Advantages and Disadvantages of Continued Growth †MyAssignmenthelp

Question: Discuss about the Advantages and Disadvantages of Continued Growth. Answer: Introduction: The world has experienced strong position of most of the western countries, for instance, the U.S.A and the U.K, in the form of economic development, education, political power and technology, which in turn has helped those countries to possess a leading position in international market. However, according to the recent economical trend, eastern countries, like China, with their increasing market share, are going to capture the leading positions of those western countries (Harris, 2018). This report is going to describe this shift of economic power from the western countries to the eastern one, based on the changing economic conditions of China, India and South Korea. Since the beginning of colonial time, Europe has most of the countries, worldwide. However, after the Second World War, the U.S has captured this ruling position from Europe and from that time, has remained the worlds leading country. However, over the last few years, most of the Asian countries, especially China and India are significantly increasing their market conditions in international economy (Cashin, Mohaddes Raissi, 2017). Through advanced and modern methodologies in the field of economic activities, those countries have gathered enough financial and economical potential to beat some leading world economy by 2050 (Layne, 2018). By adopting largest and fastest increasing market strategies, China has already captured a significant position in the world market and consequently, is starting to play the leading position in various international activities regarding decision-making, which in turn, has created huge threat for western countries, especially for the U.S.A, as it has enjoyed the same position for the last many years. This situation can be described as the Thucydides trap, where the U.S is going to start a trade war, as they are afraid of the emerging economic condition of China (Feng, 2018). Consequently, the U.S has focusing on some other areas, which is adversely affecting the country further. For instance, the U.S has started to interfere in the economic activities of the Middle East countries, which in turn has created various outcomes like war, immigration to Europe and terrorism. This immigration has adversely influenced the entire economic condition of the Europe. In addition to this, Brexit, the economic crisis of Greece and adverse condition of Ukraine has led the entire European countries to face economic instability (Harris, 2018). China has utilized this instable condition and consequently, is capturing the same position of those western countries in world market. India and South Korea, through their emerging international trade, have also captured a significant portion in the world market, which can be understood by the presence of those countries in many international groups, who take leading decision for the world economy. With diverse socio-political and economical conditions, those Asian countries have huge success to increase their own national income. In this context, it is essential to mention the leading role of BRICS, (Brazil, Russia, India, China and South Africa) through which, those eastern countries has decided to form an international monetary institution to compete with the World Bank (Rasoulinezhad Jabalameli, 2018). The U.S dollar has experienced the chief currency in intentional economy because of the World Bank. However, after the formation of this institution, the U.S. dollar can lose its position and may share an equal position with Chinas currency, the Renminbi. The above diagram has depicted that since 1990, China and India have experienced significant increase in their national income with a higher rate, while that for other western countries have remained low. Chinas GDP growth rate has remained the higher one, which in turn has help to experience the leading position. While the leading western economy is facing economic crisis, China, by providing financial support to other countries and to the U.S for reducing their huge amount of public debt, is taking a significant position. Moreover, by capturing the world country through marketing, China is actually increasing its leading power in those countries (Du, Lin Han, 2018). Through labor-intensive production technique, the country has fully utilized its economic resources. This has helped the countrys terms of trade. India and South Korea, with their modern technology have also going to capture the position of the U.K and Japan. Conclusion: Hence, in conclusion, it can be said that, most of the eastern countries, especially China, India and South Korea, through their increasing share in international market, have captured the leading position, which is increasing serious threats for the U.S and for other developed western countries. From being a developing country to the worlds leading one, those countries have played leading position for other developing countries, as well. References: Cashin, P., Mohaddes, K., Raissi, M. (2017). China's slowdown and global financial market volatility: Is world growth losing out?.Emerging Markets Review,31, 164-175. Du, S., Lin, X., Han, X. (2018). Advantages and Disadvantages of Continued Growth in Foreign Exchange Reserves.Financial Statistical Journal,1(1). Feng, T. (2018). The Analysis on Sino-Us Development under Trump Administration.Research in Economics and Management,3(1), 1. GDP growth (annual %) | Data. (2018).Data.worldbank.org. Retrieved 26 March 2018, from https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?end=2016locations=US-CN-IN-GB-JPstart=1990view=chart Harris, J. R. (2018). Who Leads Global Capitalism? The Unlikely Rise of China.Class, Race and Corporate Power,6(1), 8. Layne, C. (2018). The USChinese power shift and the end of the Pax Americana.International Affairs,94(1), 89-111. Rasoulinezhad, E., Jabalameli, F. (2018). Do BRICS Countries Have Similar Trade Integration Patterns?.Journal of Economic Integration,33(1), 1011-1045.