World economy

The world economy is the totality of economic relations in the world that goes beyond the limits of national economy. The apportioned nominal global GDP amounted to around 70 billion U.S. dollars in 2011. It provides a global integration of different sub-markets ( commodities and goods market, financial market, labor market and information market ) represents the global economy has caused formed in the 19th century by industrialization and was highly dependent on the development of the international division of labor, transport and communication.

The components of the world economy have changed qualitatively and quantitatively in the 19th and 20th centuries. The term ' bipolar world economy ' highlights the process applied to the 19th century, the importance of Europe and North America in the 20th century, the poles of the western industrial nations, on the one hand and on the other hand out of the CMEA. ' Tripolar world economy ' involves a third pole of East Asia, or, since the 1990s, the core zones of North America - Europe - East Asia.

The general world economic conditions are among other WTO agreements, customs and currency agreements, European Payments Union, GATT and OECD.

World trade is dominated by the industrialized nations, particularly through the European Union with a share of more than a third. The entire African continent (excluding the Middle East ), however, has a share of just 2 to 3 percent. An increasing role in global economic exchanges take the so-called emerging markets one - led by the People's Republic of China, but also the so-called tiger economies.

The current situation of the world economy is generally referred to as globalized economy.

Real history

Even the economies of antiquity were connected to each other through a variety of trade routes, known as the Silk Road, and this exchange is increased in the era of the Crusades considerably, particularly between the Arab and the European area. Even the Mongol Empire contributed to the East-West exchange, but only in the course of European expansion, economic relations distant economies contributed significantly to the capital accumulation of a room. First, the conquistadors managed rather one-sided riches of the newly discovered and conquered territories to Europe. Then during the Industrial Revolution, there was an exchange of goods that are far apart economic areas, which reduces the production cost for both sides. Because of this practical experience of mercantilism was abandoned as economic theory and more and more replaced by the free trade theory. In this phase, a world economy emerged in the modern sense.

Between 1800 and 1913, world trade increased to 25 times and grew so much faster than global production. This was due to

  • Declining freight rates,
  • Tariff reductions. In these Britain was preceded by an example ( in the 19th century by far the leading naval power in the world). Of course, not all states voluntarily reduced tariffs. India did it because it was part of the British Empire. China and the Ottoman Empire were committed in the course of negotiations to credit. The trend towards the expansion of trade was also not thereby broken that in 1870 passed a number of European countries for tariff policy.
  • Advances in marine technology, such as the advent of steam ships, bigger ships, ships of iron (see also list of ship types )

After the injury caused by the First World War division of the world market between the warring factions, the world economy did not recover back to 1913/14, achieved level of integration and in the wake of the Great Depression from 1929 of the World Trade broke even to below 50 % of its previous level. In the U.S., the Great Depression dominated the 1930s. Britain, France and Japan built their colonies on large economic areas; Germany tried to tie itself from 1933 Eastern European countries through bilateral agreements.

After 1945, a strong co western and central European economy was built, which was connected via the Bretton Woods system in a network of 40 countries by fixed exchange rates. What part of the Marshall Plan in this building had been and still is controversial. The economic division was now between Western and Eastern bloc. In the 70s, this system fell by two developments in the crisis: first, through more automation and the parallel transfer of jobs of the first and second sector to countries with cheaper labor, on the other hand by the increased power of the OPEC countries and the resulting forced increase in oil prices (oil crisis). The resulting increase of goods movements and the rise in oil prices led to a quadrupling of world trade and the consequent investment to a six-fold increase in foreign investment.

With the collapse of the Eastern bloc and the ensuing huge expansion of market-driven economic area sat deregulation, as agreed in the Washington Consensus of 1990 worldwide. In 2005 the World Trade crossed the border of a trillion dollars, but his enormous increase has been far surpassed by the financial transactions, which was no exchange of goods based. Despite the different calculations is generally agreed that the exchange of commodities at the beginning of the financial crisis in 2007 accounted for less than 10 % of financial transactions.

Conceptual history

Bernhard Harms considered the founder of world economics. It defines: "World economy is the whole essence of made ​​possible by highly developed transport and international treaties both regulated by state funded as relationships and interactions between the individual economies of the world. "

The term " World Economics " has often been used by Marxist economists in contrast to the term " International Economics" of liberal economics. "

World Economic research institutions and institutes

In Germany, Institute for the World Economy in or around the universities in the north German port cities:

  • Hamburg Institute of International Economics Archive ( Hamburg, 1908-2006 )
  • Institute for World Economics (Kiel established 1914)
  • Institute for World Economics and International Management (Bremen founded 1991)

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