New economic geography - what does it imply?

Résumé du document

An economy is a set of human and social activities and institutions related to the production, distribution, exchange and consumption of goods and services. Thus, it corresponds to the organized way a society provides for the wants and needs of its people.
In a global context, there are different economic systems in each country with similarities and differences which should entail to a study of each. Every society has their own wants and needs, some similar and others totally different.
Globalization has opened domestic markets and people's eyes to a new way of life. It has triggered a leveling of the standard way of living, individual goals and also rules in the international trade.
Thus the former economic geography does not exist anymore. The question is: what does this change in the global organization imply?
In the first section of this document, I shall develop the definitions and stakes related to the different world organizations transformed by such a change. Then I will explain the implications of the new economic geography.

Extraits

[...] New economic geography - what does it imply? I. Introduction An economy is a set of human and social activities and institutions related to the production, distribution, exchange and consumption of goods and services. Thus, it corresponds to the organized way a society provides for the wants and needs of its people. In a global context, there are different economic systems in each country with similarities and differences which should entail to a study of each. Every society has their own wants and needs, some similar and others totally different. [...]

[...] The new economic geography takes into account social, cultural and institutional factors in the economy as well. In general, an economic geographer will conceptualize a problem in terms of space, place and scale as well as the overt economic problem that is being examined. Whereas an economist may simply look at the figures of a country's GDP or other indices to form his or her opinion, economic geographers take into consideration the human geography within these perspectives or sensibilities. Globalization Globalization describes an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and exchange. [...]

[...] Governments must promote economic integration which is about the mobility of people, products, and ideas. Bank institutions that launch debt management facilities to help developing countries and international development partners as well can play a vital role in this process. The World Bank works with governments and international development partners to help assess the extent of damage, evaluate costs and then work on a long-term reconstruction plan. For instance, EU (European Union), NAFTA (North American Free Trade Agreement) and ASEAN (Association of South East Asian Nations) have flexible rules and regulations when their members do business with each other. [...]

[...] It does not become a club of the richest nations; those nations should not be able to decide which country would have access to the development. But this is what happens: even if new parts of the world now have access to development, others parts seem to have been overlooked by the new economic geography. The African continent or countries such as Bangladesh are the most relevant examples. Thus in a mid-term view, this could hamper the improvement of such nations as people would resort to mass emigration in order to deal with the fast growing population. That would be a disaster! [...]

[...] According to some scholars, globalization has impacted the economies of countries massively. It is obvious that globalization does play an important role for business managers of different countries as competition in the market grows exponentially and as a result, companies have to find ways to cut costs in order to remain in these intensely competitive markets.(Farrell, Diana; BEYOND OFFSHORING: Assess Your Company's Global Potential. Harvard Business Review, Dec 2004, Vol Issue 12, p84). By globalization, this diversity can be approached. [...]