Academic Malpractice: Review On Emerging Economies In Global Trade
Theme 1: cause of the sharp division in the economic performance
As a result of the contemporary worldwide financial crisis, there has been a sharp division in the economic performance of the high income as well as the emerging market countries. Consequently, the countries which suffered most because of the global financial crisis include nations of the European Union, the United States of America and Japan. To the contrary a majority of the emerging economies barely paused during the 2008 economic depression. A good example of such economies include India and China whose economies are growing strong each day and are the one responsible with powering the recovery of the present international economy. In light of this statement, this paper provide a short review in regard to the subject matter “Emerging Economies in Global Trade” by giving a review using the following journals discussed below. Accordingly, this paper offer the reader six scholarly journals listed below. Certainly, to make sure that the review is undertaken accordingly, the paper uses the following inquiry questions which act as the directive for this review. These questions include:
- What is the cause of the sharp division in the economic performance between the high-income and the developing-market countries?
- What are the challenges associated with the recent international financial crisis?
- What is the role of the emerging economies associated with the new multinational trade prospect?
Accordingly, this paper review is structured by sorting the journal articles into three major themes that is the cause of the sharp division in the economic performance, challenges associated with the financial crisis and the role played by the emerging economies in powering the current global economy. Therefore, the first two journal articles discuss about the cause of the sharp division in the economic performance, then the following two articles provide a review about challenges associated with the financial crisis and lastly but not least the last two articles provide a review about the role played by the emerging economies in powering the current global economy
Theme 1: cause of the sharp division in the economic performance
Hanson, G. H. (2012). The rise of middle kingdoms: Emerging economies in global trade. Journal of Economic Perspectives, 26(2), 41-64.
The subject matter in this journal article is provide a review on the literature regarding different approaches in which the low as well as middle income nations have started to grow their economies particularly China and India. Indeed, the leading middle income nations sin the development of the economies in the multinational market has grown immensely between 1994 and 2008. Certainly, this growth has been facilitated by the upcoming of novel trading patterns experienced in the South-South trade (Hanson, 2012). The changes in the global trade are as a result of the integration of the middle as well as low-income countries joining the worldwide economy. Unlike between 1950s and 1980s where trade was completely conquered by the flow of trade between countries with high incomes which greatly contributed to the international GDP. Similarly, most of the emerging nations maintained high obstructions to imports. Subsequently, initially the global economic literature involved the exchange of products and services specifically between based in the North –North trade bloc. As a result, the North-North trade started to experience stiff competition through the development of the South-South trade bloc and North-South trade. Therefore, the forming of the South-South trade has significantly led to the industrialisation in addition to urbanization in India and China which have greatly been driven by the high demand for raw materials required to build factories and cities in this region.
Theme 2: challenges associated with the financial crisis
Feenstra, R.C., 1998. Integration of trade and disintegration of production in the global economy. The Journal of Economic Perspectives, 12(4), pp.31-50.
According to this article it provide a review regarding how the assimilation of trade and the dissolution of products has contributed to the rise in the international economy (Feenstra, 1998). Accordingly, over the last few decades there has been a remarkable amalgamation of the international economy which has been made possible through trade. Initially, countries with big economies used to trade less with other nations and mostly traded locally. Nevertheless, through the rise in trade integration of the global markets it has led to the breakdown of the production process. As a result, services as well as manufacturing processes which used to be done within country’s boundaries has been expanded such that it is now being carried out multilaterally.
Based on the above two journal articles it reveals that the primary intention of these authors is to bring to the attention of their audience that the rise of the global economy is because of the formation of international trading blocs. Accordingly, the low and middle-income nations have been able to progress sand develop their economies out of integrating their trading activities and a good example in this case is the South-South and North-South trade integration. These articles show a similarity since they both review about the cause that lead to the rising in global economy among middle-income economies.
Theme 2: challenges associated with the financial crisis
Didier, T., Hevia, C., & Schmukler, S. L. (2012). How resilient and countercyclical were emerging economies during the global financial crisis? Journal of International Money and Finance, 31(8), 2052-2077.
This article review about how the developing market nations moved on through the 2008 and 2009 worldwide financial crisis. Nonetheless, while it is believed that the developing economies seem to have shown a better performance during the period based on the development rates (Didier, Hevia, & Schmukler, 2012). Consequently, these nations also faced contraction in their development in the GDP as well as the industrial production in consideration of the greater pre-crisis development rates. The only advantage is that most of the economies of the merging countries recovered at a rapid pace and robustly as compared to the developed nations. Even though on average the economies of emerging countries seem to have performed better during the crisis period unlike the developed nations, there is heterogeneity amongst some of these nations. Generally, countries with low income seem to be secluded from the cyclical pattern surrounding the crisis.
Obstfeld, M. (2012). Financial flows, financial crises, and global imbalances. Journal of International Money and Finance, 31(3), 469-480.
The topic under review by this article is the relationship between the global imbalance of the dawn of the millennium and the recent international financial crisis. Accordingly, before the outbreak of the monetary crisis in 2008, all along the mid-2000 this era experienced a robust economic performance world over. During this period, the rate of inflation was low with the economic development standing high which lead to the booming of global trade that leads to the expansion of monetary flows (Obstfeld, 2012). However, the financial crisis is a as a result of the international imbalance influenced by the economic policies. For instance the United States capacity to fund macroeconomic imbalance by allow easy borrowing.
Theme 3: The role played by the emerging economies in powering the current global economy
The authors of these articles show a similarity in their argument by showing that the major cause of the international financial crisis is as a result of formation of biased financial policies which allow easy borrowing from abroad.
Theme 3: The role played by the emerging economies in powering the current global economy
Luo, Y., Xue, Q., & Han, B. (2010). How emerging market governments promote outward FDI: Experience from China. Journal of world business, 45(1), 68-79.
In regard to the subject matter under review this article talk about the various ways in which outward foreign direct investment (OFDI) has resulted in the upsurge in the emerging economies over the recent past. Therefore, this article explore different ways through which OFDI is enhancing the development of economies developing countries. Basically, the article reveals that the development of emerging economies has be fuelled by the multinational trading activities. Indeed, global enterprises have the capacity to pursue resources as well as beneficial significance from overseas through OFDI which in return has proofed to be lucrative (Luo, Xue, & Han, 2010). FDI has shown to be lucrative to most of the developing economies in the sense that through the participation of international companies in the local businesses it motivates the shift of advanced technologies to the host nation. Therefore, in the process this foster human capital development which is achieved through training of employees. On the same note, the practise play a key role in supporting corporate institutions through exposing the host nation towards advanced economies, corporate governance as well as exemplary business practices. Certainly, from the macroeconomic point of view it reveals that FDI is a more stable form of capital movement.
Timmer, M. P., Erumban, A. A., Los, B., Stehrer, R., & de Vries, G. J. (2014). Slicing up global value chains. Journal of Economic Perspectives, 28(2), 99-118.
Accordingly, this source review about various ways through which governments of developing countries does to enhance their markets. The article shows that the global economy has been evolving rapidly through the rise in international trade in services and goods. In the beginning, this process only included trade integration between countries in Europe and the triangle between Japan and the United States. As a result, the integration of trade led to the formation of East-Asia trade which led to the formation of novel industrialising nations in Asia. The most recent integration has been illustrated by China and India. Indeed, the increase I the global markets has been made possible through the breaking up of the production process since practices which used to be undertaken from the local economies has been shifted to off shore (Timmer, Erumban, Los, Stehrer, & De Vries, 2014). Certainly, this led to the separation of the manufacturing process such that this process does not have to be performed in one place. As a result, the unbundling of practices which is also referred to as disintegration as well as coordination of practices across the world. Therefore, the ability to trade good and services from dissimilar places led to the international production. Subsequently, this approach led to the formation of international networks coming up in the manufacturing sectors like electronics, automobile and textile industries. For that reason, there has been an increase in the competitive pressure across the world.
The authors of these articles exemplify some similarity in terms of integrating the trade practices as well as OFDI approach used by emerging countries to support the progression of their economies. Indeed, through the breakdown of manufacturing industries and encouragement by FDI these initiatives have shown to be lucrative for the emerging economies.
Summary
In summary the main findings from the reviewed journals articles are the following. Firstly, the major cause of the international financial crisis is as a result of formation of biased financial policies which allow easy borrowing from abroad. Secondly, the rise of the global economy is because of the formation of international trading blocs. Lastly, but not least, the breakdown of manufacturing industries and encouragement by FDI these initiatives have shown to be lucrative for the emerging economies. Accordingly, these findings have exhaustively answered the paper review inquiry questions asked in the induction part in different ways.
References
Didier, T., Hevia, C., & Schmukler, S. L. (2012). How resilient and countercyclical were emerging economies during the global financial crisis? Journal of International Money and Finance, 31(8), 2052-2077.
Feenstra, R.C., 1998. Integration of trade and disintegration of production in the global economy. The Journal of Economic Perspectives, 12(4), pp.31-50.
Hanson, G. H. (2012). The rise of middle kingdoms: Emerging economies in global trade. Journal of Economic Perspectives, 26(2), 41-64.
Luo, Y., Xue, Q., & Han, B. (2010). How emerging market governments promote outward FDI: Experience from China. Journal of world business, 45(1), 68-79.
Obstfeld, M. (2012). Financial flows, financial crises, and global imbalances. Journal of International Money and Finance, 31(3), 469-480.
Timmer, M. P., Erumban, A. A., Los, B., Stehrer, R., & de Vries, G. J. (2014). Slicing up global value chains. Journal of Economic Perspectives, 28(2), 99-118.