Home to rich farmlands, a well-developed industrial base, highly trained labor, and a good education system, Ukraine has established itself as a favorable location for business. Well known for its agricultural areas, Ukraine is one of the world's main centers of sugar production. With rich natural resources, such as iron ore, coal, color metal, oil, gas, mineral salts and clay, Ukraine has developed a varied industry, mostly concentrated around large cities. Countries of the former Soviet Union remain important trading partners for Ukraine although trade is becoming more diversified. Europe is now the destination for over one third of Ukraine's exports, while around one quarter of Ukraine's exports go to Russia.
Ukraine achieved its independence in 1991 with the dissolution of the USSR. Democracy, however, has been distant as the legacy of state control and prevalent corruption has delayed efforts at economic reform, privatization, and civil liberties. Near the end of 2004, the "Orange Revolution" forced authorities to overturn a fixed presidential election, allowing a new internationally monitored vote. Today, economic growth is steady, but it is still burdened by unnecessary government regulation and corruption. With its recent political instability, Ukraine will be a country to watch in the weeks and months to come.
Learn more about Ukraine on globalEDGE Country Insights.
This month's poll question is:
"Ukraine's recent struggle for independence from Russian-controlled fuel supplies failed when Ukraine re-signed a five-year agreement that locks them into paying more for fuel than before. Does this agreement leave the Ukraine too dependent on Russia?"
Please view our homepage to vote on this month's poll question.
Germany Flexes Some New Muscle
BusinessWeek, by Jack Ewing (January 4, 2006)
http://www.businessweek.com/bwdaily/dnflash/jan2006/nf2006014_4393.htm
According to a recent report from the German Federal Labor Office, the normal December rise in unemployment was unusually low. Several other reports have forecasted improving growth rates and further reductions in unemployment over the coming year. Accompanying this growing economic confidence, several of Germany's largest firms have made significant acquisitions. However, analysts have suggested that the growth may begin to slow near the end of 2006 as the German government raises the value-added tax to bring the national budget into accord with European Union.
Gas Halt May Produce Big Ripples in European Policy
The New York Times, by Mark Landler (January 4, 2006)
http://select.nytimes.com/gst/abstract.html?res=FB0E11FD3A540C778CDDA80894DE404482
Although the natural gas lines between Russia and Ukraine were shutdown for less than 48 hours, the interruption could have widespread repercussions. Many Western European countries, such as Germany and France, have begun to rethink their energy policies. Leaders of these countries are citing a lack of reliability with Russian gas as the source of their new concerns, since Russia is virtually the sole provider of natural gas in the European region. (Free registration is required to view the article)
View more News on globalEDGE.
Baptism By Fire
Latin Trade (December 31, 2005)
http://www.latintrade.com/dynamic/index.php?pg=site_en/pastissues/Dec05/features2.html
The Central American Free Trade Agreement (CAFTA) took effect on January 1, 2006, which now allows Central American exports to be competitive against those of the Chinese. Though it will take twenty years to fully implement CAFTA, many Central American producers are optimistic. To date, Costa Rica and Nicaragua are the only two countries that have not ratified the agreement, though both are expected to do so. Many agree that the textile sector is the big winner, since many Central American textiles were already being imported into the United States.
Emerging Markets: Beyond the Big Four
BusinessWeek (December 26, 2005)
http://www.businessweek.com/magazine/content/05_52/b3965450.htm
Many investors have focused their attention on Brazil, Russia, India, and China (BRIC) as the fastest-growing economies, but there are other countries that are potential emerging markets. Egypt, Mexico, Poland, South Africa, South Korea, and Turkey all have impressive growth, but not quite the population as the BRIC nations. All of the smaller countries are making dramatic economic improvements, such as Turkey's attempt to gain admission to the European Union (EU), but they also have a large amount of risk. These countries tend to have very little liquidity in their economy and thus investors could see prices tumble, maintain, or even skyrocket.
View more In Depth Look articles on globalEDGE.
Aspen Publishers
http://www.aspenpublishers.com/
Aspen Publishers a provides full range of materials including books, periodicals, CDs and online products for attorneys, business professionals and law students. The products cover various international topics such as law, taxation, and economics.
Eburon Academic Publishers
http://www.eburon.nl/index.php
Headquartered in the Netherlands, Eburon Academic Publishers publishes books in a range of disciplines including business administration, management, public administration, economics and more. Their unique publishing model allows authors direct and active control over the publication process of their texts. The website is bilingual with both Dutch and English.
View more Academy Resources on globalEDGE.
A sample of some of our recently added sites:
Ukraine: UkraineBiz
http://www.ukrainebiz.com/toc.htm
This site is run by the Center for Economic Initiatives. Its goal is to increase the competitiveness of entrepreneurs and small and medium-sized companies in developing countries. The website provides a country directory of both Ukrainian companies and also U.S. and Canadian companies interested in working with Ukrainian companies.
Country: Ukraine
Latvia: Latvian Investment and Development Agency (LIDA)
http://www.liaa.gov.lv/
The Latvian Investment and Development Agency (LIDA) website is home to a state agency that aims at promoting trade with Latvia. A wealth of information is provided such as economic indicators, prospective business sectors and available incentives.
Category: Trade: Trade Portals
Country: Latvia
Academic Discussion about Globalization
http://globalization.icaap.org/
This is a website of the International Consortium for the Advancement of Academic Publication, an affiliation of Athabasca University of Canada. The website provides articles regarding various topics of globalization, such as globalization resistance, inequality, and global cooperation.
Category: IB Topics: Globalization Debate
View more recently added sites on globalEDGE.
Featured Discussion: Ukraine's Future
Ukraine has made international news with its recent political government instability and Russian fuel crisis. However, the Ukrainian economy has remained fairly strong with rising industrial output, improving exports and falling inflation. Ukrainian trade continues to expand into Europe, while traditional Russian trading partners remain significant to Ukraine's economic health. In May of 2002, Ukraine announced its intention to join NATO, although membership still remains an area of contention. As government issues persist and relations with Russia remain strained, the state of Ukraine's democracy will be tested. Foreign investors continue to be wary of the Ukraine economy because progress has been slow and corruption is still a significant concern.
Do you believe that Ukraine will emerge prosperous from the recent government issues? Why or why not? Do you believe that Ukraine will be most successful in the future by expanding its relationships with the European Union (EU)? Would EU membership help shape Ukraine's economy? Has the Ukraine sufficiently established itself as independent from Russia? Have you had any experience in terms of conducting business in or with companies in Ukraine?
Join our online community to discuss this and many other current business topics!
This newsletter is being sent to you by the globalEDGE Team. You elected to receive this newsletter from globalEDGE when you registered on our website, located at:
http://globaledge.msu.edu/
We do not disclose any of your information to third parties. However, if you do not wish to receive further information from us, you can edit your globalEDGE profile using the link below:
http://globaledge.msu.edu/profile.asp
If not already logged in, login with your username and password. You will be able to change any of your membership information. If you wish to opt-out, UNCHECK the box in section three of your profile that says:
globalEDGE Newsletter (see sample)
Yes, sign me up for the free monthly globalEDGE newsletter and other occasional information from globalEDGE and MSU-CIBER."
If you want to receive a Text version of the newsletter, select the Text option from the same section (3) of your profile that says:
"Choose preferred format"