The Global Financial Crisis and Its Effects on the Indian Economy

Let’s understand the concept of global economic crisis first. It is important before proceeding to analyze its impact on Indian economy. Global economic crisis refers to the financial crisis owing to the great depression of 1930. It is an upshot of profound economic recession, which commonly refers to business cycle contraction and decelerated activity over a long period of time. It is a situation where macro indicators like gross domestic product, employment, capital utilization, household incomes and business profit fall and bankruptcies as well as unemployment rates rise. This global financial crisis is among the greatest financial challenges of the world economy, which originated in the United States. It began in July 2007, when the credit crisis started with the loss of confidence by US investors in the assessment of sub-prime mortgages, which caused a liquidity crunch. With globalization, the entire world is affected by the crisis and its impact can be very well witnessed all over.

It is often predicted that India will be one of the largest markets in the future. This is primarily because India is considered to be one of the largest developing countries in the world. With the assimilation of the Indian economy and its financial markets with the rest of the world, the country experienced its worst slowdown on the back of global headwind, domestic macroeconomic inconsistency and policy reversals on the financial front. The risks arose mainly from the impending hitch of capital flows on an unremitting medium term basis from the anticipated slowdown of the global economy, particularly in advanced economies and from some elements of prospective financial alterations. In India, the adverse effects have been chiefly in the equity markets due to the setback of portfolio equity flows and the affiliated effects on the domestic Forex market as well as on liquidity conditions.

Impact of economic crisis on different sectors in India

Impact on the IT sector

With the global economic crisis, the IT sector of the country is facing uncertainty, especially the software industry. About 30,000 jobs in this sector have been affected because of the financial crisis in the United States as the industry has been largely dependent on it. Approximately 58% of the revenue was generated from US-based clients, owing to which, the industry had faced and perhaps till sometime will be facing hard days on the economic front.

Impact on the Indian banking system

One of the prime aspects of the current financial mayhem has been the lack of an apparent contagion of global economic crisis being felt by banking systems in budding economies, particularly in the continent of Asia. The Indian banking system as well has not been affected by it similar to other banks in the rest of the continent since it is not directly exposed to the sub-prime mortgage assets. Both in the public sector and in the private sector, Indian banks are financially sound, properly regulated and well capitalized.

Can a fresh take on older technology help lead the way to economic growth? Are small businesses really the drivers of the economy? One company, Netfloor USA, is trying to be just that. Manufacturers of cable management access floor systems, they took a decades-old technology that was relegated to data centers, and redesigned and rebranded it for all types of facilities. While their business is growing, are there enough organizations like theirs to jump start the economy?

Ni Hao Ya’ll – A Country Boy View of Studying Business in China

I couldn’t believe that I still had energy to hike another 3 or 4 miles on the Wall after spending almost two weeks exploring China’s oldest temples, largest cities, and busiest streets – but I did! Five years ago, I would have never thought that I would be hiking on the Great Wall of China but on May 18, I boarded a plane heading for Shanghai for one of the most enjoyable vacations (and adventures) in my life.

In early Fall, a faculty spot came open and I had the opportunity to Study in China for two weeks. The agenda that was sent to the faculty and students who would be participating and looked pretty full, so I decided to stay an extra five days to explore on my own. For the past 4 years, outside of my day job as a web technologist for Eastman Chemical, I’ve taught college night courses at local colleges on topics such as Internet Commerce, Web Technologies for Education and Global Human Resources. The trip was sponsored by the Southwest Virginia Higher Education Center and was open to students and faculty from Virginia Intermont, Emory and Henry, UVA Wise, and other Tri-Cities schools to study business and culture in China, so I was eligible to go “free” excluding airfare.

As China seeks to be one of the largest capitalist economies in the world, it was an exciting time to go. Everyday I hear complaints about how fast China is growing and how everything we buy is made in China or how many jobs go overseas to China, so I felt a need to see what actually is happening. I was pleasantly surprised to see where a large percentage of our American money goes, but recognize we need to change our paradigm.

The biggest challenge that I faced as I planned for the trip was learning about the culture and trying to prepare for the unknown. George H, trip coordinator, and the staff at the Southwest VA Higher ED Center did a great job setting up two sessions to learn about culture and language. We were introduced to several different facets of China which helped us prepare for what we were to experience. Though I’ve travelled to countries such as Italy, Greece, Germany, Scotland, and several others – I was totally not ready for the major cultural difference and lifestyle in China.

After the 12-14 hour flight, we landed in Shanghai which is China’s largest city and is also known as the hub of economic development for China. My jaw dropped to the floor as we rode the tour bus to our hotel through Shanghai which is also home to the largest port city in the world. Shanghai literally means “above or out to the sea” and with a population that fluctuates from 20-30 million everyday due to so many surrounding villagers moving to the city during work hours with hopes of finding industrial work, it was easy to see why the Chinese are eager to see their economy grow. Shanghai is home to over 300 of the Global Fortune 500 companies and has over 6000 foreign funded businesses.


Everyone knows that China exports a lot of stuff, but many folks in our area didn’t know that China actually imports hundreds of millions of dollars worth of chemicals, coal, computers, waste metal, and machine parts from the Tri-Cities area in addition to being one of the largest buyers of chicken feet (which was a pretty popular treat all over China). China is Tennessee and Virginia’s 3rd largest export market. In the book, China Inc. author Ted Fishman states that China has not stopped growing for the past 30 years and its economy has doubled over three times over. In 2007, China sold the U.S. more than $256-billion more in goods than they bought. This surge has no equal in modern history.
One of our speakers from the U.S. Dept of Commerce in China said that 10 years ago, 70% of U.S. businesses that set up shop in China were not profitable, now the figure has flipped and only 30% of U.S. businesses are not successful. However, we learned that setting up a business in China is more complex and bureaucratic than it is in the U.S. and there are certain businesses that do better than others such as hi-tech medical devices. And with their rating of 163 out of 169 in a global study of press freedom, China still filters news and views from citizens whose ideas might undermine China’s values of security, honor, and interests of the motherland.


While I was wandering around from different museums and temples, I kept hearing about the “four” major Chinese inventions which are paper, gunpowder, printing and the compass. I can see why they were so proud of these since there isn’t a day that goes by that these aren’t used by people all around the world. It was amazing to see the Forbidden City which was built from 1406 to 1420 by a million laborers, the largest imperial palace architecture of the world, where 24 Chinese emperors ruled China for 500 years. In addition, we saw the largest imperial garden in the world, Summer Palace, Ming Tomb, Beijing opera and Acrobatics show, and the famous silk market where I picked up a few Tommy Bahamas shirts for less than $10, copies of course.

So, why is China beating the U.S.? Asia’s economic success rests on social foundations formed by a renewal of old traditions emphasizing hard work, family cohesion, passion for learning, high savings rates, and disciplined and orderly societies. I have found that both Americans and Chinese find enormous cultural differences in each other’s culture, yet they both feel the impact of change from the other. While exploring Shanghai’s Bund area, I saw one of the largest buildings in the world, world’s largest port, and one of the most diverse economic centers in the world that shouts out on buildings and signs “See China Change.”
There were several interesting differences from North East TN that I found. Take food for example. I only found a few Western restaurants, KFC, Pizza Hut, and McDonalds and they were scattered pretty far from each other. Chinese food is actually very similar to American versions of Chinese food, except they just have more types of the familiar dishes that we enjoy. Things didn’t taste as sweet or as flavorful as you would have in the U.S. I remember when one of our students got an ice-cream which looked pretty “fruity” on the package, yet had peas and corn in it.

In the tourist sections of China, you would find people selling anything you could imagine and every time you turned around, people were saying “cheap for you” or ask “watches or bags” and when you asked for something else, that was pretty much the only English they knew. In most cases, when you stopped to express interest in a product, you were physically pulled into their small booth or chased down the shopping streets as they yelled cheaper prices to you with hopes that you would buy.

Our group of students and professors explored Shanghai, Hangzhou, and Beijing and shared wonderful experiences together. I think everyone was amazed at how well China preserved their culture and history while still growing into an economic superpower. From techno clubs to a boat cruise on West Lake, an opera to a hike on the Great Wall, we all learned something new about China that we hadn’t realized. One of the most intense moments was when we were in Hangzhou and were getting ready to board a train to Beijing. We saw thousands of people and ambulances near the station. At first we thought there was a parade, but when we arrived inside the train station with our tons of luggage on our side, we witnessed something very heartwarming. We saw huge numbers of doctors and nurses lined up in perfect formation waiting on earthquake victims so they could get them to the hospitals. A moment I ‘ll never forget.

Toward the end of my trip, I jumped on a night train from Beijing to Xi’an (pronounced She ann) which is one of the most historical cities in China and is also home of the Terracotta Warriors. The 600 mile train ride was a great way to see the mountains and valleys of China as well as get a glimpse of the 40% of their population which work and live in rural areas. Most of these people work the government owned land and make less than $2 per month. Because of this low income, a huge number are starting to move into the bigger cities so that they can work in manufacturing plants.

When I arrived at the crowded and confusing train station in Xi’an, I quickly found a cab and was able to show the driver a few characters which got me to a hotel in the heart of the city. It was so cool to stay in a 4-star hotel for $40 per night and get a cab ride practically anywhere for $5. Early on, I stumbled upon one of many “spa’s” where you could get a full-body massage for $6. China rocks!! One of the most unique characteristics of the city was a 40-foot tall and 40-foot wide wall (with moat) that went nine miles around the city. It was built for fortification in the 1300’s and has lasted the test of time.

Xi’an was one of my most memorable cities, even more than Beijing or Shanghai. I met a college teacher who was grading English composition papers at the university that we were staying in while in Shanghai. Her name was Tracy Meow. Tracy graciously offered to be my contact while I was in Xi’an, so when I arrived in there, it was nice to know some of the locals. She took me to a popular area which is known to have a large percentage of Chinese-Muslims. We enjoyed some interesting local food on sticks. The next day we had a dinner at a fancy restaurant and I met two folks who were from Texas and had just moved there two years ago. We talked in great detail about how Americans who move to China to live acclimate to the Chinese culture and lifestyle, one which is very different from the U.S.

The next day I hired a driver and tour guide for $50 (for the entire day) and they drove me 60 miles outside the city to explore the Terra Cotta Warriors and several other sights. It was fun not being in a big group and I can definitely recommend this for others going to China if you want to “do your own thing.” As we rode back into the city after a full day of exploring, I saw dozens of tents all around. I asked my guide, Sara, what was going on. She explained that a lot of people moved to Xi”an (and other areas of China) to get away from the earthquake area and that they didn’t trust being in tall buildings.

The last day before I left China, I was invited to teach a two hour English lesson to a group of 30 Chinese freshmen at Tracy’s school, Xi’an International Studies University, one of the oldest language universities in China. The students were very polite and inquisitive of their Southern U.S. speaker. I pulled up the Tri-Cities on a Google map, shared a few stories about our region, and had several ask questions about U.S. culture and politics. I was very surprised at how well their English skills were even though they were very shy about speaking. Tracy said it is sometimes very hard to get them to talk but in her senior level classes where she teaches “Bible as Literature,” it is just the opposite.

One unique aspect that we recognize in the U.S. is the focus on learning among Chinese students. We hear daily about the poor scores American schools have in areas such as math and sciences. Before I went to Xi’an, I had the opportunity to spend a week on a large college campus in Shanghai and I learned that the students really enjoyed learning and doing group learning activities. Unlike American students, Chinese students spend more time building specific skills and knowledge on substantive topics versus pop culture or consumer satisfaction. Their parents constantly reinforce the fact that “perfectibility is within grasp of everyone.” Parents are very involved in their children’s life so much that they are known to push “too hard” for successful kids. Recently, there have been articles published in the newspapers that bring awareness to this issue.

Some other interesting facts I learned about China:

China’s one child policy (which is changing) has created a generation of 90-million “only children”
China is expected to overtake the U.S. as the worlds largest economy in 10 years.
China has the highest number of annual deaths triggered by air pollution.
China has the largest number of Internet users 220-million
Cell phone usage in china has grown from 87 million in 2000 to 432 million today.
For students and young professionals wanting to get an edge on the future global economy, I strongly recommend that you start learning about our partners on the other side of the world. Here are a few things that you can add to your “Culture Toolbox” when you start

Chinese love western money, culture, and music but sometimes view Americans as wasteful and arrogant, so be very polite and respectful everywhere you go.
When visiting hosts, gifts are in order.
Face – If a person confronts a problem directly this can become a big issue due to putting people on the spot and making them loose “face,” so it is important that you avoid drawing attention to individuals who may give poor service or someone you have a problem with.
Guanxi – Building relationships takes time and most relationships require a level of deep friendship in order to work. Another factor is that you never rush into business with them. Americans must enter into negotiations slowly and work toward consensus.
Individual vs. Group – Since the Chinese didn’t go the period of enlightenment, reformation, or Age of Reason, so their sense about “group” is different than Western views of individual freedom and free-thinking.
Try to learn some basic Chinese. In 2004, there were around 50,000 Chinese language students in American highschools while there are nearly as many people learning English as there are English speakers in the U.S., Canada, and Great Britain combined. Some favorites I used were:
Ni Hao – Hello
Hen hao – very good
Bu shi – no
Yes – shi de
Duibuiqi (doy bu she) – Sorry
Wo jiao – My name is…
Xie Xie (she she) – Thank you
tai guì le (tag way la) – Too expensive
Zai jian – goodbye

There are a lot of opportunities for young professionals who want to experience china whether it be to learn about how they conduct business, continue their historical culture, or gain insight to an entirely different paradigm. I think it is critical that we start opening up doors to building stronger understanding of China and its people and to the wonderfully rich partnerships we can establish with their dynamic younger population which is shaping the future global economy.

My experiences there opened my mind to how fortunate we are, how wealthy, how advanced, and how many opportunities we have to really impact our community and our country. We shouldn’t see China as a “competitor” or “threatening to our economy” but rather as a global partner which we can begin trying to understand so that both sides understand what each other needs and how we can mutually benefit from each other. Step outside your comfort zone, meet people that are different than you, and embrace the knowledge and experience of others.

Stop Using Old Economy Ways to Survive in a New Economy

The world has gone through a number of different ages such as the Stone Age, the Bronze Age, the Iron Age and so on. A couple of centuries ago, the world went through an Industrial Revolution. Then came the Atomic Age and the Space Age. Right now, we are living in the Information Age. Throughout history, the people who profited the most were the ones who recognized the age that they were living in, and took maximum advantage of it.

The people who could make stone implements probably had a better chance of survival during the Stone Age. Likewise, craftsmen who had the required skills in metallurgy probably thrived in the Bronze and Iron Ages. Market savvy inventors and industrialists became millionaires during the Industrial Age. From the early 80s onwards, we saw people proficient in Information Technology become millionaires. Discerning the trend of the current age and taking advantage of it is a sure way to become successful in business.

The decade of the 80s marked the beginning of the New Economy. Although people tend to vary in their opinion of what the new economy really meant, we can be fairly certain that it is symbolized by two significant events. The beginning of the 80s saw the emergence of the personal computer and the advent of the Information Age. Although computers were in existence long before the 80s, the emergence of the personal computer is what popularized them and made it available to the common man, initiating the Information Age. The proliferation of the Internet further strengthened and solidified man’s dependency on the computer for a wide variety of needs. Almost during the same period, communism fell and capitalization started spreading throughout the world, facilitating the globalization of business.

These two significant events marked the beginning of the New Economy. In order to thrive in this environment, businesses really need to stop using old economy ways to survive in a new economy. Business owners first need to recognize that they are indeed doing business in the new economy. Then, they need to make use of the factors that really define the new economy – globalization of business and the use of Information Technology.

The biggest and most successful businesses today tend to have a global presence. They are constantly searching for new markets worldwide to expand their business. At the same time, they are making good use of computer and information technology to enhance their business. Most successful businesses today use the Internet for marketing, sales and customer support.

Businesses that wish to thrive in this new millennium should therefore stop using old economy ways to survive in a new economy. Globalizing their business and using computers and the Internet to enhance their business is a reliable way to make their company successful.

Is Globalization To Blame For Unemployment?

It is a well-known fact that globalization increases productivity and life standards. There are a lot of advantages which causes business owners to work on the goal of expanding the business overseas. While this is proving to be beneficial to countries where products and services are being exported to, the concern grows for locals. This concern is largely focused on that fact that the unemployment rate continues to rise thereby giving the impression that globalization is one of the causes.

It is true that because of the economic downturn, most businesses are looking to outsource services to take advantage of lower labor costs in developing countries. Outsourcing has been a hot debate topic ever since its inception. The main idea is that the local economy suffers since the jobs are handed over to other countries instead of their own.

Globalization is responsible for modernizing business processes and outsourcing certainly changed the way how business is being done. However, it is not only these factors which contribute to the unemployment rate. The biggest contributor to unemployment is companies who close down because of the recession. The increase in number of small businesses helps alleviate the unemployment rate and if these small businesses go global or outsource some of their services, it does not necessarily mean that there would not be jobs for locals. Some might argue that globalization and outsourcing may mean a lesser demand for workers. This is called structural unemployment and even when the economy was doing better than it is today, this still happens but it doesn’t warrant a rise in unemployment. Globalization proves to be more beneficial than harmful apart from some of its disadvantages. The trick is to change it to work, rather than against, your business.

Marie Hernan is a full-time writer and blogger. She is adept at digital marketing and is updated on the latest trends and resources to help her clients. She often provides tips and advices regarding the use of social media and financial aspects of small businesses.

Philosophy of the Economy Part One



1. Introduction.
2. History of development
3. Levels of Development: distinctive points, changes and reason for changes
4. Philosophy of Development
5. Psychology of Development
6. Social changes and consequences of Development
7. Nationalism, Ideologies and Political Systems enforcing them.
8. Economy and Market Forces: Historical Development
9. Globalization and consequences
10. Most Developed Countries different approaches in the modern world
11. From struggle to survive among individuals, societies, countries, blocks of a pro Supply Economy to a Regulated pro balance between Supply and Demand Economy
12. Life in Modern Developed Countries
13. Social tools of acceleration and deceleration.

Chapter I – Introduction

The Globalization has become an irreversible historical process constantly expanding and evolving at the same time the social and economic conditions in the most developed nations have succeeded raising productivity and concentration of capital. The old tools of Economics cannot anymore accommodate these new developments and are not able to establish most favored conditions for such an important to the World and for any individual countries new development to evolve smoothly by avoiding major economical crises and without destroying the environment. Having inadequate Economical Tools creates volatile market conditions which work in conflict with current possibilities of market expansion: this research is to proof the change from a Scarce Economics based on volatile interest rates fluctuations and deregulated speculations into a Market Economics based on market stability, regulated economics and Global Expansion of even small to medium size businesses and investors.

With the current system of Economics even the very resilient US economy will not be able to sustain the ravaging forces of shrinking profit margins and market crashes. It has become obvious for a company to maintain its profitability it must go Global /also National for US and EU/: but the Medium to Small companies and Investors are hardly capable going global in a highly deregulated markets and exchanges.

There are great possibilities in a Global scale for establishing a heavy regulated but at the same time free market place where more individuals from elsewhere will be able to compete in very increasing intellectual competition; this process could be accelerated by increasing the security of doing business and investing capital which will increase the LTV and MTV of the assets and even further to enhance some currently considered liabilities or with very limited LTV and MTV. When doing that the Monetary policies will change because of this extra security so more money will be able to circulate without provoking inflation; then more business and investment will follow and gradually these rules and regulations will envelope more markets around the Globe to establish a Global Market Place for even Medium to Small Business and Investors having such Global access.

This is the end of the shady Trickle Down Economics or the bureaucratized Socialized Economics and the beginning of a real Market Economics /called by me a Market Stability Economics/ because it relies on the Market Competition and on Regulated Business Practices and Direct and Indirect Investment under clearly stated laws and regulations implemented by the Governments but controlled by the Courts.

All these is becoming possible only in the very recent times by the incredible developments of the Internet, related technologies and communications; the fall of the Eastern Communist Block, the expansion of the European Union, the entering of WTO by China and by the expending freedom of business all over the Globe which as a consequence increased Global Productivity, Access to the Market Place, quick jump from Ideas to Realization, opening the Global Employment Market, allowing expanding Global Direct Investment, allowing Internet Education and Self Education. The World has changed forever.

The following is a Philosophical Conception attempting to substantiate the new changes through Historical sequence of developments and conclusions.

Economy is one of the reasons setting our life in motion and moderating our personal desires and behavior with compliance with the social rules of organization to accomplish highly sophisticated structures of societies and countries and lately economic blocks.

Many historical occurrences could be explained by the Economics and the ways individuals and societies are affected by it. The competition among individuals for economical and political advance in any society which competition has grown into Global has always been the way bringing innovations, improvements and progress but in the same time bringing corruption, injustice and the following revolutions and terrorism.

The Individual Desire for Success and the following competition among individuals is in the beginning of relations between individuals and societies as a general driving force which organized societies into countries, empires and economic blocks. A constant struggle between the interests of the society and individual interests is regulated by cultural and religious rules and common laws which moderate and leverage this relationship so the societies could function.

Historically the competition for success has moved from more primitive and physical one using more physical tools and methods for success to more intellectual and abstract one using more intellectual methods for success. So consequently of such changing priorities the social rules of behavior have changed accenting on these constantly evolving values.

Economy is a main field for individuals’ competition and also a general tool for comparison among societies; it has been evolving and changing with the new values invoked by the the general intellectualisation. Relativity of a society or group of societies to adjust their values through rules and common laws to fit a Current International Level of Development-CILOD is called Country’s /for this society/ Current Level of Development- CCLOD. This philosophical law of Social Relativity SR is to be established based on historical statistics and method of comparisons. Every single moment in history has its CILOD and every society has its CCLOD at any time of its existence.

Why are we attempting to figure out the relativity of historical economic and social development?

The up to now marginal understanding of the processes of human development by the Philosophy over all has being limiting the abilities of different societies to find for themselves best ways for development: thus ideologies such as pro Capitalistic or pro Socialistic, or pro religious Fundamentalistic have been playing role in preventing philosophy to clear the values and reasons for socio-economic progress and development. The disconnection between Philosophy and Economics for some time has fragmented general abilities for comprehending a conclusive system of evaluation and consequential objectivism. Economics has drifted away from philosophical thought to a practical science of statistics and ideological self-adjustments. The desire of practical clearance of ideas has taken over philosophical reevaluations of sometimes subjective values. In context of such ideological more like status quo science of Modern Economics real historical possibilities have been sidelined and obscured as not complying with the “political correctness” and its accents. The same approach certainly applies to the ways different tools of Economics have been evaluated and used however under economic and social pressures Economics has been evolving an examples is the change form the Gold reserve backed currencies in the past to the more abstract current system.

The evaluation of the basic inflationary processes, the most recent effect of high tech developments, Internet and Worldwide Political liberalization causing fast Globalization; even the past changes from Farming driven Economics to Manufacturing Economics and now to Services and Investment Economics have been poorly evaluated not followed into conclusions and consequent resolutions which is to bring a coherent philosophical systems to describe these changes and provide guidelines to the Future; the understanding of Economic and Social tools historically has been very fragmented over the board.

The consequence of such insufficient approaches toward Economics have been many wars, revolutions, totalitarian dictatorships,depressions and most recently the rise of religious fundamentalism and terrorism. One will say that I am going too far in giving the Economics such powers: he or she could be right there are political situation driven by social forces not relating economy on their surface but beyond any socio ideological motion stay pressures of social expectation of certain values and motivations and such pressure is still a product of individuals’ desire for competition which was steered to ideological values because of lock of economic competition for majority of individuals to participate, and because governments’ role have always been to defend the status quot of socials structures the energies which could be used for such economic competition have been flown into nationalism, racism, chauvinism and the general ideologies as well

If in prospective we evaluate the economic and social reasons for the Second World War as an example when the conception of imperialism at the time by Hitler and by any world powers that appropriating foreign resources and occupying others’ assets was considered equitable when if a detail evaluation is done these neighboring countries could have been much more beneficial as trading partners which you can see in the new developments in Europe; Such an example of conceptual misunderstanding of economic and social tools by all of the great powers and Nazi Germany was a result of this mindless war which did not do any good to anyone but after the devastation it made clear that unleashing the dark powers of individuals’ powers instead of using their creativity is worthless. In the new world of rising terrorism such misunderstanding of reality by the Most Developed Countries’ Governments could have fatal consequences for any country or even for the World. To try to suppress millions of people living in poverty and religious fanaticism is not a feasible way to go forward into a new world when the possibilities of the Current International Level of Development to engage Worldwide individuals into a productive competition are real; denials of opening these opportunities by the Most Developed Countries based on ideologies such as status quo US capitalism or in case Chinese socialism, or European social bureaucratism, or nationalism, or whatever prejudice will only bring tensions, insecurity and environmental disasters..

One will say if there are too many economic and social factors to be put together in a way which can provide comprehensive evaluation, is it correct?

Yes if the information is accumulated with no strict guidelines. In case the principles of this conception is simplicity: not ignoring any major factors for socio-economic development but concentrating on the guiding ones that have the most effect on the projected development.

How competition could be considered main engine of individual and social relations and development?

There are countless numbers of traditional and circumstantial factors in an individual life which play roles in characterizing this individual and his/her correlations and social interactions. The economic factors are limited but very important part of this process. The conditions in which an individual grows up, the stability of day to day life, the possibilities in front of him/her, the positive and negative pressures on him/her by the society; obviously negative economic pressure could have very depressing and mind altering effect on ones character; the lock of opportunities could contribute to ones instability and perplexities. Historically ideologies, religions, nationalism and general culture have helped offset the instability the lock of socio-economic opportunities to the majority. The social structures have established an array of tools to suppress individual Desire for Competition which suppression `historically has been antagonistic based on classes’, nationality and other belongings to limit majority of individuals from competing for socio-economic advance. But in a world of low productivity and political chaos such limits of competition ware actually positive for the stability and the survival of these societies

The main competition for individual success has changed not only from physical to intellectual but also from very limited opportunities for particular classes to more general and accessible; this process of opening of socio-economic competition to higher percentage of the population is at its best in the Most Developed Countries which historically have always been the most advance socio-economically thus at any PCLOD the CCLOD of the MDC is basically a result the best adaptability of this country or block at the historical moment to use in a better way Current Possibilities’ potentials of their citizens in the most productive at this moment ways. Because in different historical moments different socio-economic structures were working best, examples: the Roman Empire’s strong militaristic approach supported by political power needed militaristic organization and social philosophy to dominate the current World thus Roman structures were best reflecting the PCLOD and therefore Rome dominated the known world she was the best adapted under the circumstances. Other examples are ancient Persia, China, and Aztecs in the Americas.

Obviously to base this philosophical conclusion on the approach of evaluating these historical changes the continuity and relativity of these changes have to establish: and it may be best presented as a change of socio-economic philosophy and psychology from pro physical pro manual one reflecting at the time manual labor economic approach as dominating to a pro intellectual one apprehended by the developing high technologies and economic globalization one when intellectual economic approach is dominating. This socio-economic evolution is reflected into historical changes; here it needs to be mentioned that they were periods in the World history when these processes of intellectualization were severely interrupted and even reversed an example are the Dark Ages in Europe, or the Mao’s governing of China the changes are not necessary a flowing continuation but more like a spiral like continuation.

Someone will say that this philosophy replicate Marxism for these people my answer is that Marxism was based on development based on struggle between the having and having not classes when this Philosophy of the Economy is based on the historical continues change of historical priorities from physical to intellectual. Which I believe has given the opportunity of the human civilization to advance. So as an example when technologies and socio-economic structures were underdeveloped appropriating foreign resources was the only way was a country to advance into interstates competition therefore the best organized countries were establishing their empires by concurring others and imperialistic foreign policies were supporting them: in such socio-economic environment individuals’ competition was redirected into militaristic by nationalism and ideologies Individual Desire for Advance was obviously related to individual advance by militaristic ways. The same principle of timely important values applies to pre historic times when instead the organization militaristic skills of the time of the empires, personal physical personal strength had been much more valuable therefore the “heroes” from the Ancient Greek mythology were compared and related to the gods. When Great Empires before the Great Wars of the 20th Century were occupying the known World the mentality of conquest and spread of civilization was reflected in the literature, economics and science of that time to justify their policies fierce nationalism and chauvinism were promoted by the Governments and other institutions: “the philosophy of being better meant being militarily stronger, and even on a common level that a man is not one unless going through the army” prepared individuals for the armies and multiple devastating wars. Now days such “philosophy” sounds almost comical; people have understood the consequences of wars and they are used only under extreme circumstances.

Throughout history continues accumulated information was needed for successful competition which is another factor for coming to a new Current International Level of Development. Such higher ground can be reached only by expanding and enhancing current possibilities which always are a result of improving economies and political structures. On the ground base improving technologies, trade relations and business environment in any time of history had prompted a new CILOD.

When productivity was low classes based on individuals’ background and individuals’ access to resources and position in the society have been playing dominant role in societies around the world. Because of the low productivity to maintain “normal” level in the society multiple servants and feudal taxes were needed. Thus the theory of scarce resources was born. To suppress individuals for demanding more participation in economic competition a philosophy of servitude and tyranny of oppression was established: all over the world.

The negative socio-economic pressures on individuals accumulated in such conditions usually brought rebellions and revolutions therefore societies needed release valves: the nationalism, chauvinism, xenophobia, religious hatred have naturally been parts of such social negative built up releasing system which was promoted by government and negative social pressures were channeled into regional wars and constant insecurity.

The next and higher step in this social prevention system were the ideologies which were higher more sophisticated level of prejudice: in both systems of negative pressure releases any individuals not complying with the “acclaimed” ideas were persecuted and considered asocial and sometimes even enemy of the states: ideas for righteousness fitting some current criteria have been used and continued to being used for the same purposes even to promote belonging to causes and principles to suppress individual desire for success.

The theory of Scarce Resources has being based on a pro supply economics and competition it reflects the allowed by this conception limited percent of individuals access to fair competition which is accessible mostly for the upper classes who control big business and investment in now days. The Scarce Resources Economics including access to good education, to borrowing Capital, to market exchanges investing is pro Supply and the supply has been controlled by the big business and large investment groups and their strong lobbyists; the Governments have been part of this system by promoting their interests.

US is a perfect example how this conception works where good schools are quite expensive and the theory of income based education is dominant: which theory was probably good for a steady developing US economy and not so good for the rapidly developing global market which promotes different kind of competition by globalizing the labor market so the large corporation are looking elsewhere for qualified scientists and technicians, following on such demand large US Universities responded by creating graduate programs in science where high % PHD graduates are of foreign origin. Same conception prompted number of software specialists and medical doctors to come from India and elsewhere to fill the existing demand in US. So far Business Graduate Schools even opening some competition are lingering behind relying on the more conservative and seemingly less demanding business competition as still a steady place for the upper classes kids to be promoted but with the Europeans and Chinese’s high accessibility for commoners to all strong undergraduate educational programs and the becoming extremely sophisticated Global business a demand for highly intellectual business managers will drive Business Schools toward similar to the science faculties global approaches of admittance and scholarships.

Philosophy of the Economy Part Three

There could be distinguished probably many Current International Levels of Development but for simplifying this philosophical conception we will are allocating 5:

1. Basic CILOD up to 6000 BC

* It is characterized with basic physical individual competition best described by archeological discoveries. Small tribal and on a move large family units mostly on a move; nomadic life.

2. Basic Social CILOD up to 1100 AD

1. It is characterized with growing large empires and settling of tribes: described by the Odyssey and Iliad, also by the Old Testament; and the history of China, South America, Persia, Egypt and Rome. Individual competition had progressed from the perception for individual qualities value changing from mostly physical to mostly organizational when organized political structures and trained armies were most valuable then the individual physical strength; the new priorities required skills and knowledge not being known before therefore the socio-economic structures of the most developed societies and countries at the time established rules and benefits for this kind of development; in the beginning political structures were rigid totalitarian of empires as Persia, Egypt, China and then more democratic as Greece and early Rome then the early feudal structures in Europe. Some of the most important developments on this long period were the development of governmental and market structures; the rise of the organized monotheistic religions particularly of the Christianity bringing humanitarian values very powerful and productive to organize social structures. Economics had changed priorities through this time from basic individual survival of the previous period to mostly governmentally control in the old empires to the market economics of the Greeks and the Romans and to the market economics of the feudalism.

3. Social CILOD up to 1700 AD

The Discoveries and Colonization of the Americas, Africa and Asia by the Most Developed Countries brought plentiful resources to the colonizers which helped the feudal socio-economic structures to start braking and developing into pro capitalistic economics’ structures; the numerous ways for individuals to compete for money and power gradually and in some countries like France abruptly through revolutions; the Renaissance has brought freedom of expressions and high expectations to the citizens of the Western and Central Europe: the feudal structures of novelties and kingdom were losing gradually their powers to the new developing socio-economic structures. The historical developments of this time was affected by the ideas for social justice and the crystallizing nationalism; more nations has been becoming nationalistic with feuds among them; the large holders of power were constantly fighting each other for World dominance and at the same time smaller countries and nations were struggling to distinguish themselves from the big ones’ political and economic control. The economic growth in Europe has ignited the nationalism and chauvinism which lately brought the ideologies; the following wars of the 20 Century were already being anticipated by the building hatred among nations and countries. International trade and business even always interrupted by wars and feuds were already showing the signs of importance for political and economic domination by the Most Developed Countries.

4. Advance Social CILOD up to 1980 AD

This Current International Level of Development is characterized by

* the Global Colonization by the Great Powers of the entire World which process was considered the way for them to grow economically and politically: this kind of competition was giving them a social-economic release tools to let more individuals competing and contributing to their growth; the old saying “to keep internal peace one should go to war with their neighbors” was working. The socio-economic injustice and huge crock between the “having and having not”,

* the suppression of social justice by the governments; in the entire World they defended the privileged classes

* the establishment of the United States of America where individual freedoms and free market economics showed to the World what power such approach holds; it was a mass exodus of people from Western Europe, China and Japan to the New World in search of personal freedom and economic prosperity getting away from their socio-economic rulers: the US became a symbol of the new coming just World.

* the technological revolutions which brought grueling working conditions and pollution;

* the October Revolution in Russia which was already based on Marxism a “pro demand” socio-economic ideology

* the great wars which exterminated millions of people and devastated many countries’ infrastructure;

* the growth of ideologies possible because of the new means of communications the radio and later the TV

* the decolonization of the World which came after the great wars when the great powers already devastated by the Second World War figured out that maintaining their colonies was too expensive;

* the post war Cold War between the Soviet Block and the United States: where the ideologies became ruling their Economics:

* from one side pro-demand governmentally run economies of the Eastern Block and China, which inflexible totalitarian regimes limited individual freedoms and individuals involvement in communist economics was as strictly controlled by the governments which approach in economics is quite inflexible and insufficient

* from other side the pro supply capitalistic United States and Western European Countries, Canada, Australia and Japan which differ in their Capitalistic Economics: Western European Countries, Canada and Australia developed a pro social economics, US a trickle down economics and Japan a pro nationalistic export based capitalistic economics closer in structure to US then to Europe; the pro supply capitalism was more progressive at this time in building business and infrastructures thus it was giving their individuals much more open space to compete: even differing from country to country the pro supply capitalism combined with personal freedoms was giving the business fruitful space to grow and build its structures

* the rest of the World was divided to the cold war blocks’ sphere of influence attaching or detaching themselves to one side or the other: overall socio-economic justice was limited elsewhere in the World as well.

* US established itself as the frontrunner and leader of the free world as a protector of freedom and democracy from the dark forces of the communism. People around the World admired the technological advances and the high standards of life US was achieving.

* the humanization of the capitalism: gradually it became obvious that a Market of a country could be strong only if the Demand for goods and services could support its growth therefore an economics of pour redistribution of wealth could have unfavorable effect on its growth; the socio economic policies nave been gradually changing to adapt these new conditions; the Trickle Down Economics worked relatively well using the competition as main economic tool to rapidly expand the Supply and the Demand was following it up: the expending Labor Market followed as well. Thus a strong middle class of white and blue color workers and professionals founded a strong US market advancing the rest of the World in consumption and achieving higher life standards. The European bureaucracy and the inflexible Eastern Block and China’s communist economics were no match for it; US Economy achieved total supremacy having the best economics for balancing Supply to Demand, low Governmental involvement in the Economy, easy regulations of businesses start up, flexible employment regulation benefiting businesses, strong technological advance as a result of highly successful post graduate education and open immigration policies allowing intellectuals from around the World to take refuge in US; the lower prices of crude oil and other commodities dictated by the huge US Market and strong Dollar.

In this kind of economic environment the US capitalism achieved the highest level of growth and it humanized it by giving countless opportunities for virtually any individual willing to do business educate themselves to participate in the economic competition.

United States of America was and still is the Most Developed Country and Market in the World.

· After the Eastern Block bogus system collapse most of the countries past members started integrating into the European Union structures and the rest open their markets to the global competition one way or another, after China integrated in the WTO and India became a power source of high tech professionals and most of the South American countries stabilized politically the World market started globalizing rapidly the old conception of the Trickle Down Economics as well of the Bureaucratically complicated European Union Economics and Governmentally involved Chinese and Russian Free Market Structures are all becoming more inadequate and inflexible to support the incredible growth accelerated by the vastly improving technologies, the internet’s informational and Globalization effect and overall the intellectualization of the Global competition: the World has been changing so fast that none of these Economics could manage it without major disruptions in wealth redistribution: the main issue for all of them is the Demand to Supply balancing when giving more Individuals access in the Global competition and in the same time improving their social structures of access to good education, care for the elderly and the socially disadvantaged, and the over all social stability; building and maintaining their infrastructures and fighting the increasing treat of the fundamentalistic terrorism.

* the dehumanization of the capitalism: the system of Trickle Down Economics based on the Ideology of Capitalism was working fine:

· up until the point where the competition has become Global and the Conglomerates have started exporting all their jobs abroad to a cheaper labor and thus disrupting the Supply to Demand Balance;

· up until Japan overrun US in automobile and many high tech products market share;

· up until the point when the Eastern Communist Block was dismantled and millions of skilled workers flooded the Western and US labor markets;

· up until the point where China released its huge Market to a freer Market business;

· up until the point when India flooded US with its high tech educated specialists and many high tech and software conglomerates open their RC there

· up until the point where the profit margins of the small to medium US corporations doing business only on US soil have been tightening profit margins unable to compete to the cheaper import and raising prices of imported commodities:

So after all these and other developments on the Global Markets the US Economics based on the ideology of capitalism has been becoming inhumane: the middleclass has been losing ground, the good education has become very expensive, the infrastructure has been aging as a result of the shortage of capital as a result of the deficit triggered by the global wars on terrorism and weakening or not growing enough US Economy: the overall capitalistic balance of Supply to Demand has been disrupted and a new Market Forces have been emerging which could not be fixed by using the ideological tools of the capitalism or any other known ideologies: these new developments need a pro Market driven pragmatic approaches.

1. Market CILOD – Market Economics’ characteristics:

* Intellectualization of the competition

* short term between ideas and their realization allowing medium to small companies to participate into the global market

* high technological serge on a Global scale

* global expansion of medium to small businesses

* heavily regulated business interactions, contracting and practices

* internet expending its role in communications, education, exchange of information, sales and general business practices

* heavily regulated direct and indirect investment through exchanges or trusts

* global access for investment to medium to small investors and investment groups

* international politics dictated by the interests of the Global business and investment

* globalization of the banking transactions and credit system

* political and market economic pressure progressively democratizing the rest of the World and expanding the interactive global market

* boost and ever expending international business travel

* heavy environmental regulations

* Global struggle to fight fundamentalism and terrorism

Chapter IV Philosophy of “Market Stability”

The free market competition was in the very foundations of the capitalism and therefore the market economics which too relies on the competition and Market balance is a continuation of the scare resources economics of the capitalism but because of the new market environment it differs into a pro Demand to Supply relativity’ heavily regulated economics. This new environment is prompted by the new developments: the internet, the market globalization and the political liberalization of many parts of the World which will better serve a Global growth; by being well regulated it will prevent business and investment fraud, and uncontrolled pollution to establish relative security on the market exchanges and business practices and by establishing security on the Global market it will allow more individuals from all over the World to participate in the Global intellectual and market competition which will engage their creative powers, improve their life conditions and thus prevent religious fundamentalism and terrorism from expanding their destructive activities currently based on lock of opportunities and widespread poverty.

The new

Chapter V Psychology of “Market Stability”

A few points could comprehend the individual attitude


· Intellectualization

· Globalization


· Flexibilities and adaptabilities

· Open mind

· Individualization of business

· Self reliance

The new system will break old ideologies of the pro Scares Resources capitalism and socialism or communism, it will extinguish nationalism and chauvinism the co-products of even previous level of development thus a competitive self improvement with access to Global market of science, investing and business will change the values of importance. The relativity of wealth in the new system is based on the constant appreciation of assets all around the World which means that cities and countries will compete for their location to attract individuals with hi intellectual and business qualities the internet’s communicational and educational abilities will give the opportunities to individuals who in the previous system were out of competition. In this kind of new competition the old created self confidence based on nationalistic belonging, or advance classes or other belongings will have less bearing on the access to the Global competition for individuals therefore the individual values of intellectual power will be preceding and promoting these individuals. The qualities of life succeeded by individual countries and they will be called Most Developed Countries will attract advantageous individuals to move there; such processes are already very well established in Western Europe which sucks intellectuals from Eastern Europe and from as far as South America, and the United States which does the same from India, China and all over the World; even internally for China as an examples this processes work where the urban areas suck intellectuals from the rural areas along with migrating workers: the process of concentration of intellectual powers by relocating these intellectuals is a very small part of the picture of globalization: there are much more advanced processes in action in which universities and companies will be approaching individuals located elsewhere for virtual education and self-employment providing more and more opportunities not relating their physical locations; the psychology of globalization is about expanding global access for individuals to the global intellectual competition; in this regard global investment will play the role of fueling local economies and thus promoting business competition: when the small to medium corporation and investors from the Most Developed Countries have a better secured opportunities to invest Globally the value of their investment will be much higher in the Less Developed Countries or as a matter of fact the same approach applies for the internal for these countries less developed parts of their own regions: this kind of raising the value of invested capital will widen the margins of return and provide the Most Developed Countries with a huge advance of Concentration of Equity which assets will b elsewhere.

Globalization Of Taxation

Since the invention of the internet it was just a matter of time before the integration of a globalized economy. Globalization means the expansion of the world’s economy it’s not just about one single country anymore. Globalization takes capitalism to a whole other level with their being competition for about every market which inevitably drives prices further down, and ships jobs to countries where businesses can get the same result for a fraction of a price. Globalization can be a good thing as long as it’s done with some sort of regulation, but like capitalism it is becoming a cut throat world a world where only the strong survive, and strength is determined by who can offer the lowest tax rates.

Now that the world’s economy has been integrated or globalized it brings with it a whole bunch of free trade agreements which do away with the nuisance of doing business outside your home country. North America has the North American Free Trade Agreement which opens the boarders of the United States, Mexico, and Canada to do business tariff or tax-free with each other. These free trade agreements are all over the world. The Euro zone which allows free trade with the countries that consist of the European Union which helps expand their economy, but tax money that could be generated from such transactions is nonexistent. Asia has the Asian Pacific economic cooperation which has those countries freely trading. It seems like every year there is another free trade agreement that pops up between neighboring countries. It really has set the standard in today’s economy because if you’re a country who has barriers or high tariffs to trade with then you’re not going to have much of a chance to compete in today’s global economy.

The catch 22 about globalization is that countries will lower their taxes to encourage foreign investment so they get that money pumped into their economy, but with the these lower taxes means less government which in turn means less regulation to keep an eye on these corporations from doing what they want. Adam Harmes a political science professor at the University of Western Ontario “sees a world already spiralling toward the bottom through deregulation and lower taxes, and views stronger global institutions as the means to protect individuals from this corporate arbitrage” If we don’t have someone keeping an eye on these corporations who will do whatever it takes no matter how unethical their business practices are corporation’s are concerned with one thing, and that is to make a profit.

The globalization of the economy in the short run looks great on paper prices are down costs are down and corporations are expanding at a rapid pace., but the real victim of globalization are the lower class people of their nations. People who depend on government welfare which is funded by taxes is slowly dwindling away because paying taxes all of a sudden has become taboo. That it is not fair for everyone to pay their fair share to contribute to the greater good of the country. Globalization according to Harmes will eventually get out of control when the tax rates are so low that it will be impossible for government to operate efficiently, and these corporations will get away with everything and never be held responsible for their actions.

The globalization of the world’s economy has an adverse affect on tax revenue for the United States or whatever country is being concerned. The idea that low taxes are good for business is absolutely true, but what it is not good for is majority of people in the world. The North American free Trade Agreement for example has sent countless number of manufacturing jobs to Mexico. This is putting people out of work and taking tax revenue out of the United States. Since all the corporations are outsourcing (which is their only chance to compete) it is leaving unemployment at almost ten percent which is the greatest since the great depression. This is a problem because the government provides these unemployed people with assistance that is provided through tax revenue. Bottom line is that globalization works only if it is done responsible where you do away with the concept of free trade, and tax responsible.

Globalization Effects on Businesses

Almost every aspect of the economy is impacted by globalization. Many people don’t realize how much of an affect globalization has because they ignore the big picture. Globalization is thought of as outsourcing and has many different functions, such as communication between countries, news, cheaper labor and free trade. Globalization has an effect on every economy, ultimately changes world views, and heavily influences what we do. A large aspect and concern of every economy is the many global influences that affect business. There is a growing belief that outsourcing will aid our economy while enduring many global speed bumps. Some global changes that affect business are the price of imports, exchange rates, increase in oil and gas prices, and recession. Is outsourcing a way of solving cost issues?

To begin, a substantial global trend relates to commodity fluctuation. As the price of imports rise, we are able to buy fewer goods. This affects countless businesses throughout our economy because they may then have to take on other measures to obtain necessities needed to run a business. Accommodation, due to the lack of availability, generally leads to increased cost and alters the way of business. Paying more for any products or services needed to run a business will lead to an unfavorable issue of increasing prices; therefore ultimately driving away some of the usual clientele. The increasing troubles and costs of confined sources negatively affect businesses daily operations. As businesses are losing funds in some areas, outsourcing can make up for incremental loses. Outsourcing is commonly known as sending work to an outside provider in order to cut costs.

Another global trend that has similar effects as the price of imports is the issue of exchange rates. If the value of the U.S. dollar drops it would lead to negative circumstances; as we would then pay more for the goods needed. Once again, paying more for the goods needed would affect both business owners and customers. Not only would we have to pay more for the goods needed, but we may have to take other measures like eliminating or changing a business’s products and services. This elimination or change could either benefit or hurt overall business. A business could rid the hassle and extra costs of importing goods from other countries, but this change may lead to unsatisfied customers which would subsequently hurt business. This change may lead to poor company reputation, while outsourcing may not be the best resolution. Outsourcing doesn’t always improve a company’s reputation and can weaken a business’s initial ability.

In addition to the global trends that cost the business more money, the increase in oil and gas prices also has an unseen effect on all businesses. The increase in oil and gas prices is something that affects us all. As much as we all complain about the increase in these prices, it is something that we cannot solve and for which we will continue to pay higher prices. I would consider gas and oil a necessity for all, not only for one’s own personal use, but everything used and needed in our economy is brought to us with the need of oil and gas. This ultimately increases our costs, as well because we now need to pay more for the transportation costs of receiving the goods and services needed to run business. Customers are also disturbed by this global issue because they could possibly no longer have the means required to pay for some businesses. In return these customers will choose cheaper alternatives. This specific global trend has nothing to do with the U.S. because we do not produce the oil or gas, but as citizens in this economy, we are very much affected.

Similar to the effect that the extra costs incurred, the recession alters every business in the economy. This slow down of economic activity is taking a major impact on every household, business and economy. With the recession, big changes need to be made in order to be secure in these down economic times. This issue fundamentally affects every business in the economy as a whole; as commerce decreases due to changes needed in this fluctuating economy. Due to all the foreseen extra costs, many businesses may have to begin outsourcing to keep the company functioning in this difficult economy. As outsourcing is becoming a rising issue, there are many benefits and misfortunes related to the act. Outsourcing is looked upon as a way to save money, mainly due to lower labor costs. It is also viewed as a way of expanding recognition and competitiveness, but many believe that outsourcing is negative because it takes away from the American economy.

In conclusion, the continuous global trends are unseeingly affecting all businesses throughout this economy. These global trends cause a constant need to accommodate, which is applying more costs and frustration to all businesses. The global affects that people are unaware of are what is slowly bringing down businesses in this economy. Along with tending to the extra costs incurred from globalization, businesses still have to focus on fulfilling customers expectations in order to improve satisfaction and increase future business. Outsourcing opens doors for many businesses to gain access in a foreign market, but not all businesses can handle and maintain activity in these roughing economies.

Rachel Gilman
West Chester University of Pennsylvania

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New World Economy

Home office entrepreneurs will be a major contributing factor in the evolution of the new world economy. We do not need to wait for big business to recover from the economic recession to produce prosperity for human civilization. These micro-businesses will play a considerable role in transforming the economic cycles created by the size and interdependence of enterprise class businesses, into a more sustainable and continuously progressive peace and prosperity of human civilization.

Big business will always be a major aspect of the economy, and we can work in harmony with big business, but we do not need to rely on big business to supply our prosperity. Big business is just one of a multitude of activities we can pursue to create prosperity for human civilization. Big business is already global in scale and now that the global economy is deflating. People are consulting about ways and means to establish a well regulated and sustainable, global economy.

Grameen bank of Bangla Desh is supplying micro loans to women in poor countries. The loans can be as small as $20 or $50, they favor women because they are more more likely to invest the income into their families. They can use the loan to buy a cell phone, for example, and then rent it out to other people in the village. Grameen bank is also working with France’s Danon company to sell highly nutritious yogurt to poor people at a price they can afford. The yogurt is made in local factories, supplying jobs to the people in the poor neighborhoods.

These are good examples of the development of the new world economy, of the synergy between big business and the home office based micro businesses. We will continue to create prosperity in our own lives, and that prosperity will radiate out into the global economy. Network marketing is a popular home office based business model, that combines the advantages of big business and home office based micro-businesses. Many network marketing businesses are global, or at least international, in scale. These international networks of home office entrepreneurs are spreading the prosperity around the world.

Big business can afford to secure their international transactions, individual entrepreneurs usually can not. So some sort of international regulation will improve the security of international transactions. So that when we execute an international transaction, we can be reasonably sure we will receive what we agreed to trade for. This development of international trading regulations is going to be a slow and complicated process. We will need to develop international standards for labor, health, safety and environmental regulations.

Home office entrepreneurs can contribute to the evolution of the international regulations by pushing the envelope and building relations with international customers and business associates. Working with small and big businesses, government agencies and non-governmental organizations to develop pathways for micro businesses to trade on a global scale. Internet commerce gives us a global market to work in, as long as there are international standards, a reasonable expectation of enforcement of contracts, and respect for intellectual property rights.

I’m a big fan of the United Nations. The UN is the next generation of human civilization. It is not perfect and it certainly needs to be improved. We just need to keep the consultation going on. Be fair. Respect each other and learn from each other. These ancient and more recent civilizations are converging into a new global civilization. We home office entrepreneurs, can play a significant role in the evolution of this global civilization. We are building international networks of home offices that buy, sell and trade a diverse assortment of products and services.

Writing and photography and website development is another increasingly popular business model for the micro businesses. People produce what ever kind of art they are interested in and display it on websites and in the case of writers on blogs. They then can sell the products themselves, sell advertising on the website, or join affiliate programs offering products from other companies for sale on their website.

The new world economy is evolving rapidly. There are a diverse assortment of options for creating networks of networks in the global economy. These networks of micro businesses working in harmony with small and large businesses are transforming the new world economy into a more sustainable and less cyclical free enterprise economy

by Bob Mccoy.

I am developing a cluster of businesses on and offline that investigate and promote a spiritual solution to the economic problem. It is a holistic approach to self improvement and helping others. earthling09 is a holistic healing and teaching system. is a blog about healing human nature and advancing human civilization.

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10 Global Business Participation Guidelines

The advancement of modern technology has impacted positively in the way business is conducted across nations and across continents. The availability of such facilities as electronic commerce, website based trading has impacted business in a major way. Not so long ago, if you needed to do business with someone in another country, you needed to used fax machines and write letters. A lot of money was spent calling the customer and suppliers in other parts of the world which was a nightmare as time zones are different and telephone conversations yielded very little in cases where the primary languages differed. The word has however been turned into one global village where through email and internet, communication is enhanced and money is moved between bank accounts in real-time. Businesses that keep thinking local become content with the small market they occupy. In some instances it may be a big local market which when affected by any shift in the economy of that country, the whole business suffers directly. It is therefore not wishful thinking but wisdom to consider the word map as the extent of your client base. No longer will businesses be confined to the boundary limitations that have existed over years. You can take your business to any home or office across the ocean from you by running the business following global best practice trends. There are important guidelines to consider when deciding to increase your reach to global over local markets.

Important considerations

1. Ensure your business conforms to best practice – There is no room for shortcuts on the global scale. I don’t even advocate for shortcuts even when your market is still local. Shortcuts disadvantage the customer who desperately desires to have the best from every amount of money invested in buying your product. When you follow best practice or internationally recognized procedures and standards, you safeguard your reputation while at the same time bringing value to the customer. Ensure that your financial system follows international finance standards. The same goes for every process and system that you run. You would rather delay going global while sorting out your systems and processes to conform to those internationally acclaimed standards.

2. Take note of legislative differences and expectations – Trade on a global scale is supposed to still confirm to the laws governing trade between the countries. There are certain commodities that are banned in parts of the world which you cannot trade in. The usual temptation is to find unofficial means and ways to get the products into the country. Now, that is unlawful and not recommended at all. Once something is banned from a country, smuggling the same thing is one sure way to destroy your personal and business reputation. Research about the permissible products before you ship them. Ignorance is not an excuse. The moment your business is in the press for the wrong reasons you simply say goodbye to international trade forever. You can be very good in one country and be considered a law breaker in another. The reason is that laws differ from country to country.

3. Plan your Human Resources mobilization carefully – When you are deciding to establish branch offices all over the world, you have to be careful about who you send out to champion the work of duplicating or expanding your business. Send people who are loyal, dependable, trustworthy but most importantly, people who have understood the vision and direction the organization is going and are willing to be part of what you are doing. Be careful that people you send out to spearhead the establishment of a branch office will not suddenly create their own vision cutting you out of the branch office totally. You need to ensure that all the key staff have been trained and coached centrally and are deployed to propagate all that you have instilled in them. In some countries there are laws pertaining to how many expatriates you can bring in as they endeavor to promote the local (indigenous). Only specialized skills that cannot be found locally are sometimes permitted.

4. Agree on a standard stable currency to use in your transactions – Once you take business on a global scale you have to peg your pricing in a reliable and stable currency. While many currencies all over the world remain very stable, a few currencies are recommended in international trade. A currency such as United States dollar, Euro or pound sterling is recommended. Anything outside of these currencies may be a major risk due currency exchange rates fluctuations. Take note of the prevalent exchange rate at the time when the funds transferred to your bank account get to reflect before you ship the goods ordered. There is

5. Perform a thorough market research – The global market is very competitive. You may not be only person supply the kind of product you are exporting. In order to compete favorably in the markets, you need to invest in an extensive market research. Get to know how many other competing products are being sold in the same market. Find out how best you can tailor or make your product to stand out. What kind of packaging is desired in those markets? What markets are resisting your product due to culture and lack of information? Your market research must be able to answer all the important questions before significant investments are made into the respective markets.

6. Consider the socio-political risk factor – Business in any nation is directly affected by the political environment that exists. It is important to find out who else is a trade partner in the area you are desiring to trade in. Find out the reasons why there are so many or so few trade partners. That could point towards the fact that no one wants to invest in the country due to the political instability. If you do business in a war-torn zone then you run a high risk of not finding your customer the next time you call them. It may happen after sending off a huge consignment. Equally important is the fact that when you establish a branch office, the political environment in the nation you are going to may be volatile to the extent that you may lose a large portion of your investment if the economic empowerment drive characterizing some parts of the world do happen to be the norm in the country you are targeting.

7. Be ready to respond to “copy-cats” or “gray matter” – In a number of markets, there has been a sudden invasion by such economies as China who have brought cheaper alternatives to the original or real standard items. If you have a specific product you have manufactured and patented, be ready to deal with people who thrive on copying ideas and benefiting financially from them. People will always buy even if they know that they are not buying the original item. In your projections and research of markets, these are the considerations to make. In what way is your idea protected in the region you are getting into.

8. Establish a robust system of managing your remote offices – You need to consider an effective way to secure your investment. There should be a regular update of the state of affairs in any of the nations where your organization is represented. You should have online access and authority in every one of the bank accounts you hold. Realize that just as you may have all those bank accounts and assets, should the company go into liquidation or serious debt, it affects you directly from wherever you have decided to operate from. It is a risk you are carrying; to run a business from afar. Systems must be as strong as can be to ensure your risk level is minimized. The element of risk cannot be over emphasized but it should not deter you from venturing out. Hire experts to setup systems which you monitor at the touch of a button from any location. If you harbor insecurity then you will never grow because fear and uncertainty would have incapacitated you.

9. Make your presence known by people who matter – When you decide to setup an office in another nation, it is important to consider meeting your embassy representatives and any such bodies that your home country setup for your own good. You never know the day you will require the assistance of your ambassador. Establish a good repertoire with people who play significant roles in your establishment of the office. These are some of the people who can help you to settle down faster and ensure you are not on the wrong side of the law.

10. Consider the language and time differences – Different countries have different language preferences. While English is one of the most common languages that people use in International business, consider the fact that your product could come into the hands of someone who has not clue what English is about. That person should be able to read and understand the contents of your product, ingredients, nutritional values etc moreso in their own native language. It is tragic to think that people will buy your product when you do not consider that there may be a large proportion who have no clue what your product is about. You may certainly not be selling your product direct to the end user in other markets, leaving the responsibility of marketing the product to retailers but a consideration on language barriers is important. Package according to the market. Time is different from continent to continent. When you do business across large distances, consider that while you are at work, your customer may be annoyed to receive a call at midnight. Keep track of changing time zones so that you are effective when you decide to call otherwise use such facilities like internet and email which will not inconvenience your contacts.

Rabison Shumba is a young African entrepreneur who has interests in Information and Communication Technology, Agriculture and Mining. He is also a motivational speaker, trainer and author. His book, The Greatness Manual and various online articles are tools for personal and professional development. Together with 100 other Career Experts, Rabison co-authored the 101 Great Ways to Enhance your Career. Rabison has a personal vision of impacting the lives of children in marginalized communities by creating platforms for career counsel and guidance, information empowerment and capacity building through the Greatness Factory Trust, where he currently holds the position of Chairman of the Board of Trustees and Acting Executive Director. He is actively involved in the organization of career enhancement and guidance colloquiums to propel and inspire both young and mature professionals to greatness. His areas of expertise include strategy, leadership, personal and professional development. Rabison is married to Jackie, and they have two daughters. They reside in Harare, Zimbabwe. [] or

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