Factors to consider before going Global

I came across this today while looking to see what is going on in the world.  I thought it was fairly appropriate as a preparatory guide to going overseas.

It gives good examples of things to consider, things such as lead time, or my favorite Factor 12: Hire a good lawyer, a savvy banker, a knowledgeable accountant and a seasoned transport specialist.  These are such a great concept that it is a good read and reminder to touch bases and make sure you have a good footing before you attempt to deliver product. 

This kind of goes though a whole lot of the prep work we have done though the class.  

20 Factors to Consider Before Going Global

North Korea and Black Market Exports

This week’s discussion on exports was very focused on how developed economies conduct international business. This had me curious of what an underdeveloped country does for export. More so, I was curious what a country under heavy trade sanctions with few allies does for export. That country is North Korea, and as it turns out, itrelies very heavily on black market trade to support their economy. The only legitimate export they have, counting for 75% of all export, is coal exported into China. The other exports out of North Korea are: slave labor, weapons, drugs, and cybercrime.

Five ways North Korea gets money to build nuclear weapons

Vacation to Cape Town Anyone?

As discussed in this week’s reading there is a great deal of planning that goes into entering a new market. This article illustrates great examples of market screening, market indicators, and market factors that business use when looking at emerging markets to move into. In this case, it is for the projected increase in travel to sub-Saharan Africa. Luxury travel spending is anticipated to grow in Europe, Asia, and the Middle East due to the increasing size of the upper-middle class. They are expecting that sub-Saharan Africa will be one of the markets to see the largest growth in the tourism sector. 

Strong potential for luxury travel in sub-Saharan Africa

Toshiba Nuclear?

Toshiba Nuclear is a product I have never heard of in the past.  This is ironic since I did work in the Nuclear industry in the past.  Toshiba purchased a portion of Westinghouse which was doing various nuclear work types.

At issue is that Toshiba Nuclear is looking to file for bankruptcy in the US.  They state that they will not affect the European portion of the company.  There is issue that Toshiba may have to sell off their lucrative chip manufacturing to pay off the debt.  There is concern that the debit will cause problems across the board for the rest of the company.  This would be a huge hit to the Electronics Industry as well as several others to lose such a large competitor.

This is a tie in to the Global side because of how much effect the loss of the US portion could actually take down the rest of the company due to the debt problem.

BBC News Toshiba Nuclear

Hyperinflation a Major Concern in Venezeula

There is major cause for concern about the inflation that is occurring in Venezuela. There is no end in sight to this growing inflation due to poor economic planning, high unemployment, and ever increasing public spending. Venezuela's economy depends almost entirely on their large oil reserves, with global oil prices down there is no turn around expected in the short term. Socialist President Nicolas Maduro has made no changes to correct the economic downturn. Inflation in Venezuela is expected to rise a staggering 1,642% in the year 2017.

Venezuela: the land of 500% inflation

Work Cited:

Gillespie, P. (2016, April 12). Venezuela: the land of 500% inflation. Retrieved March 21, 2017, from http://money.cnn.com/2016/04/12/news/economy/venezuela-imf-economy/

India Times is watching the Federal Reserve Closely

The speech that Donald Trump gave to Congress was overshadowed by the Federal Reserve last night.  The federal reserve has stated that it will increase interest rates three times over the next year.  This is the first time the FED has adjusted the rates up since 2015.  The FED believes it is a good time to raise the rate that it is going to loan out money.

The fact that the India Times is looking at the FED and what they do is important.  They consider how the US and the rates they loan at important to their own ecconomy.  This is important in the International Business world because the US Dollar is a good indicator on how other economies will be based.

http://timesofindia.indiatimes.com/business/international-business/fed-tees-up-march-rate-hike-as-key-policymaker-shifts-tone/articleshow/57421159.cms

Stock prices in the US also hit record highs as a result of the speech the results of the FED results.

"White Gold": Savior or Scourge?

With sustainability increasingly becoming a topic on many people’s minds, we all ask ourselves how can we do our part. One answer that has become popular is purchasing or leasing an electric or hybrid vehicle. It would appear you are doing your part to reduce the consumption of a non-renewable resource, petroleum. However, have you ever taken the time to ask yourself, where does the Lithium used to make that rechargeable battery come from? How about the batteries in your mobile phones, laptop computer, or digital camera?

The burgeoning industry of Lithium Carbonate mining is booming in Argentina. Lithium Carbonate, nicknamed White Gold, has had its price increase 250% over the last 5 years and currently is selling at $20,000 USD per ton. There is a growing debate on who is getting rich of this “gold rush”, is it international businesses or the locals where lithium is being mined? There is also increasing debate on how environmentally friendly the mining is due to the large amounts of water required in isolating the lithium.

Please enjoy this article found in the Washington Post analyzing the true sustainability of Lithium production and its effect on the local economy within Argentina.

Tossed Aside in the ‘White Gold’ Rush

Work Cited:

Frankel, T. C., & Whoriskey, P. (n.d.). Tossed Aside in the ‘White Gold’ Rush. Retrieved February 21, 2017, from https://www.washingtonpost.com/graphics/business/batteries/tossed-aside-in-the-lithium-rush/