How will the Economy move forward?
Thomas Friedman will be proved more correct in the coming years. The world remain flat. All theories of Competitive Advantage and Acquired Advantage will prove more correct in the coming days. China after establishing its supremacy in the Manufacturing industry will look towards the Service Economy. India and Philippines will continue their success with the BPO industry. Taiwan, the base of all computer hardware and peripherals will face more competition. I will be surprised if the Japanese do not bounce back to catch up with the rest of the ASIAN tigers and India. Koreans and Japanese have established their supremacy in the Auto and Consumer Durables Industry, they still need to compete with the dumping from China.
That just covers Asia. The Czech Republic and Hungary will soon replace the Ireland and the Amsterdam, Netherlands as the hot beds for the BPO industry. So what will the outsourcing countries like the US, Canada and UK do to prevent unemployment and underemployment?
These developed countries need to compete with the developing nations (BRIC nations and the others mentioned aboved) to acquire an advantage. Some of these nations still host the most number of patents, inventions etc..The cost of all these value added activities need to be spent on the nation itself. These resources will be based in these countries.
Krugman has already mentioned of an extended recession till the end of 2011 if not more. But I also read that India will pull a houdini and come out unscathed from the recession as early as 2009. Iam not sure of India coming out unscathed, but my guess is India will come out of this asap with the little injuries that the global recession may have caused. 2009 will be a defining year for the Indian Industry much like 2002 after the Sep 11. The RBI has reduced the interest rates and hope the banks will follow suit. It will be a relief for the economy to see interest rates and inflation coming down. Real Estate and Automobile Sector, on a downward trend will be encouraged by the economic stimulus provided by the Govt. and the reduction in interest rates. Convergence in the Telecom circle will be fast accepted by the Indian masses. I guess there will be increased takers for a bundled offering of IPTV, Internet Broadband, Landline Phone and Wireless. Banks and Financial Services will have to compete hard - Insurance will still remain a sunrise industry and will offer employment and bring revenues.
* These are my perceptions on the Economy based on knowledge gathered from various secondary and primary resources.
That just covers Asia. The Czech Republic and Hungary will soon replace the Ireland and the Amsterdam, Netherlands as the hot beds for the BPO industry. So what will the outsourcing countries like the US, Canada and UK do to prevent unemployment and underemployment?
These developed countries need to compete with the developing nations (BRIC nations and the others mentioned aboved) to acquire an advantage. Some of these nations still host the most number of patents, inventions etc..The cost of all these value added activities need to be spent on the nation itself. These resources will be based in these countries.
Krugman has already mentioned of an extended recession till the end of 2011 if not more. But I also read that India will pull a houdini and come out unscathed from the recession as early as 2009. Iam not sure of India coming out unscathed, but my guess is India will come out of this asap with the little injuries that the global recession may have caused. 2009 will be a defining year for the Indian Industry much like 2002 after the Sep 11. The RBI has reduced the interest rates and hope the banks will follow suit. It will be a relief for the economy to see interest rates and inflation coming down. Real Estate and Automobile Sector, on a downward trend will be encouraged by the economic stimulus provided by the Govt. and the reduction in interest rates. Convergence in the Telecom circle will be fast accepted by the Indian masses. I guess there will be increased takers for a bundled offering of IPTV, Internet Broadband, Landline Phone and Wireless. Banks and Financial Services will have to compete hard - Insurance will still remain a sunrise industry and will offer employment and bring revenues.
* These are my perceptions on the Economy based on knowledge gathered from various secondary and primary resources.
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