On June 23rd, the United Kingdom made a monumental decision to exit the European Union. However, the magnitude of impact which the Brexit will have on the British economy remains uncertain. Following the vote, significant increases were predicted in the UK’s economic welfare and consumer confidence, although future statistics may indicate otherwise. After a week of collecting official data, the numbers forecast that consumers are spending more, the value of the pound has weakened, and tourism has increased in the UK. Simultaneously, interest rates have taken a historical cut, while inflation has begun to rise.
Central banks are responsible for determining the monetary policy by setting the interest rates to balance investments and savings, which helps to keep economies fully employed and inflation stable. The natural rate is the interest rate that helps to achieve the balance, and federal reserve policy makers believe that the rate is at 3%, down from 4.5% prior to the recession. The 1.5 percentage point decline in the natural interest rate provides less ability to counteract future economic shocks.
Over a week ago, Indonesian president Joko Widodo announced that he would like to lower the country's corporate tax rate. In addition, he is considering a more drastic change of converting one of the nation's islands into a tax haven.
Just four years ago, the Mongolian economy grew by 17% and attracted billions of dollars in foreign investment, according to World Bank data. Today, there is a mounting debt crisis and the risk of a possible default from the Mongolian government, with GDP only growing about 1.3% for the first half of the year. Currency has also plummeted nearly 10% against the dollar in the past month alone, and concern continues to grow as more investors pull their funding from the country.
[This blog is based on the Article Snapshot for my article with Michael Giebelhausen, HaeEun Helen Chun, and J. Joseph Cronin Jr. in the Journal of Marketing, July 2016. A six-minute radio dialogue between Michael Giebelhausen and Tomas Hult about the article is on the globalEDGE Business Beat]
Consumers experience a "warm glow" and heightened service satisfaction when they participate in a provider's voluntary green program (and vice versa), an effect that can be dampened or heightened depending on how participation is incentivized.
[This blog is based on the Article Snapshot for my article with Constantine S. Katsikeas, Neil A. Morgan, and Leonidas C. Leonidou in the Journal of Marketing, March 2016. A six-minute radio dialogue between Neil Morgan and Tomas Hult about the article is on the globalEDGE Business Beat]
An assessment of performance outcome measures in marketing reveals significant problems with how such outcomes are conceptualized and operationalized and performance areas in which empirical knowledge of marketing's impact is limited.
For years Americans have seen manufacturing jobs relocated overseas in an effort to lower production costs. The loss of these jobs has put millions out of work, and has done nothing to help the economy. There is a push to relocate these lost jobs back to American soil, to help recreate the jobs that have been lost. However, the question is, will the returning of these factories actually create more jobs?
The latest economic numbers for the second quarter of 2016 were published Monday, and they do not paint a bright picture of the Japanese economy. Data shows the economy in Japan barely grew, expanding only 0.2%, lower than the already diminished target rate of 0.7%. The stalling growth was somewhat expected, considering April earthquakes and the impact of Brexit, but was still worrisome considering the large drop from 2% growth in the first quarter.
In the latest globalEDGE Business Beat, MSU's International Business Center Director Tomas Hult talks with 5 guests on a wide range of interesting topics. Included are discussions on voluntary green programs and their implications, customer satisfaction and its impact on stock returns, innovation inside companies, and the current state of international trade agreements. Check out the new Business Beat segments to gain insights into the international business world!