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Strategies & Market Trends : New US Economy Policy
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From: Arthur Tang6/23/2007 6:53:00 AM
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What does globalization of economy mean?

It is utilizing the monetary policy of central banks around the world.

You build an IT department with supply chain software with quality control traceability, then add object technology software SAP, to guide instantaneous profit and loss statement adjustment. This will get you the maximum profit incentives.

Then you vertically integrate your product lines and services. And be ready for expansion into other countries. You borrow money from host country banks, which is supported by host country central bank policy of overnight discount loans(multiples of bank deposits). You deposit for the required bank reserve for the loan. You use the borrowed money to build production equipment to be exported to your foreign subsidiary.

This is globalization in its best situation. Once established, there will be restructuring(personnel investment) to fine tune profits and currency exchange risks. Profits should be repatriated to be used for expansion(bank deposits) into other countries for corresponding business loans.
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