As technology and communication capabilities increase, it may be safe to assume that the world is becoming more connected with many countries becoming integrated to the world economy. This basic idea is called globalization and with globalization comes many benefits such as new opportunities in emerging markets and increased access to international trade. To many people, globalization is making the world flat meaning businesses can collaborate and operate across borders without regard to geography or distance in today’s modern technological and political landscape. Many businesses are beginning to realize the opportunities abroad made possible by an increasingly connected world. However, is there a way to measure how connected the world really is?
globalEDGE Blog - By Tag: Global Economy
Social media has become the dominant mode of communication for the past few years. This medium for interactive dialogue has not only augmented the rapid exchange of ideas, but also the global economy as a whole. It has recently been in the news for increasing sales, creating jobs, and positively impacting overall economic of nations.
While cities and industries around the world have been displaying a great deal of resilience in tough economic times, small businesses also have the opportunity to accomplish this. Almost every day businesses overcome a variety of obstacles and setbacks in order to operate successfully. In fact, in a globalized world, small businesses may have greater access to foreign markets and the latest technology but that also means these businesses are connected to potential disruptions in the global economy. These small businesses also have the problem of facing increased competition from larger businesses. However, just as countries or industries can bounce back from economic hardships and natural setbacks, small businesses can do the same.
In a year plagued by economic uncertainty, natural disasters also made their mark on global markets in 2011. Shattering the previous record of $262 billion worth of economic costs in 2005, disasters of 2011 in Japan, Thailand, China, New Zealand, Australia, and the U.S. cost the economy $378 billion. The deluge in Thailand alone, which cost the country $40 billion, J.P. Morgan estimates set back global industrial production by 2.5%. Looking towards the future, risks are continuing to rise as the world’s population and economic output continue to migrate towards global centers located in vulnerable areas, such as Shanghai or Kolkata.
While the recent global downturn has had a major impact on many national economies, the weakened economic setting has also negatively influenced many city centers throughout the world. It is important for these metropolitan areas to be resilient to changing economic times. One example of great economic resilience in tough times comes from the county of West Yorkshire, United Kingdom.
Although the BRIC grouping of emerging economies does not include a single representative from the African continent, many economic experts and multinational corporations see enormous growth opportunities across the continent. While most businesses are now aware of opportunities in countries such as Brazil, India, and China, corporations truly utilizing global expansion as a growth opportunity are looking beyond these popular markets. More than 12 African nations have seen economic growth exceeding six percent for six consecutive years.
The economic growth outlook for developed countries has gotten much worse in the past few months. With the amount of globalization in the business world today, economic concerns abroad can have profound impacts at home. A lot of experts in the field are beginning to wonder: will these events lead to another global recession?
The credit rating agency Standard & Poors recently downgraded the U.S. from its pristine AAA credit rating to a still strong AA+ rating. How exactly does this affect your business and the international business landscape as a whole?
Feeding on the strength of European demand and Asian emerging markets, China’s trade surplus rose to its highest level in more than two years during the month of July. The country’s surplus rose to $31.5 billion, the biggest gap since January of 2009. Chinese exports and imports both grew over 20 percent from a year ago and there are a couple key reasons that account for these large increases.
Growth in shipments to Europe has doubled over the last two months granting China higher export numbers. Exports to Japan also rose as Japan surges back after the tragic earthquake that occurred earlier in the year. China’s relationship with developing countries in Asia, such as Vietnam and Indonesia, continues to strengthen providing China with lucrative export markets. Sales of Chinese goods in these markets have increased this past year allowing the trade surplus gap to grow even larger.
As the world’s population continues to grow and the problem of poverty remains, it is clear that we must continue to develop the world economy. However, many believe that this economic growth should not come at the cost of the environment that supports our lives. Recently, the United Nations released a report that estimated the cost of changing the world from an unsustainable economy to one that is both resource efficient and environmentally friendly.
There has been much hype recently about rising inflation rates around the globe. The euro zone had an inflation rate of 2.2% in 2010, while China's rose 5.1% from November 2009 to November 2010. Many people fear that a surge in inflation could have an adverse effect on the recovery efforts of many economies. But what exactly is inflation and how does it affect an economy?
Over the past ten years, Brazil has emerged as a major global power capable of wide scale competition in the international marketplace. Being the world’s fifth-largest land mass and the eighth-largest economy, Brazil has become one of the top global producers of market necessities including vegetables, minerals, water, and energy. Brazil’s economic growth correlates with the relative decline of United States influence in Latin America and the rise of new economic powers in Asia. Now, Brazil is looking to exert its force as a global heavyweight with an ambitious foreign policy.
Discussion about the BRIC countries, Brazil, Russia, India, and China, has become widespread as global trade continues to see growth in the near future. Doug Barry, the Director of Marketing and Communication at the United States Commercial Service was able to emphasize this growth in his article Building with BRICS. These countries are on everyone's radar when looking for potential market growth and investment. They have proved their worth so far in the past couple years and there doesn't seem to be much slow down in the next decade. Now the only question is where to focus the most attention and what actions are being made to ensure we don't miss out on a great opportunity.
Recently, Ernst and Young released a report highlighting the top global trends affecting business today. These are the key issues that business leaders should be looking at right now:
1. The increasing political and economic dominance of emerging markets will cause global companies to rethink and customize their corporate strategies.
Women around the world have often felt gender inequality when it comes to finding a job, especially in the business field. However, with changes in technology and the global enconomy itself, the way women are seen in the business field is changing as well.
Recently a study released by Ernst and Young, looks in detail to how leading global companies have dealt with the recession and are looking ahead. The report compiles conversations that over 500 of the firms senior partners had with clients around the world.
A group of twenty finance ministers and central bank governors, nicknamed the G-20, will be meeting in London this weekend to discuss the future of the global economy. Australian treasurer Wayne Swan provides an overview of some of the proposed directions the G-20 wants to take the global economy in.