Friday, October 14, 2011

Wealth and Prosperity secured by Positive Economic Management


Based on investment sizes and market dimensions, a corporation and individual investor may choose to develop two investment and business platforms – (a) domestic market opportunities and (b) overseas market opportunities – in which their capitals are diversified and allocated at modes of risk-management and opportunity thresholds.

First of all, we look at a certain group of market and economic indicators that service both platforms – domestic and overseas. We need to evaluate opportunities and weigh risks before designing a package or baskets of capitals and business management tools to guarantee a high return and reduce risks. Our objective goals are set to our fundamental investment and management strategies.

In recent months, more multinational corporations have chosen M&A solutions to expand over overseas markets or consolidate their business abundant functions with other partners to minimize fix costs and maximize earnings. Even they can shrink workforce to smaller size for both efficiency and productivity. The short the communication channel operates the faster and more productivity the output is achieved.
Not much from government new policies can make a turnaround plan like consumers or exporters expect. Such theories of macroeconomics and micro-economics can converge to one point of reducing a public debt, increasing available jobs, providing more free services to a market, and not raising tax rates on the rich is an impossible mission in a very short time. One administration cannot compromise because the parliament or legislature is made of many parties who have different viewpoints and ideologies. Budget negotiation, tax reform policies, consumer benefit bills, international trade agreements, defense budget are all big-ticket bills for legislators to consume over night. We can force them to pass such bills because sustainable and viable name-tags for the government's creditability and transparency.

We look at unemployment rate to understand whether an economy is on a good shape. We measure a consumer price index to predict a deviation of economic growth and expansion based on spending patterns and investment moods. We also calculate a gap of export and import accounts to double-check how competitive our economy is in overseas markets. We also take in more concerns of the government's standing bond values or public debts to raise our voice over spending cuts and tax hikes. A currency exchange rate also desperate exporters and importers for their earnings and investment goals. Tax exemption or tax break for overseas investment portfolios may persuade more domestic investors to move their funds from domestic portfolios to overseas portfolios. Such moves make our national GDP look smaller, but actually many investors are still rich or get a big profit.

A corporation may make a decision on how to restructure an organization for sales revenues and market position. One corporation loses its power of innovation and sales revenues, it usually un-plugs one or more business lines to re-focus on new lucrative business segments. On the other hand, a corporation earns more profits and has a huge stock of cash; it can acquire new brands to reinforce its market position for a future stock value. A corporation can increase production capability when it anticipates a new spending mood from consumers or consumers’ spending confidence. An overseas market can turn into a goldmine if more positive economic indexes exist over there.

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