Can someone help provide a feedback for this discussion post below. it is a glob
ID: 422912 • Letter: C
Question
Can someone help provide a feedback for this discussion post below. it is a global business class
Based on the information provided in the latest McKinsey Global Survey, the executives of emerging markets have generally expressed less optimism about their local economies as compared to those in developed markets, with the exception of India, which remains bullish. However, there are variations in the developed markets, such as optimism from executives in Asia and North America. Despite this, many executives still expect global and domestic economic growth. Overall, executives' reduced optimism have correlated with their fears of risks that can impact domestic and global growth, as a higher percentage of respondents in 2015 as compared to 2014 have indicated geopolitical instability, economic volatility, exchange rate volatility and sovereign-debt defaults as risks that threaten domestic and global growth. Fears about issues like additional countries exiting the EU or countries defaulting
At the moment, I do not currently work for a company. However, as a potential entrepreneur, I would look to fairly safer opportunities and look to avoid regions which may be negatively impacted from the variety of risks that have been indicated by a large number of survey respondents . In the short term, many regions display similar results for their outlook in the global economy, with about a third of respondents split between a better economic conditions, same economic conditions and worse economic conditions. However, the Eurozone, India and countries considered to be developing markets, seem to be safer opportunities. 50% of the Eurozone respondents have a positive outlook for global economy over the short term, and only 9% responded with a worse outlook. Similarly, India and Developing Markets included more than 80% of respondents expecting better or the same conditions.
Also, based on the change in the expectations of domestic economies over the previous quarter, both developing Markets and Eurozone saw an increase in the percent of respondents that expect better conditions. With respect to India, the change was a decrease in outlook, as 13% changed their outlook from a more optimistic outlook. Taking into account the information from executives' expectations on the global economy, their domestic economies and the risks they identified as threats to economic growth, and using this information to provide insight into which markets may provide the best economic opportunity, I would look to the Eurozone and the countries included in Developing Markets. Although India had a positive outlook for the global economy, I would likely avoid the region given that their outlook for their domestic economy has decreased significantly, which might indicate some major risks to domestic economic growth that they are aware of.
Explanation / Answer
Inventors are more bullish on the global economy, they are optimistic about the global economic outlook. On the other hand investors view the political crisis and geopolitical tensions in some emerging markets sot they are prioritizing governance factors when choosing where to invest such as regulatory transparency. Investors are most positive about the economic outlook for the Asia Pacific and Europe and Eurasia regions. There is divergence in the outlook for regional economies.
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