Question

How has global classification of countries shifted throughout the past 50 years?

Answer 1

throughout the past 50 years, global classification of countries have shifted widly and the global economy has changed rapidly. The development of standardized products and world economic integration has been particular when we talk about economic change globally. Few examples like Coca-Cola, Nissan, and gold flake cigarettes are the products which serve nearly every market. Four major changes that have taken place due to this are as follows:

(1) Capital movements rather than trade have become the driving force of the global economy
(2) Production has become "uncoupled" from employment
(3) Primary products have become "uncoupled" from the industrial economy and,
(4) The world economy is in control

Another change that has been noticed  is the decoupling of employment from production. Employment is declining whilst manufacturing output is growing or remaining static at 20-25% of Gross National Product. Sectors like agriculture are achieving higher productivity through mechanization and the new technology which is developing but this is on the verge of employment.

Still another change that took place is the separation of the primary product market from the industrial economy. Prices of many commodities have come down, for example, tea. Unfortunately, the prime producers are the most affected.

At the last, the major and significant change is the change of focus from domestic to the world economy as the main economic unit. This has been seen in countries like Japan and Germany. These factors cause the problem on exporting business by developing countries.