Last year was bad – very, very bad. The key things which made 2016 a bad year
for business are listed below:
1. Brexit (Nobody can deny it.)
3. Chinese slowdown, etc.
These things disturbed the ecosystem of business by increasing the value of the pound, grounding the airlines, and blocking the seaports respectively.
And now, in 2017, the most important and major cause of the business slowdown will be the expected rift between Mr. Donald Trump and Chinese president over Taiwan, alleged currency manipulation or trade tariffs.
In addition to that. Mr. Donald Trump’s – the president-elect, unique way of dealing things has made the market very uncertain. If Mr. Trump bans the foreign workers, it will affect the free trade agreements adversely.
On the other hand, the long-term effects of Brexit are still unclear. Many financial analysts are not able to predict what the future holds although the rise of the pound value has already started to put a negative impact on the business. The worst part is the terror attacks throughout the Europe, which made business travels more dangerous. It has been observed that they target mostly those places like airports and hotels, which usually consists of business travelers, and districts popular with expatriates. These ongoing scenarios will majorly affect the International trade scenario which will eventually slow the growth of Business worldwide.
Also, the variations in oil prices are the biggest concern. Some airlines have already started to increasing their fares to nullify the effect of increased fuel prices. On the brighter side companies like SolarCity who is focusing on alternative sources of harnessing energy may bring some revolutionizing changes in the coming future which may help everyone to have less dependence on oil, bringing an end to the ultimate powers of OPEC.
Although our Make in India drive looks good but that is also not immune from the international disastrous events. And if the things continued the same way it’s happening right now, we may observe failure or a lag in commitments done by various MNCs regarding make in India.
– “It’s the ‘most volatile’ year for Political Rish since WWII, Eurasia group says” – Bloomberg
– “(Former U.S. Treasury Secretary) Summers says markets underestimating risks of Trump presidency” – Bloomberg
– “Brexit could cost Britain $42 Billion of Direct Funding from EU” – Bloomberg
And, quite surprisingly,
– “Pound drop boosts U.K. Manufacturing, pushes up factories’ costs” – Bloomberg