Changes in the structure of world economy

The Global economy is undergoing a long-term, structural transformation. In the past few decades, the key sectors responsible for the global output shift are the fall of agriculture, the decline of the manufacturing industry, and the rise in services. Next the capital expenditures are reducing.

Alessandro Magnoli Bocchi an Italian economist clearly stated in one of his books that by relying on the internet cheap interfaces with a large number of customers in other words, by inexpensively putting underutilized resources to use, it creates value with little capital cost. As a result, global net investment is close to its lowest level since the Second World War.

Moreover countries are making their economic structure more protective and are making their countries more self-sustained by encouraging industries in their countries to establish in their own country, therefore decreasing the import supply of goods and increasing their export supply to other countries to improve their economy. Currently, the United States is trying to do so. Decreasing their import supply of goods and increasing their export trade. US are going a step ahead by asking industries not to provide jobs to other nationalities.

Most of the countries are protecting their economies by encouraging their countries to establish industries in their own country. For example, Donald J. Trump went against General Motors for sending Mexican made model of Chevy Cruze to U.S car dealers-tax free across border. He says that General Motors must make in U.S.A or pay big border tax! Narendra Modi has encouraged industries to make products in India.

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