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International Market Watch/Business Magazine
Nov 16, 2008, 6:15:03 AM11/16/08
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Oil price may help America!
www.cmaprbranding.com
Giving a loan against property was not a problem and banks have invested in right way. But, the steady loss of employment from the American soil made people fail to repay the loan.
The first and the foremost problem of the American economy’s crisis is that American products don’t have secondary and tertiary market due to loss of low end jobs and wages.
The products, either a car or a mobile phone are dumped before being utilized its full/optimum Value. i.e.: the optimum value of raw material, labor R&D and distribution.
While the countries like India have their tertiary market is strong as they have majority population live in villages. These village consumers are becoming rich and they can afford white goods and cars. They simply consume the second hand /used products. Even for rot fruits, the slum and poor village markets are plenty to be sold.
Rich Indians give away his mobile phones to servants and drivers as a gift and sometimes free of cost.
Many nations due to its growth, exports of raw materials have been reduced, which lead the US firms starving for cheap raw material. Instead they started finding market for their finished products that again caused stiff international competition for the US firms. From toys to automobiles China found market even in the third world countries’ foot path. While small sector had developed Indian software found market in MNCs. Many large firms started stopped buying products made in the US and the nations which were hectic buyers of American arms reduced purchases instead started finding Arms market in France and Russia. Once upon a time Arms market was one of the major incomes for the US firms which they have lost to Europe.
Libraries lost their importance when search engine optimization as a concept took over the information line of content management.
Un-necessary and irrational trade unionism in Hollywood and location price and high cost in Studios forced film producers find locations in Europe again cost a lot.
Pirating cinema and music albums made songs and cinema cheaper for consumers ands compared to the CDs and Cinemania theatres .Many TV channels started improving their content and programs and the number of free channels became affordable for the public across the world eroded the American media’s revenue.
Still, Americans’ high salary and high expenditure pursued intact.
Loss of jobs due to out sourcing because of competition for limited market and over production expecting better sales lead to under-utilization of products, discount sales, loans and more consumer friendly features reduced margin in sales, that again forced companies out source or relocate to survive.
Advantage of America
1) Oil price hike made shipping and air cargo costly, what the producers earn started losing in transportation.
2) Chin’s market and Industries are focused on manufacturing and the wages in China is increasing.
3) Chinese products add less value as their R&D is not as good as American R&D.
4) India still can be threat to the US firms as they dominate in Science and tech. related export which can be transported through satellite and cables.
Forthcoming problems:
Many companies will be caught between devil and deep sea., as the new government , if imposed tax on out sourcing the companies won’t find profit in their business and at present 60% works are out sourced and 40% jobs are still in the US.
In case these firms are forced to close down both the out sourced countries and American job market will be equally losers. This may lead to more unemployment in the US.
Hatred on America
Islamic religion is one of the largest and their consumption capacity is huge. They refuse to buy American products in any form today and in future.
The security expenditure in America and American assets abroad increased duo to terrorism. Even friendly nations started avoiding America openly to get rid of terrorist’s wrath. For example Indo-Us nuclear deal was delayed to please Muslim community in India.
Israel started defying America and Russia and Iran did the same.
By and large the road in front of the new US administration won’t be a cake walk, at least for the next 4 years.
Giving a loan against property was not a problem and banks have invested in right way. But, the steady loss of employment from the American soil made people fail to repay the loan.
The first and the foremost problem of the American economy’s crisis is that American products don’t have secondary and tertiary market due to loss of low end jobs and wages.
The products, either a car or a mobile phone are dumped before being utilized its full/optimum Value. i.e.: the optimum value of raw material, labor R&D and distribution.
While the countries like India have their tertiary market is strong as they have majority population live in villages. These village consumers are becoming rich and they can afford white goods and cars. They simply consume the second hand /used products. Even for rot fruits, the slum and poor village markets are plenty to be sold.
Rich Indians give away his mobile phones to servants and drivers as a gift and sometimes free of cost.
Many nations due to its growth, exports of raw materials have been reduced, which lead the US firms starving for cheap raw material. Instead they started finding market for their finished products that again caused stiff international competition for the US firms. From toys to automobiles China found market even in the third world countries’ foot path. While small sector had developed Indian software found market in MNCs. Many large firms started stopped buying products made in the US and the nations which were hectic buyers of American arms reduced purchases instead started finding Arms market in France and Russia. Once upon a time Arms market was one of the major incomes for the US firms which they have lost to Europe.
Libraries lost their importance when search engine optimization as a concept took over the information line of content management.
Un-necessary and irrational trade unionism in Hollywood and location price and high cost in Studios forced film producers find locations in Europe again cost a lot.
Pirating cinema and music albums made songs and cinema cheaper for consumers ands compared to the CDs and Cinemania theatres .Many TV channels started improving their content and programs and the number of free channels became affordable for the public across the world eroded the American media’s revenue.
Still, Americans’ high salary and high expenditure pursued intact.
Loss of jobs due to out sourcing because of competition for limited market and over production expecting better sales lead to under-utilization of products, discount sales, loans and more consumer friendly features reduced margin in sales, that again forced companies out source or relocate to survive.
Advantage of America
1) Oil price hike made shipping and air cargo costly, what the producers earn started losing in transportation.
2) Chin’s market and Industries are focused on manufacturing and the wages in China is increasing.
3) Chinese products add less value as their R&D is not as good as American R&D.
4) India still can be threat to the US firms as they dominate in Science and tech. related export which can be transported through satellite and cables.
Forthcoming problems:
Many companies will be caught between devil and deep sea., as the new government , if imposed tax on out sourcing the companies won’t find profit in their business and at present 60% works are out sourced and 40% jobs are still in the US.
In case these firms are forced to close down both the out sourced countries and American job market will be equally losers. This may lead to more unemployment in the US.
Hatred on America
Islamic religion is one of the largest and their consumption capacity is huge. They refuse to buy American products in any form today and in future.
The security expenditure in America and American assets abroad increased duo to terrorism. Even friendly nations started avoiding America openly to get rid of terrorist’s wrath. For example Indo-Us nuclear deal was delayed to please Muslim community in India.
Israel started defying America and Russia and Iran did the same.
By and large the road in front of the new US administration won’t be a cake walk, at least for the next 4 years.
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Posted By International Market Watch/Business Magazine to International Market Watch/Business Magazine( A venture of Cm_a Capital) at 11/16/2008 03:11:00 AM
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