Tag Archives: effect

UMD Study: Fiscal Cliff Could Trigger Deep Recession, Fear of Cliff Has Cut GDP Already

COLLEGE PARK, Md. – The so-called “fiscal cliff” has already begun dampening the U.S. economy – even before it officially kicks in – and by year’s end will have cut 2012 GDP an estimated six-tenths of one percent, says a new study conducted by researchers at the University of Maryland’s Interindustry Forecasting Project (Inforum).

The study, called Fiscal Shock: America’s Economic Crisis, is one of the first to look beyond the first year effects of the combined federal spending cuts and tax increases. It projects an escalating impact into 2014 and beyond, as “multiplier” effects of fiscal contraction kick in. (more…)

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Global Expansion All About Give And Take, Study Finds

EAST LANSING, Mich. — The key to successful global business expansion is spreading operations across multiple countries, rather than trying to dominate a region or market, according to a new study led by Michigan State University researchers.

In addition, since global expansion is costly for service industries, manufacturing industries will profit most, said Tomas Hult, director of MSU’s International Business Center.

Led by Hult and Ahmet Kirca, associate professor of marketing, the study is the largest ever conducted to examine the effect of multinationality on firm performance, Hult said. It incorporates data from nearly 48,000 firms. (more…)

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