globalEDGE Blog - Page 140

The globalEDGE team is excited to introduce a new resource that has been added to the site. The International Property Rights Index 2014 is an economic index study on the correlation between economic success and property rights. The study includes physical and intellectual property rights data for 94 countries. There has been ever increasing evidence of the strong correlation between economic freedom and the protection of property rights, and The 2014 International Property Rights Index demonstrates this correlation. Developing countries tend to struggle with individual property rights, while developed countries lead the way with intellectual and physical property rights. Individually, country rankings can be found in the indices section of the country pages. The complete list of data can be found by gaining access to The Database of International Business Statistics (DIBS).

The low oil prices have had both positive and negative effects in the short-term, but the long-term effects are less known and are thought to have wide and long-term impacts on the global economy. Low oil prices have reduced gas prices and have allowed people to save money at the pump. Lower gas prices can help people who have lower incomes and can also reduce costs on energy bills for those who live in cold climates. The automotive industry has sold more cars while gas has been less expensive, which has caused total vehicle sales to climb from 12 million per month to nearly 18 million. In addition, transportation companies benefit from lower fuel costs, as does any business that has to pay fuel bills to power its operations.

As of October 29, 2015, China has abolished the one child policy that had been in place since 1979. Couples will now be allowed two children under the new policy. China originally started the policy due to “fears that an exploding population would slow economic growth.” This change in policy has huge economic implications due to the prospective increase in population in the world’s most heavily populated country. Mead Johnson Nutrition (MJN) saw its shares increase 4% on Thursday since the announcement, in part due to MJN being one of the leading sellers of baby formula in China. More children means that companies that make goods tailored towards a younger clientele will see their profits increase in China.

For many businesses, branding plays a vital role in their success. A recognizable brand that consumers can trust helps companies grow and expand, while also granting staying power as the business moves up the industry ranks. As companies have expanded internationally, branding power has only increased in importance, leading many businesses to spend large amounts of resources on the brand. With these large investments, companies view legal protections, such as trademarks, as an extremely important issue when doing business in a country, or when looking at prospective countries to enter.

In the latest globalEDGE Business Beat, MSU’s International Business Center Director Tomas Hult discusses U.S. international trade opportunities with Stefan Selig, who is the Under Secretary for International Trade at the U.S. Department of Commerce’s International Trade Administration. Their conversation focuses on three different U.S. trade initiatives, as well as the great potential for U.S. export growth.

Europe is in the midst of an immigration crisis of historic proportions. Since January of this year, the European Union (EU) has received an influx of an estimated 1 million asylum seekers, with the promise of many more to come. These refugees are fleeing conflict and persecution, much of which can be linked to the rise of insurgency, specifically the Islamic State, in the Middle East. Human rights violations by the oppressive regime in control of Eritrea are also a major cause for the influx of refugees. It is believed that approximately 60% of all immigrants are coming from Syria, Afghanistan, and Eritrea. Refugees select Europe as their destination due to the relatively close proximity and the economic prospects for a better life. While the European refugee crisis is first and foremost a humanitarian crisis, it will undoubtedly have a significant impact of the Eurozone economy, both now and for decades to come.

South Africa is one of the most prominent wine-producing countries in the Southern Hemisphere. With more than 300 years of winemaking history, it is now the ninth-largest producer of wine in the world, with some 250,000 acres under vine. The wine tasting trip to Stellenbosch provided the perfect introduction to the South African wine industry.

According to figures released last Thursday, unemployment in Spain fell to its lowest level in four years. This figure could increase the chances for Prime Minister Mariano Rajoy to win the general election, as unemployment is currently a hot topic for discussion in the country. The rate fell from 22.4% in the previous quarter to 21.2%, bringing the number of people without work down to 4.85 million, which is the lowest it has been since mid-2011. At the peak of the economic crisis during this time, unemployment reached a record of nearly 27%.

The Arab League considers itself a loose confederation of 22 Arab nations, whose broad mission is to improve coordination and communication among its members in terms of common interest. The League was developed in response to concerns about post-war colonial territory divisions. The initial agreement was signed in Cairo on March 22, 1945 by representatives of the first six member states–Egypt, Iraq, Jordan, Lebanon, Syria, and Saudi Arabia, and there are indications that they will be signing another agreement on the basis of an Arab military force in the near future. 

Since 2011, Syria has had civil unrest beginning with the Arab Spring protests, which were nationwide protests against the government which resulted in violent crackdowns by the Syrian government. Soon enough, it changed from protests to armed rebellion from various groups formed during the protesting process. Groups involved include al-Qaeda affiliates, the Islamic State of Iraq and the Levant (ISIL), the Syrian Government, and the Free Syrian Army (FSA). Since the FSA is considered an opposition faction, it is able to receive support by the United States and other Gulf Countries, giving it increased fighting capacity. During the Syrian crisis, around 5 million citizens have fled the country seeking a new home. It is believed by many that the movement of Syrian refugees into many Middle Eastern and European Union countries is becoming economically unstable.