BBA Final SML 501 INTERNATIONAL BUSINESS .pdf

BBA final year

1. The Latest Trends in the
Development of the World
Economy
Submitted By:
Amit Yadav
BBA 5th Semester
K18203

2. What are trends, and how do they assist in
the development of the global economy?
●An economic trend is an indicator that shows how a region or
country is doing financially.
●There are various other economic trends, example interest
rates and inflation.
●Economic trends are important in the growth of the global
economy since they provide the benchmarks for a region or
country and are interrelated.

3. The New Global Economy is Being Shaped
with Three Key Factors
●Uneven Coronavirus (COVID-19) Economic Recovery
●Rising Public debts
●Globalisation Resets

4. Uneven Coronavirus (COVID-19) Economic
Recovery
The world economy is on path to complete its most powerful
post-recession recovery in 80 years in 2021, a year and a half after
the COVID-19 pandemic started.
The United States and China are each expected to contribute
about one quarter of global growth in 2021.
Increased external demand and inflation are expected to boost
growth in increasing market and developing economies to 6% this
year.

5. Rising Public Debts
Public debt can be raised both externally and internally, with
external debt indicating the government's liabilities to foreign
lenders and internal debt indicating the government's liabilities to
domestic lenders.
At low levels of indebtedness, an increase in the proportion of
external public debt to GDP could promote economic growth.
However, at high levels of indebtedness, an increase in this
proportion could hurt economic growth.

6. Globalization Resets
The pandemic has given a shock to the global supply chain. In
2020, global exports dropped by 7.2% in US dollar.
Governments now seek more control over critical supplies like
medicine and medical equipment, while companies aim to make
supply chains more stable.
Samsung is shifting much of its display production from China to
its plant in southern Vietnam,
And Walmart plans to invest heavily in its US local production
over the next few years.

7. Conclusion
Consumer behavior and purchasing power remain heavily dependent
on economic conditions as the global economy changes from
pandemic to recovery in 2021, therefore knowing factors influencing
the economic and financial landscape is more important than ever for
corporate strategy.
Following these trends as they develop beyond the epidemic will assist
businesses in identifying threats and new opportunities, allowing them
to adjust and move forward with a more strategic approach.