Feminism
How is the climate changing?
How to Track Your Content Marketing ROI
How to Gun control In the USA?
Historical and contemporary role of labour in the modern world
How breast cancers are classified?
How the cells of our body communicate?
How the Lymphatic System Works?
How Digestive System Works
How to complete your capstone projects effectively?
How to write a research project
Healthcare technologies that help patients with better self-management
How to choose the topic of the senior capstone project
How to make your business survive at economic crisis
How can immigrants blend in the American society?
How does the economics of war affect society?
The Looming Energy Crisis in America
Top benefits of performance-based engineering
The More Languages You Know, The More Times You Are a Man
Things to consider while writing an Argumentative Essay
Top Ways to Improve Your Academic Writing Skills
Tips to Excel in Creative Writing
The origins of films in the early 19th century
Top career options in Architecture
The Elevator Pitch
Top finance trends 2020
The basic Structure and functionality of robots
The Way to Success
The election system of the President in the United States of America
Two-party System in United States of America
Top trends in urban design
The history and theory of African American filmmaking
Top benefits of creative writing
Tinnitus Guide: Common Symptoms and Treatment Options
The language of dance
The digital image processing management
Top famous politicians of the World
Top methods of political science!
The history of the feminist movement
The blood flow in cardiovascular system - Biofluid Mechanics
The best of Leonardo Da Vinci
The Structure and Function of Macromolecules
The structure of cell: a research on the bricks of the human body!
Tissue and organ construction: Adhesion and recognition between cells
The kinetics of the transformation processes
The Modeling of Biological Systems
Tips for writing a great thesis statement
The Defense mechanisms against infections
The impact of the technological innovations in medicine
Top journalism trends to know about
The relation between mass media & politics
Theranostics: Diagnosis and Care through Nanoparticles
The practical Applications of X-rays
The applications of Ultrasound in medicine
Transfer mechanisms of genetic information in Bacteria
The regulation of cellular metabolism in the diagnosis
The Principles of MRI Contrast agents
The technical basis of optical coherence imaging
The New Media: Emerging Trends
The Structure of Interest Rates and the Yield Curve
Technological perspectives and reflections of neural engineering
Types of bioreactors and their applications
The Role of Government Policy in Improving Economic Outcomes
Types of corporate responsibility
What is a Definition Essay?
What are diagnostic essays?
What is the relation between art structural engineering?
What is a Narrative Essay
What are robotics and intelligence systems?
What are the benefits of studying health sciences?
What is artificial intelligence and why it matters?
What is comparative Literature?
Why study neuroscience
What is Wi-Fi and how does it works
What is French history famous for?
What are Humanistic Studies?
What is covered in Biophysics?
What is modern journalism?
What is Virtualization? Benefits & Applications
What are modern public relations?
What is plasma physics?
What is teacher preparation?
What is rapid prototyping for 3D printing?
What is contemporary European Politics?
Why should you learn American Ballet?
What is engineering physics?
What is the purpose of African American Literature?
Ways to learn the Rhythm
What is digital art used for?
What are Enzymes and how do they work
Who is the father of political science?
Why Study Political Science - Job?
What is the Philosophy of Feminism?
What is a quantum computer?
Ways B2B Startups Streamline Their Conversion Strategies
Why do biomedical signals need processing?
What are the long term effects of climate change?
Why study labour relations
What is Holoprosencephaly?
What is antisocial disorder?
What are the important principles of evolution?
What is the cytoplasm and its function?
What is biopolymers?
What Makes a Good Leader
Women empowerment in modern generation
What is the history of political thought?
What is Gene recombination
What is synthetic biology
What is business cost analysis?
What is Inflation
What are the consequences of unemployment?
What is lithotripsy and its types?
What is transition elastography?
What is the purpose of deep brain stimulation?
What is a Brain-Computer Interface (BCI)
What is neuroethics?
What is Market and Supply and Demand
What is optogenetics?
What are the techniques to record brain activity?
What happens if the interest rate increases?
What is immunotherapy?
What is the economic role of the financial market?
What are the factors behind illegal immigration?
What is the lymphocyte activation?
What is financial market and its types?
What is the structure of financial markets?
What are the methods of measuring business performance?
What is the Credit market?
What is business ethics and code of ethics
What are the Causes of financial instability?
What is MBA with Concentrations