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Are American executives, who once relished being regarded as bruising street fighters, beginning to have second thoughts about globalisation? Timorous Indian executives, however, who just five years ago appeared to baulk at global competition arriving at their door step, now seem to be more gung-ho about it. This seems to be the finding of the McKinsey Global Survey of Business Confidence 2005. The confidence of US executives in the US economy has plummeted over the past three months, while the confidence of business leaders overall in the global economy was unchanged: more of those who participated in the McKinsey survey are still upbeat, though by a small margin. This survey is based on the views of more than 5,800 business leadersfrom 128 countries and was conducted just after Hurricane Katrina hit the US Gulf Coast. The Indian view: -
The global survey shows that Indian business leaders are more upbeat than others about the effects of globalisation on their businesses. They are, however, less confident about locating suitable talent.
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Most Indian executives think that globalisation, increasing affluence in emerging markets, and other global trends would enhance their profits.
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India is looking to the United States for much of the expected growth and virtually ignoring China. Significant shifts have taken place at the regional level - Chinese executives and those in other developing markets (with the exception of India) also reported declining confidence in their country's economy. US-based business leaders have generally been among the more optimistic in past McKinsey surveys. For example, barely over six months back, when asked (in March 2005) how they felt about the economy in the next six months, a majority - an index of 59 - were reported as being very confident. This number came down to 44 per cent when they were again asked in this survey to compare prevailing conditions against those of six months ago - the lowest in the last 18 months when McKinsey first commenced the survey. Incidentally, the surveys show that the confidence of American business leaderswas the lowest of any group of business leadersin the world. However American business leadersare much more upbeat about their own industries. Their confidence fell, but remains only somewhat lower than it was six months ago, reveals the survey. Respondents from China and other developing markets (with the exception of India) also grew significantly less confident about their national economies over the past six months. Business leaders from India, whose position was virtually similar over this period, remain more confident about their economy - where growth has been strong - than business leaders anywhere else in the world.
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