The document discusses changes in the global economy from 1963 to 2008, including shifts in country shares of world output and exports. It notes the rise of China and decline of Western nations' shares. Foreign direct investment trends from 1980-2000 show increasing shares for developing countries and declines for the US, UK, and Germany. The document also examines the changing nature of multinational enterprises and rise of mini multinationals from different home countries. Finally, it briefly outlines different political systems like collectivism, individualism, democracy, and totalitarianism.

1. International
business
Lecture No,2
Shahzaib khan

2. The Changing
Demographics
of
The Global Economy

3. The Changing
World Outputs
&
World Trade Picture

4. Country Share of
world
output
1963
Share of
world
output
2008
Share of
world
Exports
2008
USA 40.3% 20.7% 9.3%
JAPAN 5.5% 6.4% 4.5%
Germany 9.7% 4.2% 8.7%
France 6.3% 3.1% 3.8%
UK 6.5% 3.2% 3.9%
Canada 3.0% 1.9% 2.7%
China NA 11.4% 8.4%

5. The Changing
Foreign Direct
Investment(FDI)
Picture

6. Percentage Share of Total FDI
Stock, 1980-2000
45
40
35
30
25
20
15
10
5
0
U.S.A. Japan France Dev.
Countries
1980
1990
2000
U.K.
Germany
Netherlands
Figure 1.4

7. The Changing
Nature
of
Multinational
Enterprise

8. The Rise
of
MINI
MULTI-NATIONALS

9. The National Composition of
the Largest Multinationals
Country Of the top260
In 1973
Of the top 500
in 1997
USA 126(38.5%) 4
162 (32.4%)
JAPAN 9 (3.5) 126 (25.2)
UK 49 (18.8) 34 (6.8)
FRANCE 19 (7.3) 42 (8.4)
GERMANY 21 (8.1) 41 (8.2)

10. The Changing
World Order

11. The
Global Economy
of
21st, Century

12. The Globalization
Debate
Prosperity
or
Impoverishment?

13. Globalization
Jobs & Incomes

14. Globalization
Labour policies,
&
The Environment

15. Globalization
&
National
Sovereignty
http://playit.pk/watch?v=SHyIW-vUhO8

16. Country Differences
IN
Political Economy

17. Political Systems

18. Collectivism
and
individualism

19. Collectivism
♦A political system that stresses the
primacy of collective goals over
individual goals.
♦Advocated by Plato in the
“Republic”.(347-427 BC)
The republic argued that individual
rights should be sacrificed for the
good of the majority.

20. Socialism
♦Modern socialists trace their
intellectual roots to Karl Marx(1818-83)
♦ Argued that the pay of workers does
not reflect the full value of their labor.
♦Advocated state ownership of
production distribution, and
exchange(businesses), thereby
ensuring that workers were fully
compensated for their labor.

21. Two Approaches
Communists:
Socialism is achieved through
violent revolution.
Social Democrats:
Socialism is achieved through
democratic means.

22. Political Systems
(The system of government in a nation)
Individualism:
Opposite of Collectivism.
Individual should have freedom in
political and economic pursuits.
Advocated by Aristotle.
Private property is more highly
productive than communal property
and will thus stimulate progress

23. Political Systems
Hume (1711-1776)
Adam Smith (1723-1790)
John Stuart Mill (1806-1873)
Embodied in the U.S.
Declaration of Independence.

24. Democracy and
Totalitarianism
• Democracy
– Government by
the people,
exercised either
directly or
through elected
representatives.
• Totalitarianism
– Government in
which one person
or political party
exercises
absolute control
over all spheres
of human life and
opposing political
parties are
prohibited

25. Democracy
–Safeguards to protect a
democracy:
• Right to freedom of expression, opinion,
and organization.
• A free media.
• Regular elections in which all eligible
citizens are allowed to vote.
• Universal adult suffrage.

26. Democracy
• A fair court system independent
of the political system.
• Relatively free access to state
information.

27. Totalitarianism
4 major forms:
Communism
• Collectivism is achieved through
total dictatorship.
Theocratic
Political power is influenced by
religious principles.

28. Totalitarianism
Tribal
A political party representing the interests
of a particular tribe monopolizes power.
Right-wing
Generally permits individual economic freedom,
but restricts political freedom to prevent the
rise of communism.