How undertaken in times of crisis

How undertaken in times of crisis

Recall a little the international economic environment that we live in (almost) the last decade:

firstly, the mortgage crisis subprime detonated in the United States in 2007- 2008 and extended to industry and all the financial sector of the country; then the “transmutation” of the crisis in sovereign debt problem that has plagued different countries of Europe, particularly those in the euro-zone (Greece, Spain, Italy, but the list is quite wider) in which It has been considered the worst economic crisis since the Great Depression.

Moreover, growth in China continued to drive the global economy and the resulting boom of economic commodities that Latin American economies soared during that period.

And now? “Signals” (though we might say “the facts”) cooling of the Chinese economy, the five years of “declining growth” of several so-called “emerging countries” (Russia, Brazil, South Africa, India) falling commodity nosedive, the price of oil remains in tatters, losses in China bags are not left alone, but accompanying the bags in the United States, Europe, Japan, Australia, the postponement of the Federal Reserve States has had on rising interest rates, among others, several headlines devastate the economy sections of newspapers.

While it has not yet broken out “bubble” as happened before, the fact is that the doubts and skepticism about the global economy have only increased.

That is, that the unstable equation of the international economic crisis that has failed to close and serious political conflicts that cross the world (war in Syria, Ukraine, immigrants arriving by the hundreds of thousands to Europe, conflicts within the Union European, etc.) must now add these other factors.

Focusing on Latin America as a region, the situation seems to leave much to be desired. The (de) growth projected for this year-round average of -0.3%.

How to take in these circumstances?

The articles on entrepreneurship in times of crisis often insist that, despite the challenges, the difficult circumstances also open opportunities: although not a propitious to make risky moves because the risks are increased and revenues decline, it is also true that adjustments in the economy are opening business opportunities.

Furthermore, these periods serve to display creativity, customer care and with proper planning, the feet on the ground and getting right questions, you can take advantage of them.

And, of course, true that many entrepreneurs have managed to overcome difficult economic times, but so is that many others have fallen by the wayside. The difference between them lies in the strategies that have been implemented and how they were adapted to the new circumstances. So beyond the general advice is usually found, we will introduce some more concrete focusing on this new stage for our particular region.

1. The economies of individual countries move at different speeds: if the picture is complex for all countries, there are some that grow and others do not. With its limitations, it is a fact that the United States is growing, so some of its trading partners in the north of the region have a support and encouragement (especially those who are favored by tourism and remittances as Mexico and Central America).

If your enterprise can establish a bridge to them, these countries have to aim. In addition, some nations are more dependent on exports than others, which have a strong domestic market.

2. The institutional organization of the various countries is also uneven: some countries have strong and stable institutions, making them more secure legal and commercially: Chile, Colombia, Mexico, Peru, among others, remain more predictable than Venezuela, Argentina and Brazil (with its current political instability).

3. We must be attentive to the reforms that are being developed: to face the new challenges and because they can no longer rely on one or a few export products, the various countries are making bets diversification of their economies.

One of the fields of infrastructure investment as they need to improve their connectivity to compete in the world market. An alternative is to target businesses that are linked to these fields growing: there are resources available to invest there.

Other measures being implemented across the board are the tax reform so that more people and companies to pay taxes according to their income. We must be aware of these changes to protect your money and your company asesorandose accounting.

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