This is a International management qustion: Read this : The developments undersc

Question

This is a International management qustion:

Read this : The developments underscore three important trends for the global economy in 2016: the effect on commerce of terror attacks and threats; slower growth in emerging markets in Asia and elsewhere; and the influence of volatile currency markets on sales.

Question: What affect might these trends have on national or domestic businesses and consumers?

Question: What is the role of the The International Monetary Fund , and how can the IMF influence/impact an anticipated stagnated global economy? (The Article references the IMF’s concern for “further stifle investments, smother wage growth, curb employment and push government debt to unsustainable levels in some countries.”) - Consider how this might impact an international manager's role and/or strategy of his/her company in working in other countries.  

Explanation / Answer

1) The effects of terrorists attacks on commerce is very high in Europe, Its proximity to war Zones is another major concern, The threat is just becoming higher and can potentially damage european economy, The threat to US, Japan and China due to terror is very low .

Slower growth in economies in emerging markets is a major challenge today, China and India together were driving demand for all goods on the planet, But this cool down of the economy has resulted in very low sales volume for commodity companies and commdity exporting nations.

Influence of volatile currencies on the economy is also very high, Some currencies in past have fluctuated more than 50% this in unacceptable in global commerce. Some contracts will just go unenforced due to this change

2) IMF has clearly stated that the future of the global economy at this point is very weak, The international manager must always try to buy any goods or services in spot buying rather than contract buying. This will help him get current prices to avoid future currency volatality. The no.1 problem for manager would be currency volatality. The other problem they would face is weak demand which will result in drop of sales volume. The manager must make sure they have enough funds to weather this crisis

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