Keeping Your Business Afloat In This Global Economy

When you want to make sure that your business will remain afloat in this shaky economy, you need to make sure you follow some simple steps. You can make sure your business is protected from another recession, or you can take steps to ensure that your business will survive in the times when your business is lean. Try each of these steps to keep your business safe for years to come.

Diversify

You need to make sure that your business is as diversified as possible. You want to have customers in many markets all over the world, and you want to deal in more than one product or service. This also means that you need to make sure that you are coming out with new products all the time. These new products help to bring in new customers, and this keeps your business diverse at all times.

Investments

It is wise to save all the money your business makes as profit in a place that is going to return you income. You can use this cash to increase your reserves, and these reserves will help you when you have cash flow problems. You need to have reserves if you want to get loans to expand your business, and many of your business partners will want to know that you have cash reserves if they are going to work with you.

Low Costs

You should not lay off people to make sure that your business operates well, but you should keep your operating costs low. You want to run your office as cheaply as you can, and you need to make sure that you are very careful with your office expenses. Once you have taken care of the people that work in the office, you can save the rest of that money to make sure you do not get in a bad situation.

Expand Overseas

When you want to find more business, it is wise to expand overseas. If you are working with one person overseas, they will find you more customers as they use your product or service. People are already familiar with you in your area, but an expansion will bring you many more customers.

Your business can survive in this global economy, but you need to make sure that are diversified and frugal. These steps will help your business survive even when times are lean or when you lose business.

Global Economics: The Top Five

Global Economics

Every year we see and hear report after report on how our economy is doing, but rarely do we see a comparison on how the top five countries are fairing along. Here we will take you through each of the top five economies of the world, and provide a brief description of how their economies are doing now and into the near future.

France

In U.S. dollars, France takes 5th place at $2.9 trillion. Per the OECD, France’s economy was stagnant the first half of 2014, but improved slightly during the summer months. GDP growth is expected to be slow, rising at just 0.4% during 2014. Budget deficit reduction through 2016 will be less than originally planned, with the 3% of GDP deficit not being reached until 2017 as opposed to the planned date of 2015.

Germany

Germany comes in 4th place at $3.9 trillion. Economic growth is weak in Germany, expected to come in at 0.2% during 2014. This is mainly due to weak activity in euro area trading partners and less demand growth in emerging economies. GDP growth is expected to gain strength through 2016 as a healthy job market and continued expansionary monetary policies help to boost private purchases and residential investments. The unemployment rate in Germany is expected to remain low, while price inflation will rise slightly.

Japan

In third place is Japan at $4.8 trillion. Japan’s output growth slowed down to ½ percent during 2014. This reflects the impact of the consumption tax hike; the weaker yen will help to sustain export growth, which will nudge inflation closer to the target of 2%. Because of the sharp output declines in the 2nd and 3rd quarters of 2014, the government has decided to postpone until 2017 the planned increase in the consumption tax rate.

China

$10 trillion puts China in 2nd place. Chinas economy looks like it will fall short of its government 2014 predictions with the loss of momentum during the first quarter of the year. The official growth target for 2014 is 7.5%, but economists are expecting that to come in at the more likely figure of 7.3%. This slowdown is expected to help reduce imbalances; job creation is still strong as the service sector continues to expand.

United States of America

At first place is the United States at $17.5 trillion. The economy is looking good, with the economy expected to grow steadily in the next few years through 2017. Continued increases in private employment will cause the unemployment rate to lower, although some pockets of the labor market will remain slow for a while to come. Industries such as healthcare will continue to grow at a rapid pace accounting for many new jobs. Monetary policies remain supportive; policy rates are not expected to start rising until mid 2015. The federal budget deficit has narrowed quite a bit, and for growth to continue the government will have to focus on spending associated with healthcare and old age pensions.

The Top 5 Economies In The World & How The Global Economy Is Expected To Change In The Future

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What is global economics? What are the top five economies in the world today? What were some of the issues that top economic powerhouses of today dealt with in the past? How is the global economy expected to change in the future? Will new emerging nations overtake the current top five economies in the world?

Global economics or the global economy refers to the economy of all the nations in the world. It takes into consideration things such as international trade, manufacturing, services, and government expenditure in each and every country in the world. Countries are ranked in the global economy according to their GDP or gross domestic product. What is GDP? GDP is the total value usually in dollars of the services and goods created in a country over the course of a specific period of time usually in the span of a year. GDP is usually measured in American dollars because the American dollar is one of the most stable currencies in the world. GDP is calculated by adding up the amount of consumer spending, investments, net exports, and government spending. If a country imports more than it exports, then net exports will be negative and will be subtracted from the country’s total GDP. If a country’s net exports are positive, meaning it exports more than it imports then it will be added to the GDP.

GDP or gross domestic product can be seen as a representation of the size of the economy of a nation. It can also indicate trends such as growth and decline of an economy. Understanding GDP is vital to understanding global economics. The top five economies as of 2014 listed in ascending order according to CNN money are:

1. United States with a GDP of about $17.5 billion
2. China with a GDP of about $10.0 billion
3. Japan with a GDP of about $4.8 billion
4. Germany with a GDP of about $3.9 billion
5. France with a GDP of about $2.9 billion

Japan’s economy has declined from $5.9 billion in 2011 to its current level of $4.9 billion in 2014. Japan also experienced a decline in 2005 and 2006. Yet despite these recent slowdowns in Japan’s economy Japan’s economy is expected to grow slowly but steadily in the coming years. Japan is still forecasted to remain a top five economy in the near future. Japan also overcame the lost decade which spanned from 1991-2000. During this time period wages actually declined and the country’s GDP actually shrunk. The lost decade was caused by a bubble that was fueled by banks lending money to people who were not able to pay back the loans.

Germany has thrived economically since West Germany and East Germany were reunified. Germany had to invest heavily it the less developed eastern part of the country and to change the command economy that was in place to a free enterprise economy. Despite a brief recession in Eastern Germany after reunification Germany is now one of the largest and strongest economies in the world. Germany, France and the UK are all expected to grow at a steady but slow rate with Germany leading this European group. The United Kingdom is expected to overtake France for fifth place in a couple of years.

The top two economies in the world, the United States and China are both expected to growing in the future. While China is still a long way off from overtaking the United States, many experts believe in the long term China can over take the USA and become the largest and most powerful economy in the world. The other largest and most powerful economies in the world today are Brazil, Italy, India and Russia. India and Brazil are fast growing economies that are expected to overtake Italy in a few years in GDP.

How Can A Ceo Manage A Growing Business?

Success graph

With business growth come great risk!’ This phrase illustrates the fact that growing businesses are likely to encounter more challenges if compared to well established ones. Therefore, a CEO in a growing business is expected to handle matters in a more creative manner. It is important to address basic issues that may either steer the business towards growth or even make it worse. Well, what actually should be done to facilitate easy management of a growing business?

Addressing risks that come with a growing business

For companies to survive in a competitive market, it is unavoidable that they must address risks that can bring down set plans and guidelines.

1. Compliance with the law

Failure to engage in practices that are legally acceptable will definitely attract penalties that may see the fall of the business. For this reason, it is vital that a company should be led with due consideration to this risk because it can lead to termination or even imposition of heavy fines.

2. Operational infrastructure Inefficiency

Having an underdeveloped operational infrastructure will actually minimize chances of the business making moves against the stiff competition of the market. It therefore implies that the management of a growing business should invest in this area to eliminate losses that emanate from working with an outdated system of operation.

3. Quality of both services and Goods

It’s common knowledge that working in a competitive market calls for keen measures to ensure both services and products released to the market are of high quality and can help the business to survive. Producing inefficient goods will eventually induce buyers to shy away from buying any products by the company.

The Impact of hiring new people

Employees often feel threatened when new people are recruited. This has a psychological effect that lowers their performance. Therefore, a CEO is advised to consider the existing workforce and how they can respond to such changes. This means a CEO in a growing company should first win the confidence of existing employees before embracing the move to hire more.

Planning

Planning well and in time is synonymous to business success. For a growing business, planning remains an essential consideration that can help to make the business better. Taking some time to analyze current policies and how they can be updated is important. Note that due to constant changes that are witnessed in the market it is important that a business re-evaluates its policies from time to time.