globalEDGE Blog Archive February 2022

Since the beginning of February, some Canadians have been deep into a series of protests called the "Freedom Convoy." This protest is led by truckers in response to vaccine mandates from the Canadian government, which says that you must have a COVID-19 vaccine to cross the United States-Canadian border. Hundreds of trucks and truckers have participated in this protest. They began their blockade at the busiest route that links Canada to the United States and has since spread out into the surrounding areas.  In an act of rebellion, the trucks have been honking their horns for hours on end. Canadian citizens living near the protests grew increasingly frustrated, which led to Prime Minister Trudeau invoking the Emergencies Act, which allows the Canadian federal government to have temporary powers to do whatever may be necessary to stop the protests. The enactment of the Emergencies Act has led to arrests and decreased protests. Additionally, those who engage in the protests now run the risk of having their funds frozen by their banks, which could prevent some people from paying their own bail after being arrested for charges related to the protests.

With inflation among the highest in the world, Turkey is on the brink of an economic crisis concerning the dispute between Russia and Ukraine. Key economic contributors such as natural gas, oil, and tourists from Russia and Ukraine are relied upon by Turkey. The possible Russian invasion of Ukraine poses a major threat to Turkey’s already fragile economy.

We all learned about the industrial revolutions in our world history class - due to the increase in wealth from violent colonialism, Europe invested in technology and created the cotton mill and steam power in the late 1700s to early 1800s. And now, more and more technological revolutions have led us to this new, debated Fourth Industrial Revolution, a revolution that is radically changing every business sector.

The rise of the East and the decline of the West have become a common theme among Chinese government officials. Chinese President Xi Jinping and Russian President Vladimir Putin are plotting the next Cold War. China and Russia’s relationship grew closer over the mutual interest to dismount the United States' dominance. With the United States occupied with COVID-19 and pulling troops out of Afghanistan in disarray, Russia and China see an opportunity to invade the nearby countries Ukraine and Taiwan. Both countries have been targets for China and Russia for decades. As Ukraine struggles to join NATO it will be a tough battle for them to compete with Russia. Also, China is being projected to become the world’s largest economy and building the world’s largest army they will be a force to be reckoned with.

From being on a variety of toast to a great addition to smoothies, avocados have become a popular ingredient in Americans' diets. However, this staple piece may become more difficult to find and more expensive to buy after the United States decided to ban all imports of avocados from Mexico temporarily. This ban stemmed from a verbal threat made to U.S. safety inspectors. While these threats were not made public, interest from drug cartels have made their way into the avocado industry and continually find methods that broaden their illegal income streams.

The Olympics we watch today are vastly different than the first Olympics in Olympia, Greece. The Olympics adapted to changes in the world to transform into the modern games we watch today. Each change was made meaningfully and with the goal of making the games more representative of the society we live in. The International Olympic Committee meets to make changes to the games, whether that be adding or taking away sports or creating new standards for sustainability and gender equality so that the Olympics continue to adapt to new ideas and generations. 

Every four years, fans are on the edge of their seats for nearly three weeks of the Winter Olympic Games. Some countries are known for their reputation of being on the podium, but how might this change with each competition? As we await the final results of the 2022 Winter Olympics, we look at: the hosts of the games, what it means to bring home the gold, and how the global reach of this athletic tradition supports businesses and athletes alike.

The Olympics is one of the few events where people from all over the world gather together. People are competing for their home country while achieving individual accomplishments and record-breaking scores. It is a time of gathering and celebration. However, in order to make this event possible, the host country has to plan years in advance. Sports venues, athletes' accommodations, and transportation improvements are all necessary to prepare for the crowds. The venues, in particular, have received criticism over the past several decades. From the economy perspective, their creation costs are high with a low utility after the event. From the social perspective, millions of people were forced to move in order to make space for the constructions.

When observing earlier modern Olympic games, dating back to 1896, the state of the geopolitical sphere caused multiple restrictions and boycotts. The current 2022 Beijing Winter Olympics are no exception.

With the given supply chain disruptions, the European Union has decided to take an active role in semiconductor or chip production. It is backing more investments into private and public funds in an act to become leading chip producer.

Finder's keeper's loser weepers. When a person finds something and keeps it, the loser has no right. Many societies had followed this saying throughout history when it came to looting ancient artifacts, and now it's affecting our global economy and society.

Travel has been a delicacy over the past few years. Due to the ongoing pandemic, many previous flyers have been less frequent with their travel. With the recent merger of two major airlines, the world of traveling is in for a major change. The Spirit Airlines franchise and Frontier Airline franchise completed their merger over the weekend. The two franchises have been hit hard by the pandemic, and the merger can help with their recovery. These airlines have been major players in the low-cost flight industry in the United States and Latin America, including Puerto Rico, Mexico, Jamaica, and El Salvador. This move will help them grow and move past the pandemic. The union between Spirit and Frontier is expected to create enhanced values for shareholders of both airline industries and allow the companies to better compete with rival airlines.

Sports play an important role in the lives of millions of people worldwide; they bring people together, they provide entertainment and exercise, and, often overlooked, they’re an engine for an extremely high-grossing industry. Globally, the sports industry has been estimated to be worth over $620 billion. Over the last 20 years, major sports leagues in the U.S. and Europe saw their respective clubs/teams grow their annualized revenue by about 7 percent, a performance matched only by the healthcare and education service sectors. One such league with a pronounced affinity for high-grossing activity is the NBA. The NBA has seen more profitability than any other league in the past few years, mainly due to its effective globalization to regions like China and Africa.

As the climate disaster is steadily increasing in conversation across nations, the Security and Exchange Commission (SEC) in the United States attempts to place regulations on sustainability reports within large corporations. They are pushing for these reports to act like financial reports; they can be audited in this case. If these regulations pass, the sustainability reports would mimic financial reports and be audited to keep companies from stretching their energy-efficiency disclosures. Without this, it has become a pattern that companies' reports are unreliable and very inconsistent with the revelations they have put out.

With the rise in cryptocurrencies over the last several years, it is possible that we could be experiencing the downfall of cryptocurrencies in the coming months and years. With constant innovation comes new rules and regulations, which many countries across the globe have had to think about recently.

Luxury brands have always been a huge player in the economy. According to a market report, the luxury fashion market is estimated to be around $110.64 billion in 2020 with continued growth. However, since the arrival of Coronavirus in 2019, the world has been changing in unimaginable ways. It has affected all aspects of our lives from lifestyles to buying patterns. The luxury fashion market was also a victim, contracting for the first time since 2009. In addition to its market size and revenue, this industry is going through some other changes.