What lies ahead for world business in 2011?

2011 would be tough for many businesses worldwide. In a report submitted by Ernst and Young, world business won’t be as easy as it was in 2010. The challenging environment of business globally will make the business very competitive for entrepreneurs and business players.

Although, there are mixed response to what business could attain in the coming year. Some say that developed markets worldwide will achieve great success. There would be less competition, and thereby more flourishing, while the emerging markets may have to go through the rough.

The influx of the outside companies and the concentration of the local companies would play a part in making the business environment more challenging in the emerging market. There would be intense competition among the business players, as both developed market and the local market would try to capture the bigger share of the market.

However, countries like India stand to gain more in the year 2011, as the optimistic present GDP growth of 8.5% would effect a greater economic growth in the country. Such huge GDP growth in any circumstances provides great potential for growth, though, there are likely to be more competition in Indian market.

Chinese women face hiring issues

Chinese private sector has become a nuisance for Chinese women in the country. The tough hiring laws practiced in China have come in the way of Chinese women, though, on paper, the law protects women.

Women who are pregnant could be fired from their job. A woman is not able to get maternity leave, which means that women are not entitled to have a child while working for a private sector. Such stringent laws practiced in china have not done any good for its women.

Still women have preferred private sector jobs as Chinese private sector jobs offer higher salary compared to the state.

But of late, many women have overlooked private sector jobs for government jobs. At least now, they have more freedom, and can apply for a maternity leave of 90 days, which is very much absent in the private firms.

If one goes through the law book, the story is entirely different. The Chinese have placed laws to protect women. In fact, the 2005 amendment of protection of woman's right and interests had stressed for more gender equality. But there are loopholes in the laws as well. Women are supposed to retire 5 years earlier than men, which accounts for reduced pension, and salaries.

However, the fact is very few firms practice what the law states, and there are prevalent gender bias, with women being the sufferer. Sexual harassment tops the list and very few women actually come forward to file a case against their employers.

Employers view hiring of women as additional burden on their shoulders. They would have to bear the burden of maternity leave, if women gets pregnant, with the result that few private sector firms are actually hiring newly married women.

On the other hand, government jobs pay less, but women find it more acceptable. A pay of around US $600 a month plus housing allowances is far more acceptable, if they could have babies.

Why countries are cheapening their currency

The economic disaster which countries are facing in the present scenario has led to the eruption of currency war. Every country in some way is trying to cheapen their currency. It’s probably the best way to come out of an economic slump.

However, the question remains when does this stop? Each country pegs its currency against the dollar, and when a particular country try and cheapen its currency, it would only help when dollar remains higher.

Can India economic success story go wrong?

Everyone in India is aware of the kind of success Indian economy has gained, yet, Indian economic success is not that universal, compared to say, China.

Many leading Indian economists still believe that Indian economic growth is still at a growing stage, and calling India as ‘already emerged’ would be a wrong way of assigning status to India’s growth.

Though, American President Barrack Obama has commented that India has arrived, or has emerged in the global scene, still, there are lot of factors which is still at a nascent stage, before India could be called a global economic power.

However, there’s no doubt that India had fared better to everyone’s surprise. The long list of economic success together with a long haul of purchases from the American and Chinese firms certainly speaks of India’s recent economic success.

The big question is how the government would handle the foreign direct investment.

The government’s capability to handle foreign direct investment would determine how India grows from here on. India is more concerned now with FII flows, but it’s more important for the government to understand that controlling volumes of foreign direct investment (FDI) is more important that FII flows. India should make sure that it controls the FDI investment as early and swiftly as possible. It is exactly where the loop of success of the Indian economic success originates.

External and domestic risks

Do you think just because India is growing a rate of close to 9%, everything is perfectly fine? Or may be perhaps, India has Sensex sitting pretty around 20,000, everything is perfect on the economy front for India.

You may be wrong. The current account deficit which India has at the moment needs to be financed, and the government needs to have a look in. if the government could ensure that India could finance its current account deficit, which could be anything between 2-3%, or it could be more, due to domestically driven growth, then India is surely going to succeed in the future, or would continue its present growth trend.

But if, anything goes wrong, and India economic policy is not able to cover up its current account deficit, it could probably end the economic growth in India.

The government of India certainly knows it and will work to ensure that India continues to grow in the future.

Warne and Liz bond could boost Rajasthan Royals business interest

Though, Rajasthan Royals might be struggling to play in the Indian Premier league 4, yet, the recent Shane Warne and Liz Hurley tie up could boost Rajasthan Royals brand status to a great extent. That’s what most pundits believe in.

Liz Hurley had a deep bond with the state of Rajasthan, as she was married to Arun Nayar at the Mehrangarh fort in the state, and with Warne already played for Rajasthan Royals in the last three seasons, this could be the ideal opportunity for the sponsors of Rajasthan Royals to make most of it.

It all depends on how the relation would proceed from here on. Anything could be expected of Warne, it won’t be any surprise, if Shane Warne leave Hurley and start dating someone else, considering the nature of Warney who had already led to a series of affairs earlier with little known women in England. Shane already had a divorce with her long term wife, Simone. The couple also have three children.

However, the recent affair does not seem to die down very soon. If both do stay together, then the brand value of Rajasthan Royals would certainly spruce up.

Royals had earlier collaborated with English county Hampshire in order to become a major cricketing force. They are in the process of launching a franchisee by the year 2020.