CHILETTE G.

GARCIA BS CHEMISTRY 4-A

ECONOMICS ASSIGNMENT

ECONOMICS- social science concerned with the production, distribution, exchange, and consumption of goods and services. FIRST WORLD ECONOMICS The concept of the First World first originated during the Cold War, where it was used to describe countries that were aligned with the United States. These countries were democratic and capitalistic. After the fall of the Soviet Union and the end of the Cold War, the term "First World" took on a new meaning that was more applicable to the times. Since its original definition, the term First World has come to be largely synonymous with developed countries or highly developed countries (depending on which definition is being used). First World countries in general have very advanced economies and very high Human Development Indices. On the other hand, the United Nations defined the First World on the wealth of the nation's Gross National Product (GNP). The definition of First World is now less concrete than during the Cold War. Global dynamics between the First World and the other Worlds were essentially split into two. Relationships with the Second World were competitive, ideological and hostile. Relationships with Third World countries were normally positive in theory, while some were quite negative in practice (e.g., wars). Present inter-world relationships are not so rigid, although there is a disparity in terms of the First World having more influence, wealth, information and advancements than the other worlds. Globalization is an increasingly important phenomenon which has been fueled largely by the First World and its connections with the other worlds. An example of globalization within the First World is the European Union which has brought much cooperation and integration to the region. Multinational corporationsalso provide examples of the First World's impact on globalization, as they have brought economic, political and social integration in many countries. With the rise of the multinational corporation, the problem of outsourcing has risen in many First World countries. Example of the First world country:

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Vietnam Korea

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United states Japan Germany

SECOND WORLD ECONOMICS The global economy is in the bridge of a new era. First World countries are autocratic. Third World Countries are deteriorating. Developing countries are not developing. To bring balance, the only solutions are second world economies. The global economy is in turmoil. The biggest economy, United States of America , is in financial crisis . Euro currency is not stable which defeats the purpose of having a unified currency in the first pace. China is in surplus. Japan is degraded. On the other hand, the Middle East conflict has no direction. North Korea is closed. Africa is dying. Other countries have no development. The only economy that is working is that of Afghanistans. The great Afghanistan! They are the melting pot of all terrorist transactions. They cultivate marijuana and opium as if it was like China in the early 1900. Bin Laden is richer than the Queen of England. Everything is working for them. This is what we get if we go astray to the basic essence of an economy. An economy is created to prosper development. A business hires employees. An employee sustains his family. A child goes to school that someday he will have his own business or be an employee, if he prefers to do so. We are in a great recession. The financial market is bombarded with Charlatans. Businesses have no respect to virtues. Bad Money is in Par with good money. Economies are monopolized by communities of brotherhoods. We must initiate the balance. The only solution is a second world economy an economy that alleviates the problems of developed countries, while maximizing its strengths, as it prospers development and inspires other developing economies to take advantage of its weaknesses. Characteristics of the Second world Economy/Country An economy that offers low cost staff functions to developed countries (like call centers, local subsidiaries and branches of multinational companies). An economy that consumes surplus goods like that of China. An economy that exports low cost but high value labor to other countries. An economy that produces world class professionals. A neutral economy with regards to religion, ideologies and orientation. An economy that offers low cost but world class tourism.

Example of the Second world country:

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Romania Hungary Latvia Russia China-may also considered a second world nation. Philippines- may also considered as example of this economy.

THIRD WORLD ECONOMY The term "Third World" arose during the Cold War to define countries that remained non-aligned with either capitalism and NATO (which along with its allies represented the First World), or communism and the Soviet Union (which along with its allies represented theSecond World). This definition provided a way of broadly categorizing the nations of the Earth into three groups based on social, political, and economic divisions. Underdeveloped or developing countries, as in The conditions in our poorest rural areas resemble those in the third world. This expression originated in the mid-1900s, at first denoting those countries in Asia and Africa that were not aligned with either the Communist bloc nations or the non-Communist Western nations. Because they were for the most part poor and underdeveloped, the term was transferred to all countries with those characteristics, and later still to poorer groups within a larger prevailing culture. FOURTH WORLD ECONOMY

The Fourth World refers to

1. sub-populations socially excluded from global society; 2. nomadic, pastoral, and hunter-gatherer peoples living beyond the modern industrial norm

Fourth World follows the First World, Second World, and Third World hierarchy of nation-state status; however, unlike the former categories, Fourth World is not spatially bounded, and is usually used to refer to populations whose size and shape does not map onto citizenship in a specific nation-state. It can denote nations without a sovereign state, emphasising the nonrecognition and exclusion of ethnically- and religiously-defined peoples from the politicoeconomic world system, e.g. the Romani people worldwide, the Basque, Sami, pre-First World War Ashkenazi Jews in the Pale of Settlement, the Assyrians, and the Kurds in the Middle East, Pashtun throughout Afghanistan and Pakistan, the indigenous peoples of the Americas and First Nations groups throughout North, Central and South America, and indigenous Africans and Asians. Spanish sociologist Manuel Castells of the University of Southern California Annenberg School for Communication has made extensive use of the term fourth world'.

Example of Fourth World Country: y USA after its economy crashes

There are no exact example of the fourth world country

Underground Economy (frequently referred to as the black market), a pervasive form of enterprise intended to evade taxation that operates parallel with or as a covert adjunct to the legal economy, comprises all of the activities involved in tax evasion and similar practices, and exists throughout the world. In fact, underground economies apparently date to ancient times. Michel Chauveau remarks on examples of the underground economy in Egypt during the second century BC: Notwithstanding severe repression, a whole segment of production and commerce escaped royal control, thanks to a vast network of collusion in which it was not rare to find servants of the state. Unfortunately, it is impossible to evaluate the size of this parallel economy or to estimate the loss of revenue it entailed for the treasury. The prime victims were evidently those who held the concessions on the royal monopolies. The global extent of this phenomenon is suggested by the fact that each nation has a term for itfor example, fiddling in Great Britain, travail au noir in France, Schwarzarbeit in Germany, the hidden economy in Japan. It would be impossible to estimate the total amount of potential tax revenues that governments lose worldwide every year because of underground economic activity, but reliable estimates exist for the United States. Research by Carl P.Simon of the University of Michigan and Ann D.Witte of the University of North Carolina concluded that in 1980 the American underground economy generated income of $170 billion to $300 billion. The two scholars also estimated that this underground economy experienced an annual growth rate of 10 percent between 1974 and 1980. Projecting this growth rate forward would indicate an underground economy totaling at least $835 billion in 2000. Assuming a federal income tax rate of 20 percent applied to this income, the U.S. government would have been cheated out of $167 billion in income taxes in that one year alone.

Black economy is also known as underground economy in economic terminology. It is basically a type of market where the rules of taxation and trade are not applicable. Black economy is also called underdog, black economy, shadow economy and parallel economy.

The range of activities that take place in the black economies at present is vast. It has been observed that the size and scope of black economy is indirectly proportional to the amount or extent of economic liberties permitted in various states. This implies that black economy is significant in countries where it is tough to operate a legitimate business as a result of certain internal economic factors. The most noteworthy among such situations are corruption, legal monopolies and regulation.

Example of Underground Country y y Pakistan India

REFERENCES

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http://en.wikipedia.org/wiki/First_World
http://www.bjornbern.com/cebu-the-rise-of-the-second-world-economy/

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Article written by: Mark Andrew Ponla http://www.answers.com/topic/third-world#ixzz1OapXn5eA http://en.wikipedia.org/wiki/Fourth_World http://www.bookrags.com/tandf/underground-economy-1-tf/

http://www.economypedia.com/wiki/index.php?title=Black_economy#Examples_of_Black_Eco nomy