TOPIC 9 FUTURE OF INTERNATIONAL BUSINESS  243

 Topic 9 provided the future outlook for international business. We have

analysed the possible changes that can take place in the political and economic
environment of international business in the context of relationships first
between the east (comprising the countries of eastern and central Europe, and
the former Soviet Union) and the west (made up of countries in Western
Europe and North America).

 While the countries of eastern and central Europe would provide promising
opportunities in terms of its market and resources, the independent states of
the former Russia may face a slower and gradual growth due to lack of capital.

 The economic gap between the countries of the north (developed countries)
and the south (developing countries) will remain.

 The debt burden of many developing countries will dampen their potential for
growth unless financial assistance is forthcoming from the developed
countries.

 However, the economically healthy developing countries will be attractive

investment and market destinations for the developed countries.

 The emerging markets will also experience slow growth due to lack of stable
trading policies and infrastructures.

 The advancement in technologies, especially communications technology, will

provide new opportunities in e-commerce business and enhance information
flows.

 Other technologies in composites and biotechnology may also provide

opportunities for expansion.

 However, investments in technology require a vast amount of funds and

capabilities which the private sector would not be able to handle without
government assistance, thereby foreseeing a higher level of government-
corporate collaboration.

 Government policies will continue to place emphasis on domestic interests,

although recognising the importance of international relations.

 There may be greater cooperation among some countries in their effort to

coordinate domestic and international policies.

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