Beyond the short term fix
A brave new world
In a recent Tomorrow’s Challenges article, The current financial crisis and beyond, two longer term effects of the current financial crisis were highlighted. The first is that credit will continue to be tight and more expensive and the second is that government regulation will only grow and be enforced more stringently. As nation states struggle to put their economic houses in order, there are other worrying trends for the global enterprise. One is protectionism. In a move to conserve foreign exchange and support domestic job creation, governments are erecting thinly disguised barriers that will hamper free trade. There are also protectionist moves that restrict capital flows and the free movement of labor.
[This article has been reproduced with permission from IMD, a leading business school based in Switzerland. http://www.imd.org]