globalEDGE Blog - Page 122

Economists warn of a sudden recession due to the uncertainty of Britain’s exit from the European Union and the lack of a strong plan for the future with minimal further disruption of the global markets. Over the past 2 weeks, the British pound has dropped to record 31 year lows against the American dollar, and the Bank of England recently stated that it would likely combat the financial turmoil through quantitative easing and rate cuts. Current economic predictions of households delaying consumption and corporations postponing investment would further lower the demand for labor and increase unemployment. However, despite the potential signs of further economic turmoil, there are silver linings that are becoming more apparent, such as emerging markets and the role of uncertainty.

Celebrations and support from the people of Panama erupted on Sunday, when the expanded Panama Canal was opened on June 26th, 2016. Panama Canal is mainly used by the United States and China for trade and transportation. The new canal is said to allow for the passing of 98 percent of the ships in the ocean and will account for 80 percent of the current “world liquefied natural gas tanker fleet, compared with the 7 percent that could pass through old facilities.” With the $5 billion ten year expansion project, Panama hopes to generate three times the amount of revenue from canal shipping fees, and wants to make transportation more efficient with its new locks. However, these goals may still take some time to reach due to the drop in shipping prices and the unexpected problems that have arisen with the expanded canal.

As the popularity of online shopping grows in India, China, Japan, and South Korea, e-commerce companies are predicted to spend about $6 to $8 billion in investments toward logistics, infrastructure, and warehousing over the next few years. E-commerce as a whole is growing exponentially, with the retail industry being the main contributor. The need for air cargo connectivity is expected to increase as tier two and tier three cities pick up business and the supply chain becomes more complex. Specific retail companies are also working to ensure that they can account for the highest amount of revenue in terms of e-commerce.

Innovation is crucial in the business world, and as companies and businesses grow larger, they often find it difficult to promote new ideas. Bigger companies are usually less mobile, and quick changes to operations and strategy become much harder to implement after initial success. For companies looking to break this mold, empowering upper level management is very important, in order to enact the changes needed to push the business culture toward innovation.

On Wednesday, United States President Barack Obama, Canadian Prime Minister Justin Trudeau, and Mexican President Enrique Peña Nieto will meet in Ottawa for the annual North American Leaders' Summit. The meeting, commonly referred to as the Three Amigos Summit, has gathered almost every year since 2005 to discuss strategic cooperation and important economic issues. This year's meeting in particular will prove to be of high significance. The primary objective of the 2016 Summit is to develop clean power plans for each country in the continued combat against climate change. However, recent political developments may cast a shadow over this year's talks.

It is well known that entrepreneurship has been declining over the last few decades, but what is the real cause behind it? There are many different theories, from schooling systems, religion, student debt, economic hardships, a change in attitudes, and a more talk, less action society.

The United Nations (UN) is an international organization made up of over 193 Member States. Founded in 1945, the UN deals with global issues relating to climate change, sustainable development, human rights, terrorism, etc.

The Indian Prime Minister Narendra Modi recently announced a relaxation of India's rules regarding foreign ownership of businesses operating in the country. The announcement comes just days after the resignation of the chairman of the country's central bank and has been seen as an attempt at reassuring international markets.

China has become what Huffington Post refers to as, “the world’s factory”, and has remained one of the top manufacturing countries in the world. However, the Chinese economy is undergoing a drastic change, transforming from manufacturing and big industry to a service based economy. By switching to services, around 85 million jobs will be spread across the globe, and the question rises as to where these jobs are going to be relocated.

Reassessments on the likelihood of the United Kingdom leaving the European Union has caused a spike in the pound against the dollar. On Monday, the pound was valued at $1.4693—a rise of more than 3 cents—marking the largest one-day gain since 2009.