¶ … Invest in the global consumer" deals with the subject of expanding market for international goods and how companies must understand the new dynamics of the increased purchasing power of consumers from China and India. This article was published in the Forbes in July, 2009. The article is exceptional in its research considering how little sophisticated research could be done for a business magazine. The author has cited examples from financial news and also given current statistics to support his argument that the new global consumer is more interested in hi-tech products than anything else and the reason one must invest in hi-tech products in the U.S. is because there is little competition offered by China in this field.
The idea of a global consumer is interesting but not very new. We have been learning about the new consumer since the growth of the Internet and the ever-increasing influence of globalization. What is however new is the fact that a very large percentage of these consumers are coming from two countries China and India which are touted to be the next major economic powers ready to take over countries like Japan and Germany. What makes this article interesting is the wisdom and foresight of the author that can help an investor decide where his money should go. As a reader, one might feel that this article offers solid advice about buying stocks. An investor who is looking to add some new companies to his portfolio can take help from his article regarding which stocks to purchase and which to stay away from.
I found it very interesting that author pointed out the fact that China is not competing as aggressively in hi-tech area which makes some U.S. companies like RIM and Intel still the favorites where investment decisions are concerned. It was heartening to know that some of the very well-known companies including IBM are still a major success in terms of wealth and financial stability. They are still the most attractive option for an investor. However what was slightly less optimistic was the news about Google which was once a major power in the world of search portals but over the years has lost to Baidu which is a Chinese company and has gained immense strength in China thus booting out Google completely.
What however is lacking in the article is the reason why China is not making strides in hi-tech industries. I find that while the article is well written, it would have been even better if the author had given his own opinion regarding this fact. If china is a major economic power-house and if it has been able to take over a company like Google within a very short time, then why has the country stayed away from hi-tech industries so far. Why don't we find iPhone competitors from China or why is China not trying to compete with the U.S. where personal computers are concerned? This is a very important point to ponder and I would like to know the answer. If the author had commented on this instead of simply mentioning the fact that China was not competing in these areas, it would made the article stronger. But having said that, I must mention that just the fact that author has pointed this out should be enough for those who love to research on their own. The author has given us something to think about and something to find more about.
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