In this paper, we will look at how the global economy will change in the next five years and in what way these changes can be beneficial regarding our project. We will comment about the future changes along with how we can adjust according to these economic conditions only to pursue the Global trade with our company.
Changing of Global Economy
The shaping of the Global economy in the next five years will be denoted by some very important aspects like, an ongoing shift in economic activities that changes the focus of the economic activities from the developed countries to the developing countries.
The number of consumers in the markets that are emerging is increasing every day which is very good news for the service providers. Another thing is that, due to the impact of Globalization, the flow of goods and capital is always a very healthy case. These two aspects will dominate the economic culture in the next five years and the company has to use these aspects to the full (Lileeva, 2009).
The company must shift its focus to different classes of people to break the economic barrier and this will be one of the most important decisions of the company. If we look at the emerging market for automobiles in the future we will get this graph, which is encouraging for concerns like “Big Drive Auto” (Wise, 2010).
Future Global Economic Conditions
Economics is like weather, it is really hard to predict. But there are certain indexes by which we can determine the economical trends. In the case of a financial market, the rise or fall of the index of stocks can be a determining aspect. Similarly, in the automobile market, the price of fuel, along with other short-term developments in financial aspects of a country are the two most important aspects. Sometimes the commentators on economical conditions say that the automobile industry has a disproportionate impact on a country’s whole economical activity. If we take a close look at the United States Automobile industry, we will see that along with the recently gained momentum in the United States economy, the industry has got a huge share of the boost. The sudden development in the domestic business, along with a regular development in the emerging markets can bring good news for the automobile industry (Wise, 2010).
The automobile industry is cyclic. It also impacts the subsequent shifts in the market paradigm, and the leaders of the market are eager to catch the coming boom that has been predicted. The following chart can confirm the aspect.
In the final analysis, we can say that the transformation of the automobile industry is startling. There are aspects of lower pay and income for the persons who are directly related to the car manufacturing processes, but it has not impacted the export level. We know that the prices of the products are increasing day by day, but in many cases, people are getting more money to spend on this type of huge investment like buying a car (Ozbas, 2010).
This is really a good news for the industry. Modifications in market strategies, dealing with the over-capacity processes which once reduced the car buying scenarios due to the global recession, have changed with the passing of time. Let us hope that the trend will continue, and we will be beneficial in the aspect.
References
Lileeva, A. (2009). The benefits to domestically owned plants from inward direct investment: the role of vertical linkages. Canadian Journal of Economics, 43(2), 574-603.
Ozbas, O. (2010). Market Segmentation and Cross-predictability of Returns. The Journal of Finance, 65(4), 1555-1580.
Wise, C. (2010). Shifting Boundaries between the Public and Private Sectors: Implications from the Economic Crisis on Automobile industry. Public Administration Review, 70(3), 349-360.