Change will not come if we wait for some other person or some other time.

We are the ones we have been

waiting for. We are the change that we seek Barack Obama

Love Me or Hate Me but you cannot ignore me! America ($)

Vol. III, No. 46, 27 November 2015

Its rightly said that history repeats itself and citation of this statement is that again rich are becoming richer and
poor are becoming poorer. In a scenario where all the emerging economies should have groomed more, are
wrapped by the powerful economies.
So a major question arises Is the world really heading towards third global financial crisis? The international
monetary fund believed that global expansion this year would be the slowest because of the Great Recession. The
world faced a triad of challenges that meant guiding principle missteps could wipe a gigantic 3% off global growth.
Corporate borrowers in rising markets got together when the US raised interest rates. But while it is clear that
Chinas double-digit escalation rates have come to end, how stumpy can growth go? Also who will suffer the most?
A stronger dollar has grabbed money out of rising economies back into the loaded world, roughing the value of
budding market currencies. However on the flipside, people who say glass is half full beg to differ but both agree that
inferior growth is on its way. US will start increasing rates in the coming future and nothing would remain the same
as it was a few years back. Now, Colombia is facing a major oil crisis due to which the country has cut down its
budgets. Theyve planned to overcome this by increasing their interest rates from 2% to 4%. If it succeeds itll be well
and good but if it fails, itll be added to the list of junk by standard and poor as they had added Brazil as they also
didnt want to take any outside help and failed miserably with a negative popularity of the government and all the
investments were lost by them. The IMF supposes the economy to contract by 3% this year and 1% in 2016 as the
economy crumples under the strain of lessening commodity prices, sky-scraping inflation and unemployment.

Further, Brazil lessens to junk as BRICs elevation collapsed and as a result they had to adapt new terms and policies
for trade which is now totally different i.e. to new change new reality, if we see commodity, it has been changed,
have only two options of course either to accept it or to reject and to go with the first option then go for tailoring
your products, and its various prices with its capital. Brazil actually denied all the facts, realities and the outcomes
was expected as not much spending, credits, public subsidies, not even enough stimulation by the government itself
and the only solution left out that just to push. Even though it benefited earlier with these entire but now Brazil has
to treaty with bust. So other countries should seek and go for the adaptation.

If we think about the global growth-holy grail its one of the greatest dilemma a big question for emerging economies
as their growth has been stuck, so where the growth will be coming? Emerging economies will grow and if we see in
context of low productivity, which came from US market, they are not going to boom now. Even this is such a wide
topic that it is going to discuss over the coming five years and this is directly going to affect the global marketers and
theyll have to take their every step very carefully.

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Written by: - Ms. Laveena Mehta

Faculty of Accounting & Operations Research, Chitkara Business School

www.chitkara.edu.in

Disclaimer: This Newsletter is prepared to enhance awareness and for information only. The
information is taken from sources believed to be reliable but is not guaranteed by Chitkara
Business School as to its accuracy. Chitkara Business School will not be responsible for any
interpretations, opinions generated or decisions taken by readers.