U.S. billionaire investor Sheldon Adelson has plans to open a £17 billion hotel and casino resort in Spain. The resort, being called “EuroVegas", would contain 12 hotels, six casinos, a concert hall, several theaters, and golf courses. It would be about half the size of the Las Vegas Strip in the United States. If plans for the resort follow through, it would be a huge stimulus to the Spanish economy.
Ten years have passed since the end of Angola’s civil war and the country has made enormous strides in rebuilding its once struggling economy. This year Angola’s economy is expected grow by eight percent as it becomes the second biggest producer of oil in Africa. One of the main effects of this rapid economic growth is the boom in infrastructure development. In the capital city of Luanda, the skyline is now filled with newly-built skyscrapers and each month more businesses are beginning to populate the area. Economic growth is beginning to transform Angola into a country filled with business opportunities, but how does Angola expect to sustain this economic growth in the years to come?
As discussed in yesterday’s introduction post, different cultures have very unique ways of doing business; from business dress, to conducting meetings, to even the customs surrounding deal-making. Each nation takes a unique approach to how many holidays they observe; this is a reflection of their distinctive culture and can affect their economy and business environment. In today’s fast-paced, ever-changing work environment, each day off means less output which in turn reflects potentially lost money. Days off are important for worker’s mental and physical health, but there needs to be a balance between productivity and a conducive work environment. The amount of bank holidays that a nation celebrates could be impacting the economy more than you think.
As Cambodia furthers itself from the tumultuous ‘70s, ‘80s, and ‘90s, topics such as economic development and tourism are receiving more and more attention. Developers in Cambodia believe that building casino resorts will be highly beneficial for tourism and the economy alike. Currently, there are 25 casinos in Cambodia, but many of these are small and cater primarily to hard-core gamblers in the surrounding area. Gambling in Southeast Asia is growing rapidly and Cambodia is seeking to capitalize on this, in hopes of increasing tourism and foreign investment.
Following a summit in New Delhi on March 29, 2012, the BRICS countries (Brazil, Russia, India, China, and South Africa) announced the proposal for a shared development bank. The idea is that this BRICS bank would provide an alternative to the U.S.-dominated World Bank and even have the ability to protect the developing world from financial problems originating in wealthier nations. Only a day after the summit in New Delhi, president of the World Bank Robert Zoellick said that the World Bank is interested in partnering with the BRICS bank and would be willing to share knowledge regarding global operations with the new bank.
Indonesia’s economy grew by 6.5% in 2011, marking the highest percentage in over a decade. This GDP growth, however, is not unprecedented because in seven of the last eight years Indonesia’s GDP has grown by more than 5%. In the last couple of years, corporations and investors have begun to compare Indonesia’s economic growth potential with the likes of India and China. Strong growth and political stability are two of the main reasons why corporations and investors share this confidence.
Last month, Hong Kong was reported to be the world’s most developed financial market by the World Economic Forum, an independent international organization. The responsive business environment and financial stability most industries found in this special administrative region of China, along with its efficiency, size of banking, and other financial services catapulted Hong Kong to the top, surpassing the United States, the United Kingdom, and Singapore. The rise of Hong Kong has been attributed to non-banking services, like IPOs and insurance, which offer long-term yields rather than the shortsighted investments that Western financial markets tend to favor.
The German Federal Statistical Office has recently released estimates stating that the nation’s economy grew by approximately 3 percent last year. While this is a very impressive figure in today’s uncertain global economy, official data shows that the growth came mostly in the first half of 2011. Alarmingly, the office estimates that the German economy actually contracted by approximately .25% in the fourth quarter of 2011. Stress from the European Sovereign Debt Crisis and a slowdown in the global economy are weighing heavily on the nation.
With large amounts of minerals and natural resources, the South American country of Brazil has received large amounts of attention as it economy continues to expand at a rather rapid pace. In 2010, the Brazil economy grew by a large 7.5 percent and has been named one of the key “BRIC” economies of the world along with Russia, India, and China. Brazil’s economic growth has far outpaced the United States and has also positioned Brazil as the world’s sixth-largest economy, just passing the United Kingdom’s economy this last year.
In the business world, sports may be best recognized for the many benefits they offer to individual businesses such as sponsorships, brand building, venues for advertisement, and marketing opportunities. However, sports also have major impacts on economies all around the world. It’s no surprise that international sporting events like the World Cup and the Olympics greatly affect the economies of host countries. These economic effects can be positive or negative and can have implications not only on a regional level but a global level as well.
While many countries look to drive their economies by increasing trade and consumer spending, South Korea is looking in another direction. Renewable energy sources and projects are being used to boost business and promote economic growth in South Korea. The term “Green Growth” has been coined by the country and has become a major national strategy. This strategy has given rise to a vast range of policies regarding waste-management and air-quality control. However, South Korea’s main focus lies within renewable energy technologies with the mission not only to lower greenhouse gas emissions but to also boost the economy.
Lately, global news has been dominated by the European debt crisis. This news has been predominately negative and I personally have been looking forward to hearing something positive for a change. Ireland has recently been experiencing moderate economic growth and the budget deficit has since been declining. Germany and France have commended Ireland for making economic strides, and believe that this nation is not far from being out of the crisis.
The United States-Colombia free trade agreement approved just a few months ago has helped business growth in Colombia and is expected to continue to help boost Colombia’s economy. The main benefit from the free trade agreement is often seen as attractive conditions for increased exports and imports. However, some companies in Colombia see the main benefit coming from the growth of demand that the free trade agreement will likely generate. Besides these major benefits, there are also many other positives for business in Colombia derived from the newly passed free trade agreement.
The Association of South East Asian Nations (ASEAN) recently endorsed Burma to become the leader of the regional trade bloc beginning in 2014. This is a major milestone for the country, revitalized by a new civilian government that assumed power from a militaristic rule early in 2011. Economic growth in the nation has suffered in the past, due to inefficient government policies, corruption, and wide-spread poverty. However, since the new government came into power, there have been numerous reforms in order to promote economic growth within Burma.
With Turkey’s location serving as a natural bridge between Asia and Europe, it’s no surprise that Turkey plays an important role in international trade. In fact, this is one of the key reasons why Turkey’s emerging economy is having major impacts on the region and international business. However, this is not the only reason why Turkey is becoming a regional power in today’s business world. The emergence of Turkey has been a positive development for a number of reasons and Turkey is looking to capitalize on this success by striving for continued economic growth.
The Dominican Republic is usually known as the country leading the tourism industry of Latin America. However, that’s not necessarily the entire picture as the Dominican Republic is increasingly boosting its other sectors such as mining, finance, telecommunications, and infrastructure. Foreign direct investment flowing into the country allows this growth to be sustainable and continue into the future. There are many business factors that provided the foundation for the Dominican Republic’s growth in these various sectors.
Germany and Vietnam recently expanded their economic ties by signing financial cooperation and partnership pacts. Last year bilateral trade exceeded 5 billion dollars between these two countries and Germany was Vietnam’s largest trade partner in the European Union. These countries are not only looking to increase trade, but also to create welcoming working conditions for businesses in each other's country. This partnership aims to benefit both parties in ways far beyond just trade.
While most economies in the European Union are slowing down, Estonia is going in the complete opposite direction. Estonia currently has the fastest economic growth rate in the European Union with a solid eight percent growth rate in the first quarter of 2011. Joining the European Union in 2004, Estonia has come a long way to establish itself as a prominent economic force in Europe. The country experienced some hindrances along the way but has overcome these obstacles while continuing to grow economically. There are many reasons and key business factors that account for this positive growth rate in Estonia.
The past several years, the economy in Morocco has been characterized by macroeconomic stability and low inflation. However, the country has been faced with high unemployment and its task in recent years has been to accelerate growth in order to create more jobs.
Morocco's initiatives for developing entrepreneurship put stress on improving the literacy rate and encouraging women to enter the business field. In the past decade there have been numerous literacy programs, targeting mostly women, the largest one being "Massirat Nour". The government sees education as the tool to decrease poverty. The larger goal is to diversify the economy so that it is not as agriculture focused and make the country more attractive to foreign investors.
Products by large companies such as Samsung and Hyundai are crucial to keeping South Korea’s economy afloat however the country’s small and medium-sized businesses may be even more important. These smaller businesses provide more than 80 percent of the country’s jobs but are beginning to feel the pressure from Korea’s big conglomerates. The number of smaller firms competing in various sectors has been reduced to just a handful because of the difficulties of earning a profit in the face of big company demands. This is not the only concern for small-businesses in South Korea.
The credit rating agency Standard & Poors recently downgraded the U.S. from its pristine AAA credit rating to a still strong AA+ rating. How exactly does this affect your business and the international business landscape as a whole?
When looking at economic indicators in Uruguay, government officials and businessmen have much to cheer about. In 2010, the economy grew by 8.5 percent giving Uruguay the fourth-highest increase in Latin America. This growth is predicted to continue as officials estimate a growth rate of 5 to 6 percent this year. Some predict the GDP growth rate to be even higher as both domestic and external demand continues to climb at a very healthy pace. There are many reasons that account for the positive growth rate of Uruguay.
Most people think of China or Japan as the most prominent auto manufactures in Asia. That has certainly been the case for the past years but now the country of India is becoming a major manufacturing hub for the continent. Nissan’s Indian factory is less than a year old and covers 600 acres making it one of the company’s largest plants worldwide. Nissan is just one of the many major Asian auto companies that have set up manufacturing hubs in India.
A new report by KPMG is claiming that the clean technology sector is a strong force in the economy of several Canadian provinces, including British Columbia. The report says that clean tech firms will directly generate over $2.5 billion for the economy in 2011, not including other economic benefits created by these companies. This is a 57% increase from 2008. The growth is not expected to slow either; KPMG has stated that the sector will grow 16.5% to 8,400 employees in 2011.
After a strong recovery last year, local and foreign investors are optimistic about growth and investment opportunities in Mexico. The strong recovery in 2010 was fueled by the increase of exports and tourism as well as growth in the mining industry. These factors helped produce an economic growth of 5.5 percent. This was the best result Mexico has experienced over the past decade. Mexico looks to continue this economic growth trend and the good news is 2011 seems to be shaping up just as well.
It’s hard to believe two and a half years after a global financial crisis that economies around the world can recover to pre-crisis levels. However, that is exactly where the economies of Central European countries find themselves. Countries in Central Europe have shown remarkable resilience to recover at a rather quick pace. Estonia and Slovakia are swiftly moving ahead with estimated growth rates of nearly 4 percent this year. But perhaps the most important piece in Central Europe’s recovery lies in the country of Poland.
Since the Euro was introduced by the European Central Bank in 1999, Germany has gained competitiveness against not only other developed countries around the globe, but also against all other members of the Eurozone. In this time, they have also managed to transform a slight budget deficit into a strong surplus. A lot of people are starting to wonder what caused this rapid transformation?
With the recent concerns in Japan over nuclear power hazards, many around the world are questioning the use of nuclear energy. Some ask if the benefits outweigh the costs while others just question the precautions necessary when using nuclear energy. Of the questions asked, Germany has an answer. Don't use nuclear energy at all.
Across the world there are many emerging economies that provide excellent opportunities for businesses looking to invest in these countries. In the Middle East, there is one emerging economy that is of particular importance. The country of Turkey has the largest economy in the region and is in the process of accomplishing a major milestone. Soon, Turkey will enter the group of $1 trillion economies and with this major economic growth, Turkey is certainly considered a significant emerging economy.
Oil is quite possibly the single most important commodity in the modern world economy. Those countries with abundant sources of the valuable substance are in a strong position to trade with producers around the world who cannot do business without it. CNBC has put together a list of the top fifteen countries in terms of confirmed oil reserves. The ramifications of this list are much greater than they may initially seem.
Valuable copper, gold, and coal deposits enticed international investors to put $1.4 billion into the Mongolian economy in 2010. As production in China expands, Mongolia is well positioned geographically to capitalize on demand for raw materials. Although small in terms of population, Mongolia saw its national currency (the tugrik) outperform any other global monetary unit over the last year. Will this upward trend continue, or will Mongolia fail to capitalize on a promising opportunity for economic growth?
As the benefits of international trade increase, many countries search around the globe for reliable markets that provide vast opportunities for exports and foreign investments. Over the past years, Latin America has proven to be a very important and dependable market for U.S. exporters.
After 42 years as the world’s second biggest economy, Japan officially fell behind neighboring China in 2010. Many projections indicate that China will go on to surpass the United States as the world’s largest economy by the year 2025.
It is hardly surprising that the world’s most populated country would pass its tenth largest. Japan maintains a significant lead on China when population is accounted for in per-capita measures of wealth. Regardless, this does draw attention to recent economic struggles in Japan. Several indicators of the nation’s economic well-being have recently fallen and Standard & Poor’s went as far as to downgrade the Japanese credit rating from AA to AA-.
In 2001, global economist Jim O’Neill labeled Brazil, Russia, India, and China as the premier emerging markets of the world with enormous economic potential. The mainstream BRIC acronym was applied to these countries and the hype surrounding these countries was well deserved. Over the past decade, the countries have contributed to over a third of world GDP growth. Recently, Jim O’Neill named the next tier of large emerging economies using the term MIST – or Mexico, Indonesia, South Korea, and Turkey.
Today, immigration is often regarded as an economic threat because jobs are believed to be stolen by immigrants. However, a recent study published by the National Bureau of Economic Research contradicts this popular bias. The results of the study indicate that immigration encourages business activity and produces more jobs for a country’s economy. You may be asking yourself: “How can immigrants competing with domestic labor for jobs, actually create more jobs?” There are several reasons which help answer this question.
So how exactly to you advance from a frontier market to an emerging market? Some people classify frontier markets as a subset of emerging markets, but there is a clear distinction. We’ve talked in previous posts about systematic risk and political instability as huge factors to impeding growth. Once a country can overcome many of these risks, and grow a more stable infrastructure, it is well on its way to becoming a developed economy.
Japan has received good news. There are now more optimists among Japanese manufacturers for the first time since 2008. Japan has the world’s second largest economy, and things are starting to look up as the country has struggled in past years to overcome its financial slump. One of Japan’s key banks released a report which showed that business manufacturers are improving for the fifth straight quarter, as exports such as gadgets, cars, and other goods are on the rise. The number of businesses reporting that conditions are good is higher than those reporting unfavorable situations, allowing Japan to look forward to future growth.
When a natural disaster hits a country, the negative affects are quite obvious. The number of deaths is always devastating, along with the destruction of the land. Luckily, the number of casualties associated with natural disasters has dropped significantly in the past few decades. On the other hand, the cost of natural disasters is continuing to rise. They can have an enormous effect on the country’s GDP and economic growth. Natural disasters have been proven to drop a country’s GDP significantly.
A recent story by BusinessWeek describes the value of a country focusing on the education of its female populace.
Some interesting statistics:
- When a girl in the developing world receives seven or more years of education, she marries four years later, on average, and has 2.2 fewer children.
- An extra year in primary school statistically boosts girls' future wages by 10% to 20%, and every additional year a girl spends in secondary school lifts her income by 15% to 25%. The size of a country's economy is in no small part determined by the educational attainment and skill sets of its girls.
- Young women have a 90% probability of investing their earned income back into their families, while the likelihood of men doing the same is only 30% to 40%.
- A girl's school attainment is linked to her own health and well-being, as well as reduced death rates: For every additional year of schooling, a mother's mortality is significantly reduced, and the infant mortality rate of her children declines by 5% to 10%.
As the economy continues to recede, many people are starting to think about their futures more seriously. The unemployment rate in the U.S. is at 6.7% and we are facing the worst job market in the past 15 years. Fortunately, there are still some industries with hiring potential.