globalEDGE Blog - Page 109

According to Eurostat, Eurozone inflation hit 1.1% last month, which is a sharp increase compared to November’s rate of 0.6% It is believed that this jump can be attributed to increased costs of energy, food, alcohol, and tobacco. This inflation rate is the highest that the Eurozone has seen in over three years; in September 2013, the rate was also 1.1%.

Russia has been pushing to incorporate nuclear technology in medicine. This process, known as nuclear medicine, involves the use of radioactive substances producing dangerous radiations to gamma rays, beta particles, and alpha particles. Although it may be risky and unsafe, Russia’s increasing participation in the “international market for the production of medical isotopes” has brought tremendous success to the country in the means for fighting cancer.

The Korea Fair Trade Commission, a corporate regulator based in South Korea, declared that it would fine mobile chipmaker Qualcomm Inc. a hefty $853 million over the company’s purported abuse of antitrust laws. The announcement comes at the end of the Commission's three-year investigation of Qualcomm and constitutes the highest such fine charged to an individual United States-based company. The Commission concluded that Qualcomm broke antitrust laws by refusing patent access to competing chipmakers and by withholding necessary phone chips in order to pressure mobile manufacturers into strict licensing agreements. In addition, the Commission claimed that Qualcomm used patents from other chipmakers without fair compensation. Qualcomm has stated they will appeal this decision to the Seoul High Court, professing that their licensing practices follow decades-old industry standards. 

China has been one of the largest economies in the world for many years, however its place near the top has been impacted in recent times because of its currency. The yuan, the national currency for China, has been depreciating in value and will continue to do so into the first quarter of 2017. This decline has been the biggest for the Chinese yuan in the last two decades. For the past 14 consecutive months, money has been leaving China, causing a slump in the nation’s central banks. About 1.1 trillion dollars of foreign currency has vacated the country since China devalued the yuan in 2015.

In the United States, the gross domestic product expanded by 3.5% during the third quarter, the strongest growth rate in the last 2 years.  The data reflected strong consumer spending in services and investments in buildings and intellectual property. Since the recession ended in 2009, the U.S. economy has grown at the slowest average expansion rate since 1949, averaging about 2%.

In today’s blog, we will take a look at the logistics industry and how it deals with the incredible challenges of delivering packages to customers around the world. With the holiday season in full swing and as frantic shoppers look to purchase last minute gifts before Christmas, the shipping industry is forced to work 24/7 to meet demand. The holidays can make or break the year for many retailers and ecommerce websites, and these businesses depend on shipping companies to ensure their customers are satisfied.

During this past November, sales on United States homes have substantially increased, reaching an unexpected ten year high. Buyers have been flooding the market, rushing to invest in homes during this current period of low interest rates, especially with anticipated increases in borrowing costs in the near future. The sudden upsurge in home-buying activity may be a result from the strain of rising prices and mortgage rates.

On December 15, the Japanese Diet passed a law to legalize casinos in the country, opening way for projects combining gambling with hotels, shopping, and conference spaces. The first proposal for this law was submitted in 2013, and again last year. While Prime Minister Shinzo Abe and his ruling party support the bill, claiming that casinos will stimulate the Japanese economy and increase tourism, opposition parties are critical. This bill had failed repeatedly in previous parliaments to come up for a vote due to concerns regarding gambling addiction and money laundering.

Approximately two years ago, United States President Barack Obama and Cuban President Raul Castro proclaimed the official reestablishment of diplomatic relations between their nations. After decades of embittered disputes, economic sanctions, and general hostility, the two countries have come ever closer to bridging their differences. In the time since, Cuba and the United States reopened embassies on their respective mainlands and oversaw several other achievements: the expansion of aerial and naval transport between the two countries, the increase of agricultural sales to Cuba, and the augmentation of telecommunications services in Cuba. In addition, plenty of agreements involving business opportunities within the countries' private sectors are on the table, with the potential to take effect soon. Many of these efforts are taken up by the Cuba Working Group, a group of Congress lawmakers dedicated to legislating such advances. For the most part, the newfound ties between Cuba and the United States have been received positively on an international scale. The developments been praised domestically as well, as officials from both countries see the new diplomacy as a gradual establishment of democracy in Cuba. However, recent events have cast a shade of uncertainty, including the results of the United States presidential election and the death of former Cuban leader Fidel Castro. Now, citizens and leaders are pondering what comes next for the relationship between Cuba and the United States.

In this installment of the globalEDGE Mega Trends in Business series, we take a look at how global businesses are responding to climate change. Day by day, governments the world over are increasing collaborative efforts against climate change by solidifying various international deals and agreements. With this, regulatory pressure is mounting on multinational companies to ensure that their practices meet environmentally-friendly standards. Several firms are answering the call and taking active stands against the threat of climate change, framing it as a business issue as well as an environmental one. Some corporations are forming coalitions across countries to reach a common consensus on necessary action. Others are shifting their business and investment practices in order to adapt to government legislation. Whatever the process, it is clear that climate change will be an unavoidable factor in future global business practices.