Seminar Essay

874 words - 3 pages

Global business:According to what we have seen from the video "The Party's Over - How The West Went Bust - Part 1" and from our own research. We think an enormous amount of things had happened over the past few years, both in the real world of economics, politics, and business, and in the academic world of theory and empirical research. According to Robert Peston interviews with the economists, bankers and politicians, they stated that the eastern country (like China) has become more successful in terms of global businesses unlike the western countries (like the U.S, U.K) which have faced a lot of economic crises during their struggle for the successful global business. The economist predicted that the eastern countries should be taking more of overseas loan for their infrastructures, and that the western countries shall be providing loans to these eastern countries. But, their prediction turned out to be wrong it was vice versa the eastern country like China turns out to be a producing country which means that they produce more than what they consume, so this results as China having a surplus of money. Whereas, the western countries like U.S, U.K are consuming country in the other words they consume more than what they produce. Therefore, this causes the western countries to run out of money, so, they are more dependent on the loans from the overseas. When the western government started taking loans from the overseas they had faced a lot a problem, one of such was they were unable to pay back the debt to the overseas. Hence, borrowing money from banks, governments and households has left most of the western countries helplessly in debt. This resulted as a huge corruption in their country. On the other hand, eastern country like China were just seeking forward to globalize their businesses even though they were producing a low quality product instead of taking loans from elsewhere in the overseas. Even though, new economic systems like the "Big Bang" economics was introduced in the western countries. In which this economic system allowed big international banks to buy up a stock broken firm. But, this was also not successful as it caused manufacturing in the western countries to shrank, made its economy to become more imbalance, and unable to grow. As a result this caused a lot of gaps between the rich and the poor according to interview by Robert Peston. Still, the western country didn't give up they tried finding another way in...

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