alexander consulting enterprise 12/11/2015 trends in global business

Alexander Consulting EnterpriseAlexander Consulting Enterprise 04/21/2304/21/23

Trends in Global Business


Globalization Internationalization of U.S. Markets and Businesses

PewResearch Opinion Poll

Decreasing Economic Dominance of the U.S.?



Forces Driving Global Integration:

• Regional Trade Agreements• More Countries Embracing a Free Market Economy• Political Changes towards Democracy• Homogenous Consumer• Telecommunication Technology• Global Competition



Forces Restraining Global Integration:

• Less Countries Embracing a Free Market Economy• Political Changes away from Democracy• Ethnocentric Attitude• Terrorism• Fear and Populism• Economic Turmoil



Growth of Prospering Regional Trade Areas EU, NAFTA

Disappointment of Regional Trade Areas ASEAN, MERCOSUR

Growth of Multilateral Trade AgreementsTrans-Pacific-PartnershipPacific Deal Rewrites Rules on Trade in Autos, Patented Drugs

Move toward free market system by countries in Asia and Eastern Europe

Increasing Skepticism about free marketsCapitalism’s Waning Popularity

New Tendencies of Protectionism



Decreasing Power of WTO

Populism in Latin America

Large Emerging Markets such as China, Russia. India, and Brazil

China’s Leadership and CapitalismWhat Do Chinese and Japanese Think about Each Other?




Russia’s Oil Wealth, Dutch Disease, and Crumbling Democracy

India’s two worlds

Arab Spring, Civil War, and Refugee CrisisHow the Arab Spring and Civil Wars Led to Europe’s Refugee Crisis

The roots of this refugee crisis go back even further than the Arab spring

Ideological Divide shifts from Economy to Religion


Economic and Political Systems Old WorldWestern Perspective

Free Repressed- Capitalism - Communism-Private Property - State owned-Market Responsible - Government ResponsibleFor Allocation of For Allocation ofResources Resources


Free Repressed- Democracy - Theocracy-Private Property - Mixed-Market Responsible - Market, Government and For Allocation of Religious Leaders ResponsibleResources For Allocation of Resources

Economic and Political Systems New WorldWestern Perspective


Sustainability

Economic—SocialEthical business practicesFair tradeWorker’s rights

Environmental—Economic

Energy efficiencyLess pollution

Environmental-SocialEnvironmental justiceStewards of the environment


“Meeting the needs of the present without compromising the ability of future generations to meet their own needs”

Adapted from UNLV Urban Sustainability Initiative Presentation https://www.unlv.edu/sites/default/files/24/GenEdPresentation-12-4-08.pdf



Sustainability: Fact or Fiction? Fair Trade

What is Fair Trade?

A Tesla for the U.S.What is U.S. electricity generation by energy source?

A Diesel for EuropeNo Cheating Needed. Europe's Lax Laws Make Diesel Tests a Snap

Critical evaluation of the European diesel car boom


Trends in Global BusinessIncreasing Divide Between Rich and Poor

Gini Index: https://www.cia.gov/library/publications/the-world-factbook/rankorder/2172rank.html

Are the Top 1% getting richer?

Do the Math: The Rich Really Are Different


r ˃ g (r = rate of return on capital and g = rate of growth of economy)„When the rate of return on capital significantly exceeds the growth rate of the economy (as it did through much of history until the nineteenth century and as is likely to be the case again in the twenty-first century), then it logically follows that inherited wealth growth faster than output and income“ Piketty, Thomas (2014), Capital in the twentyfirst Century, p. 26, Cambridge: the Bellnap Press of Harvard University.

The Importance of Inheritance (France)


Aging Population in most Developed Countries and China

Aching Health Care and Retirement SystemsAching Health Care System: U.S. Perspective

Why is the US health spending so high?

Evolving Global Middle Income Households

E-Commerce

Increasing ideological divide between Islamic and Western countries



Offshore Outsourcing of highly skilled labor

Capital Movements ($ 400billion/day) exceed

Trade ($15 billion/day)

Deflationary Forces Driven by New Market

Economies

Low Real Interest Rates due to Global Saving

GlutLarge Trade Imbalances




Increasing Tensions in the EU

Diverging Competitiveness of Countries

(North-South divide)

Unsustainable Debt in Southern Countries

Investors loose confidence, flight of capital,

Questionable Rescue Funds and Eroding Trust in Euro



Global Financial Crisis and Recession

Deleveraging Quantitative Easing Gouvernement Bailouts

Deflation or Inflation?Dollar Crisis or Euro Crisis?

Psychological and Political Consequences:- End of Deregulation?- Is the Paradigm of Free Markets Loosing its Dominance?- End of Globalization?

End of Paper Money?

Default of Governments?


Perspective of the National Intelligence Council: Global Trends 2030http://www.dni.gov/index.php/about/organization/national-intelligence-council-global-trends


alexander consulting enterprise 12/11/2015 trends in global business

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