globalEDGE Blog - Page 126

Saudi Aramco, the state-owned oil company of Saudi Arabia, is increasing oil production in advance of its partial IPO. While global oil production has been decreasing, Saudi Arabia has decided to stop regulating production levels and dismissed the idea of stabilizing global supply and demand. The oil giant is preparing for its first public offering, offering about 5% of the company.

The global debt is currently around $60,244,106,843,495, and according to the CIA’s World Factbook, there are only two countries, Liechtenstein and Macau, that don’t owe any sovereign external debt. Both countries are fairly small, and are both resource rich, thus helping each sustain a steady flow of cash into their economies. Macau is a semiautonomous region of China, and is home to the world’s largest casinos. Lichtenstein is one of the smallest European countries, and is the largest manufacturer of fake teeth and sausage casings. Both countries don’t use their own currencies, with Lichtenstein using the Swiss franc and Macau using the Hong Kong dollar, so their governments are unable to print more currency and utilize inflationary financial policy.

There has been a lot of research lately into the effects of gender diversity on a company and the results are impressive. The research found that it pays off in multiple ways to have more women, who are treated equally, at a company. The advantages to companies include higher returns, less volatility in returns, higher performing stock, lower probability of a major drawdown, superior decision making, lower accruals, and attracting the top talent. Businesses are not only driven to diversify by the profit motive but also by the workforce itself.

One of the newest technological curiosities to hit the globe is virtual reality, where, with a headset, users can be transferred to a “real” place anywhere on Earth, in an environment that is also completely interactive. The vast amount of applications for this technology make it extremely promising, and its impact on the business world could be huge, possibly in a way not seen since the creation of the internet. At this time, the headsets have mostly been focused on the entertainment industry, in applications like video games, but as virtual reality becomes mainstream, its use could spread to many facets of our lives.

In recent weeks, there has been a lot of coverage of various commodities, such as oil, and the role they play in the global economy. Two other commodities that are influencing the global economy are lithium and coffee.

On June 23rd of this year, the United Kingdom will vote in referendum on their future with the European Union. Their potential exit, which has been dubbed “The Brexit”, would undoubtedly have major ramifications on the European economy, and the global economy as a whole. One of the ramifications of a Brexit on the rest of Europe that could possibly be overlooked or underestimated, is the effect on employment throughout the entire EU.

Have you visited the globalEDGE Business Beat lately? The latest segments feature a variety of interesting topics related to international business and trade. Specifically, the latest segments cover the evolving relationship between Cuba and the United States, the UK referendum on EU membership, the status of the United States’ relationship with Israel, Turkey’s involvement in the refugee crisis, and more. Be sure to visit the globalEDGE Business Beat page today to get an in-depth look at the aforementioned current topics in international business. 

For a while now, Europe has been going through a wide variety of issues. Whether it’s the refugee crisis, risk of Britain voting to leave the European Union, or Greece’s economic disaster, Europe has been set back recently. Despite these issues, European leaders cannot afford to lose sight of their long-term economic goal, “Growth.” Europeans need to act now due to the continent's aging population that creates a significant barrier for economic growth. Statistics show that by 2050, the EU labor force could shrink by 42 million, or 12%, making growth almost impossible to achieve. 

This Monday, Puerto Rico defaulted on a $422 Million dollar debt payment, a significant development as the island faces an impending economic crisis. As stated by Heather Long in CNN Money, “Puerto Rico, a tropical paradise in economic purgatory, faces a $70 billion debt bill it knows it cannot pay, a staggering 45% poverty rate and a shrinking population as citizens flee to the mainland.” This quote shows what kind of state the island is currently in and its outlook for the future does not look any better. Governor Alejandro Garcia Padilla says that they are facing a “humanitarian crisis”, and he claims that he is prioritizing the basic needs of his people over what the territory owes to banks. 

A major alliance between two ascending regions of the world has been bubbling under the surface of public awareness for years. This alliance is of the economic variety, and has the potential to reshape the socioeconomic and political future of our world. The size of China’s investment in Africa is truly massive; or is it? As many may not know, China has been in the news for its lending and investing activities in Africa over the recent years. According to new research and investigation, however, the scope and hype of the Chinese activity in Africa may be over-exaggerated.