The Importance of Industry in Modern Economies of the Globalized World in the 21st Century

Abstract

Research background: The classic explanation about the structure of economies stipulates that, as societies advance, their economy gradually shifts towards the tertiary sector where the added value is the highest. While this logic proved to be empirically true during the last centuries, it nonetheless comes with significant issues in the long run. The need for manufactured products, which is constantly growing due to global economic development and a growing population, must still be addressed by an industrial base around. This leaves only two options open: 1. Some countries have to lag behind the rest of the world in terms of global economic development or 2. Developed countries will have to devote part of their labor and capital investment to (re) building capable industrial capacity. Purpose of the article: The aim of the article is to point out the influence of globalization on the position of production structures in the context of the global crisis. Methods: Comparative method, definition of the object of comparison and determination of the goal of comparison and determination of criteria for own analysis of relevant sources, induction, deduction, generalization. Findings & Value added: The only way to maintain enough industrial capacity to answer the demand in a globalized world without having some countries lagging behind will be to redistribute the production capabilities among the countries. This would make the economic playfield more even and would also have several side benefits regarding global environmental and political issues including unexpected crises such as pandemic period coronavirus.

Keywords

• globalization
• industrial capacity
• economic development
• pandemic period
• global needs