News & Views section (a revised and enhanced version of Knowledge Room and Community) is now available!
There is a new section in Current Topics In IB: Regional Trade Agreements. This section provides resources on worldwide Regional Trade Agreements (RTAs). RTAs are contracts between two or more countries that establish common trade regulations. Some examples of RTAs are the North America Free Trade Agreement (NAFTA), Central American-Dominican Republic Free Trade Agreement (CAFTA), and the Association of Southeast Asian Nations (ASEAN). Check it out!
In 1978, Chinese leadership began moving the economy from a centrally planned nation to a more market-oriented system, and the result has been advantageous. Since 2000, China's focus on market-oriented development has caused the output of the economy to quadruple. In fact, China has the sixth largest real market Gross Domestic Product (GDP), and is second in terms of Purchasing Power Parity (PPP). For much of the population, living standards have improved dramatically and the room for personal choice has expanded, yet political controls remain tight. The government has struggled to provide employment opportunities for tens of millions of workers, reduce corruption and other economic crimes, and keep the large state-owned enterprises thriving. However, China has plenty to be proud of as a leader in technology, world trade, and poverty improvement. The number of competent Chinese English-speakers is growing rapidly and more power generating capacity will come in 2006. China is a vital country in world economics and its contributions and growth have improved global business.
Doing Business in China
Want to learn more about Doing Business in China? The China module in the Academy section introduces a general understanding about Chinese culture, market potential, and challenges and opportunities of economic development. To use the on-line modules on globalEDGE you must be a registered user and logged in.
Learn more about China on globalEDGE Country Insights.
This month's poll question is:
"With increasing competition from India and Eastern Europe, do you believe that China will be able to maintain its competitive advantage in the future?"
Please view our homepage to vote on this month's poll question.
China to Maintain "Rapid Growth"
BBC News (November 29, 2005)
http://news.bbc.co.uk/1/hi/business/4481306.stm
The Organization for Economic Co-operation and Development (OECD) reported that China's annual economic growth should continue to rise from its current position of 9%. The latest analysis of the OECD showed that the Chinese economy would see annual growth of 9.4% in 2006 and 9.5% in 2007. Domestic demand and China's share of global trade is also set to improve for the 2006-2007 year. The economy is driven by considerable private sector investment, which contributes to maintaining its high growth rates. This, however, is causing a slowdown in import growth, and the consequence has been an account surplus. The OECD suggested that China let its currency rise further as a way of keeping the surplus under control.
Indian Official: Deal Unlikely at Summit
BusinessWeek, by Rajesh Mahapatra (November 21, 2005)
http://www.businessweek.com/ap/financialnews/D8E11QN80.htm?campaign_id=apn_asia_up&chan=gb
To prevent a repeat of what happened in the last summit, World Trade Organization (WTO) members are fixing new dates for key agreements, such as agriculture and manufacturing. Although a new global trade treaty is not likely to come out of the Hong Kong summit, negotiators would like to progress more than in the Cancun summit. It was reported that developing nations would not be upset if no agreements were reached as long as there is a move in the right direction. The United States said that it is willing to compromise agriculture subsidies if the European Union (EU) follows suit, however the EU stands firm in its position. The Hong Kong talks are set for December.
View more News on globalEDGE.
How France Can Win from Offshoring
http://www.mckinseyquarterly.com/article_page.aspx?ar=1632&L2=7
The McKinsey Quarterly, by Tony Blanco, Diana Farrell, and Eric Labaye (December 5, 2005)
French companies have been slow to offshore service functions because of practical hurdles and regulatory constraints, but research from the McKinsey Global Institute (MGI) reports that policy makers should aim to make the most of offshoring. Compared to other countries, such as the United States, United Kingdom, and Germany, France is a newcomer to offshoring. To capture benefits from offshoring, France must help its companies create higher-value jobs and make it easier for its laid-off workers to find new employment. The MGI offers further analysis and many suggestions in this detailed article. (Free registration is required to view this article)
Is Europe Losing its Innovative Edge?
http://www.ebfonline.com/at_forum/at_forum.asp?id=520
European Business Forum (November 14, 2005)
Both Europe and the European Union (EU) have recently been in the news concerning the textiles trade dispute with China, the opposition of Turkey's possible admittance to the EU, the "no" votes against the proposed EU constitution, and trade disputes on agricultural subsidies. Many feel that Europe is becoming resistant to change, and with this resistance Europe is losing its innovative edge. The Special Report contains a series of articles written from a variety of perspectives and takes a stance on whether Europe is following the EU's agenda by stimulating innovation.
View more In Depth Look articles on globalEDGE.
A sample of some of our recently added sites:
2005 Environmental Sustainability Index
http://www.yale.edu/esi/
A collaboration between CIESIN, the Yale Center for Environmental Law and Policy, the World Economic Forum and the European Community's Joint Research Center. The report provides sustainability measures for 146 countries and includes detailed sections on analysis and methodology, as well as country reports and data tables. The report and appendices are available in PDF along with Excel data spreadsheets for all countries considered.
Category: News and Periodicals: Publications
Global Outsourcing
http://www.globaloutsourcing.org/
Global Outsourcing provides articles, advisories, research, and case studies on outsourcing topics including outsourcing business process, locations, markets, and participating companies. In addition, the site includes interviews with experts on outsourcing topics.
Category: IB Topics: Outsourcing
Natural Disaster Hotspots: A Global Risk Analysis
http://www.ldeo.columbia.edu/chrr/research/hotspots/
This report published by the World Bank presents a global view of major natural disaster risk hotspots, which are areas at relatively high risk of loss from one or more natural hazards. It summarizes the results of an interdisciplinary analysis of the location and characteristics of hotspots for six natural hazards: earthquakes, volcanoes, landslides, floods, drought, and cyclones. Data on these hazards are combined with state-of-the-art data on the sub-national distribution of population and economic output and past disaster losses to identify areas at relatively high risk from one or more hazards.
Category: IB Topics: Security and Risk Management
View more recently added sites on globalEDGE.
Featured Discussion: China's Significance
China has established itself as a significant part of the global business environment as their exports have been increasing in recent years. With growing construction and development, increasing trade, and a large educated population, China is posed for economic prosperity. At the same time, however, the Communist Party is limiting the economic success to retain control of their citizens. Recently, China has been in the news for disputes with the European Union (EU) and the United States about textile exports. China is also under constant pressure to re-valuate the yuan (the Chinese currency) by the United States.
Do you believe that economic prosperity will continue in China in the future? Why or why not? Do you believe that China is losing or will lose its competitive advantage in labor? What will be the effect of re-valuating the yuan? Is China growing too big, too fast? Have you ever conducted business within China or imported products from China?
Join our online community to discuss this and many other current business topics!
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