Economy and Business Info

Posts Tagged ‘economic’

The study was conducted by Andrew Aldine, director of financial stability the Bank of England, along with ecologist at the University of Oxford, Robert May.
In addition, Aldine believes that if you look at the dynamic in nature, as given in the transmission of infectious disease or a forest fire, you can make comparisons that help to improve the economic models used to explain, for example, the contagion effect of the collapse of U.S. investment bank Lehman Brothers.
“In October 2008, financial systems and the global economy fell off a cliff,” Aldine told the BBC.

“The conventional economic models used to explain this. However, these cliffs and tipping points are common in natural systems, “added the researcher.
Two lessons
there are two main lessons that the financial world should learn from nature, the study said.

First, is the need to promote diversity in the financial system, and the loss of biological diversity limits the amount of environmental services offered by an ecosystem and endangers the existence of habitat as a whole, the lack of variety in the financial sector increases systemic risk?

“The fragility creates homogeneity,” say the authors. “A time to rebuild and keep the financial system, the regulatory community should give much greater prominence to the objective of encouraging systemic diversity.”

The second lesson from Mother Nature is that the financial system becomes more resistant form by adopting a”modular” to prevent component failure endangers the rest.

The Chinese vice Premier Li Keying, likely next head of government of China could gain influence in Germany in the short term. During a visit to Berlin, Li agreed with Merkel business some 8,700 million euros.

When Li Keying, Vice Premier of the People’s Republic of China, said his country was interested in opening up further towards the German business, was not exaggerating: the Chinese ambassador in Berlin, Wu Hong, said Friday January 7, 2011 that during Li’s visit to the capital germane, Germany and China signed commercial agreements for joint investments with a total value of 8,700 million euros.

The largest projects are the program of the Volkswagen for the supply of materials; the cost revolves around the 2,600 million euros, and a draft Daimler-Benz Company valued at 2,200 million euros. Other contracts include the modernization of a nuclear power plant in China and the sale of three ships.

A first approach

After meeting Friday with the Federal President of Germany, Christian Wolff, and the Chinese vice-premier attended his meeting with Chancellor Angela Merkel, who described the meeting with Li as “a very thorough and friendly conversation on Sino-German, from economic cooperation to human rights.”

Another topic discussed by Merkel and Li was the first exchange of the impending state between Germany and China. Government representative Germany, Steffen Seibert, said the meeting with Li is a first approach. Analysts give importance to this meeting because the politician of 55 years is seen as the future head of government of China.

I decided to study business because I’m interested in the future to create my own business, at least, that was my idea at starting college, but once you learn new subjects and analyze new information, you realize that there outside there is a very competitive market and not only in creating new businesses but also in the job search is that globalization has not only which markets and more unified communications, but has also created new situations like the present crisis, which has put us question our current economic system and find a number of new options or rules with which to play on it.

Globalization and unites distinct entities for the practice of free trade, also brings the creation of new protectionist barriers to those countries that know how to manage and negotiate resources, this brings us back to my country, Mexico, and my idea of starting a new business there. Today Mexico has a large number of SMEs, until recently I read in a local paper that represented 98% of firms in the country, encouraging numbers to any entrepreneur interested in launching the venture, but later I learned one of my classes that SMEs do not manage to stay here, they live on average two years.

This lot has to do with the support that gives the owners of these companies and the process involved the construction of an SME, as they sometimes are very limited options that the entrepreneur has to carry out the company, find a credit becomes almost impossible as banks ask too many requirements with which most of these Mexican SMEs do not, among these is the age of the company, which must be less than two years, a situation that is difficult with the outlook of the average life of an SME.

And not everything has to do with the long opening red tape or lack of capital to maintain the business because our cultural behavior often also becomes a factor for the business or idea to undertake or continue work, because 99.8% of those companies mentioned, few have good documentation of its processes, as many do not have information technology needed to compete with other companies is that those that can grow and innovate not strive to improve its processes is resistant to change.

Now this brings us back to the neglect which left Mexico to SMEs, and did little to boost this sector, devoting most resources to the large corporate credits did not help to increase the number, does not invest because for research on development of science and technology to incorporate new tools accessible in these small companies, now in the moment when the crisis occurs Mexico react and realize how important these SMEs to develop the country, not only because they generate resources, but also jobs, which in turn would reduce the social gap that exists in the country.