RESPONSE 1 (Bethany Mancuso)
Developed countries will become even more competitive with emerging markets like China
and India as these two particular countries become even more developed. Developed countries
like the US are already losing their competitive edge over these markets and they aren’t even
considered developed yet. China and India can provide a cost effective and efficient
production for consumers in a way that the US and its companies just aren’t willing to do
(Smith, 2013). Companies in the US are focused on revenue and expansion growth that they
don’t necessarily focus on the things that consumers want such as innovation, brand
management, or operational improvements. Therefore, it makes sense of consumers to want to
use India or China for their products because they will at least be inexpensive compared to
companies in the US. Economic policies in developed countries could certainly change in
order to make them more competitive with countries like China and India. Some specific
economic policies that could change include the corporate taxes and tariff taxes on imported
goods. All of these things make it harder for corporations to operate and make money which
stimulate the economy and makes it less desirable for companies and countries to import to
the US (“How will,” n.d.). In terms of economic power and the GDP, the global leader in
2050 will be China. China will be the global leader in 2050 because of their growth over the
last ten years has been tremendous and how they are already competing with developed
countries and threatening their world leadership. Also, the Chinese government is very
focused on this growth and has a 30 year plan to rule the world (Smith, 2013).
How will Trump’s Policies Affect the U.S. Economy. Retrieved from
Smith, P. (2013, July 9). Global Trade Policy: Questions and Answers. Wiley-Blackwell: UK.
RESPONSE 2 (James Crookham)
Developed countries will be able to maintain their competitive edge against emerging markets such
as China or India only by continuing to encourage private businesses to innovate and continue the
advance of new technology.
The economic policies in order to make the developed countries more competitive are those that
require advancements in healthcare, energy production, environmental standards and human rights.
Some policies that consumers feel are restricting and punishing current business practices are often
put in place by governments as a forward looking plan to encourage development of technology and
better the lives of its citizens.
Automobile fuel standards that increase the mile-per-gallon (mpg) of an automobile are being
relaxed by the US government as the Environmental Protection Agency (EPA) states that the
standards are affecting automobile sales, thereby retarding the U.S. economy (Eisenstein, 2018). The
other viewpoint on the higher standards is that investing in the technology to develop the
engineering processes and get automobiles on the market that save owners money encourage
economic development (CAFE, 2015).
The US Congress established Corporate Average Fuel Economy (CAFE) standards in 1975 as a tool to
use lessons learned from the 1973 oil crisis and geo political climate that resulted from oil embargos
and other world events. In 1975, the goal was to have fuel economy standards for new passenger
cars in place by 1978, with a goal of reaching 27.5 mpg by 1985 (CAFE, 2018). Other world events and
political changes have altered the path of CAFE with arguments for both sides of the argument for
the higher standards.
I believe that because of these standards, the air is much cleaner, automobiles have gained in
reliability, length of service, and safety since 1973, and the push of increasing the technology is has
made the automakers more responsible. U.S. producers have struggled on and off throughout this
period, but fuel efficiency standards are not necessarily to blame.
In my opinion, in terms of economic power and the GDP, nations that are home to institutions that
finance global operations will be the global leaders in 2050. As production and assembly operations
become more LEAN and Agile, production can be moved swiftly and in short time duration as
production costs fluctuate. Consumers in developing nations will have earning power to buy more
goods, but that economic cycle also increases operating costs in those regions. In my opinion, the
multi-national corporations that operate globally will hold on tight to their financials and intellectual
property in their countries of origin. Governments are slowly retracting on research and
development in their budgets, and it will be the private financiers that benefit.
CAFE (2018). A Brief History of U.S. Fuel Efficiency Standards. Union of Concerned Scientists.
Retrieved from https://www.ucsusa.org/clean-vehicles/fuel-efficiency/fuel-economybasics.html#.WtUAhYjwZHY
Eisenstein, Paul (March 30, 2018). EPA expected to announce rollback of Obama-era mileage
standards. NBC News. Retrieved from https://www.nbcnews.com/business/autos/epa-expectedannounce-rollback-obama-era-mileage-standards-n861416
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