globalEDGE Blog - Page 154

Crude oil is the traditional starting point for the many plastics that are essential to modern life. Approximately three percent of worldwide oil production is used to make plastics. Due to this relationship, the cost of plastic is closely tied to the price of oil. And since June, the price of oil has been cut in half, leading to a decrease in the price of new plastic.

Through a trade relationship that generated $ 1.2 billion exports in 2013, Canada is the largest importer of Michigan food and agricultural products. Michigan’s geographical location in combination with the strong trade partnership between the United States and Canada helps facilitate Michigan food and agriculture exports to Canada.

With changing political office, comes changing economic policy. At least, that is what millions of Nigerians are hoping for from newly elected President Muhammadu Buhari. The Nigerian capital market responded positively to the change in leadership, gaining 8.30%, its single biggest daily gain all year. High optimism for the new leader to follow through on his promise to reshape the national economy is sorely needed at this point.

Globalization can be defined as the process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade, investment, and information technology. It is not a new concept, and has been present for thousands of years, as people and corporations have been buying and selling goods and services, along with exchanging ideas across long distances.

Now that the cutoff date to sign up for the Asian Infrastructure Investment Bank (AIIB) has come, there is a lot of talk about why some countries chose not to participate and also what the AIIB has to offer to its members and the world. The last two countries to seize the membership opportunities were Taiwan and Norway, just days before the deadline. The plans for the AIIB are to help finance construction of roads, ports, railways, and other infrastructure projects throughout Asia.

In 2014, 75 ships were lost at sea around the world, which is the lowest number in the last ten years. According to insurer Allianz Global Corporate and Specialty, sinking and submerging was the most common cause of ship loss, with 49 of the 75 losses resulting from this. Despite a downward trend in ships lost per year over the last decade, it is feared that the increasing size of container ships will make losses much more costly.

Late last year, the RUB-USD exchange rate dipped significantly, which carried on into 2015 with the ruble’s unfaltering depreciation against the dollar. This now full-fledged currency crisis has Russia’s Central Bank bailing out its private banking sector and reinstating a unique quantitative easing strategy that aims to spur foreign investment and have a positive impact on GDP. Despite the government scrambling to stabilize its currency, economic recession in 2015 seems inevitable.

In February, the inflation rate in the United Kingdom fell to 0%. This is the lowest rate since records of inflation were first taken in 1960. Official figures demonstrate that lower prices of transportation, food, and computer goods helped to cut the rate back from January’s inflation rate of 0.3%. Although these figures are good indicators in some ways, they can also impact the interest rates set by the Monetary Policy Committee, which is considering raising the rates from their record low of 0.5%.

China’s manufacturing and factory sector hit an 11-month low in March, alarming investors worldwide. This indicator is yet another under-performing expectation that will likely have a negative effect on China’s gloomy first quarter. Ultimately these results are detrimental to the Chinese Government's 7% GDP growth target and will likely lead to new stimulus measures during a period of slow economic grw.

Last Friday, the United Nations announced that the world may be facing a major shortage of water supplies in about fifteen years. Available water for consumption and other uses may be reduced by 40% as a result of factors such as urbanization, high living standards, heavy industry usage, and booming population growth. The report calls for drastic measures to keep freshwater as a readily available resource for the future, as some regions of the world are already starting to run out of water and aquifers are becoming exploited beyond a sustainable level. This will mean cutting down on heavy water consumption and use, a move which will affect people and industries worldwide.