Questions
4-1 Transformations such as the Comeback happen quite rarely. Their infrequency, however,
only amplifies their revolutionary impact on our lives. Identify from the case how your life
has changed, or will likely change, given the comeback of emerging economies. For a point
of comparison, think about what you have learned through your studies about how the
transition from the Agrarian to the Industrial Revolution changed the way people changed
their lives.
4-2 Now, flip analysis and consider the implications of the possible collapse of emerging
economies to your life. How might it change?
TEACHING TIPS: Carefully review the PowerPoint slides for Chapter Four.
CLOSING CASE:
Economic Environments of the West: Problems, Puzzles, and the 4th Industrial Revolution
Today, the accelerating convergence of the physical and digital world ushers in the 4th Industrial
Revolution. This era will introduce radically different tools and techniques that require
fundamentally rethinking the idea of work, productivity, and prosperity. The emergent 4th
Industrial Revolution will fundamentally alter how people work, consumers spend,
companies compete, officials regulate, and markets perform. Unlike before, where these shifts
unfolded over three or four generations, the West faces the unprecedented challenge of
experiencing this shift in a single generation.
Questions
4-3 How do the current economic problems reflect the changes and challenges of the 4th
Industrial Revolution?
4-4 What are the implications of the 4th Industrial Revolution to current notions of economic
freedom?
Economic freedom reflects the liberty managers have to decide endless aspects of everyday
business operations. For example, what investments they make, how they allocate
resources, what property rights they claim, how they compete, whom they hire and fire, and
4-5 In the economic environment of the technosphere, should governments estimate
performance with monetary aggregates, like GDP, or sustainability and stability, like human
development or happiness?
The 4th Industrial Revolution is expected to impact not only the economic environments,
but also the social, political, and ecological environments. It is, then, imperative to estimate
4-6 Working in the technosphere signals the increasing likelihood of working alongside
ever-smarter machines. Some advise workers to complement, not compete with, AI-powered
machines. How would you do so?
4-7 Who will likely benefit more from the 4th Industrial Revolution: developed, developing, or
emerging economies?
ADDITIONAL EXERCISES: Economic Factors
Exercise 4.1. Select a triad economy such as Japan, the United Kingdom, France, or
Germany, and select one of the BRICs (Brazil, Russia, India, and China). Then ask students
to compare the key elements of those two economic systems. Be sure they discuss the
interaction between politics and economics in the two countries. (LO: 3, Learning Outcome:
To profile the characteristics of the types of economic systems, AACSB: Dynamics of the
Global Economy.)
Exercise 4.2. In a day of global uncertainty, many wonder if it is necessary or even
desirable to have national economies linked so closely together. Ask the students to consider
what, if anything, a country can do to protect itself from the impact of negative global
economic events. Then ask them to consider whether the impact of global recession on
transition economies is necessarily the same as the impact on the triad countries. If not, in
what ways are they different, and why? (LO: 5, Learning Outcome: To profile indicators of
economic development, performance, and potential, AACSB: Dynamics of the Global
Environment.)
Exercise 4.3. Many people believe that as a country’s political system changes from a more
repressive to a more representative form of government, its economic system will
necessarily become freer. Ask students to consider the basic logic of that idea, as well as the
belief that the complete privatization of all state-owned and controlled assets is necessary for
an economic transition to be successful. (LO: 2, Learning Outcome: To discuss the idea of
economic freedom, AACSB: Analytical Skills.)
Exercise 4.4. Managers often study many second-order indicators of economic performance
and potential, including inflation, unemployment, debt, income distribution, poverty, and the
balance of payments. Ask students to consider which of these indicators may be more
relevant to the assessment of an industrialized economy as compared to the assessment of an
emerging economy. (LO: 5, Learning Outcome: To profile indicators of economic
development, performance, and potential, AACSB: Analytical Skills.)