As the world's population continues to grow, more and more countries are beginning to realize the importance of improving infrastructure. The 2012-2013 Global Competitiveness Report repeatedly cites infrastructure as the single biggest hindrance to doing business in India, well ahead of corruption and bureaucracy. To address the needs of urbanization and global business, governments around the world are spending large amounts of money on infrastructure projects.
A few months ago, Brazilian authorities officially announced that $2.3 billion will be spent on infrastructure projects alone for the 2016 Rio de Janeiro Olympic Games. These costs will rise as projects are added along the way, and efforts to solve Brazil’s infrastructure gap continue. The pressure on the country continues as Brazil will be the first South American country to host the Olympic Games. On top of the 2016 Olympics, Brazil is also hosting the 2014 FIFA World Cup this summer and has experienced delays in its infrastructure preparation. Therefore, the focus on infrastructure development has sharpened in Brazil. Now the question is: How will Brazil’s infrastructure growth impact its long-term prospects as an emerging country in the global economy?
Infrastructure can be defined as the structure or underlying foundation on which the continued growth of a community depends and is of vital importance to countries in all stages of development. The rapid development of innovations in technology and communication has enabled significant improvements in the design, installation, and operation of assets, which can expedite the process of upgrading infrastructure. In today’s global business environment, cities around the world are competing for business and investment, and the quality of existing infrastructure is often a determining factor. Countries that are able to deliver improvements to infrastructure quickly and without political interference will likely reap the greatest economic benefits.
In the face of major economic sanctions from many countries around the world, especially the United States and other Western nations, Russia has been actively looking to avoid economic isolation. As a result of this, it has turned to many large nations in the East to set up economic agreements. One country that is willing to open its doors is China. After over ten years of talks on the subject, Russia and China are finally coming close to signing what has been called a "Holy Grail" for Russia and especially Moscow; a deal where Russia will send natural gas to China.
Following six long years of recession, which reduced Greece's economy by a quarter of its size and rose unemployment to 28%, Greece is finally expected to stabilize and begin its economic comeback in 2014. A poll of 35 economists and strategists suggested an expected growth rate of 0.3% for the Greek economy, while analysts at the International Monetary Fund and European Union proposed a slightly more optimistic 0.6% rate.
With organizations and supply chains becoming more and more global, international travel for business professionals is increasing. The perks are growing your resume and seeing the world, but traveling across time zones on a regular basis tends to throw a person’s body out of whack. There have been many studies as to how one can minimize these effects, and the studies show the importance of getting on a precise schedule while traveling.
Japanese consumers rushed to local retailers on March 31 to purchase large numbers of goods. Even online retailers, such as “Aksul”, had their systems overloaded by the high volumes of transactions of basic goods such as toilet paper and instant rice. Why were the Japanese people in such a hurry to purchase these products? This is due to the sales tax hike from 5 to 8 percent, which was implemented the day after, April 1.
Exporting has become a major source of growth for businesses of all sizes, but especially for small businesses. In the United States, a large percentage of the labor force is made up of small business employees. Export growth can enable these companies to grow in size, which creates a need for more workers. Exporting also allows businesses to diversify their customer bases, which can protect companies in times of regional or country-specific economic contraction.
On Thursday, Greece held its first bond sale since 2010, raising $4.2 billion as investors flocked to secure bonds from the hard hit country. Greece, which stopped issuing bonds in 2010 amid their country’s economic crisis, has hailed this bond sale as a sign that the country is recovering and heading in the right direction. Investors seemed to agree with this outlook, as their high demand reduced the return rates on the bonds to 4.95%, lower than the Greek government had first anticipated. The optimism around the bond sale has encouraged some that Greece is finally beginning to emerge from the financial crisis, although it must be remembered that this is only a small step in the recovery.
The International Monetary Fund (IMF) predicted that Nigeria’s gross domestic product (GDP) was $354 billion last year, making it the second largest African economy behind South Africa. This past Sunday, for the first time in a decade, Nigeria’s statistician-general announced a revision in its GDP from 42.4 trillion naira to 80.2 trillion naira. How could an economy grow so much in just one night?