If current trends continue, China may be the world's largest economy by 2020. Discuss the possible implications of such a development for (a) the world trading system, (b) the world monetary system, (c) the business strategy of today's European and U.S. based global corporations, and (d) global commodity© BrainMass Inc. brainmass.com October 25, 2018, 5:27 am ad1c9bdddf
If this happens to the economy of the world, indeed things may change. I haven't heard this yearly figure yet, and I thought it was more around the years 2050-2060. Anyway, if this happens the following will be the likely scenario concerning the world's trading system. First it would mean China continuing to export more goods, import more goods and also buy and sell more within its own borders. Related to it being the world's largest economy, instead of the world following the DJIA or the S & P 500, it might follow Shanghai's stock market more. But, this is still debatable, considering the governmental system they still have in power.
The world's monetary system may change ...
The solution looks at the world trading and monetary systems as well as global commodity and the business strategy of today's European and North American corporations in order to discuss the likelihood of China becoming the biggest economic power. 470 words.
Global Financial Markets: discuss currency, demographics, economic growth, risks, measurement of globalization and GDP.
1. Discuss whether each and every country should have its own currency, stock market and/or domestically owned banking system?
2. What are some of the important financial and economic implications of the changing demographics in the United States over the next several decades?
3. What are some of the things that low income countries do with respect to their financial systems to promote economic growth and development?
4. How should a U.S. firm desiring to expand internationally determine in which countries to expand, what are some of the potential risks it will face, and how might it mitigate them?
5. Discuss different ways one might measure globalization? Also, discuss the major benefits and costs of globalization.
6. Discuss the change in the shares of world GDP, population, financial assets and equity markets in the past 5-10 years accounted for by different countries. What does this say about the change in world economic power? What are the implications of the rise of China and India to global financial markets and U.S. firms?
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