Sunday 6 March 2016

The world economy may diversify further into different growth rates

In January, the world market fell sharply in pessimistic atmosphere. Soros's prediction of a coming financial crisis in 2017 did not come from nowhere, as there are many factors that show the world economic growth is falling sharply and some remaining problems since the last crisis have not been solved. However, we can still see that some countries have relatively positive economic performances. We cannot deny the effect of globalisation could spread one country's failure to the rest of the world. However, recently we can see that many multinational companies start to restructure their businesses and reallocate their resources in the countries which have relatively better performed. This mitigates the negative impact of the globalisation on those better performing countries when a financial crisis occurs; however, those economies which have already been in trouble would be hit even harder.

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