Despite far-ranging opinions, most agree that the ongoing integration of national economies into the global market has changed economic aspects of the business environment. Some commentators see trends that indicate a flattening of the world, where others emphasize the entry of billions of people into the global marketplace from China, India, and the former Soviet countries. These developments and trends will powerfully impact one’s job, company, future, and even one’s country. The global economic meltdown impacts the business environment in many ways, including an increase in trade barriers and risk aversion. As the global economy improves, many see this as an inflection point and realize that the need to understand the economic impacts on the global business environment is more important than ever. Studies predict a shift from the rich and powerful countries of the twentieth century to many emerging economies in greater Asia. This shift can be seen as we track the global economic output [see Fig 4.1]. All of these changes represent opportunities and threats for global players in the new economy.

Questions

1. Transformations such as the comeback of the emerging economies happen rarely. This amplifies their impact on our lives. Estimate how your life has changed, or will likely change, given the comeback to date and, significantly, its ongoing successes.

2. Now, flip the analysis and consider what might happen if the ambitions of the emerging economies prove far too ambitious and rather than come back, they collapse. If so, what might that mean to your life?