globalEDGE Blog - Page 163

Oil prices fell 6.7% per barrel on November 27th after OPEC decided not to cut production. Currencies linked to oil such as the Canadian dollar and the Norwegian krone took a hit, as prices this low will cause many fracking companies to become unprofitable. Low cost producers in countries like Saudi Arabia will be able to sustain small profits at such low prices, but U.S. fracking companies are not profitable at a price under $70 per barrel. Falling oil prices are a positive sign for economies worldwide, since it acts like a tax cut for consumers. The current price weakness can be somewhat attributed to weak demand globally, but the rise of fracking worldwide leads us to believe that there might be an oversupply.

There is a world of opportunity for those seeking to export their food and agriculture products, considering that more than 70% of the world’s purchasing power is located outside of the United States. By tapping into these new markets before your domestic competitors, you will reap the benefits of having little to no competition, while possibly offsetting slow growth in your home market with the new increase in your company’s sales and profitability. Additionally, an enlarged customer base, as the result of expanding into foreign markets, can lead to your business hiring more employees and create economies of scale in production. Furthermore, diversifying the markets you sell to will help to mitigate the risk that often comes with expansion. For example, if your product sales tend to fluctuate seasonally, exporting can help to counterbalance drops in demand. Fortunately for companies seeking to export, the United States’ reputation for sound business practices and high quality goods appeals to foreign markets.

Turkmenistan is a small nation with only about 5 million citizens, yet it could be the solution to energy problems affecting hundreds of millions of people. Despite the fact that the Central Asian nation has the world’s fourth largest natural gas reserves, Turkmenistan ranks twelfth in the world in natural gas production. Turkmenistan plans to fill this gap between reserves and production with multiple plans to export its natural gas abroad.

Governor Rick Snyder of Michigan recently returned from a week long business investment trip to China. In an effort to promote international trade, Snyder continued his mission of increasing trade between Michigan and Asian countries. Snyder first embarked on this mission in 2011 and has made trips every year since. He has visited China, Japan and South Korea with a concentration on the automotive industry. He wishes to build a long term relationship to increase business investments.

After eight years of negotiation, China and Australia finally drew a free trade deal on last Monday. This agreement signals a transformational change in the economic relations between China and Australia because trade tariffs in dairy, beef, and horticulture products will be completely eliminated within the next couple years. Without a doubt, it will greatly facilitate the trade between these two countries. On the other hand, Canada, one of Australia's main competitors, is now worried about its exports to China.

On a meeting in Berlin on Thursday, thirty wealthy nations pledged to donate $9.3 billion towards the Green Climate Fund, a sum dedicated toward reducing emissions and helping to protect developing and poorer nations from the stark effects of climate change. This is a little short of the $10 billion goal that was supposed to be reached, but it is a big step forward in investing to prepare help prepare for the effects of climate change. Environmental officials everywhere have highly praised the fund, and more countries are to offer donations by the end of the year.

After nearly two decades of deflation, Japan unexpectedly has fallen into a recession in the third quarter of this year. In a preliminary economic report released by the Cabinet Office on November 17, GDP was reported as falling at an annualized pace of 1.6% in the third quarter of 2014. In combination with the previous quarter’s 7.3% decline, this GDP decline has caused Prime Minister Shinzo Abe to dissolve the parliament and call for snap elections two years before the next scheduled elections.

This week’s blog series on the global e-commerce industry displayed the many benefits and trends within this rapidly growing industry. However, implementing a global e-commerce strategy can be a difficult and challenging task. These challenges can be overcome with resources right here on globalEDGE. To assist in the implementation of e-commerce on both a country-specific and global level, globalEDGE has a variety of useful tools and resources. Today we will a look at many of these resources.

With an increase in the popularity of business-to-consumer (B2C) online retail, there has been a surge of fraud in e-commerce and online payments. Fraudulent activities including personal information breaches and untrusted online payments have been deterring consumers, all over the world, from partaking in B2C e-commerce.

With an Internet penetration rate of 12.6%, investors looking to diversify their portfolio are currently appraising India’s e-commerce market for opportunities with exponential dividends. According to the technology research firm Gartner, India’s e-commerce industry is poised to grow 70% at the end of this year, with revenues crossing $6 billion. This will make it one of the fastest developing segments in Asia alone. Ranging from laptops to mobile phones to tablets, it is the pervasive use multi-platform technology for online retail that has catalyzed this boom.  Current estimates predict that within the next five years, the sector will quadruple in size to $43 billion. But how can sustainable, organic growth be cultivated in an ever-changing digital marketplace?