Question

Discuss the major forces that are shaping the dynamics of global, political and economic environments? answer it in 500 words.

Answer 1

The major forces that are shaping the dynamics of global, politcal and economic environments are:

1. Pandemic: The COVID-19 pandemic has bought the world to a standstill. With more than 10 million people affected and 500 thousand people dead, the virus has caused large scale disruption to economic activity and strained the healthcare sector. It has caused recession in global economies.

2. Trade Wars: The trade ware between US and China has cased supply chain disruptions and reduced the economic efficiency of the global trade. With the US banning or levying higher tariffs on imports from China and China reciprocating, there is possibility of further strain in the relation of the 2 countries.

3. Climate Change: Global Warming has enhanced the need to look into the increase in use of renewable energy in businesses. The young leaders of the world such as Greta Thunberg, etc. are rooting for the leaders of the come up with policies to conserve the environment.

4. Emerging Economies: With companies moving out of China, emerging economies with cheap labour and appropriate infrastructure will now become the new manufacturing hubs of the world.

5. Liquidity Infusion: The liquidity infusion and federal policy of the governments of the world will have a significant impact on economic recovery. The monetary policy in various countries have tripled the size of liquidity infusion as compared to the 2008 global crisis. These policy measures will impact the global dynamics as well.