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"Time and the world do not stand still. Change is the law of life. And those who look only to the past or the present are certain to miss the future."
U.S. President John F. Kennedy

The shift in the world’s economic power eastward to Asia has accelerated.  The South East Asia and the Far East has recovered from recession faster than the developed world.  The Asian banking systems are healthier than those of North America and Europe.  In 2009 China became the world’s top exporter, surpassing Germany and Japan.  Given current trends, China appears likely to become the world’s largest economy within ten years
The region accounts for a record share of many companies’ profits as noted by bankers and businessmen.  Many executives have relocated to Asia, such as banking executives moving from from London to Hong Kong.  Asia’s GDP has grown much faster than America or Western Europe.  Economists forecast that Asia will grow by more than 5% annually compared with 3% for America and 1% for western Europe.
Asia’s total share of world GDP has increased over recent decades.  For example, in 2009 Asia’s total GDP exceeded America’s.
Economists have shown that the region generates roughly one third of world exports.  The shift towards Asia continues to accelerate and its share of world exports surged during the 1980s, the 1990s and the first decade of the new century.  China’s share has grown, although Japan’s share of output and exports has declined.
Asian stock markets account for over one third of global market capitalization, ahead of both America.  Asian central banks hold the majority of all foreign exchange reserves.  Their influence over global financial markets is powerful because of the sizeable and increasing official reserves and financial assets.  Private sector wealth has been increasing in the East.  
The expansion of Asian business is pervasive, despite the fact that Japan’s GDP has declined due to deflation.  Importantly, prices of many domestic products such as housing and services in Asia is cheaper in low-income countries so that households’ real spending power is superior.
If GDP were measured using purchasing power parity in recognition of the lower prices, Asia’s share of the world economy has risen steadily to over one third in recent years.  By this measure, Asia’s economy may exceed the sum of North America’s and Europe’s within the next decade.  Three of the world’s four largest economies (China, Japan and India) are in Asia, and Asia has accounted for roughly half of the world’s GDP growth over the past decade.
Western firms are relying more upon Asian consumer spending.  Although over 60% of the world’s population lives in Asia, their consumers account for roughly one quarter of global private consumption, somewhat less than America’s 30% share.  Official figures probably understate consumer spending in emerging Asia due to poor statistical coverage of spending on services.  Recent studies indicate that Asia accounts for around one-third of world retail sales.  Asia is certainly the largest market for many products, for example over one third of auto sales and over 40% of mobile phones.  Asia consumes one third of the world’s energy and accounts for two thirds of the increase in world energy demand since 2000.
Asia is the number one region for capital spending.  40% of global investment takes place in Asia which is equivalent to America and Europe together.  Asian firms have been launching the majority of the largest initial public offerings (IPOs) in recent years. More than twice as much capital has been raised through IPOs in China and Hong Kong in recent years compared to the U.S.
For many centuries Asia has accounted for over half of world output.  It is apparent that Asia’s importance will increase in the coming years.  Western countries’ growth rates are burdened by large household debts which reduce consumption and by escalating government debt and higher taxes which lessen business investment and work incentives.  On the other hand, growth in Asian economies very likely will remain strong.  Strong growth may allow Asian governments in emerging Asian economies to let their currencies rise which would further improve the relative size of their economies in U.S. dollar terms.
Economists forecast that by year 2020, Asian business will constitute half of Western multinationals’ sales and profits which is an increase from 20-25% currently.  Business decision making is being shifted to Asian locations where the growth is occurring.  The shift of management activities reveals the fact that economic power is shifting rapidly to the East.

FROM OUR BUSINESS RESOURCES

Asia-Pacific Economic Cooperation
East Asia Summit
Asia's Wealth and Growth Engine
Chinese Investments in Napa Valley Wineries
China and Hong Kong Wine Business
China Business News
China, Japan & U.S. Foreign Investment Issues
International Investment & Immigration Opportunities
International Joint Ventures
Trademark Licensing and Royalties
Joint Ventures & Strategic Alliances
Purchasing a Business – Alternative Strategies
Selling a Business – Alternative Strategies