Living in today’s society, where the average life expectancy continues to increase, and healthcare continues to improve, most developed economies will be affected by an ageing population. This can be seen as an opportunity, with new markets emerging, or as a threat to a countries GDP and productivity rate.  Living in Germany, which has one of the oldest populations, I am sure that my country will have to deal with this problem soon. Personally, I am concerned about my retirement, since the public retirement fund will have too few working adults, meaning that I will have to pay large fees for current retirees, and have little left once I reach the retirement age. 

By 2050, the WHO has calculated that there will be 2.1 billion seniors, meaning individuals 60 and over (Irving, 2018). In the US alone, Americans over 50 control 80% of the household wealth, and will have a spending power of 15 trillion USD by 2020 (Irving, 2018). This will force existing industries and new industries to be established, as there will simply be a need for them to flourish. This can be anything, from care-homes to new foods (easier to chew), lifelong learning on campus, smart homes, and many more. Studies have also shown -completed by BMW-, that intergenerational work teams are more productive, with older workers mentoring younger employees (Irving, 2018). This not only benefits society, but also companies bottom line. 

However, it can also be argued that it will be tough to provide social security and public services to an ageing population, while maintaining economic growth. A Chinese study has found that an ageing population can reduce the annual per capita GDP growth rate by 0.4% below its potential, due to a decline in labour participation and a slowdown in productivity (Dhaliwal, 2016). 

I believe that an ageing population will bring forth new challenges for society as a whole, especially in developed nations. It is our generations future problem, and therefore it is essential that we are aware of it, and we need businesses and governments to be aware of the ageing populations, and create strategies and solutions to effectively continue future economic and social growth. 

Credits to:

Dhaliwal, K. (2016). Harmful effects of the ageing population on the economy – University of Kent. [online] The University of Kent. Available at: https://www.kent.ac.uk/news/society/11994/harmful-effects-of-the-ageing-population-on-the-economy [Accessed 6 Mar. 2020].

Irving, P. (2018). Aging Populations: A Blessing For Business. [online] Forbes. Available at: https://www.forbes.com/sites/nextavenue/2018/02/23/aging-populations-a-blessing-for-business/#163b8bcd7a77 [Accessed 6 Mar. 2020].

Immigration is a controversial topic across the world. Perception of immigrants varies from individuals and country to country, but generally people either are for, or against immigration. Especially in the UK, where one of the main reasons to leave the EU was for the United Kingdom to take back control of immigration, opposing the free movement within the EU -if individuals have an EU passport- (Edwards, 2017). 

Personally, I believe that legal immigration is a benefit for everyone involved. Being an immigrant myself, coming from Germany to study in the UK (due to wanting to study in English), I can only hope that everyone accepts me. I also believe that there is a difference between immigration, and illegal immigration, with legal migration being beneficial for the economy, and illegal not, as the illegal immigrants are not registered with the government. 

Legal immigration can be seen as a bad thing, however, two thirds of immigrants coming to the UK already have a job offer when they arrive, and 50% are already university graduates (Real Business, 2017). Also, 16% of the UK workforce was born overseas, and if every migrants withdrew their labour for a day, it would cost the UK £328 million (Real Business, 2017). This shows how dependent and interconnected the English economy already is. Migrants don’t only contribute to the economy, but also bring fresh ideas, due to being schooled in a different environment, offering new solutions to challenges than born and bred UK workers (Department for Business Innovation and Skills, 2015). Often immigrants also fill in gaps in sectors where additional manpower is needed, such as in the technological sector (Department for Business Innovation and Skills, 2015).

However, I can understand that if immigrants do not assimilate into the workforce properly, or don’t integrate in work teams, it can be an issue for businesses. This is because due to not socializing with the work team, it has a harmful effect on the group work morale (Department for Business Innovation and Skills, 2015). This usually only happens in lower skilled industries. 

Therefore, I believe that immigration is beneficial for the UK economy, but it has to be done properly, with managers enforcing assimilation strategies for their overseas born employees. 

Credits to:

Department for Business Innovation and Skills (2015). The impacts of migrant workers on UK Business. UK Government.

Edwards, J. (2017). Racists are in for a big surprise when they see what happens to immigration after Brexit. [online] Business Insider. Available at: https://www.businessinsider.com/immigration-after-brexit-2017-11?r=US&IR=T [Accessed 5 Mar. 2020].

Real Business. (2017). The loss of UK migration and its impact on British business. [online] Available at: https://realbusiness.co.uk/loss-uk-migration-impact-british-business/ [Accessed 5 Mar. 2020].

Artificial intelligence is a topic that either intrigues or scares people. In my opinion, artificial intelligence is going to positively transform the business world. In 2018, the World Economic Forum predicted that AI will create 58 million new jobs in the next five years, and that repetitive, mundane tasks will be eliminated because of it (Gibbons, 2020). In the trucking world, self-driving trucks will also have a deep impact, as they can drive without pauses, make less mistakes and are cheaper than a driver, with Ubers self-driving truck completing its first 150 mile shipment in October 2019 (Adobe, 2020). 

However, not only low skill jobs such as at assembly lines and driving will be completed by AI, jobs such as marketers and accountants can be replaced by AI. This is because marketing is increasingly moving to a personalized product for the consumer, and AI can easily analyze customer profiles, make connections and offer the best deals for companies and customers -as said by Simon Morris, the Senior Marketing Director at Adobe (Adobe, 2020). Similarly, AI can process financial data at an unmatchable rate to human accountants, with minimal to no mistakes, erasing the need for large accounting departments at multinational companies.  

I think that we are currently in the process of adopting AI into the business world, with basic tasks already being automated, and many exciting AI processes being available to businesses and consumers in the next decade. It will solve problems for companies, and make life easier for the end consumer. In terms of it taking jobs away from human employees, I think that this really depends on if the next wave of AI will assist and enhances, or replaces employees. In terms for the end consumer, AI just needs to be implemented in a natural way, and have an interface easy to understand and suit consumers. I also believe that AI needs to be limited to a certain extent, meaning that it should not be used for malicious purposes. I am excited to see what the future of AI has in stock for businesses and the consumer. 

Credits to:

Adobe.com. (2020). Is Artificial Intelligence On The Brink Of Changing Business Forever?. [online] Available at: https://www.adobe.com/insights/how-will-artificial-intelligence-impact-business.html [Accessed 2 Mar. 2020].

Gibbons, S. (2020). The Technology Of The Future Is Changing Business Today. [online] Forbes.com. Available at: https://www.forbes.com/sites/serenitygibbons/2019/09/19/the-technology-of-the-future-is-changing-business-today/#280d88ae4fe1 [Accessed 2 Mar. 2020].

As the Coronavirus continues to spread around the world, continuing into Europe and African countries way outside of Wuhan, China, I asked myself the question of what the impact all the halted productions will be on the global economy. Due to quarantines severely limiting companies’ ability to receive and supply raw materials and products, supply chains (many of which originate in China) are suffering, globally. Jaguar land rover, has already warned that it could run out of car parts in its British Factories within weeks, similarly with Apple, which signaled the alarm of iPhone shortages (Partington, 2020). Airlines, which also recieve a large portion, 60% of their revenue from commericial passengers will also face a severe shortage of customers, as more countries implement travel bans (Investopedia, 2019).

I believe that the central and national banks are prepared for an economic downturn for several months (if the virus continues to spread at a high rate), however, if more countries and areas will become quarantined, it also forces companies to search for alternative suppliers and producers. This generates bureaucracy and difficult negotiations, further delaying production and slowing cash flow for all companies. Smaller businesses may be unable to cover the cost of halting production for an extended period of time, and I believe that without a cash injection from the government, many sole traders will cease to exist. Similarily, if customers dissapear from airlines, government intervention such as cash injections and nationalization of airlines might become a reality. Consumption hasn’t disappeared, it just been halted, but depending on the length of this period, it will have severe impacts on the global economy if not dealt with appropriately (Ft.com, 2020). 

The next few months of 2020 will decide whether transatinal businesses and airlines will be able to survive 2020. Additionally, the global economy will struggle due to the interconnectedness of the world’s supply chains, and the effect of the coronavirus quarantines on them. 

Credit to:

Ft.com. (2020). Global stocks tumble after Italy’s coronavirus lockdown. [online] Available at: https://www.ft.com/content/5ec9aeae-56a1-11ea-a528-dd0f971febbc [Accessed 24 Feb. 2020].

Partington, R. (2020). Economic impact of coronavirus outbreak deepens. [online] the Guardian. Available at: https://www.theguardian.com/business/2020/feb/23/economic-impact-of-coronavirus-outbreak-deepens [Accessed 24 Feb. 2020].

Investopedia, 2019. Which Passengers Make The Most Money For Airlines?. [online] Investopedia. Available at: <https://www.investopedia.com/ask/answers/041315/how-much-revenue-airline-industry-comes-business-travelers-compared-leisure-travelers.asp&gt; [Accessed 25 March 2020].