Executive Pay: The Curious Case of Carlos Ghosn’s Arrest
February 12, 2025
Although IT has been touted by the experts as being the bedrock of next generation of business in which large organizations encompassing several thousand employees will seamlessly operate in a global environment, there are a good number of issues to be resolved. However, as we have already seen the merits of using IT solutions as […]
For any Business Organization which is eyeing a foreign market as a part of its Exports strategy, getting its Marketing and Supply chain in place forms a critical part of the initial process which will determine his initial foray into the markets. While doing business in foreign markets is very lucrative, the initial cost of […]
Why Project Managers Might Find Managing Remote Teams Challenging As workplaces became virtual and employees started working from home due to the Covid 19 Pandemic, organizations found that there are many challenges in managing such virtual workforces. For instance, Project Management is challenging when managers cannot meet employees face to face and instead, have to […]
Are Indian Start-ups and eCommerce Firms Living in Fantasy Land? It is a well known fact that India is a favourite destination for yield hungry investors and angel investors keen to fund start-ups and eCommerce firms in the hope that they would be able to garner significant profits at a later stage. Indeed, India is […]
Transnational corporations or Multinational Companies as they are also called need to have robust and well thought out business continuity programs if they are to manage the myriad risks arising out of their business operations. MNC’s typically operate in several countries and hence the risks faced by their businesses depend on the location in which […]
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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