globalEDGE Blog - Page 141

As of October 15, 2015, USA Trade Online is now free for all users. For those who are not familiar with USA Trade Online, it is a dynamic data tool provided by the U.S. Census Bureau that provides U.S. export and import data. In addition to becoming free for all users, many new data fields and functions have been added. These changes have made this resource an even more powerful tool for exploring U.S. international trade data.

The Gulf Cooperation Council (GCC) trade bloc has six member states within the Middle East: United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar, and Kuwait. The trade bloc was entered into force on December 1, 1981, covering goods and services as well as military trade between the countries.

Since Iran refused to suspend it uranium enrichment program in 1979, various international sanctions have been imposed on this country in order to restrict its policies of developing nuclear weapons. The cost of such military development is the loss of the oil production capacity, which decreased from over 7 million barrels per day in 1979 to around 4.2 million in 2003. Iran has realized the need to boost its oil output for economic growth and it has agreed to curb its nuclear program. In July, Iran signed a historic nuclear deal with six global powers to waive the sanctions, which are expected to be lifted in early 2016. The country is now preparing for the expected economic growth in the coming year.

Manufacturing was the most prosperous sector in the early twentieth century in South Africa because of low input costs and developed infrastructure. However, the industry is now facing great challenges. During my trip to South Africa, I observed some weaknesses in the country’s manufacturing industry.

Doing business in a foreign country or region can be challenging, especially when the culture is substantially different from what one is used to. Thus, informing oneself of the cultural norms and the way business is conducted in a given country can be extremely beneficial and help to prevent mistakes that could damage business relationships. When conducting business in the Middle East, there are several things a businessperson should keep in mind. This blog post highlights some of the key cultural differences to be aware of.

Japan’s recent recovery, frail as it is, is doing far better than the failing endeavor it’s been pegged as in mainstream media. Understandably, claims on the many faults of Prime Minister Abe’s Quantitative Easing policy have been warranted. This year alone, Japan has faced a shrinking economy in its second quarter and came uncomfortably close to the same designation in the third quarter. Most notably, inflation has been on a steady decline since April and has since stabilized but remains alarmingly close to zero. Dismal as the outcomes have been thus far, the island nation is inching closer to its goals.

Ever since the 2008 financial crisis, emerging markets have received less investment from other countries. This is due to falling demand for the commodities that have traditionally powered these countries' exports. In addition to this, flows to emerging markets decreased even further in 2014 due to unease in the markets. Now it is looking even grimmer. By the end of 2015, capital inflows to emerging markets are projected to reach $548 billion, while emerging markets are only expected to have about $540 billion in outflows. These numbers are troubling, for if the gap between capital inflows and outflows continues to decrease, net capital flows to emerging markets may go negative for the first time in decades. 

After multiple offers, Anhesuer-Busch (AB) InBev has reached a $106 billion takeover deal with SABMiller. AB InBev, owner of Budweiser, Stella Artois, and Corona, will now become the controlling player in the international beer market after the purchase of SABMiller, owner of Miller Lite, Peroni, and Fosters. As a result of the merger, the newly created company will hold about 30% of the global beer market share. The $106 billion deal is atop the record charts for beer acquisitions and is one of the highest-dollar corporate takeovers in history. AB InBev and SABMiller’s combination sets the stage for many shifts in the international beer market.

Natural resources businesses in the Arctic are facing a complex economic situation. A new economic organization, the Arctic Economic Council (AEC) Secretariat, was recently founded in the region to help small to medium-sized businesses and promote favorable business policies. However, many countries are reassessing their strategies of drilling for oil and gas in Arctic region because of falling oil prices and the downturn of the global economy.

Private Equity and Africa are not often associated with one another. Most notable private equity firms stick to established and stable markets such as the U.S. & Europe, where there are ample opportunities to invest in mature and steady companies. However, times change, and this is apparent in Africa, where the opportunity to connect the continent like never before is drawing in unprecedented amounts of capital.