The 2010s - A lost, instead of blossoming decade for...

The financial crisis in 2008, having resulted from a tremendous bubble in the real estate market as well as highly leveraged banks and governments, has now become a debt crisis and is still an important in political discussions worldwide. Numerous employees have lost their jobs, many companies went bankrupt; nevertheless, there seemed to be one country that stroke off all difficulties and continued growing at an outstanding rate. In 2009 China’s GDP grew by 9% (www.cia.gov), while all other economies faced severe recessions. For many economists, China is an example for superior economic growth despite state-controlled industries and only limited opening of the market. But recently the number of critics has been increasing and there is much†¦show more content†¦In the case of South Korea it did when major corporations began to file bankruptcy and its result was a 34% fall in GNP within one year (www.wikipedia.com). If China will continue its path of subsidizing state-o wned companies and shutting out foreign competition it could soon face equally severe problems. Another argument supporting the theory that a Chinese economic crisis is inevitable is the enormous number of investments China has made in recent years. Currently China’s investment-to-GDP ratio accounts for 46%, which is extraordinarily high, even for Asian standards (www.business.time.com) Often the Chinese government utilized huge amounts of public and private money for economically inefficient projects, such as the high-speed railway linking Shanghai to Suzhou and Nanjing, which the average Shanghai citizen cannot even afford a ticket for. Additional investments benefitted the real estate development, which is the key driving factor of China’s economic growth. Chinese megacities face an enormous shortage of affordable housing for the average citizens; meanwhile numerous high-end apartments for the wealthy upper class are built. An additional problem with China’s enormous amount of investments is its financing. The bank credit in 2011 was estimated to be 185% of the GDP, which accounted for approximately $1,7 trillion that the banks owed the government. Recent requests from local governments for the banks to roll over the loans (www.ft.com) showShow MoreRelatedStarbucks Financial Analysis9358 Words   |  38 PagesDecember of 2010’s 5 184.26 U.S. cents per lb. (International Coffee Organization Prices, 2010). The almost 200% increase in the price of the coffee bean over the last two years has hurt the overall profits of everyone in the coffee industry. The price has been rising, not simply due to the price of coffee itself, but because of the supply chain and the current economic situation around the world. Last year Starbucks had to raise prices globally, but especially in the United States and China, dueRead MoreMiss23262 Words   |  94 PagesThompson−Strickland−Gamble: Crafting and Executing Strategy: Concepts and Cases, 17th Edition I. Concepts and Techniques for Crafting and Executing Strategy 3. Evaluating a Company’s External Environment  © The McGraw−Hill Companies, 2010 CHAPTER 3 Evaluating a Company’s External Environment LEARNING OBJECTIVES 1. To gain command of the basic concepts and analytical tools widely used to diagnose a company’s industry and competitive conditions. 2. To become adept at recognizingRead MoreMarketing and E-commerce Business65852 Words   |  264 PagesResearch, comScore, Gartner Research, and other industry sources. What’s New in E-commerce 2014 E-commerce today is greatly different from e-commerce only five years ago. The iPhone was introduced in 2007. The iPad tablet was first introduced in 2010 and has already gone through several generations! The smartphone and tablet devices have changed e-commerce into a social, local, and mobile experience. The 10th edition spotlights the following themes and content: Headlines †¢ Social, MobileRead MoreGlobalization and It Effects on Cultural Integration: the Case of the Czech Republic.27217 Words   |  109 Pagescapitalism, and technology. The Economist also says the term â€Å"globalization† (2001:155) was probably coined in the 1980s but the idea has been around for a long time and so it not new. That globalization has been accelerating for the past three decades after the anti-trade backslash in the 1920s and 1930s. That goods, ideas and people have moved across the world for millennia. That is, even though with the present modern technologies especially the Internet, there have existed the train and steamship