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Escalation Of Protectionism Measures Could Trigger An Economic Downturn

It makes sense for the Human Resources Department to use payroll software so that staff will have more time to devote to more pressing responsibilities than computing the pay of employees. The HR department has many important tasks that include providing employees with the right training so that they can more productive and motivated in the workplace.

On the other hand, the world is threatened today by news of trade wars. The global economy is picking up but the escalation of protectionism measures could lead to another downturn. According to Bank for International Settlements (BIS), there are signs that the “racketing up of rhetoric” is severely affecting investment. There are fears that a full-blown trade war may happen as Donald Trump steps up hostility with some of America’s key trading partners.

Tariffs were imposed on steel and aluminium imported from other countries but the trading partners, China and Europe immediately responded with retaliatory measures. The US president has threatened China with tariffs on $200 billion worth of imported goods. Europe was also threatened with tariffs on imported European cars after Brussels imposed taxes on American products like Levi’s jeans, bourbon whiskey and Harley Davidson motorcycles.

The escalation of protectionism measures could trigger an economic downturn and the impact could be very significant. There are signs of increasing uncertainties that are associated with the first protectionist steps.

In the annual report on challenges to the global economy, BIS states that the ultra-low interest rates that were implemented by central banks to respond to the financial crisis has improved global economy but loose monetary policies could be a threat to stability. 10 years after the global crisis, central banks were satisfied with the state of global economy but they cannot continue to be the only game in town. Normalization of monetary policies is very important in rebuilding policy space.

Regardless of the size of a company and the number of persons they employ, maintaining an efficient system through payroll software is always an important consideration. Employees expect to be paid for the work they performed and if the company fails, it results into unhappy employees and legal complications.