Global Themes

On Globalization & Venture Capital

Globalization: A Lost Opportunity?

Under a nicely provocative headline titled “UK businesses signing their death warrants with their ignorance“, the chilli recently quoted from Grant Thornton’s International Business Report, while commenting on UK SMEs and globalization.

Amongst other things, it noted that:

“…less than half of UK businesses (46 percent) believed that globalization presented an opportunity to their country” compared to “82 percent of Indian businesses who believed that globalization presented a significant opportunity for their country…”

The story also mentioned: “UK business owners felt that (the economic expansion of the BRIC countries) over the past few years (has) had very little impact on their own companies”

A few other startling findings:

  • 79% of UK businesses are ignoring opportunities to import from China
  • 90% have no plans to export to India and
  • 87% have no plans to export to China

…all of which suggests to me a great opportunity (and a market) waiting to be tapped.

May 10th, 2007 Posted by | China, Emerging Markets, Europe and Asia, Globalization, India | 4 comments

4 Comments »

  1. “90% have no plans to export to India and
    87% have no plans to export to China”

    Shantanu: could it have something to do with the fact that most of them are importing their stock-in-trade from these countries in the first place? 🙂

    More seriously, a breakdown of businesses by services (broken along personally-delivered versus distance-deliverable) and products offered would make these statistics more relevant and comprehensible.. Thanks.

    Comment by Shefaly Yogendra | May 14, 2007

  2. Possibly!…

    Breakdown would be interesting…unfortunately I have not been able to track down the original report (and dont know whether it has that in the first place).

    Comment by Shantanu | May 14, 2007

  3. Actually it sounds correct.

    90% have no plans to export to India and
    87% have no plans to export to China

    You don’t export to China and India, that would be like asking an astronomer to look through a telescope backwards. What you do is simply tap their cheap labor because of market differences and sell back to the first world market who is land locked into buying at their market price instead of the India and China price.

    Last but not least, if you are living in one of the so-called first world countries your life is going to suck. I suggest you find a way to get on top of business fast or live in a constant declining life style for the next 30 years. You are constantly going to be sent looking for a new job as they compress wages in one form or another. And yes expect a massive decline in personal purchasing power if you are a laborer.

    Comment by Anonymous | June 12, 2007

  4. Anonymous:

    Although you are, broadly speaking, right that most companies will not export to China and India, it is not always the case.

    I will just mention one sector and type of products – with which I am somewhat familiar, namely telecoms infrastructure equipments and technologies.

    Doubtless, there are a few more…but point taken.

    Comment by Shantanu | June 14, 2007

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