Showing posts with label American MNC. Show all posts
Showing posts with label American MNC. Show all posts

Wednesday, October 17, 2012

Man proposes, God refuses...

Protectionist policies will save your companies, but only for so long as they don't beg for euthanasia!

The only 'right' turn in international trade today is, the 'American turn'; all others will fetch you a 'wrong-turn' ticket! Allow us to sound a tad out of proverbial tune here, but isn't that the truth? When the US government wanted the US economy to move from better to best, it allowed everything from offshoring to H1B visas, and God allowed it. Then, when it was time to save the world (and America of course), it is putting in place all sorts of protective policies, one of which was the American Recovery and Reinvestment Act of 2009 on February 17, 2009, a massive $787 billion stimulus package; and God is allowing it! So how is this a vile definition of 'protectionism'? Section 1110 of the Act reads: “None of the funds appropriated or otherwise made available by this act may be used for a project... unless all of the iron and steel used in the project is produced in the United States”. Clearly, this "buy American" clause for worse, will firstly erode the competitive edge of the so-called American MNCs, and secondly, it will only encourage more such 'protectionist policies' from other nations in retaliation! There would be tall import trade barriers set by even emerging economies. Finally, lack of growth in local consumption, would force the US government to 'liberalise' its policies. But, the emerging economies would maintain the roadblocks; for isn't 'ego' a crucial 'international trade' trait?

Yes, our predictions sound far too pessimistic, but allow us to justify. The third largest economy in the world – China, has already taken the 'American turn'! And this seems justified, for why should China behave like a Third World nation and stand challenged by US hegemony? So there it is. On one hand, ensuring that an American MNC like Coca-Cola stands no chance in growing big on Chinese lands and on the other voicing out loud the purpose behind acquiring a First World MNC – Rio Tinto.
 

Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
Posted by at
Labels: , , , , , , , , , ,

Wednesday, October 10, 2012

You’d do ‘Neutron’ Jack proud!

Jobs cuts, during recession become a ‘necessary’ evil; and this is the only quick solution for companies...

The thrice-marrried, former GE CEO, Jack Welch could never find another reason to be happier. Excuse us here; we’re not talking about Jack becoming a father again (he has already celebrated 73 years glorious years on the planet for Chrissake!); but about others preaching the layoff culture at GE, many years after he quit GE (strict reference to his act of firing about 120,000 ‘bottom 10%’ employees). And it is his two ‘action-packed’ decades long terrific tenure at GE that on one hand deserves all the credit for a tub-thumping appreciation of 4,100% in GE’s market value (making it the most valuable company by 2001!) and on the other, seems to have created a model of leadership that fellow-American MNCs and those from the Eurozone & First World have begun to emulate. Yes, we’re talking about the lay-off announcements that were made in the past week; there was GM confirming 2,000 cuts, Caterpillar – 12,000; Pfizer – 19,500; Sprint-Nextel – 8,000; Intel– 6,000; Philips – 6,000; Corus – 5,500; Corning Inc. – 3,500; ING – 7,000; Texas Instruments – 3,500; Home Depot – 7,000; Microsoft – 5,500; Hitachi – 27,000; Ford – 1,200, UAL – 1,000… and the list continues.

Reacting to these announcements, an emotional US President, Barack Obama said, “These are not just numbers on a page... these are working men & women whose families have been disrupted and whose dreams have been put on hold…” Indeed, Obama puts his emotions in good light here, but are not these actions mere rampages sans rationale?

We need to question the very ‘fundamental necessity’ of job-cuts, especially with unemployment rates having grown meteorically from 4.7% in December 2007 to 7.2% in December (a 15-year high!) as per a January 2009 report by IHS Global Insight The report further suggests how during just the last four months, 2 million jobs were slashed – representing 80% of total cut during the current downturn. Worst, the report proves how, we are “just halfway to the total job loss anticipated during this cycle,” thereby forecasting the unemployment rate to rise above 9% by early-2010 (highest in 30 years). Surely, we are on the verge of making some ‘bitterly forgettable’ history!


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
Posted by at
Labels: , , , , , , , , , , , , ,
Subscribe to: Posts (Atom)