商务英语阅读（下册） （第二版） unit 15 世界
经济
Unit Fifteen
nomy
Pre-reading questions
1.What do you think of the world economy at present? 2. Do you think China will lead the world economy in the coming
Analyst said the world economic boom has been driven by two factors. One, it is said the economic growth is driven by a gradual liberalization of world trade and a liberalization of major third world economies like China and India. The increased liberalization of world trade has increased the scope of international division of labor and permanently helped raise growth in the world as a whole and in particular in third-world countries. Another reason for the increased growth in emerging economies is the free market reforms implemented there with a country like China transforming itself into the economic track with a seemingly endless supply of cheap but competent labor.
To better understand the prospects for the world economy, maybe we should analyze the strengths and weaknesses of the four main economic powerhouses of the world: the United States, the European Union, Japan, and China， as they are the main driving forces in the world economy.
On the one hand, we can be fairly optimistic about the US economy; on the other hand, the imbalances created by the Fed's cheap money policies can make a sharp recession in the mediumterm outlook, and if this likely sharp recession will induce an extremely destructive response in the form of protectionism, higher taxes and spending, or high inflation, it could make the long-term outlook more pessimistic.
future? State your reasons.
UP
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It was reported, the world economy grew slightly from 2004, led by the extraordinary boom in China and very high growth in most other third world countries. America and Japan also had fairly strong growth, although Western Europe had a more dismal performance. People in the world are worrying: Can the good times last? Or is the world economy heading for a crisis?
The Achilles' heel of the US economy is its over-dependency on cheap credit. In the spring of 2000 the US experienced its largest stock price bubble since the 1920s with valuations of technology stocks set at ludicrously high levels. This bubble was driven by rapid money supply growth and was accompanied by a sharp increase in the private sector debt burden and current account deficit, both of whom reached new record levels.
American economy
The American economy's strong side is that it is marketoriented economy, with tax rates and regulation being far less burdensome than in the major European economies and Japan. It also has well-developed financial markets and institutions for higher education. This helps America to remain the richest country in the world (apart from tiny Luxembourg) and to outperform most other rich countries.