The financial crisis, triggered by the bankruptcy of Lehman Brothers in September 2008, resulted in a spectacular dip in industrial production in 2009 and into 2010. However, over the same period, retail sales remained fairly constant. In this paper, the authors argue that the shockwave throughout the industrial world was caused by the inventory policy adopted by manufacturing companies: due to the de-stocking and re-stocking practices, real demand was distorted along the value chain. The authors urge close monitoring of, and insight into, the real state of consumer demand to ensure the sustainability of the current economic recovery.
This 2010 edition of the Belgium’s Annual Report on United States Direct Investment in Belgium examines the structure and evolution of the activities of US-owned affiliates operating in Belgium. In addition, the report reviews major trends in the level of US direct investment in Belgium as well as in global direct investment flows. This report is a joint effort by the American Chamber of Commerce and Vlerick Leuven Gent Management School.