Executive Pay: The Curious Case of Carlos Ghosn’s Arrest
February 12, 2025
As children, we have always had to prove to our teachers or our parents that we have been working. The homework book was proof that we have spent our time productively and would often calm down angry parents and teachers. It seems like the same principles also apply in corporate life! Harvard Business Review has […]
Why Indian Professionals need to Change Their Work Habits In recent years, there has been much talk about how India is emerging as a global powerhouse and an engine for economic growth on a global scale. Indeed, with the liberalization of the Indian Economy in the 1990s and the subsequent waves of reform, there has […]
Supply chain efficiencies depend upon the efficiency of logistics including transportation and warehousing operations. Warehouse efficiencies depend upon a combination of warehouse design, layout, infrastructure, systems, process and people. In cases where one can design a warehouse and implement the complete project from ground zero, gives the SCM Project Manager a good scope to create […]
Countries have long since realized the importance of furthering their interest by supporting the International Trade and Exports from in house and actively supporting the industries to become globally competitive. Besides this objective, many governments also aim to promote Foreign Direct Investment into the country and encourage Multi National Companies to set shop and manufacture […]
Data Security in the News for All the Wrong Reasons The issue of data security has been in the news in recent months. First, there were reports of hacking of computers in the Presidential Election of 2016 where Russian hackers were alleged to have hacked into the computers of the Democratic Party and reveal insider […]
According to many respected commentators like Nouriel Roubini and Joseph Stiglitz, the Global Economy is facing severe headwinds which can culminate in a “Global Perfect Storm” in beginning 2013. The term perfect storm refers to the coming together of extreme weather conditions that culminate to produce a storm of such a magnitude as never seen before.
When applied to the global economy, the term denotes the simultaneous impact of the United States facing a “fiscal cliff”, the Eurozone breaking up and China deleveraging which spells trouble for the economies of the world. Though this has been predicted before, what makes the situation different this time is that the conditions for these events have been set in motion and are accelerating towards a finale.
The combination of falling tax revenues, increased debt and cuts to wages and benefits including layoffs of workers in the government sector means that conditions are ripe for a prolonged recession. And when these portend gloomy days for the US, the world economy is bound to be effected since the global economy is heavily dependent on the US for support and sustenance.
The point here is that till now Germany and France have been resisting the breakup of the Eurozone which many say is inevitable. Hence, it remains to be seen how long this situation can persist given the rather humungous debt that the countries of the Eurozone hold.
Further, the US economy is no longer importing that much from the Chinese and hence, the time for China to consume more domestically and export less is coming into play. This means that stimulus packages aimed at the export sector must now be oriented towards domestic consumption and the excess inventory of goods that have piled up have to be sold off.
In conclusion, these trends are slowly rubbing against each other and the global economy is moving towards a situation where they all impact at the same time leading to conditions that have been described as a perfect storm. Hence, policymakers in all countries including India have to assess the impact of the coming storm and plan accordingly. After all, being forewarned is being forearmed.
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