High Noon 20 Global Problems 20 Years to Solve Them - Chapters 5 & 6

1. Why is inflation less of a concern in the new world economy?  Because in the new world economy, price increases don't easily stick and businesses have become hypercompetitive.

2.What is the difference between a negative feedback economy and a positive feedback economy?  A negative feedback economy is where items started out rare and expensive before they became widespread and less expensive.  A positive feedback economy is where items become available so quickly and inexpensively that traditional supply constraints become almost umimportant.

3. Give a example of how new technologies can provide developing countries with an opportunity to catch-up with modern economies?  New technologies in developing countries include teacher networking over the Internet.  An example is Monterrey Tech University in Mexico has thirty connected campuses across Latin America offering each student access to the same star professor.

4. What is one prediction the author made concerning the new economy that appears to be true?  Rischard states that the new world economy is full of unprecedented, wonderful opportunities but also brings loads of stresses.  This statement appears to be true because with more technological advances the more chance you have of problems with technology.

 

5. Why is excessive trust in free-market economies promoted by free-market fundamentalists a cause for concern?  Because enterprises need to increasingly make enormous investment decisions where change is occuring rapidly, which can result in mega-mistakes that create major ripples.

6. Read and Link to a Website that provides information about regulation and markets. Based on the information provided in the website, what is your position on markets and regulations? Then list two questions you have about markets and regulation.  I agree with the author of the article that I have linked to that regulation of markets should have a major update.  As the author stated when the current regulations were written, the country was not experiencing these types of trade and market issues that we face today in technology age.  Two questions that I have about markets and regulations are: Who creates these regulations? and Do the business owners have any input of changes that are to be made?

8. What is the cause of the crisis of complexity in the new world economy?  The new world economy seems to be making job tenures more precarious even when unemployment remains low.  There is also a fear of malicious intent linked to the Internet that could cause major upset within the government such as derailing the electronic marketplace, power outages in major cities and terrorist attacks. 

http://www.sec.gov/news/speech/2012/spch100412dmg.htm