Overall do you think the new global economy is a good thing or a bad thing - Essay Example

Is the Global Economy Good or Bad Thing? The new global economy has gained unprecedented pace with the increased regionalspecialization and increases in productivity. The new global economy is a good thing since it has made use of the rising means of transportation and communication, which enables to link world regions at lower cost. The notion has led to numerous methods of production, which have subsequently improved the total production. The new global economy has enabled the redistribution of economic activities among various sectors of the economy, which has allowed many countries to renegotiate their terms and conditions of trading, production and exchanging.

The new global economy would not be a positive thing to United States economy, which operates a free- market capitalism. The increased production in numerous growing economies such as China and India will infiltrate the United States leading to the decline of the exportation income. Dahlman and Renwick (483) state “The United States has generally eased import restrictions in hopes that U.S export to other countries will increase”. The dwindling exportation created by the new global in the United States would adversely affect many industries, which may cause some employees to be laid- off.

With the wide- ranging areas of production in China and India, the new global economy would highly benefit these emerging economies. The youthful generation augmented by a growing population in both China and India would stretch the production and utilization further, which would encourage these countries to absorb much of their production, while importing more from other countries. Work CitedDahlman, Carl and Renwick, William. Introduction to Geography: People, Places and Environment. Upper Saddle River, New Jersey: Pearson College Division