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  • September 26, 2022
  • Last Update March 12, 2022 2:43 pm
  • Hannover

7. GLOBAL ECONOMIC CHALLENGES OF THE TWENTY-FIRST CENTURY

As U.S. economies and policies become increasingly interrelated across borders and oceans, we face a more complex economic picture. The opportunities that go together with this more global picture are great, but so too are the challenges. Cellular telephones, computers, diseaseresistant crops, satellites, biotechnology, and fiber-optic networks are among the twentieth-century technologies which will shape political, social, and economic realities well into the twenty-first century—realities that include the continuing globalization of business, culture, and health care. So what are the particular challenges that we want to be aware of?

International Terrorism

Surprise, when it happens to a government, is probably going to be an advanced, diffuse, bureaucratic thing. It includes neglect of responsibility but also responsibility so poorly defined close to ambiguously delegated that action gets lost. It includes gaps in intelligence, but also intelligence that, sort of a string of pearls too precious to wear, is too sensitive to offer to those that need it. It includes the alarm that fails to figure, but also the alarm that has gone off so often it has been disconnected. It includes the unalert watchman, but also the one who knows he’ll be chewed out by his superior if he gets higher authority out of bed. It includes the contingencies that occur to no one, but also those who everyone assumes somebody else is taking care of. It includes straightforward procrastination, but also decisions protracted by internal disagreement. It includes, in addition, the shortcoming of individual citizenry to rise to the occasion until they’re sure it’s the occasion—which is typically too late.

The report, Countering the Changing Threat of act of terrorism, written by the National Commission on Terrorism, begins with these words by Thomas C. Schelling. during this succinct and clear description of surprise, the various elements of terrorist act are captured.

Terrorism succeeds due to the element of surprise and, unfortunately, surprise could be a factor that we cannot always control.

It accustomed be that terrorist act happened to Americans only when we weren’t on our home turf. September 11th, however, showed us that we are not any longer safe within our own borders. Terrorist attacks have become more lethal, too. Most terrorist organizations active in the 1970s and 1980s had clear political objectives. They tried to calibrate their attacks to provide merely enough bloodshed to urge attention for his or her cause, but not such a lot on alienate public support.

Today, as we’ve seen, the objectives are increasingly religious, economic, or personal (against an ethnic group) in nature. In his paper “International Terrorism within the 21st Century,” Frank Goldstein points out a pair of options to counter the new threats posed to nations because of act of terrorism. One option, which received some success after the globe Trade Center bombing in 1993, is the economic incentive or bounty. The U.S. government offered a souvenir of several million dollars for information resulting in the person or persons accountable for the bombing. An informant in Pakistan provided the information that led to the arrest of a private in Islamabad, Pakistan, and he was immediately taken to the u. s. to await trial.

Although the bounty or reward program seems to possess succeeded in 1993, continued terrorist activity demonstrates that these problems with international terrorism are very complicated.

A second option for global nation states to thwart terrorism is “national resolve.” It should be acknowledged that a foolproof system against terrorism in democratic societies doesn’t exist. Simple

procedures like better intelligence and improved physical security of critical sites will, in most cases, deter a selected terrorist group.

Economics, technology, and therefore the whims of both criminals and psychotics will produce ongoing and, at times, spectacular events. A result of terrorism within the u. s. are more public and political efforts to counter terrorism by the West. Sadly, terrorism within the third world and in developing countries will continue almost unabated.

Shift to a worldwide Information Economy

The information economy affects supply chains, digital technologies, information and communication technologies, technology enabled marketing; it’s pushing businesses to travel wireless, changing organizational structures, and increasing the worth of intellectual property.

Some think the movement to an information economy is being oversold because the key to economic opportunity. Information technology can help people learn the way to soak up knowledge generated elsewhere and combine it with local needs and native knowledge and will help raise real economic returns on investments, but there are still more familiar development challenges (e.g., structural unemployment, social inequality, and an undereducated workforce).

Aging of the World’s Population

The world’s population is getting older and older as a results of dropping fertility rates and urbanization. Europe provides a wonderful example of how the aging population is changing policy and business.

Fertility rates have plummeted, especially in southern Europe, to the point that each 10 Italian women are expected to possess just 12 children in their lifetimes, and each 10 Spanish women just 11. As a group, the countries of the EU are visiting see their populations shrink, unless they permit significant levels of immigration.

The situation straight away isn’t unique to Europe. In fact, well over half of the world’s elderly (people aged 65 and older) now sleep in developing nations (59 percent in 2000), and this can be projected to grow to 71 percent by 2030. Many developing countries have had significant downturns in their rates of natural population increase, and as this process accelerates, age structures will change.

Consumers

It is important to think about that companies ultimately fail or succeed because of consumer preferences and their ability to manage scarce resources.

Whether your business provides a product or service to the end user or to an intermediary, your product or service may or might not be chosen looking on consumer preferences. a part of what goes into the consumers’ choice is that the perception of quality.

U.S. consumers have the perception that certain foreign-made goods are of upper quality than U.S.-made goods. within the past this has been true, for instance, of cars and electronic goods made in Japan. French wine and Swiss watches are other samples of goods that some U.S. consumers believe are better than similar domestic products.

Another factor that goes into consumer preferences is as simple as personal buying habits. This includes taking into consideration where people wish to shop, what brands they like, and what associations they might have together with your product or service.

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