DISTINCTIVE

FEATURES OF THE
CONTEMPORARY
GLOBAL ECONOMY
1960s TO PRESENT
• THERE IS
INTRODUCTION
CONSIDERABLE
CONTROVERSY OVER
HOW TO CHARACTERIZE
THE DISTINCTIVE
ASPECTS OF GLOBAL
ECONOMY IN THE POST
WAR PERIOD.

REASON?
ANSWER:

THE PERIOD FROM 1945

TO THE PRESENT
CORRESPONDS TO A
TYPICAL KONDRATIEFF
CYCLE OF THE
CAPITALIST WORLD
ECONOMY.
THE UPWARD AND A DOWNWARD SWING:
AN A-PHASE OF ECONOMIC EXPANSION FROM 1945-1973
A B-PHASE OF ECONOMIC CONTRACTION FROM 1968 TO
THE PRESENT DAY.
 1913 = GOLDEN AGE OF
INTERNATIONAL TRADE
AND INVESTMENT

IT WAS DRAMATIC
IMPROVEMENTS IN
TRANSPORTATION, SUCH AS THE
STEAMSHIP AND THE RAILROAD,
THAT ALLOWED FOR A GREAT
INCREASE IN THE AMOUNT OF
THE GOLDEN AGE ENDED
BY WWI AND GREAT
DEPRESSION MOST OF THE WORLD’S
ECONOMIES TURNED
INWARD.

MERCHANDISE TRADE
(IMPORT & EXPORT) DID
NOT RECOVER UNTIL
1970s
• INTERNATIONAL BECOME THE
TRADE HALLMARKS OF
• INVESTMENT ECONOMIC
• FINANCE GLOBALIZATION

GLOBAL INTERCONNECTEDNESS
THROUGH FOREIGN DIRECT INVESTMEN
GREW EVEN FASTER THAN TRADE DURING
1980s, AND THE MOST DYNAMIC
MULTINATIONALIZATION OF ALL HAS
COME IN FINANCE AND IN TECHNOLOGY.