The Global Economy

As David Shane points out in his article entitled "Youth must learn skills to succeed in Global Economy", “Technology and trade separate the economy into two camps -- those with the skills to participate in the global economy and those who lack them.�

Shane indicates that advances in technology are giving developing countries the ability to compete directly with developed countries in terms of education and skills. With the ever increasing Global Economy and widespread use of the internet, people and businesses are realizing that they are often competing with people around the world for contracts and business deals.

The Global Economy has created an environment in which many large corporations are becoming transnational firms. This trend has developed in to a worldwide ‘race-to-the-bottom’ where companies are so focused on staying competitive that they often outsource production to developing countries with the lowest labour, environmental and economic standards.

These transnational corporations often lobby their government in order to gain access into these developing countries. Unfortunately, many developed countries have protectionist policies that do not enable developing countries to export their goods into developed markets. Trade barriers more often hamper economic development in the Global South, as compared to the North. New technology like the internet may speed up the reduction of trade barriers.

The expanding Global Economy and the reduction of trade barriers will create harder competition for the previously protected companies in developing countries, but maybe also new possibilities in Global markets. Like the new emerging companies like Haier (China), Tata Group (India).