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Stephen Archer is a speaker with great charisma. By using illustrations and personal experiences and not being afraid to share his own point of view of the current situation and who is to blame for it, he engages the whole audience, at the same time helping us all to understand the credit crunch a little better.

— Warwick Business School

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Globalisation – changing hugely and in a number of ways

In the industrial context we have until recently considered globalisation to mean to reach of businesses and finance from the mature economies into the developing countries – not always to the latter’s principle advantage..

The recovery from the global recession of 2008 – 2010 is revealing the developing countries to be growing faster, growing in influence and power. In particular, the emergence of sovereign wealth funds in the past decade has now shown how important they are. Not only does China own 25% of the US debt but it recently bought a large part of the Spanish debt. China, with a dollar war chest of over $2,800 Billion is able to leverage considerable foreign investment as well as finance its own economy.

The recent $10B energy deal with India showed that the emerging economies can compete at the highest commercial and technological level and in so doing undercut the US by 50%. If America thinks it can trade out of its debt it needs to think very hard.

Business has become more far reaching but human resources are also far more mobile – either physically or virtually thanks to technology. If surgeons can operate on patients 3000 miles apart then managing almost any aspect of business is possible. That said that there are now 200 million people working around the world who are migrants. It is truly a global village. Melbourne is the world’s third largest Greek-speaking city. In New York, San Diego and Miami there are more people who speak Spanish as their first language than speak English. The overseas earnings of these migrants help their countries of origin. The Philippines is strengthened by more than $7 billion in annual returns from overseas Filipinos.

Culture and international brands and styles are now globalised by an increasingly homogenous youth.

So at the macro level the globalisation effect is very fast moving from west to east. The political as well as mercantile effect of this will be profound – the signs are already there.

So be prepared for the new paradigm where the west’s dominance of the world from the last 150 years gives way to a new order.


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