Transformation of World Economy

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The world economy is going through its biggest transformation in a relatively short period of time. There have been many explanations for this phenomenon but the unprecedented scale and pace of this change and, most crucially, its implications, still seems little understood. In this essay I will try to research on how existing economic theories reflect on world trade patterns changes and explain those changes. In order to be on the same page about terms definition let’s define what is stated under the “patterns of world trade”. Global trade patterns are the trends that currently define international trade (Britannica, 2013). In the other words, world trade patterns reflect ongoing changes in structure of the global economy. So that means that world trade patterns show the shares of different countries in the world trade volume.


In order to analyze the extent to which economic theories effectively explain the changing patterns of world trade we need first to define these patterns. To begin with, the decade 2001-2011 has witnessed serious changes in the patterns of international trade. After the secondary data research I came up with three most crucial patterns which are defined below.
1. Over the course of the last decade, the world has witnessed the unprecedented changes in the patterns of international trade. First of all, the share of the United States and the European Union combined in the world trade has decreased
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