Global country. A developing country has low average income

Global economy is defined as the economy of the world, considered as the international exchange of goods and services that is expressed in monetary units of money. In the global economy, the United States has been the most dominant, which means that our country has been producing more goods and providing more services in a year time span. In 2002, the United States GDP was at 10 trillion dollars, and since then our GDP has continued to increase (Statistica). The output of goods and services in the US today exceeds more than 18 trillion dollars. The US only has about 1/20 of the world’s population, yet the US makes about one-third of the world’s total output. According to Kevin Hassett and James Glassman, authors of an article I read, “The U.S. economy is so large that its metropolitan areas produce more than entire countries. For example, in 2002, Chicago had about the same GDP as Australia. Boston had the same as Taiwan; Dallas, the same as Saudi Arabia; San Francisco, Hong Kong; and Milwaukee, Pakistan.” It’s not bad for these other countries to lose to the United States because it’s all tied together by trade. All nations win when one succeeds. Trades are beneficial to all countries that are involved. Consumers benefit from imports because they are receiving better goods, and producers benefit from trading because they make more money to keep providing these goods and services. International trading occurs because there may be more products or services lacked in one country that another might have. The main goal is to make sure that there is a balanced trade. Meaning that countries want to make sure they are exporting more than they are importing, so that they don’t end up losing a lot of money. Trading is also beneficial because it keeps the communication between countries positive.   Some countries are not able to contribute much to the global economy because lots of countries are considered to be a developing country. A developing country has low average income and poor infrastructure, education, and health care. Their lack of education and use of limited technology make it hard for these type of countries to have a high GDP at the end of each year. These countries also can have the opportunity to try and overcome the harsh obstacles to improve economic development. Things that could help include government grants, private foreign investment, and use resources from international agencies. Some developing countries could even convert their economy to capitalism, but it is not always the easiest route. Countries may want to convert their economy because they see other countries like the United States thriving in their economy. Converting these countries to capitalism would reduce the amount of power the government has over the nation’s people. There also can be problems found in the global economy as well. The world population is the highest it has ever been, and it continues to keep growing by the second. Our world has a higher birth rate than death rate. This could later cause scarcity in products that have a higher demand. This means that our world has to keep staying on top things making sure that the supply and demand are met on all goods and services. This can be quite difficult to maintain though, but so far the United States has been able to keep up well if the high demands of its people. In 25 years, I see the United States still thriving in the global economy. We have been doing so good every year for the past decade, and I do not see anything changing that. Our population keeps growing, and more new products and services are being provided each year for everyone. I also hope that in the next 25 years, the developing countries are able to provide a better life and economy for their nation’s people. I hope all countries keep improving in their yearly GDP as well.

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