The Power Shift to Asia: How to Succeed There?

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The global financial crisis, also known as the great world recession and recovery have had a serious impact on the Asian and global economies. While western economies suffered from enormous losses, Asian economies somehow managed to turn this misfortune into an opportunity. With the rise of Asian economies, the structure of world trade and finance is rapidly changing. If Western companies are planning to become more active and successful in Asian markets, they will have to understand this environment, and adjust their business models and company structures according to these recent changes. How did the Asian economies take care of the global crisis? Before the global financial crisis, Asian economies were dependent on large industrial economies of the Western and the Eastern world for marketing their products and services. Their export oriented economies needed the deep and prosperous markets in the advanced industrial economies. At least a third of GDP growth in China during the pre-crisis years originated from exports and in other Asian emerging market economies (EMEs) this proportion was higher (Akyuz, 2011, p. 10). Presently the Asian economies, particularly the EMEs, depend increasingly on domestic demand (ADB [Asian Development Bank], 2012). Asian economy did not just recover from the global crises rapidly, but also helped to go into a recovery phase. In one of his articles D. K. Das states that, “Asian economy, in particular China, provided the much-needed support to the global recovery. What is beginning to be referred to as the Great Recession would have been deeper and longer without the support of the Asian economy.” (Das, 2011). According to Das, compared to the recovery after the Asian financial crisis (1997-1998),... ... middle of paper ... ...012.687618 Green, S. (2011, April). The would-be pioneer. Harvard Business Review, 124-126. Li, Hao. (2012, February 16). Doing business in china: cultural differences to watch for. International Business Times. Retrieved from Localizasian. (n.d.).'s March 2013 Trend Briefing covering the consumer trend "Localizasian". Retrieved November 12, 2013, from Luo, P. (2008). “Analysis of cultural differences between west and east in international business negotiation.” International Journal of Business and Management, 3(11), 103-106. Pan, Y., & Vanhonacker, W. R. (1997). The impact of national culture, business scope, and geographic location on joint venture operations in china. .Journal of International Marketing, 5(3), 11-30.
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