WEBVTT

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The world is not flat it's curved, bumpy

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and you can't see what's ahead.

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Even as new markets expand, competition
is increasing and organizations

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must adapt to many new challenges.

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What will the global economy look like?

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Two-thirds of the executives we polled
think another financial crisis is coming

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because of the EU

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and half think another recession 
is on the way.

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Half think China will slow in 5 years and
one-third think India and Brazil

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could also slow.

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At Ernst & Young we've identified four
challenges that businesses must address

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to succeed in these conditions.

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Labor costs in China rise 
on average by 20% per year,

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US unemployment rate is e8%

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So should you outsource
or near source?

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Organizations the take the opportunity
to reinvent their business models may have

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an advantage in rapid growth markets.

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Being in the right market at the right
time means nothing without the right people.

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The Eurozone unemployment rate is 10%
and in 2050 employment gap

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will be 15%

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India will face a talent gap of 
5 million workers in the coming year.

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Where do you find the talent?

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Organizations will need to position
themselves as employers of choice

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even in their regions

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to attract the best talent.

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Organizations with a one size fits all
approached are quickly finding

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one size fits none. 
The key risks in rapid growth markets

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are not necessarily the same as those in
developed markets.

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Success may involve regional integration
and new approaches to near sourcing

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and outsourcing.

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Proactive policy towards local engagement
can mitigate rising protectionism.

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How are companies prepared for 
increasing protectionism?

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87% believe there's an increase in
the overall level of protectionism

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but only 50% monitor the
levels of protectionism

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and only 15% say they are
prepared for such an increase.

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Local relationships with authorities can
reduce protectionism or at least alert you

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when it is imminent.

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As globalization continues in such
conditions, organizations

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must take a fresh look at all 
aspects of their business:

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everything from partners and employees

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to taxation and tariffs

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to markets and manufacturing

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even their very business model.

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For the full report go to 
http://ey.com/globalization