Sunday, October 11, 2009

Eight out of Ten Ain't Bad.

No one can doubt that the economic meltdown that started in the United States a couple of years ago and then spread all over the globe has been a wrenching experience. Tens of millions have lost their jobs, retirement plans had to be adjusted, poverty has increased, malnutrition has become more widely spread and governments have had to bailout banks, automobile manufacturing giants, subsidize agriculture and mortgages. Besides all the painful current adjustments that individuals and households have had to make, the future does not look to be very clear either, considering all the additional borrowing that governments had to undertake. As of this writting the US national debt is 12 Trillion dollars ( $12,000,000,000,000)and is slated to keep on increasing. What would be the effect of such a high level of indebtedness on both the domestic and ultimately the world economy is still not clear.

As a result of the severity of the global economic contraction many are questioning the viability of capitalism as it is currently structured. One inevitable result of these discussions is the emergence of the view that the US dominance is ending and that the unipolar moment has already come and gone. All of the above might prove to be true but as Mark Twain once said" The report of my death has been exaggerated".

American military power has been challenged in Iraq and Afghanistan, its political power is being challenged in Iran, the Arab world, parts of Latin America and in Eastern Europe. All of that while the value of the dollar sets new lows on the foreign exchange markets on a daily basis and its moral leadership is often questioned in the halls of the United Nations and in the Climate Change negotiations.

Yet inspite of all the above "negativism" eight of the top ten Global Brands according to the rankings by Business Week are common American household names. The results of these rankings come close to an unprecedented sweep and a recognition of American ingenuity and ability to innovate but it is also a clear demonstration of interdependence and a growing integration of the world economy.

The following is the list of the Top Ten:

1. Coca Cola (KO)
2. IBM (IBM)
3. Microsoft (MSFT)
4. GE (GE)
5. Nokia (NOK)
6. McDonald’s (MCD)
7. Google (GOOG)
8. Toyota (TM)
9. Intel (INTC)
10. Disney (DIS)


Jim said...

With the global economic meltdown and the Middle East, America is being challenged every day to maintain its spot as a global leader. I am not surprised though that eight out of the top ten companies are American. All these companies hold a large position in their respective industries and almost everyone one of the eight companies has a very strong brand identity. America has always been in a leader in innovation and technology and I think that will continue well into the future.

Elias Maus said...

I am not surprised that there are only 8 American companies in the top ten. Theses past couple of years have been very hard for people and companies trying to make profit. Many American companies have been helped out with goverment funds but there are many more that didnt make it.

Justyna Sokol said...

For the longest time the common household names you hear are Microsoft, McDonalds, Coca-Cola, GE and the other companies that are one the top 10 list. I am by no means surprised that 8 out of 10 companies are American based, even with the crazy debt we are in. Although many big companies fell out during the recent recession, America still holds a very strong position in the world economy. However, with the recent recession affecting not only the US, our nation has had to deal with a lot of our powers being challenged. I don't think that any other large companies are going to fall out of their positions any time soon. Regardless of how it looks the companies are beginning to shape up again.

TK said...

It is up to these top ten companies to refuel the global economy. However, by doing so, they will eventually monopolize which is not good either. In other words, the government has to rely on these companies for an efficient circulation flow of money. Although these companies seem very large and prosperous, they are not enough to ensure a substantial distribution of income.

Khari Linton said...

After this recession ends, I think America will clearly not be the world's super power any longer. We will be on even playing fields with other first world countries, but America will still have advantges because of our business concepts and our capitalistic views. Our innovative ways got us to the top and will keep up at the level or somewhat at the top. Our economy may have changed drastically over these last couple of years, but we still have a much better economy than most countries because of top companies as talked about in this article.

Dominique DiNardo said...

Despite the fact that the US has been in a recession, American companies have managed to pull through and make their way into the top ten. It is not completely surprising to hear that companies, such as Coca-Cola and Microsoft, have earned their spots in this list. America's reputation has proved that it can possess some sort of strength even during hard times and will continue to greaten this strength in the future.

Abeer Ghani said...

The recession left the American economy in a whirlwind of turmoil. Not only did many people lose their jobs, but they lost their hope. The recession, and the country, seemed to be digging deeper into a darker financial ditch. However, with the news of the recession officially being over, it's safe to say that the potential fear of a "double dip" is now long gone. We are out of the woods so to speak.

Dana Weingartner said...

Knowing the time that this list was published, it surprises me that Coca Cola ranks above a company like McDonalds. Considering the economic turmoil at the time, I would think that a company geared towards cheap and fast food would be higher ranking, since during economic downturns, businesses like that seem to thrive.

Megan Burke said...

It makes me proud that eight out of the top ten thriving businesses are American companies. Although the United States took a bad hit because of the recession, these companies managed to stay in business, and build an increase in profit. As consumers, we helped these businesses stay in business by spending our money there. Businesses depend on household dollars to stay afloat.

Nick Terp said...

While admittedly America has seen better days the fact that 8 out of 10 of the biggest companies are still in America show that we are still and will remain an economic power. Along with that is the possibility of steady economic recovery with such large corporations based here to support the economic growth.

Cristina McGuire said...

America has been stretched too far between the conflicts in the Middle East and the recession. However, it is not surprising that 8 out the top 10 companies are American. Companies in the United States are extremely popular and unique. We will recover from this recession but it will take a lot of time. Unfortunately, I don't believe America will be a super power in the future.

Pema Choki said...

It is surprising to know that eight out of the top ten global brands listed by the business week are American brands.
Even when in a bad stage of recession, majority of Americans have the potential to be under the top ten global brands. This shows that they are determinant and so I feel that with understanding of the situation by everyone and by working together, the economy will grow out of recession with time.

Dillon said...

Even though the economy is failing you still have all the tourists coming over and adding to the economy. So I'm not surprised that 8 of the 10 are American Companies because as much as the economy is at a low right now people are still buying and these companies are making money.

Stephen Druan said...

Although America is obviously in quite a slump right now, this article displays the U.S. as a world power. 8 out of 10 companies is a fantastic fact and demonstrates how strong America's economy is globally even though it is completely weak within its own borders.