A brief overview of selected world economy trends

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A brief overview of selected world economy trends by Mind Map: A brief overview of selected world economy trends

1. 1968 Global Economy Trends.

1.1. Trade Liberalization Proceeds under the GAAT.

1.1.1. The GAAT were the negotiations after WW2 to achieve a free trade between member nations. The GAAT took 6 rounds to conclude, those 6 rounds were made between the 50´s and the 60´s. Many people thought of this as the initiation of globalization, but many historians refuted this idea by saying that globalization started in the 1800´s, in fact it was until 1913 that the free trade between countries stopped, just 1 year before WW1. IN 1913 the world export as a percentage of the GDP was 11.9 and it was until 1971 that the world catch up with that number again.

1.2. Wining confindence in the US Dollar as the key international currency.

1.2.1. Before the events of WW2 the countries of the world were worried about the possibility of the currency exchange rates to be very volatile during the war events. The Bretton Woods system was proclaimed the international financial system, which was ruled by the INTERNATIONAL MONETARY FUND( (IMF) , member countries were to par their currency with gold or U.S. dollars, back in that time U.S. dollars was considered as strong as gold because the ability of the United States to exchange dollars for gold with short notice. So the U.S. dollar became the international currency, during the 1950¨s the amount of dollars in circulation became bigger than the amount of gold reserves of the United States, this problem was called the liquidity problems. during the 1960¨´s the amount of dollars in foreign circulation was 3 times bigger than the gold reserves this was called the confidence problem. it was not possible to maintain the WW2 exchange rates and this rates changed in the 1970´s.

1.3. Acceleration of world population grow.

1.3.1. By 1800 the population of the world was 1billion, it took 130 years to duplicate that number, so by 1930 the population was 2 billion, this tendency grew a lot, after 1930 it took only 30 years to increase to 3 billion, although this was not seen as a problem in that time.

2. 2008 Global Economy Trends.

2.1. Increasing integration of the global economy.

2.1.1. The topic of globalization turned into a very important between countries and experts, for many people globalization its different, for example for the french globalization its bad because they are afraid of losing french culture, to the U.S. people its bad because they fear of losing their jobs, this means that globalization its good or bad, depends on the situation of the country and the person who is analyzing it.

2.2. Increasing regional economic integration.

2.2.1. In 1995 the GAAT turned into the World Trade Organization (WTO), also the RTA (Regional Trade Agreement) surged, this agreements are between a small group of countries, almost countries that are neighbors between them, by 2005 Mongolia was the only member of the 156 of the WTO to not be a part of a RTA

2.3. Increasing importance in emerging and developing economies.

2.3.1. The importance of the developing countries have increase a lot after the 50¨s , by 2009 83% of the world's population were living in developing countries, China and India have became very big economies, in fact these countries were not affected by the 2008 economy recession.

2.4. Changing Global Demographic Profiles.