Executives Downbeat On Global Economic Prospects

Jan. 13, 2005
Compiled By Traci Purdum The aftermath of Sept. 11's terrorist attacks has most executives more concerned about the global economy today than they were one year ago. However, two-thirds say they will continue to maintain levels of foreign direct ...
Compiled ByTraci Purdum The aftermath of Sept. 11's terrorist attacks has most executives more concerned about the global economy today than they were one year ago. However, two-thirds say they will continue to maintain levels of foreign direct investment (FDI) that are similar to last year's, according to a recent survey conducted by global management-consulting firm A.T. Kearney's Global Business Policy Council. The survey questioned CEOs and senior executives from the world's largest companies. Surveyed executives expect U.S.-led military action to have a greater impact on FDI decisions than energy price volatility, Japan's economic recovery, future trade rounds, or the launch of the euro. The study also found that 16% of global executives intend to increase investments abroad, while 20% say they will decrease investments. Three-quarters of the respondents say first-time outward investments likely would be destined for developing countries. Influencing investment decisions is a view that U.S. economic recovery will be delayed. "Despite the growing bearish global economic consensus, the world's largest foreign investors are keeping a 'steady-as-you-go' hand on their investment plans, with the course of the U.S. economy likely to exert the biggest influence over future FDI decisions," says Paul A. Laudicina, A.T. Kearney's vice president and managing director of the Global Business Policy Council. China is the only major economy to experience a positive shift in investor sentiment, due in part to its formal entry into the World Trade Organization next year.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!