Globalization and Power Shifts

Question 1

Briefly describe the shifts in the share of world-wide GDP (output) over the past 50 years or so.

Answer 1

While total world-wide output has more than tripled over the last 50 years, the growth has not been uniform among countries/regions. The most dramatic changes have been in the decline of European share of output and the increase in the Asian share of output. The European share of world-wide output has declined from about 36% to about 27% and the Asian share has increased from about 15% to about 25%. The share of output held by the U.S., Latin America and Africa/Middle East has remained fairly constant.

Question 2

Briefly describe the shifts in the share of world-wide trade over the past 50 years or so.

Answer 2

The total level of world-wide trade has grown dramatically in the past 50 years. During that time the four largest export countries have been the U.S., Germany, Japan, and China. The share of world-wide exports attributable (in total) to the four countries has remained fairly constant, around 30%. But, among those countries, the share has changed significantly. The U.S. has lost share, form about 18% to 8%. Germany has maintained about a 9% share. Japan has increased share from about 2% to about 5% and China has increased share from about 2% to about 9%.