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Global Economic Changes Over the Next Decade - Research Paper Example

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This paper discusses the climatic changes, which results due to globalization and increased gasoline prices, are likely to create an economic crisis in the future. These create varied changes in the global economy because gasoline prices create price changes for manufactured commodities…
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Global Economic Changes Over the Next Decade
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Global Economic Changes Over the Next Decade

Download file to see previous pages... However, the current global economic environment is likely to contribute to a severe crisis over the next decades. This is because of the disruptive financial market chaos, which is slowing economic growth in advanced economies. Many emerging economies have made efforts of providing global resilience measures but this has set an explosion of food and gasoline price crisis. The next generation is under threat because the emerging and advanced economies are unable to adjust the current crisis. The trends in the global business cycle such as the emergence of internal growth momentum, failure to adjust to the price shock for commodities and shift in the financial shock absorbers are likely to create global economic challenges in the future. Although the federal will employ policies for reducing global economic issues, climatic changes due to globalization and increased gasoline prices are likely to create the economic crisis in the future. The global economic environment is likely to experience varied changes that would take place over the next decade. First, new changes will occur because of the emergence of strong internal growth momentum in developing and emerging nations; thus providing the most trade shock-absorber across the globe. Many nations especially the emerging economies such as India, China, Malaysia and some Asian Pacific economies as well as developed economies are transforming the global business cycle dynamics. The global trade shock absorber will make the U.S downturn steeper due to the support offered in the export sector by many developing nations across the globe (Callioni, 2010). Therefore, the issue arises in case the emerging economies such as India and China sustain in the internal momentum over the decades. This may impact the emerging economies from achieving growth. This is because both financial and trade linkages continue to increase in the emerging economies as the emerging economies attempt to incorporate business activities in the global markets. Therefore, the emerging and developing nations are likely to become immune from of financial chaos in developed nations. The fiscal shock absorbers have made efforts of solving the economic challenges through employing new methods. For instance, the capital movements instead of trade have become the world’s driving force since the 19th century up to the present. The change is undeviating rather than being cyclical; thus, the link between the two is difficult to predict. The economists are unable to understand the cause of the capital movements and trade changes but the economic changes are clear. It may take some period before economists may accept the fundamental changes. However, the research indicates that the global economy is in control of the changes rather than the macroeconomics of a state through which economic theory focuses. Moreover, the primary products in the market have been changing and the price of commodities are likely to rise into higher prices for the next decades. For instance, the prices for energy sources have been one of the major problems across the globe. The price for gasoline keeps on changing; thus affecting other commodities in the market. Although the federal state has attempted to regulate the global energy crisis, still changes will take places; thus affecting the price of commodities. This will impact many developing and emerging economies from becoming developed. ...Download file to see next pagesRead More
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