Difference between revisions of "Scenario 4 - Empire with Walls"
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==2010 - 2015== | ==2010 - 2015== | ||
[[File:Enviromental pollution.jpg|200px|right]] | [[File:Enviromental pollution.jpg|200px|right]] | ||
The world is still battling to recover from the global recession. Most western economies are battling several financial challenges that are occurring simultaneously; deficits, trade imbalances, rising unemployment, company fold-ups and bail outs. At the same time emerging economies like Brazil, China and India are expanding with previous year growth for China at almost 10%. With the suspected likelihood of a second global recession, developed countries establish new regulations and governments intervene in society to provide bailouts for companies, implement tighter financial regulations to prevent another recession and take greater roles in some private sector areas i.e. health care<br> | The world is still battling to recover from the global recession. Most western economies are battling several financial challenges that are occurring simultaneously; deficits, trade imbalances, rising unemployment, company fold-ups and bail outs. At the same time emerging economies like Brazil, China and India are expanding with previous year growth for China at almost 10%. With the suspected likelihood of a second global recession, developed countries establish new regulations and governments intervene in society to provide bailouts for companies, implement tighter financial regulations to prevent another recession and take greater roles in some private sector areas i.e. health care<br> | ||
[[File:risk.jpg|200px|left]] | |||
There is a contrasting view to the approach to innovation; the lack of financial assets by western companies means innovation is temporarily taken from a cost effective approach i.e. several research and development centres are moved to emerging economies where wages and set-up costs are cheaper (Oracle and GE in India, Microsoft and Xerox in China). The emerging companies who have the financial wherewithal begin to invest in innovation projects that concentrate not only on price cutting but on strip-down re-modelling processes that produce goods and services that meet the needs of these markets. The western companies rely on government to raise funds to finance innovation projects as banks are still not loan friendly, and consumers have become spendthrift, with the gradual evolution of society to a saving culture. <br> | There is a contrasting view to the approach to innovation; the lack of financial assets by western companies means innovation is temporarily taken from a cost effective approach i.e. several research and development centres are moved to emerging economies where wages and set-up costs are cheaper (Oracle and GE in India, Microsoft and Xerox in China). The emerging companies who have the financial wherewithal begin to invest in innovation projects that concentrate not only on price cutting but on strip-down re-modelling processes that produce goods and services that meet the needs of these markets. The western companies rely on government to raise funds to finance innovation projects as banks are still not loan friendly, and consumers have become spendthrift, with the gradual evolution of society to a saving culture. <br> | ||