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Saturday, February 25, 2012

The year 2012 is another challenging year, both politically and economically, and in which both are inter-dependence. Political stability is required for a nation to prosper economically and likewise economic stability is needed for a stability in politics. This year witnesseses Euro Zone struggles to manage sovereign debt crisis of several of its members and the economy in the US is still in its recovery mode amid positive indication of positive growth in domestic consumer spending and unemployment rate.

The Arab Spring, on the other hand, has impacted the Arab world in particular with crisis still persist despite efforts by various quarters to manage the situation. Situation gets worsen in some countries due to differences of different factions which are unable to find common solution. This unstability has affected the economy and people starts to feel the adverse effects of the conflicts.

Regardless of what has happened and what will be happening, international business continues though at slower rate. Asia is the focus of attention, amid the uncertainty in Euro Zone and the US. China leads the pack of Asian countries in sustaining the world's economic growth though it is expected that the 2nd biggest economy in the world is also expected to post slower growth this year, but at least its domestic growth is still relatively strong due to increasing demand from its 1.3 billion population and the increasing purchasing power. India is also expected to be registering steady growth this year, followed by ASEAN member economies that are increasingly contributing to the growth of world's economy.