globalEDGE Blog - Page 173

Recognizing Albania’s recent governmental reforms, the European Union officially named Albania a candidate for membership, the first step for the country to join the EU. The move came after Britain and France agreed to drop their opposition to Albania’s candidacy, citing new leadership in Albania that has promised to reform the country. Led by Prime Minister Edi Rama, the government has begun to fight against corruption and crime which has ravaged the country for many years. Police forces have started efforts to retake control in areas dominated by drug cartels, and the government has pushed for reform in the country’s economic structure.

Yesterday, our latest blog post examined the business effects of the new tuition reimbursement plan of Starbucks at a macro-level. Today, we will cover the plan in more detail to learn how it could affect workers on an individual level. In attempts to decrease employee turnover, many large companies are seeking new retention strategies. Starbucks is using an education incentive to achieve this goal. Its new “Starbucks College Achievement Plan” will help qualified workers pay their full tuition for online courses taken through Arizona State University. And although the program has impressive benefits, some critics believe that it will not help workers as much as it promises.

This past week marked an announcement that was truly groundbreaking. Howard Schultz, the CEO of Starbucks, informed the nation that all employees of his company would be eligible to attend college on the dime of Starbucks itself. Companies in the past have paid for schooling of certain members of their organizations but this is the first time that a company is willing to send any employee of the company to college.

An important economic issue that is affecting several countries is the rising number of shadow businesses: businesses unregistered with their country's government. These businesses exchange goods and services, both legal and illegal, without paying taxes to their government. Typical examples of these include small taxicab services, roadside food stalls, and drug dealing. These businesses are causing concern because of their increasing prevalence in developing countries, which many worry is crippling economic growth and development. Other countries with smaller numbers shadow businesses are looking for ways to try and incorporate the operations of these businesses into their national economies. Here is a closer look.

During the Great Depression of the 1930s, world trade declined sharply and employment and living standards plummeted in many countries. In order to avoid a repetition of the same economic disaster, the International Monetary Fund (IMF) was established after World War II to oversee the international monetary system and to encourage its member countries to trade with each other. The IMF was created to assist the worldwide economic recovery and it continues to work on its mission until today.

The World Bank's Development Data Group and the IFC have recently released the new Global Consumption Database, which now stands as the most comprehensive dataset on consumer spending patterns in developing countries. The database's sources include government surveys of more than one million households in 92 countries, and provides thorough information on 4.5 billion potential consumers for global companies. The initiative is aimed at assisting international firms in discovering new sources of demand, as well as providing market research to evaluate business opportunities in emerging markets.

This past week here in Spain, news outlets were dominated by the announcement of the abdication of King Juan Carlos, who has ruled the country since 1975. While the king's rule has been generally supported by the Spanish public, due to his implementation of a democratic system following the oppression of the fascist Franco regime, Spain's support of the king has dwindled rapidly in pace with the country's economic deterioration over the past 6 years. Although the king proclaimed that the succession of the throne by his son Felipe would bring new energy towards facing Spain's economic issues, new political parties, including "Podemos" that won 1.2 million votes in Sunday's elections, believe that the economic and political system created by Juan Carlos' government needs significant changes to meet the economic needs of the Spanish people.

As the world continues to embrace technology and its many advantages, business also has begun to rely more and more on technology, storing large amounts of sensitive data electronically. The ease at which computers can store and access information is a major reason for the shift toward electronic storage. With the efficiencies computers bring to the market, a new area of risk has been inadvertently created. The storage of sensitive information on computers opens business up to cyber attacks, with hackers looking to acquire company or customer information such as passwords or credit card numbers. The hackers can then use or sell this information, harming businesses, consumers, and company reputations.

In India, electricity is not a commodity that is taken for granted by consumers. Power is so valuable to Indian citizens that inspectors from electricity companies have been brutally attacked so that they would not have to pay power bills. In addition to these attacks, some have even tampered with meters to lower readings just to dodge payments. The problem is so prevalent in India that Bloomberg estimates an annual loss of $17 billion in revenue due to electricity theft alone.

Sports are big business across the world. The recent agreement to sell the Los Angeles Clippers, of the NBA, for $2 billion is the largest amount paid for a sports franchise in the history of the United States. Across the world things are no different. In 2012, for the first time, a sports franchise issued an IPO and went public. Manchester United, an English soccer club, currently holds a $2.75 billion market cap, making it one of the most valuable sports franchises.