The paper "Increasing Role of Developed Countries in the World Economy" is a great example of ana assignment on macro and microeconomics. A contemporary or new division of labour occurs as a result of the process of globalisation. Over the last few decades, the forces of globalisation (increased use of information and communication technologies and interconnectedness of the global economy) have had a profound effect on the manner in which labour, as a factor of production, functions. It has been stated that as a result of globalisation, labour is now more mobile and flexible (Smith 2003, p.
404). The mobility of labour can be seen within the context of how jobs can be easily transferred from one region to another through the process of off-shoring. On the other hand, the flexibility of labour can be interpreted within the context of how new jobs are being created and changes in labour relations. Therefore, the term “ contemporary international division of labour” refers to the current state of the global economy in which globalisation has affected the process of production, the flexibility of labour and the role that hitherto undeveloped countries play in the global economy.
It is important to note that contemporary international division of labour is an ongoing issue that is affecting production and distribution in the global economy. The following is an examination of how contemporary international division of labour is affecting production and distribution patterns both between and within the developed and developing worlds. Increasing Role of Developed Countries in the World Economy One of the major effects of the new international division of labour is an increase in the role that developing economies are playing in the global economy.
Historically, the world has been divided into three zones, based on the economic performance of the nations in particular regions of the world and the level of political influence that they wield. Following the effects of World War Two, the developed countries in the west formed what was referred to as the first world while several other countries that were performing relatively well-formed the second world. The third world was composed of the majority of economically weak and politically unstable countries in Africa, Asia and South America.
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