Describe the shifts in the world economy over the last 30 years. What are the implications of these shifts for international businesses based in Britain, North America, and Hong Kong?

2613 WordsMar 7, 201411 Pages
1 Describe the shifts in the world economy over the last 30 years. What are the implications of these shifts for international businesses based in Britain, North America, and Hong Kong? Although the question is talking the shifts of the world economy over the past 30 years, however, since the end of World War II, global trade has grown faster than global income. Globalization is the trend in these 30 more years because of the technological change. According to the textbook, globalization is defined as the shift toward a more integrated and interdependent world economy. Telecommunication, transportation technology and information transition (including World Wide Web) has been developed rapidly in the past years. These upgrades have made…show more content…
From the technologies and financial services rise, Hong Kong becomes an international financial center. It attracts foreign capital investment to invest in Hong Kong and make it to enter one of the l00 largest multinational enterprises. 2 What is the relationship between corruption in a country (i.e., bribe-taking by government officials) and economic growth? Is corruption always bad? Q2: Corruption is all around the world. In most developed countries, corruption is low level because there are strict laws and corruption is treated as illegal. But in many developing countries, corruption is like a kind of culture. There are several reasons for corruption, e.g. trade restriction, bad regulations, government subsidies, price controls by the government, multiple exchange rate, low salaries of civil servants, natural resource factors and sociological factors. Many of them are happened in the third world. At a result, many firms would like to bribe government officials to let their businesses smooth. In the short run, this kind of action can increase the economy growth. When the firms grow, lesser corruption occurs. From many studies by Economists in the world throughout the past decades, they always say that corruption and the economy growth is not linear relationship and hardly measure. Heckelman & Powell (2008) quoted by Giorgi Mekerishvili, if the

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