BADM 1004 Lecture Notes - Lecture 3: Automotive Industry, Thomas Friedman, Volkswagen
16 Nov 2016
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5 stages every country goes through: countries are poor and people think and know that they are poor. Live like this for a long time: countries get rich quickly. India- nothing for a while, changed policies and by 1980- bam growth- today. China- 1980 policy change to re engage the world, joined global economy- India has 8 percent growth nothing to second largest country in world- 12 percent gdp few do. Oil, gas, rare minerals and get rich or not get lucky. But people still think they are poor- people don"t grow at 10% very: countries are rich. People think they are rich, relaxing, tell myself i work hard!! People live off credit and have debt to sustain lifestyle. Americans do not like to save- just consume. Debt and overleveraging your assets, like your house: last stage of cycle they typically go through deleveraging and relative decline, which people are slow to accept.
