Showing posts with the label global economy

Can the U.S. Be an Export Nation in a Difficult International Economy?

The IMF says the global economy will grow slower than expected this year while another recent announcement states that China superseded the U.S. in terms of purchasing power this year. Both are game changing events in what appears to be a long played out economic drama. Even though the news is not positive it does provide an opportunity for the U.S. to focus on improving its infrastructure to lower costs and retool for better managing international markets.    Slower International Economic Growth: International markets are expected to experience slow growth in the near future according to an October 7th report by the International Monetary Fund (IMF). The IMF initially thought the world economy may grow as high as 3.7% this year but have revised that number down to a weaker 3.3%. The slowing economy could make it more difficult for companies that are trying to export overseas to locations where the economy is lack luster. Growth in advanced economies and emerging eco

Using Training to Raise Global Competitiveness

Companies need training and development to bridge the skill gaps between needed market competencies and employee skills. Research by Bersin and Associates are presented to help highlight the differences in these skills on a global scale and how this led to major unemployment concerns in many countries (O’Leonard, 2012). They provide a number of recommendations for organizations that seek to develop their talent for competitive advantages.  A study entitled World of Work Report by the International Labor Organization indicates that unemployment could be around 208 million globally in the next year or so (International Labor Organization, 2013). They highlight the problems as uneven opportunities, creating jobs and macroeconomic approaches. The focus of countries should be to develop the right skills and create opportunities for youth.    “ The labour market and income situation is uneven but can be improved by consolidating the rebalancing process in emerging countries and

Technological and Labor Skill Advancement Increases Economic Output

Economic systems have both inputs and outputs. When outputs exceed the total inputs, the system is seen as unsustainable. A paper by Brestschger and Valente (2011) delves into a method of measuring the sustainability of resource rich countries. Even though their focus is on oil producing countries, they do have some broader implications.  Most studies seem to rule out the concept of technological progress and trade gains to determine economic viability. Technology has the ability to lower the cost of transactions and increase overall outputs. Thus, technological advancement can lead directly to an export market and more sustainable system.  Net investment is a concept that focuses on the net increases in all the productive assets of the local economy. Such net investment are measured by adding all of the technology and labor productivity increases and subtracting things like depletion of natural resources. The more information available the more accurate such evaluations

Defining the Elusive Concepts of Globalization

Globalization is a trend that has been fully embraced by some and treated as an unwelcome guest by others. The concept of globalization entails the need for change and further development in order to meet its widespread market pressures. Understanding globalization creates a stronger framework for understanding how it impacts international business and underlying perceptions of human capital. Through the development of a greater understanding there is the possibility of better management of global alignment. Globalization was first mentioned in 1983 when Theodore Levitt explained how technology would drive the world into a single conversational platform that would result in global markets and brands (Govil & Rashmi, 2013). Markets begin to consolidate and new forms of business develop in order to compete in and traverse those markets. Those businesses that do not factor in the changing market and its globalizing effects may be end losers in the international game.  Ther