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SHIVNATH PANDEY MBA-MKU 4TH SEM Krupanidhi B-School

DECOUPLING
1."Decoupling is yesterday's story, 2.Disconnect or separate; make disconnected, disjoin or unfasten. 3.Decouple - regard as unconnected; "you must dissociate these two events!"; "decouple our foreign policy from ideology" The decoupling hypothesis Many people believe that China and India have decoupled from the US economy, so a slowdown in the US (which appears to be on its way) will not affect growth in China and India.

MANY nasty words begin with the letter D: death, disease, depression, debt (when you drown in it) and deflation. Decoupling, on the other hand, has a nicer ring to it, even if it is the source of a great deal of controversy.

Research on decoupling
The empirical analysis by Ayhan Kose, Christopher Otrok, and Eswar Prasad (2008) is perhaps the most prominent contribution to the debate. They decompose the real GDP growth rate in over 100 countries into three factors: A global factor, which picks up fluctuations that are common to all countries, An economy-type factor, which captures fluctuations that are common to countries within each of the three types of economies advanced, emerging, and developing, and A country-specific factor.

Various Sector
1.Software Development In software development, the term "decoupling" is used to identify the separation of software blocks that shouldn't depend on each other. 2.Biology In biology, decoupling (used interchangeably with uncoupling) refers to the separation of the energy stored in the ion gradients inside mitochondria from the synthesis of ATP.

3. Electronics In electronics, decoupling refers to the preventing of undesired coupling between subsystems via the power supply connections. 4.Rail transport In rail transport, decoupling is the separation of two railroad cars by manipulation of their couplers.

Faith in the concept has generated strong outperformance for stocks outside the United States. In January 2008 as fears of recession mounted in the United States, stocks declined heavily. Contrary to what the decouples would have expected, the losses were greater outside the United States, with the worst experienced in emerging markets and developed economies like Germany and Japan. Exports make up especially large portions of economic activity in those places, but that was not supposed to matter anymore in a decoupled world because domestic activity was thought to be so robust.[3

CONCLUSION
Benefits . Innovation. Opportunities.

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