The world resources shift from one place to another. And we are not just talking about natural resources of a specific land or territory but any type of resources that we now use. Industries all over the world can relate to how the rise and fall of the global market affected their businesses. The sun is not always shining and when it does not, it can mean a certain doom to someone. Despite the rapid rise in the world’s population, there are markets that crash because the supply and demand have shifted or that someone else has taken over their target market.
It is the plausible explanation why the Australian auto manufacturing industry just bid everyone goodbye. For a long time, Australians had been making their own cars but sadly, it has come to an end and countless employees suddenly found themselves without a job to bring in the bacon. Even foreign car brands have been shutting down production over recent years and the people are partly blaming the government for the death of the car manufacturing industry down under. The factors highlighted were high production costs, the high Australian dollar, and the continuously diminishing local market all contributed to this problem. The particular car brand, Holden, is synonymous to Australia. But foreign car makers are unbeatable and the Aussie domestic makers are nowhere near their scale.
There has been a car industry
Nothing is constant in this world. And America just recently witnessed one of the most surprising events took place in the country’s political arena. President Trump won the American presidency and snatched Hillary Clinton’s dream of becoming the first U.S. lady president. It made the news all over the globe and people were wondering what his leadership would mean to the U.S. and to the world at large.
Now that he has finally assumed office, both local and big businesses are curious as to what will happen next to their businesses as his plan for the next four years continues to unfold (and businessmen most likely cringe in anticipation).
It’s still early in the Trump presidency, but not too early for supply chain professionals to begin planning for what could be major challenges in global markets and trade agreements, especially if President Donald Trump follows through on border tariffs, the dismantling of existing trade agreements, and other “America First” protectionism ideas he has shared as part of his Twitter-storm rhetoric.
One discussion topic among procurement and supply chain professionals is the resurrection of the age-old “near-shore/on-shore” debate, and whether (and when and where) supply chain professionals should either locate their own assets or build relationships with suppliers.
An early viewpoint from the January meeting of political and business movers and shakers in Davos is that thinking too globally might not be the wisest
Nothing had been constant in the economy for years. It fluctuates from time to time in response to various factors. The U.S. economy is doing much better now after the most recent recession and business is starting to pick up. As a result, the unemployment rate has reduced and the people have more spending power.
However, you can also see many shops closing down because fewer people frequents the mall anymore when they can do their shopping online. Such an irony, right? Employees will still lose their jobs and crime rates may again increase – as if law and order are not already a major headache right now.
So, we can’t say yet that the economy is in great shape again. Moreover, the controversial policies of President Trump are sure to affect the U.S. economy in a major way.
The budget, the Liberal government’s second since the 2015 election, will land as Ottawa and corporate Canada scramble to assess the risks of possible and unpredictable policy actions from the country’s top trading partner.
There are fears of negative economic fallout for Canada from the decisions of the Trump administration and it’s unclear whether Morneau’s budget will account for the unknowns.
Trump calling cards like a border tax, protectionist policies, corporate and personal tax cuts and a renegotiated North American Free Trade Agreement all pose an economic danger north of the border.