Feature of the Month
: The Steady State Economy
The trend of slow and reduced growth is persistent in nearly every economic headline around the world. Some have attributed diminishing growth to economic downturns and the recent financial crisis. However, others have stated that the slow economic growth may not just be a temporary phenomenon, it may be an indicator of a new reality—the end of economic growth. This theory has been debated since the 1970s, beginning with the publishing of the book The Limits to Growth in 1972. This book found through advanced computer modeling that there is point in time where the limited resources on Earth will be unable to sustain human lifestyles if the world continues to grow and consume at its current rate. This point in time is predicted to be around the year 2030 according to the base model. Other economists have warned that zero GDP growth is a realistic possibility by 2050. Revisiting these projections 40 years later, researchers found that the projections are disturbingly accurate.
The theory of limited growth is known by many as the steady state economic model. A steady state economy is essentially an economy where growth is not the primary objective, but rather the goal is to promote a sustainable quality of living. Japan is a modern day example of a steady state economy as its GDP has has experienced virtually no growth the past decade. The theory of zero growth and the steady state economy is an interesting hypothesis that will have major implications on the global economy moving forward. How will businesses grow and expand if sustainability is the focus rather than GDP growth? Will international businesses continue to flourish if growth becomes limited abroad? These are all questions that will be answered in time as the global economy continues to mature.
Featured Resources
World Bank Development: Global Economic Prospects
This site offers analysis and advice concerning the prospects for economic growth, world trade, financial flows, and primary commodities, the impact of global economic trends on the developing countries, and information about global and regional economic forecasts. Global Economic Prospects 2012: Commodities at the Crossroads reviews the effect of financial crisis on commodity prices.
Category: Publications
Organization for Economic Co-operation and Development (OECD)
The Organization for Economic Co-operation and Development (OECD) aims to bring together governments of countries committed to democracy and the market economy from around the world. OECD provides statistics, economic and social data, as well as analyzing and forecasting developments in trade, agriculture, environment, technology, taxation and more. Information about the organization and its members, statistics, news, resources, books and periodicals are provided.
Category: Organizations
Featured Academy
Berkeley Roundtable on the International Economy
The Berkeley Roundtable on the International Economy (BRIE) is an interdisciplinary research project that focuses on international economic competition and the development and application of advanced technologies. BRIE pursues focused research in areas ranging from international trade and investment to technology development and conversion. A great number of working papers and articles are available online.
Category: Paper Depositories
Global Market Opportunity Assessment
The Global Market Opportunity Assessment module informs one on the following issues: why it is important to assess global market opportunities; how companies conduct market opportunity assessment; what makes market research effective; practical approaches to identifying foreign market opportunities. A sample global market opportunity assessment questionnaire and a case study on Thailand’s growing importance in the global export market are also included in the module.
Category: Market Research and Entry
globalEDGE International Business Driver
Country Comparator Tool
The globalEDGE Country Comparator Tool allows users to compare up to twenty countries a across a variety of economic indicators. Some of these indicators include GDP, inflation, foreign direct investment, and trade statistics. This tool is extremely interactive and is easy to use with helpful graphics and sorting tools. There are many benefits associated with this brand new tool. First of all, users of this tool can quickly conduct research for any particular country and can compare these results to other countries as a benchmark. Additionally by comparing several countries over several years, users can predict trends and make decisions based on comparative data. Overall, this tool is very useful for those interested in international business.
