risk of overcapacity and risk of default will bear watching in 2010
Default risk will continue to bear watching in some sectors, particularly low value-added sectors (textiles, shoes, toys) and sectors grappling with overcapacity (automotives, construction, steel), with the government working to move the economy up market. And with the stimulus program spurring investment, the risk of overcapac
risks of conflict in the Strait were to decline, and cross-Strait cooperation was to increase, then the difficulties in implementing both the TRA and the three communiqué would diminish. Conversely, if Beijing employs coercion or Taiwan pursues de jure independence, the strains within the policy would mount and the ability to maintain the existent structure would erode, probably beyond rep
for the flight. As for the international airlines, the treat of substitutes is very low, because there are few options.
ㆍCompetitive Rivalry. In US, the airline industry is intensely competitive. Highly competitive industries generally earn low returns because the cost of competition is high. This can spell disaster when times get tough in the economy.
Risks are being cited that would lead to the lowest full year growth rate for the economy in two decades.
Russia and Brazil, the two commodity exporters, are no different in their woes. Russia is the world's second largest oil producer, and recently suffered from declining oil exports and capital flight. With the threat of the euro contagion continuing to spread, Russia could see a slowdown in i