The global economy has been rocked by the greatest of threats due to the current worldwide recession. A recession is defined as two consecutive quarters wherein the economic growth is on the negative side. This universal global flatlining or decrease in the economic activity in a country can be blamed on how truly global the economy has become. While many countries have always depended on trade economy to sustain their financial stability for hundreds of years, the massive advances in technology in the form of information technology, shipping and air travel have made it easier for goods and services to travel from one corner of the globe to another.
For centuries, countries have been trading goods with one another. With the network of trade routes, countries and regions have thrived through specialization of goods and services. It’s still the same thing nowadays, though Asian powers like China and Japan were stuck with the manufacturing route, churning out cars, food products and other consumer necessities for the rest of the world to buy. Korea and Taiwan have turned their trade economy around by focusing on the electronics side of things.
Business economy goes hand in hand with government economy. It is often impossible to have great economic growth if the administration that oversees the progress of the state isn’t on board with the ideas that could make the environment more suitable for success in the private sector. The various countries in Europe reached their great economic statures due to the policies of their own governments and the conglomerate that is the European Union. Together, national and international policies of trade and business have made the region’s grade look good on the economy report.
Various publications are definitely seen as divining rods and compasses when it comes to economic outlook. For instance, the economic report filed by people like Ben Bernanke—the current head of the Federal Reserve Bank—was received with much anticipation. While he was wrong in the way he predicted how the housing mortgage crisis would pan out (he initially thought that it wasn’t going to be devastating), Americans and businessmen in general still regard his opinion as being of authority.
Magazines can also serve as a great barometer for economic performance. The Wall Street Journal has been a fixture in American and world business for quite some time now, since the publication boasts a great roster of economic analysts for writers. It’s quite amusing and ironic then that the latest collapse in the American economy (and in turn, the global economy) was because of the misdealing of Wall Street executives.
The global economy has become so big and so diverse that it’s so hard to see how everyone would play and how the game would pan out. Most people use the opinions of big business people like Warren Buffet and Donald Trump to see how the big guns would react and play their cards given the situation. Publications and journals can definitely be a good source of input when trying to make business decisions in the fast-changing global business scene.