Economics is a branch of social science that studies how to prudently allocate resources despite scarcity. Its main objective is to satiate the unbounded needs, wants, and demands of the people. (University of Buffalo, 2023). Since economics is a social science, one must recognize its fluidity. The field of economics is not the same as physical sciences, where only one method applies to all. The universal principle of the latter could be used to figure out problems, factors that intensify the problems, and ways to solve them. However, when it comes to social science, it insinuates the contrary. Methods and approaches in studying social science, particularly in economics are not "one size fits all". Take Comparative Economics as an example; when an economist studies factors that contribute to a country's economic prosperity, he draws inferences from it, and from that, he recommends what economic system works best. And it is up to leaders whether they will adopt it or not. Nonetheless, those inferences cannot be simply accepted. Because what works for a particular country, might not work for others. That is a huge challenge for all the economists whose specialization lies within the global scale.
I first briefly defined economics and the reality behind it. For I know that mere anticipation in social science is trivial, it does not sound academically valid. Additionally, before I enumerate my predictions about the Global Economic Landscape in the 5 - 10 years. It is important to operationalize factors that affect the inner workings of economics. First is society's Dynamic nature. Nothing stays the same forever, and what might be considered fixed will eventually be altered, even the economic policies. Secondly, the erratic human behavior. I believe this is the hardest factor to be reckoned with because human behavior cannot be studied inside a laboratory—lastly, internal and external conflict. No matter how prosperous a country is, if external disturbances like wars, terrorism, and colonialism break out—the economy will collapse. (Thies and Baum, 2020)
Now that I have provided enlightenment on Economics and its underlying factors, I will be formally enumerating my predictions. These are all the results of integrated ideas from different studies and sources. After 5-10 years, Global Economy will be entering a new landscape— first is an integration of AIs in determining economic and global trends. Secondly, global economic competition will soar high. Lastly, if Globalization is incessantly intensified, Super states will continue to be influential.
Integration of AI in Studying and Analyzing Global Economic Trends and Patterns.
Professor Dr. Pratik Mungekar said that Artificial Intelligence (AI) has different branches, one of those is Machine Learning. The latter is used to effectively and efficiently analyze data, it helps predict algorithms and utilize models, and it is scientifically programmed to speed up the analyzing time. With this windfall, responding to contingent economic flashpoints would become a piece of cake for the economists. (Koch, 2022)
Global Economic Competition Will Soar High
We all know that the free-market economic system is widely diffused and patronized around the world. Entrepreneurs and investors double their time to fund promising countries, in which the profit will circulate. However, when a particular state fails to keep up with global competencies, the consequences of this competition would be the economic downfall of the nation and cultural and political risks.
Super States will continue to be Influential.
What are super states and what are the examples?
Super-states are defined as undeniably powerful countries that are fortified by numerous alliances. Professor Alasdair Roberts considered the USA, China, and India as super-states. When nations collaborated, one of their agendas would pertain to economic management. As the leaders exchange ideas, they eventually devise a strategic plan to keep the global economy afloat. If they find it successful, their influence will spread globally as if an air-borne infection broke out. But if dissonance arises during the policymaking, that will be a separate discussion.
To encapsulate everything, making an economic prediction is easier said than done. It is not like a normal statistics class where probability could be determined using a calculator. Numerous, or certainly millions of underlying factors should be considered before delineating economic patterns. On a global scale, economists' jobs might be too overwhelming. But let us not forget that we are part of the whole, we could contribute to global economic progress in our infinitesimal ways. Being prudent, smart, and critical of our spending and consumption will create an influence on the global measure. Because, if small acts are compounded, time will craft bigger and more impactful ends.
References:
What is Economics? (2022, October 4). Department of Economics - University at Buffalo. https://arts-sciences.buffalo.edu/economics/about/what-is-economics.html?fbclid=IwAR2CoRfUnVcSqggtZK0ei7VXoemI8jToYizec51YXqQ-YBwuJLAXW-HHdi8#:~:text=Economics%20is%20the%20study%20of,of%20vital%20concern%20to%20society
Thies, C., & Baum, C. (2020). The Effect of War on Economic Growth. Cato Journal. https://www.cato.org/cato-journal/winter-2020/effect-war-economic-growth?fbclid=IwAR0odcw_0DmxRQhcazRg0fO_z1omOP1nidDVvnq6ZKUkhOPhlVbHP41hGAk
Koch, R. (2023, June 7). Benefits of AI: How it Contributes to Our Society and Economy. clickworker.com. https://www.clickworker.com/customer-blog/benefits-of-ai/?fbclid=IwAR0TULSml8OJq_X21uRfKOTbQm5OCMR1wEZSv-6ffifb-2FLI90vDaLysaI
Kennedy, A. B. R. (2020, August 14). 9.2 Advantages and disadvantages of competing in international markets. Pressbooks. https://pressbooks.lib.vt.edu/strategicmanagement/chapter/9-2-advantages-and-disadvantages-of-competing-in-international-markets/?fbclid=IwAR3_f83aktUnjtZ582qLJOPg-Pw6J0jw1PQykktYDGqR05m0PF6hIEJRdEw#:~:text=Competing%20in%20international%20markets%20involves,economic%20risk%2C%20and%20cultural%20risk
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