globalEDGE Blog Archive November 2017

Business dislikes uncertainty, and there’s plenty of it now in the Gulf of Arabia region.  In case you missed it, a coalition of Gulf states led by Saudi Arabia are making life difficult for Qatar because of its alleged support of terrorist groups.  Qatar has hotly denied the charges, accusing coalition members of ganging up and attempting a takeover of the tiny sheikdom, which currently hosts 10,000 U.S. troops who are fighting the terrorists Qatar is accused of harboring and funding. 

Three weeks ago, Robert Mugabe, who at age 93 had served as Zimbabwe’s head of state for 37 years, purged his vice president, and longtime loyal supporter, Emmerson Mnangagwa in a move which elevated Mr. Mugabe’s 52-year-old wife to next in the line of succession. This move sparked outrage within the country and ultimately cumulated in a de facto military coup that forced the resignation of Robert Mugabe. The three tumultuous weeks came to a close last Friday with the swearing in of the former vice president, Emmerson Mnangagwa as the nation’s new president. While civil order appears to have been restored, the question still remains as to what the future holds for Zimbabwe’s economy.

Bitcoin has had an incredible year. Starting at around $1,000 in January of this year, the cryptocurrency is a mere $40 away from hitting five figures today.

E-commerce is a major component of almost every business that sells goods in the modern world, some even call e-commerce the key to a successful business.  E-commerce is defined as transacting or facilitating business over the internet. With the internet growing exponentially over the last two decades many people now look to it for a more convenient avenue to shop and do business over.  People can now do everything from paying their bills online to buying groceries and getting them delivered to their home.  With the tremendous growth in the potential for e-commerce, many companies have taken advantage of the increased opportunities for revenue. 

Although modern economies have increasingly become globalized, opinions of foreign direct investments (FDI) have varied throughout human history.

The maritime industry is being revolutionized this year, with the introduction of “smart ships.” The maritime transport carries more than 90% of world trade annually and is the most cost-effective mode of transportation for mass goods and raw materials worldwide. Advancements in technology have built a strong platform for the creation of autonomous ships. The sensory technology and algorithms needed for a virtual captain already exist and it’s only a matter of time until we see unmanned ships.

2017 is quickly coming to an end with many major holidays approaching in the blink of an eye. People are beginning to search for the perfect gift for their significant other and grandmothers. Black Friday, and more recently Cyber Monday has played a large part in the purchasing of holiday gifts. Black Friday originated in Philadelphia, Pennsylvania in the 1950s and expanded across the globe in the last ten years.

This is the final post in a five-part blog series focused on International Education Week.

International Education Week wouldn’t be complete without the central force that drives international education—international students.  With a record 1.08 million foreign students enrolled in approximately 2,100 US institutions, education in America is as enticing as ever.  Students from China account for nearly a third of foreign enrollees, with 350,000 students coming to the US in 2016—a seven percent increase from 2015.  Indian students are the second most enrolled at 53,000 students, and Brazilian students come in at third with 13,000 students.  Times Higher Education states that schools like our own Michigan State University have become “international powerhouses” regarding global education.  According to Alyson L. Grunder, a deputy assistant secretary of state for policy, “The US higher education sector remains the global leader in welcoming students from around the world, and at the same time, we are committed to increasing opportunities to study abroad for Americans.”

This is the fourth post in a five-part blog series focused on International Education Week. 

An international education has numerous benefits for students in grades kindergarten-12th grade (K-12).  When students travel between different countries they tend to be more comfortable with cross-cultural interactions, have the opportunity to learn multiple languages, and develop relationships with people from diverse backgrounds and in different places around the world.  All of these are extremely valuable skills to have in the workforce today, considering how connected the world is and how much business takes place between countries.  

This is the third post in a five-part blog series focused on International Education Week.

Advancements in technology have led to the world being more interconnected than ever before. Today we are a mere click away from being face to face with our counterparty, who could be halfway across the world. This interconnectedness has had an incalculable effect on society, both from a social and business perspective. It is now impossible to live in the silo on one’s home nation without being impacted by the events or people of other countries.

This is the second post in a five-part blog series focused on International Education Week.

International Education Week is a joint initiative of the U.S. Department of State and the U.S. Department of Education to encourage global education. From November 13-17, individuals and institutions will be promoting international education programs that prepare Americans for a global environment as well as attract future leaders to study, learn and exchange experiences.

This is the first post in a five-part blog series focused on International Education Week.

This week’s globablEDGE blog series will highlight the 18th annual International Education Week (IEW) that occurs November 13-November 17. IEW is an initiative of the US Department of State and US Department of Education that encourages educational institutions, businesses, and organizations around the world to host events in celebration of international students, study abroad programs, and exchange opportunities. The goal of IEW is to promote the importance of international experience as a key way for Americans to prepare for a global environment, as well as to invite people from abroad to study in the United States and share their diverse perspectives.

Inflation is a huge problem for many economies worldwide.   In countries like Venezuela, Argentina, and Ukraine the average consumer has been largely affected by the inflation currently occurring.  A basic definition of inflation is when the currency used in a country experiencing inflation buys fewer goods, the purchasing power decreases.  This is often bad for consumers, especially in countries experiencing very high inflation rates because they are not paid enough to compensate for the rising cost of goods and services.

Artificial intelligence is starting to have a great impact on the transportation sector worldwide. Self-balancing electric flying vehicles are pushing the future means of transportation to a whole new level. The first certified multicopter was tested in Bruchsal, Germany last year. Since then, different countries and companies around the world have shown interest in this new technology.

According to the World Economic Forum, at least $700 Billion should be invested yearly in order to monitor and maintain stable carbon levels. ‘Green financing’ is an innovative solution to this monetary issue that promotes the investment of private funds. Holistically, green financing is an idea that allows investors to profit off eco-friendly projects.

Many companies seek growth opportunities through integrating either vertically or horizontally with other companies. Vertical integration is a strategy where companies expand their business into their production chain (backward integration) or distribution path (forward integration), and these are generally achieved by M&A or internal growth. While horizontal integration is when a company acquires or merges with another company on the same level of the value chain, in other words, a competitor.

The Olympics have been a household staple occurring biannually for multiple centuries now. In less than 100 days, PyeongChang, South Korea will join the ranks of other cities who have had the honor of hosting the Games. This event kicks off with opening ceremonies starting on February 9th, with competitive events beginning on the 8th, till the 25th with 102 events in 15 sports. This year will be the first year for big air snowboarding, which is replacing the parallel slalom, mixed doubles curling, mass start speed skating and mixed team alpine skiing. However, with the hype of Olympics still growing, through social media, ticket sales have not been following the same trend.

As Halloween week winds down, consumers across the nation will begin the process of slowly making a dent in a pile of over 600 million pounds of one of the world’s most coveted treats—candy.  Candy—also called confectionery and comprised of chocolate, sugar, and gum products—has been one of the most popular goods on the globe since 1894, with worldwide confectionery sales anticipated to increase 3.2 percent by 2022 and valued at 85.5 billion dollars in 2016.

Virtual reality has been making great strides in the gaming industry, but also has many possible benefits within business.  Virtual reality is not yet widely accepted by the public, with devices such as the Oculus Rift and HTC Vive still not having as much success as was expected.  However, there has been an increasing interest in virtual reality technology by the public and by major companies as new uses for the technology are being discovered.  According to Reuters, there has been a 375% increase in companies that included virtual reality as part of their business plans from just last year; companies included are the New York Times, GoPro, and Wayfair.

#BeurreGate, which translates to “Butter Gate”, has been trending across France as consumers are finding the butter shelves at their local supermarkets empty. Many of these social media posts have been satirical in nature including false advertisements with absurd prices and even a short film, which depicts a post-apocalyptic France that has descended into anarchy without access to the national staple. While the true situation is not nearly as dire, French consumers are finding it increasingly difficult to purchase butter at their local supermarket.