Feature of the Month: Emerging Markets Outlook
The International Monetary Fund forecasts that growth in emerging market and developing economies, will increase to 4.2 percent, and by 4.6 percent by 2017. Growth is forecast to remain lower due to Britain’s vote to leave the European Union in addition to a slowdown in the United States. A large concern for the outlook of emerging markets is that the increase in capital inflows may be attributed to the investor’s search for high yields rather than believing in the future growth of those economies.
China is currently undergoing policy changes that will encourage growth in consumption and services instead of relying on investment, and is set to expand by 6.6 percent by year-end. India’s GDP is forecasted to expand by 7.6 percent for the next two years, and is undergoing policy changes in its tax system and subsidy programs to provide more funding for investments.
Growth in Sub-Saharan Africa is forecasted to be lower than expected due to lower revenues from commodities, however non-commodity exporters like Kenya, are expected to expand by 5 percent. Latin America’s forecast is lower due to recessions in several countries, Venezuela and Brazil are both projected to shrink by 10 percent and 3.3 percent respectively by the year's end.
Featured Resources
globalEDGE Emerging Markets Page
The Get Insights By Economic Classification section of globalEDGE includes an Emerging Markets page, based on the Russell Index Global Guidebook Country Classifications. The section has economic, demographic, and governmental statistics, risk analysis, and a resource section.
Cornell University Emerging Markets Institute
The Emerging Markets Institute at Cornell’s Samuel Curtis Johnson Graduate School of Management provides useful information and academic research on emerging markets and their impact on the global economy. The website offers sections containing research publications, news, events, and resources.
Featured Academy
Doing Business in Brazil
The module on Brazil provides one with information on: the enormous potential for doing business here; cultural practices; tips, tools, and information about typical practices in daily business; the state of logistics and transportation; current political and social issues facing the country; and important business factors that directly affect costs of doing business, including the labor force and taxes. Included is also a case study on the Amazon rainforest.
Doing Business in Russia
Doing Business in Russia offers a general overview of the conditions for doing business in Russia today. It includes sections covering Russian social and business cultures, marketing distribution and sales channels in Russia, and supply chain management, as well as information on the costs of doing business in Russia and issues currently facing the country. This module also includes a case study on Russia’s Information and Communication Technology Infrastructure.
globalEDGE Business Beat
Ray Tadgerson Talks About Second Shift, GM, And Lansing
Hosted by Tomas Hult, this segment of the globalEDGE Business Beat is an interview with Ray Tadgerson who served as the project director of the Blue Ribbon Committee to retain GM in Lansing, Michigan. He is also the former CEO and President of C2AE. Tadgerson together with David Hollister, David Closs, and Tomas Hult recently released the book Second Shift: The Inside Story of the Keep GM Movement. This book – and the accompanying film documentary (Second Shift: From Crisis to Collaboration) – discusses a six-dimensional collaborative problem-solving approach called the Second Shift Model that can apply to any business or community, large or small, to maintain the communities global competitiveness. In this segment, Hult and Tadgerson dialogue about the background of the Second Shift project, the most important component of the Second Shift Model, and the complementarity between the book and the film documentary.
Dave Hollister Shares His View Of The Inside Story Of The Keep GM Movement In Lansing
Hosted by Tomas Hult, this segment of the globalEDGE Business Beat is an interview with Dave Hollister, former mayor of Lansing, Michigan, from 1994 to 2003, after which he served as Director of the Michigan Department of Labor and Economic Growth. Hollister together with Ray Tadgerson, David Closs, and Tomas Hult recently released the book Second Shift: The Inside Story of the Keep GM Movement. This book – and the accompanying film documentary (Second Shift: From Crisis to Collaboration) – discusses a six-dimensional collaborative problem-solving approach called the Second Shift Model that can apply to any business or community, large or small, to maintain the communities global competitiveness. In this segment, Hult and Hollister dialogue about the learning experience other communities can take from Lansing’s experience with GM, the value to Lansing of having two of the newest GM plants in town, and the key takeaways for communities and multinational corporations.
