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Global Economy: Problems and Solutions

Business organization, methods, strategies and practices have evolved over centuries. Generally, innovations are introduced to address problems or difficulties not solved by current practice. What are some problems in the current way the global economy is functioning that need to be solved, and perhaps, only through innovations?

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There are some problems the way global economy functions that can be solved only through innovations. The first problem is unbridled deficit spending by countries that distort the economy. The indiscriminate printing of currency leads to inflation. The next problem is that differences in wage laws among countries increases costs. There is a problem evaluating the currency of a country as there is no gold standard. This leads to harmful foreign exchange rate fluctuations. There are economic threats being leveled at countries and economic/trade embargoes that debilitate the economy of victim countries. The scale and scope of global competition is so high that the effects are disastrous for competitors. Important problems related to global economy are environmental degradation, energy shortage, and poverty. Global corporations ...

Solution Summary

Global Economic problems are explained in a structured manner in this response. The answer includes references used.