Ernst & Young recently concluded its third annual globalization index report. Approximately 1000 business executives from around the world participated in the survey, which was used for the report. The findings show that world experiences rapid technological advancements, which have led to increased globalization.
While globalization is mostly seen as a tool for international trade and markets integration, few scholars have taken the opportunity to examine, the possibility of the negative impact on global economies.
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Nonetheless, those that have conducted surveys help unveil the possible calamities associated with globalization. The report from Ernst & Young, “It’s a Bumpy World”, accompanies a video that addresses the pitfalls in uncertain economic times, and how to conjure winning strategies; we highlighted the following:
- The Euro crisis could be warning signal telling us to rethink our approach to business. This mindset is reflected in Ernst and Young’s survey, as two thirds of the executives predicted the birth of another Global Financial Crisis by the end of 2012.
- Half of executives are already prepared for a global recession. This is a major reason to adopt new business strategies that will cope with the uncertainty that exists for the next several months.
- The world’s fastest growing economies with 5 to 10 percent growth rates, as per World Bank statistics, will experience a revision in GDP growth rates. Indeed, this is already beginning, as the average growth rate for Sub-Saharan Africa has been revised downwards.
- The survey also indicates that at least 33% expect Brazil to follow the same course, while 50%, expect a slowdown in China.
The solution to these and many more challenges, are within our reach. Businesses need to change the way that they approach various challenges to keep up globalization and integration, and the formula to these solutions is well illustrated by Ernst & Young.
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