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Technology and the new Global Economy

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If your company is a participant in the new Global Economy, whether you are the recipient on the supply side of materials or technologies or your revenues are dependent on the Demand side of this new Global Economy, outsourcing is no longer just about labour but about raw materials and entrepreneurship (innovation). Labour today is now a smaller component of the cost of the total inputs for finished goods sold in the EU and the US.   Raw material component costs for final goods traded and sold between the EU and the United States account for more than 70% of all the trade between these two entities.

Considering the impact of new technologies on your business and emerging markets, from small and countries not previously considered as offering outsource inputs (labor, entrepreneurship, land or capital), how many individuals know that Skype was developed through three persons from the University in Estonia?  Has Skype changed the world of communications for small businesses, sourcing and working internationally to leverage their assets and capital?  Indeed, this is the future with new technologies and offshore entrepreneurship accelerating global commerce geometrically.

technology and global economy

So how can you augment your decisions on capital investments?  Consider we are all operating in a global environment, where the inputs which we use to manufacture, where raw materials more than ever, (as compared to other cost components) are changing your future revenue models.  The corporate world must now truly consider comparative advantages on its inputs geographically.  Economic modeling incorporates extrapolation of variables which can clearly go beyond static information obtained through traditional accounting valuations.

When you are in the decision making position, you want as much information as possible when you cross the Rubicon? In a New Global Economy, international businesses need to view supply and demand through input costs, regulatory information, raw material sourcing, international trade, new trade blocks, new continental trade pacts, demographics, agriculture commodity shifts, new transportation corridors, offshore foreign capital investments, assessing legal, political and governmental aspects with solid analytics as an adjunct to your traditional valuation determinants.

 

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