The Responsiveness of a Firm in Sustaining the World Economy

8/14/2019 The Responsiveness of a Firm in Sustaining the World Economy

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TRP 511: Project ManagementAida Fazihrah Binti Nazri

Abstract

Growth is now more distributed and broad-based with the emergence of

multiple centers of growth spearheaded by countries such as India and

China. As emerging economies continue to grow, they must be involved inthe process of global governance. People in India and China are looking for

a better life and mobility and higher incomes, and no one can deny them

those aspirations. In the unpredictable changes of global shifts that are

constants most organization are seeking to improve existing goods and

services through continuous improvement and innovation breakthrough

strategies.

Recent Trends of Worldwide Economy

The movement of the Worldwide Economy from a Tradition Economy to a

Global Economy has come through the technological advancements

strengthened by modern technological discoveries starting from the

Industrial Revolution in England. However, due to rapid globalization, the

importance of national economies along with rules and regulations are

decreasing. Mergers between multinational corporations are in vogue as

every organization wants to exercise total control over the World Market.

The developed nations control the World Economy aided by their superior

technological advancements. Countries that foremost in World Economy

that reflected in their higher status in the United Nations Organization, are

USA, Japan, China, U.K., Germany, France, and Canada.

Inreasing in globalized world economy, all companies are focusing on

deriving the highest profits from the investments. To that end these arebecoming multinational, having realized that affordable products can be

circulated in the market of developed nations by outsourcing the

production to the underdeveloped and developing countries.

Several international regulators such as World Trade Organization (WTO),

International Monetary Fund (IMF), and World Bank, however are aimed at

keeping all profit-focused companies under a check.

Bach. of Town and Regional Planning (hons.), Semester July November2008

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The World Wide Economy though highly influenced by the developed

countries shows signs of turning into a fair ground through the outsourcing

of jobs to developing and underdeveloped nations, by most multinational

companies based in the developed nations. This points towards a future

balanced World Economy.

Global Economy

The term Global Economy refers to an integrated world economy with

unrestricted and free movement of goods, services and labor

transnational. The concept of a global economy cannot be understood in

isolation. Globalization need to be defined first as the integration of

production and consumption in all markets across the world.

Global economy is a characterized as a world economy with unified market

for all goods produced in the entire world. Domestic producers have the

opportunity to expand and raise capacity according to global demands and

its also provides opportunity to domestic consumers to choose from a

vast array of imported goods. A global economy aims to rationalize prices

of all products globally.

Reduction in level of tariff and quotas under new WTO (World Trade

Organization) restrictions, free flow of goods between the developed and

the developing countries has become a distinct possibility. Globalization

has boosted productivity and capacity of these companies to astronomical

high because of the stiff competition at the international level.

Improvement in technology in the developed countries such as United

States of America and Japan has permeated to those of the developing

economies of Asia, Africa and Latin America. This has enable the people of

the developing countries acquire requisite technical skills and knowledge

for operating sophisticated equipments that percolate throughout the

economy and improves the general productivity of the labor in these

countries by increasing the income levels.

While a global economy or globalization has the distinct advantage of

raising world productivity and incomes and bringing about an

improvement in the standards of living for all people at a global level, ithas the dangerous side effect of growth with inequality. This has been


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evidenced in the less developed economies of India, China and Brazil

where the benefits of globalization have not percolated to the lowest

levels.

A Global Economy also leads to a shifting of jobs from the developed

countries to the Third World Countries as wage rates are much lower here.

This allows companies of the advanced nation to grow exponentially. For

example, we might find computer chips produced in China be exported to

USA for designing which may be subsequently used in Japanese computers

supplied across the world. This process is called outsourcing and leads to

exploitation of workers in Third World economies where income

inequalities already exist.Nonetheless, a global economy may be beneficial for the world at large.

This may result in the economies of the world fighting issues such as

global warming, climate change and environmental degradation

collectively and effectively.

The global economy of today revolves around the issues of more trade

liberalization, competition as a model of efficiency and the search for an

intermediate between laissez-faire and too much state intervention whichwould help in achieving high rates of growth but not with sacrificing equity.

Global economics or the global economy can be defined as the

homogenization of the world economy into single large economy with the

beginning of globalization. Globalization and the mechanisms of global

economics are thus closely interconnected. The essential feature of

globalization has been the widespread diffusion of technology and

technological developments across all the countries of the world. As a

study of the global economy, global economics concentrates itself on the

factors of global supply and demand transcending mere national

considerations.

Globalization is argued to bring about better productivity and higher

amounts of produced outputs for all commodities across the world

because of widespread diffusion of advanced technologies. Countries

specializing in their areas of comparative advantage can also increase the


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world outputs of commodities. But the benefits of the process has not

percolated down to the lowest level of society as the divide between the

rich and poor is ever increasing in countries. Globalization has also thrown

out many domestic producers of specific commodities with rising income

inequality, being unable to cope with stiff competition meted out by low

cost goods from abroad.

Global Economic Analysis is a macro-level study of all the economies of

the world taken as a whole. Globalization has helped the world economy

become more integrated and homogenized with the free movement of

goods and services. Its objective is to unify prices of commodities and

wages worldwide. Diffusion of technical knowledge and information is alsoa positive effect of globalization.

Global economy is growing as a whole with a healthy growth rates

hovering around 2% annually. The USA being the largest economy in the

world continues to be the leader in terms of technological innovations, low

unemployment rates, high per capita GDP and also few numbers below the

poverty line. Political stability as a key economic indicator has also

ensured that stock indices are at healthy levels in the developing

countries.

The indicator for the global economy means, economic variables or

parameters that may determine global economic behavior over a period of

time reflecting the movement of the global economy as a whole. Global

economic indicators can be summarily comprised Real GDP growth rate,

Real GDP per capita, Exports Imports, Inflation rates, Unemployment,

People below poverty line and Outstanding external debt (if any as a

percentage of GDP).

The global economy gave business the ability to market products and

services all over the globe. It has also allowed them to develop

partnerships and alliances throughout the world, which has become

essential for success in todays business. Prior to Globalization, the United

States dominated the global economy. In past decades, however, the U.S.

share of the global economy has shrunk to approximately 20%. This trend


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is expected to continue as the economies of many newly industrialized

countries continue to grow at a faster rate, this is called the balancing of

the equilibrium.

World Economy

The terms of world economy can be evaluated in a various way depending

on the model used and this valuation can be represented in various ways.

It is inseparable from the geography and ecology of Earth, and therefore of

somewhat of a misnomer, since while definition and representations of theworld economy vary widely, they must at a minimum exclude any

consideration of resource or value based outside of the Earth.

World economy valuations, models, representations, definitions, and use

and exchange in the planet Earth, can be vary widely beyond the

minimum standard of concerning value in production.


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Limit questions of the world economy exclusively to human economic

activity and world economy is typically judged in monetary terms, even in

cases which there is no efficient market to help valuate certain goods or

services or lack of independent research or government cooperation

makes establishing figures difficult. Typical examples are illegal drugs

(medicine purpose and etc) and other black market goods, which by any

standard are a part of the world economy, but for which there is by

definition no legal market of any kind.

However, even in cases in which there is a clear and efficient market to

establish a monetary value, economists do not typically use the current or

official exchange rate to translate the monetary units of this market into asingle unit for the world economy, since exchange rates typically do not

closely reflect world-wide value, for example in cases where the volume or

price of transactions is closely regulated by the government. Rather,

market valuations in a local currency are typically translated to a single

monetary unit using the idea of purchasing power. This is the method used

below, which is used for estimating worldwide economic activity in terms

of real US dollars. However, the world economy can be evaluated and

expressed in many more ways. It is unclear, for example, how many of theworld's 6.6 billion people have most of their economic activity reflected in

these valuations.

World Economy in 2008

World economy is predicted to continue growing in 2008 with rate of

growth is expected to be lower than the 2007. World growth rate for 2008

have been projected around 4.8%, whereas the ongoing growth rate for

end 2007 is 5.2%. Central Banks of different countries are expected to

stay away from monetary restriction to face inflation that been expected

to contribute significantly to the growth of the 2008 world economy. Infact, the world economy is said to be driven by emerging economies like


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China and India, rather than by economies of USA, European Countries

and Japan.

The US economy is experiencing low growth rates. By the end of 2007, the

US economy is expected to register a growth rate of only 1.9 %, one of the

lowest growth rates the United States of America has seen in recent years.

Although economists do not perceive the risk of an immediate recession in

the US economy, however, lack of growth in industrial production, decline

in the real estate sector, slow growth of employment and insufficient

business credit are factors that would weigh heavily on the growth of the

US economy in 2008. Economists have projected a 3% growth for the US

economy in 2008.

The Chinese economy is forecasted to grow at 10.9 % in 2008 which, in

spite of a slowdown from 2007, would still be substantial. Chinas global

trade surplus is predicted to reach the 300 billion dollars mark next year

which is a growth of 20%. Inflation of 4.5% is forecasted for the Chinese

economy in 2008.

A growth of above 8% has been forecasted for the Indian economy in2008. According to Indian Finance Minister Mr. P. Chidambaram, Indian

exports would reach the $200 billion mark in 2008. The growth of the

service sector which contributes more than 50% to Indias GDP, the

potential of the Indian Stock market and the appreciating Indian Rupee are

expected to be major factors in Indias economic growth in 2008.

World Economy Indicator

World economic indicators are specific index and measures that indicatenot only the overall health of the global economy, but also provide some


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insight into its future. Economic indicators can be found in many different

forms. Economic statistics can also be use to illustrates the trends in

economic activities. The most commonly used world economic indicators

are rates of inflation, the unemployment rate, the real Growth Domestic

Product (GDP) growth rate, GDP-Per Capita, GDP-Purchasing Power Parity,

amounts of foreign direct investment, populations living below the poverty

line, and current account balances.

The utility of economic indicators can be defined by relating it to the

economic activities of the world. An indicator is said to be procyclic if it

moves in the direction of the economic movement (or cycle) of a country

and the movement of the economic indicators is directly comparative tothe trend of economic performance. When economies show a growing

trend, the value of the procyclic economic indicators will increase. GDP is

an ideal example of this type of world economic indicator.

Countercyclic economic indicators are inversely related to economic

performance. The rate of unemployment is an example of a countercyclic

type of economic indicator. The rate of unemployment will increase if the

economy slows down.

Another type of world economic indicator is known as an acyclic economic

indicator that is not directly related to the economic health of the country.

However, this indicator is not a good method by which an economys

health may be measured.

Statistics such as GDP figures, unemployment rates, current account

balances, stock market values are economic indicators used on a monthly,

quarterly or even on an immediate basis. Rates of unemployment are

usually released every month, whereas the GDP figures are made

available only on a quarterly basis.

Economic indicators depend on the accuracy of the forthcoming changes

in economic activities prediction. The world best economic indicators are

those that foreshadow economic changes that are going to take place in


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near future. Lagging world economic indicators, only respond to the

changes if the economy a few quarters later such as unemployment rate.

Unlike the leading and lagging economic indicators, a third category of

indicators is the coincident economic indicators these indicators move in

the same pace with the changes in an economy.

World Economy Statistical Indicator

1. Economy

a. Gross World Product (purchasing power parity exchanges rate):

$59.38 trillion (2005 est.), $51.48 trillion (2004) and $49 trillion

(2002);

b. Gross World Product (IMF 179 countries): market change rates -

$43.92 trillion (2005 est.), $40.12 trillion (2004) and $32.37 trillion

(2002);

c. GDP (real growth rate): 4.3% (2005 est.), 3.8% (2003), 2.7%(2001);

d. GDP (per capita): purchasing power parity - $9,300 (2005 est.),

$8,200(2003) and $7,900 (2002);

e. GDP (composition by sector): agriculture 4%, industry 32%, and

services 64% (2004 est.);

f. Inflation rate (consumer price): developed countries 1% to 4%

typically, developing countries 5% to 60% typically, national

inflation rates vary widely in individual cases;

g. Derivatives outstanding notional amount: $273 trillion (end of June

2004), $84 trillion (end of June 1998);

h. Global debt issuance: $5.187 trillion (2004), $4.938 trillion (2003),

$3.938 trillion (2002); and

i. Global equity issuance: $505 billion (2004, $388 billion (2003), $319

billion (2002).

2. Employment

a. Unemployment rate: 30% combined unemployment and

underemployment in many non-industrialized countries; developed

countries typically 4% - 12% unemployment.

3. Industries


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a. Dominated by the onrush technology, especially in computers,

robotics, telecommunications and medicines and medical

equipement; most of these advances take place in OECD nations;

only a small portion of non-OECD countries have succeed in rapidly

adjusting to these technological forces; they accelerated

deployment of a new industrial technology is complicating already

grim environmental problems; and

b. Industrial production growth rate: 3% (2002 est.)

4. Energy

a. Yearly electrical (production): 15,850,000 GWh (2003st.),

14,850,000 GWh (2001 est.);b. Yearly electrical (consumption): 14,280,000 Gwh (2003 est.),

13,930,000 GWh (2001 est.)

c. Oil (production): 79.65 million bbl/day (2003 est.), 75.46 million

barrel/day (12,000,000 m/d) (2001);

d. Oil (consumption): 80.1 million bbl/day (2003 est.), 76.21 million

barrel/day (12,120,000 m/d) (2001);

e. Oil (proved reserves): 1.025 trillion barrel (163 km) (2001 est.);

f. Natural gas (production): 2,569 km (2001 est.);g. Natural gas (consumption): 2,556 km (2001 est.);

h. Natural gas (proved reserves): 161,200 km (1 January 2002)

5. Cross-border

a. Yearly exports: $6.6 trillion (f.o.b., 2002 est.);

b. Exports (commodities) : the whole range of industrial and

agricultural goods and services;

c. Exports (partners) : US 17.4%, Germany 7.6%, UK 5.4%, France

5.1%, Japan 4.8%, China 4% (2002);

d. Yearly imports: $6.6 trillion (f.o.b., 2002 est.);

e. Imports (commodities) : the whole range of industrial and

agricultural goods and services

f. Imports (partners) : US 11.2%, Germany 9.2%, China 7%, Japan

6.8%, France 4.7%, UK 4% (2002)

g. Debt (external): $2 trillion for less developed countries (2002 est.)


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6. Communication

a. Telephones (main lines in use): 843,923,500(2003), 1,263,367,600

(2005)

b. Telephones (mobile cellular): 2,168,433,600 (2005)

c. Internet Service Providers (ISPs): 10,350 (2000 est.)

d. Internet users: 1,311,050,595 (January 18, 2008 est.),

1,091,730,861 (December 30, 2006 est.), 604,111,719 (2002 est.)

Absolute Advantages of World Economy

A country is said to have an absolute advantage over another country in

the production of a good or services if it can produce that good and

service using fewer real resources. Equivalently, using the same inputs,

the country can produce more output. The concept of absolute advantage

can also be applied to other economic entities, such as regions, cities or

firms but we will focus attention on countries, specifically in relation to

their production decisions and international trade flows. The fallacy of

equating absolute advantages with cost advantages is a never ending

source of confusion. Deviations between the two are caused by the fact

real resources may receive different remunerations in different countries.

To vividly illustrate the principle of absolute advantage, suppose that there

are two countries, producing two goods, using labor as the only input.

Goods can be traded without costs and workers are immobile between the

two countries, but mobile between the two sectors within a country. All

workers in a country are equally productive. As a case study, the two

countries represent Japan that producing cars and USA that producing

food. Production technology in Japan differs from that in the USA. Japan

requires three units of labor to produce one unit of food, whereas the USArequires only two units of labor. Similarly, Japan needs six units of labor to

produce one car, whereas the USA needs eight units of labor. Since Japan

is more efficient in the production of cars and the USA is more efficient in

the production of food, Japan has an absolute advantage in the production

of cars and the USA has an absolute advantage in the production of food.

Absence of absolute advantage is the examples discuss a situation where

one country has an absolute advantage in the production of one good and

the other country in the production of another good. The developing


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countries may lack the technology to gain an absolute advantage in the

production of any good, such that they cannot possibly compete on the

global market and benefit from free trade. According to Ricardian model

(comparative advantage) Technologically disadvantages countries can

compete on the global market by paying lower wages and it turns out that

absolute advantages is neither a necessary nor a sufficient condition for

exporting a certain good and gain from international trade.

In reality goods are produced using several factors of production

simultaneously, such as capital, land, and various types of labor. Usually,

goods then cannot be ranked according to absolute advantage as their

production in one country requires more of one input and simultaneously

less of another input than in another country. These issues are analyzed in

the Heckscher-Ohlin (factor abundance) theory of international trade.

Many countries engage in intra-industry trade, the exchange of similar

types of goods (e.g. simultaneously exporting and importing car parts).

This type of trade is becoming ever more important. It can be based on

market power and economies of scale, as analyzed in new trade theory.

Absolute advantages reflected by differences in technology are important

for explaining current international trade flows and differences between

countries in terms of income levels and wage rates. Daniel Trefler (1995)

systematically analyzes these issues by combining the Heckscher-Ohlin

model with technology differences, while taking into consideration the

empirically observed home country bias (a consumer preference for

domestically produced goods over otherwise identical imports).

This combination explains about 93% of international trade flows. It also

shows that technology differences are largely responsible for the

deviations in income levels (and wage rates). Absolute advantage does

retain relevance for understanding the modern world economy.


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The World Top Ten Economies

Key factors determine a countrys economic ranking including the business

environment, infrastructure, tax rates, and the general ease of operations

within that country. The worlds top ten economies can be determined by

examining factors such as growth prospects, business environments,

infrastructure, educational levels of the citizens, and governmental

policies and institutions.

The most authoritative ranking is the Global Competitiveness Report. It is

produced in conjunction with the World Economic Forum, and captures

both the perceptions of thousands of business leaders and statistical

analysis by academics at universities and think tanks worldwide. Indeed, it

includes the WEFs Global Competitiveness Index, developed by Professor

Martin at Columbia University, and the Business Competitiveness Index,

developed by Professor Porter at the Harvard Business School.

According to the Global Competitiveness Index 2007 2008, the top ten

economies of the world are United States, Switzerland, Denmark, Sweden,

Germany, Finland, Singapore, Japan, United Kingdom and Netherlands


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The World Largest Economies

Emerging economies are smaller than the developed countries, but they

are growing faster and opening up, leading to greater investment

opportunities than ever before.

There are two methods of GDP calculation which are nominal GDP

attempts to compare countries using current exchange rates to give an

assessment of their clout within the global market and Purchasing Power

Parity (PPP) GDP. It is a better measurement of the internal size of each

market.

The list of the Top 10 GDP by PPP.

Ranking

CountryApproximate GDP- PurchasingPower Parity

1United States ofAmerica

$13,860,000,000,000

2 China $7,043,000,000,000

3 Japan $4,305,000,000,000

4 India $2,965,000,000,000

5 Germany $2,833,000,000,000

6 United Kingdom $2,147,000,000,000

7 Russia $2,076,000,000,000

8 France $2,067,000,000,000

9 Brazil $1,838,000,000,000

10 Italy $1,800,000,000,000Source: www.economywatch.com


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A map from the CIA World Factbook will help to illustrate the differences betweencalculating world GDP figures on a PPP or nominal basis.

Source: www.economywatch.com

Economy of Malaysia

Malaysia economy is growing and relatively with open economy. Economy

of Malaysia was the 29th largest economy in the world in 2007 by

purchasing power parity with GDP for 2007 was estimated to be $357.9billion with growth rate of 5% - 7% seince 2007. with GDP per capita

standing at US$14,400, from time to time, it has been considered a newly

industrialized country. Income distribution in 2007 are 5.8 million

households and 8.6% of the number have an monthly income below RM

1,000, 29.4% have income between RM 1,001 to RM2,000, while 19.8%

earned between RM2,001 and RM3,000. 12.9% of the households earned

between RM3,001 and RM4,000 and 8.6% between RM4,001 and RM5,000.

Finally, around 15.8% of the households have an income of between

RM5,001 and RM10,000 and 4.9% have an income of RM10,000 and

above.

As one of three countries that control the Strait of Malacca, international

trade plays a large role in its economy. At one time, Malaysia was the

largest producer of tin, rubber and palm oil in the world.Manufacturing has

a large influence in the country's economy.


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Malaysia percentage of Agriculture in total GDP has decline. The

percentage share of agriculture has declined to 9.5% in 2004 from 20% in

1984. The percentage share of industry in total GDP has increased. The

percentage share of industry has reached to 50.4% in 2004 from 38.5% in

1984. Manufacturing production has experienced a moderate growth in

the second half of the year 2004. Manufacturing production moderated in

2004 reflecting a slowdown in external demand particularly from US and

China. The service sector accounted for 41.5% of GDP in the year 1984 fell

to 40.1% in 2004.

Source: www.economywatch.com

Advantages of Firms in Global Industries

An industry is a group of competitors producing goods or services that

compete products where the sources of competitive advantage are similar.

In competitive strategy, firms seek to define and establish an approach to

competing in their industry that is both profitable and sustainable.

The competitive strategy underlie two central concerns which is, industry

structure in which the firms compete and strategy in positioning within an

industry. Not all industries offer equal opportunities for sustained

profitability because industries differ widely in nature of competition and

some of the industries positions are more profitable than other industries.

Industries attractiveness and competitive position can be shaped by a

firm. A successful firm will respond to their environment and attempt to

influence it in their favor. Indeed, it is changes in industry structure, or the


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emergence of new bases for competitive advantage, that underlie

substantial shifts in competitive position.

The nature of competition is embodied in five competitive factors which

are, the threat of new entrants, the threat of substitute products or

services, the bargaining power of suppliers, the bargaining power of

buyers and the rivalry among the existing competitors. The five

competitive forces determine industry profitable because they shape the

prices firm can charge, the cost they can bear, and the investments

required to compete in the industry.

Firms create competitive advantage by perceiving or discovering newbetter ways to compete in an industry and bringing them to market, which

is ultimately an act of innovation that include improvements in technology

and better methods or ways of doing things.

The most typical causes of innovations that shift competitive advantages

are:

a. New technologies. Changes in technological can create new

possibilities for the design of a product. Industries that are born when

technological changes makes a new product feasible;

b. New or shifting buyer needs. A competitive advantage is often created

or shifts when buyers develop new needs or priorities change

significantly;

c. The emergence of a new industry segment. The opportunity for

creating advantages arises when a new distinct segment of an industry

emerges or a new way is conceived to regroup existing segments;

d. Shifting input costs or availability. A firm gains competitive advantage

by optimizing based on the new conditions while competitors are

saddled with assets and approaches tailored to the old ones; and

e. Changes in government regulations. Adjustments in the nature of

government regulation, in areas such as products standards,

environmental controls, restrictions on entry and trade barriers, are

another common stimulus to innovation which results in competitive

advantage.


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The sustainability of competitive advantage depends on three conditions.

Firstly, the particular source of the advantage. There is a hierarchy of

sources of competitive advantage in terms of sustainability. Lower-order

advantages such as labor costs or raw materials are relatively easy to

imitate while high-order advantages such as propriety process technology,

product differentiation based on unique products or services, brand

reputation based on cumulative marketing efforts and customers

relationship are more durable and marked by number of characteristic.

Secondly, higher-order advantages usually depend on a history of

sustained and cumulative investments in physical facilities and specialized

and often risky learning, research and development, or marketing. Thirdly

and the most important, reason competitive advantages is sustained isconstant improvement and upgrading. In order to sustain advantage a firm

must become a moving target, creating new advantages at least as fast as

competitors can replicate old ones.

Sustaining advantages requires changes. It demands that a company

exploit, rather than ignore industry trends and demands that a company

invests to close off the avenues along which competitors could attack. To

sustain its position, a firm may have to destroy old advantages to createnew, higher-order ones. Change is extraordinarily painful and difficult for

any successful organization is the reason why few firms sustain their

position.

Challenges in Facing Construction Industry

Faizul Hj Abdullah in his article Globalisation: Rethinking the Construction

Industry to Adopt Changing Trends, has enlighten that the main critical


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challenges facing the construction industry are their abilities to have

innovative design capability, be information technology focused and

strongly self-financing.

Innovative design capability is required together with improved efficiency,

effectiveness, productivity and competitiveness. Specific benefits of

construction innovation can include better environmental protection or

sustainability, improved safety and health and improved quality at lower

cost. Companies that adopt innovation may see higher profits, increased

market share, access to new markets and hence improved

competitiveness.

To prevent construction companies from really venturing and exploring in

determining new core competencies, through innovation, which hopefully

could provide spin-off benefits to the overall construction business, they

are barriers that are characterized by several distinct factors and among

other, which are:

a. Fragmentation. The characteristic of the construction industry itself

prohibited contractors from being innovative in their design capabilities

because the industry generally is highly fragmented and too local;

b. Limited resources. Pursuing innovation often requires substantial

amounts of resources, which is a function of time, money, personnel

and equipment. Whether innovation is pursued purposely through R&D

or on a pilot application basis, some amount of resources investment is

required; and

c. Liability. To fear of defects and health, safety or environmental hazards

is often great enough to defer construction companies from adopting

new materials and technologies.

These are few dominant factors that prohibit construction companies from

taking up the options to further explore innovative design.


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Sources and Refferences

Adam Smiths (1995), World Economy Absolute Advantages, New

York: Free Press

Define Global Economy, Economy Watch,

http://www.economywatch.com/world_economy/world-economic-

indicators/global-economy/define-global-economy, Retrieved 3rd

September 2008

Economic Structure Of Malaysia, Economy Watch,

http://www.economywatch.com/world_economy/economic-structure-of-

malaysia, Retrieved 3rd September 2008

Economy of Malaysia, Wikipedia Free Encylopedia,

http://en.wikipedia.org/wiki/Economy_of_Malaysia, Retrieved 3rd September

2008

Faizul Hj Abdullah, Globalisation:Rethinking the Construction

Industry to Adopt Changing Trends, Univerity Technology MARA

Global Economic Analysis, Economy Watch,


indicators/global-economy/global-economic-analysis, Retrieved 3rd

September 2008

Global Economic Indicators, Economy Watch,http://www.economywatch.com/world_economy/world-economic-

indicators/global-economy/global-economic-indicators, Retrieved 3rd

September 2008

Global Economics, Economy Watch,


indicators/global-economy/global-economics, Retrieved 3rd September

2008


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Documents

The Responsiveness of a Firm in Sustaining the World Economy