Loss of Power and Absorption

Shunya Asano

Through 1990 to 2010, “Economy” has been playing important role in the world. The transition of economic power is a crucial deal between nations or even citizens who live in this global society. This international shift affects the dominant powers which developed countries possess in international market and political significances. In addition, this movement undermines the particular nation since developing nations are enhancing their technology and morphing its economic style.

 Countries located in various continents such as Latin America, East Asia, and Africa have been sophisticated and becoming skillful how to obtain market shares, increment of Gross Domestic Products, and they advance to the next state in the global society. The emergence of BRICs, Next 11, and VISTA represents this international innovation. Moreover, this attributes the loss and less influential powers for developed countries. Consequently, it is stated that the “next” economic nations are absorbing its influences and innovative technology from developed countries.

According to the statistic from FOIN (2012), BRICs (Brazil, Russia, India, and China) increased its car market shares from 22.6% to 35.4% through 2007 to 2010 while developed countries declined its shares from 60.6% to 48.9%. This overwhelming growth of national competence is deteriorating European Union, the United States, and Japan’s capital flows and trading profits since emerging countries are taking advantage to exploit their labors, abundant natural resources, and incentives of foreign companies by its large amount of consumers. Deindustrialization worsens the nations’ trading profits since building companies in developing nations attributes to decrease employment in developed nations. Under this circumstance, it can be mentioned that they are absorbing prosperities from other countries.

Trading profits, deindustrialization, and the increment of market shares are all influences from external factors. Focusing on the term Economy“ requires both perspectives; internal factors and external factors are equally necessary to be concentrated.

Gross Domestic Products are also accelerating the significance of developing countries. For example, although the developed countries’ real economic growth rate only progress 3%, the developing countries and emerging countries are raising 7.1% on average. This massive expansion of their economy can be seen in Next 11 which can be represented by Iran, Indonesia, Egypt, Korea, Turkey, Nigeria, Bangladesh, Pakistan, Philippines, Vietnam, and Mexico. The growth of GDP also represents that their money circulation is efficient which stimulates the citizens’ living standards.

Some emerging countries are morphing its national formation from middle state to developed countries. VISTA which is conducted by Vietnam, Indonesia, Singapore, Turkey, and Argentina is especially remarkable. This can clearly establish visions that these types of nations are taking an important part of international society and progression. On the other hand, this perspective can be identified as negative aspects since that can create more international and severe competition.

 

 

 

 

 

Works Cited

 

Ikegami, Akira. Ikegami akira no manaberu news. Tokyo: Kairyusha, 2010. Print.

 

Odawara, Ken. Jijiryoku hattenhen. Tokyo: Riburu teku, 2011. Print.