Tends In Economics And The Impacts They

Trends in Economics and the Impacts they have

Our problem

During the mid 1990’s our economy was booming, there seemed to be no down turn in the profits. Business’ were growing at an alarming rate and our national debt was shrinking. Economists’ saw us at a non accelerating inflation rate, also our GNP was growing at a steady rate. But at the same time there were mass “firings” or layoffs if you will. With absolutely no regards to job seniority, profits of the company or education level. This was a real problem that economists couldn’t address, because this went against basic macro-economics. But the term downsizing was used to describe this action when a company had increasing growth but was cutting their labor force. This was mainly due to outsourcing of many assembly plant jobs. Also jobs related to tech support through telephones. The south was particularly hurt due to outsourcing of textile mill jobs. The loss of jobs in the US is a staggering number tipping the scales at 200000 jobs per year. All lost to outsourcing major plants to countries like india, china and other developing nations. This can be accredited to the NAO’s of the new world economy.

But downsizing does not mean that the company Is losing profits. In todays terms when we hear the word downsizing we instantly think of a plant shutting its doors and moving to another country. When this happens there is potential for small communities to collapse, due to the reliance of the jobs from the larger plant.

Globalization

All of this is the trend in the new world economy with the new “Big 3” emerging at an alarming rate. And surprisingly Russia is not one of them. The EU is possed to be at the top with there ever increasing value of their euro. Robert Kagan (a political commentator) once said “America hails from mars and Europe from Venus, but in reality, is more like mercury-carrying a big wallet.” At first europes success with globalization was shunned and we (America) thought that the EU would collapse due to such a rapid growth. President Mahmoud Ahmadinjad of Iran suggested that OPEC price its oil in Euros instead of the “worthless dollar”. China has even started to relocate some of its main headquarter (for business) to London and the EU.

To pull ourselves from this decline in our role of the worlds economics, strategists have suggested that we have a more Global view. Here is the all great term of “Globalization” again and how we cannot turn our backs on our earthly neighbors. Some say that instead of using the term “American interests” we need to say “global interests”. Instead of being “bull headed” which pull vaulted us to the top of the economic food chain, we will need to think about the word “we”. And when we say “we”, the meaning of the word will include the whole world and not just “we” as Americans.

Old economy Vs New economy

“New economy” this is a term that has been debated over for the last decade. The actually definition is one that is hard to put into one sentence. But it is generally recognized as “a national financial and economic infrastructure characterized chiefly by the predominance of services and technology (i.e. intangible assets), and the abolition of the former infrastructure (i.e. tangible assets).But still this definintion does not fully encompase the idea of “new world economy”. You also must look at strategies that have lead to push towards higher skilled specific jobs. With terms such as “Domain of O.M.”, “O.M. tools” and the all encompassing term “goal” have taken on radical new meanings. With this the old industrial “age” if you will has been moved to other countries where labor is much cheaper and in larger supply. This can make room for more technologically advanced, high skilled specialty jobs. This is where the new economy will tie into the effort of globalization and how “Competition” will change to more of a collaboration of nations.

Effective Economics

This is a term that I would like to represent the path that we as a nation and as a world must take to balance our economic might for the betterment of all nations. With all of this in mind as far as globalization goes our economy can flourish if we take into regard the common man. When outsource a job we should other jobs in place to make up for the lack thereof. This will be done through higher education standards and better management of our companies. With that said economics as a whole depends on much more than just creating a job, we must create a system that prepares workers for shifts in the job market. This clearly shows that economics, globalization and general business practices encompass much more than just working on an assembly line. It effects education, religion , cultural values and freedom that all countries hold dear in one way or another.

Graphs charts and general findings

For the remainder of this exposÐ"© on economics I will show some general graphs, charts and guidelines that I have found relevant to our research on globalization. At the bottom or top of each chart/graph will be brief description and its relevance to my findings.

Above is a chart that shows jobs lost to outsourcing in the automotive market.

Below is a general guide to outsourcing for small business.

“Top 10 tips for outsourcing success (Do what you do best and hire the rest!)

Here’s good advice from Keith Crosley of Elance Online. “When I talk to buyers who’ve mastered the art of effectively managing external service providers, the same themes emerge over and over. I’ve distilled their advice into the following вЂ?Top 10 Best Practices’ ”

1. Clearly define the scope and schedule for your project.

Give vendors as much information as you can about what you