globalEDGE Blog - Page 182

With the lighting of the ceremonial torch in Sochi, Russia last Friday night, the 22nd Winter Olympic Games have officially begun. Beyond capturing the world's attention throughout the month of February, these Olympic Games, like other major sporting events, have profound economic and political effects that resonate throughout the entire international system. Therefore, as the world's eyes turn towards the showcase of some of the world's finest athleticism taking place in Sochi, this post will explore some of the less eye-catching, yet equally significant, aspects of events like the Sochi Olympics and their unique place within international markets and politics.

In January, mergers and acquisitions (M&A) volume in terms of number of deals made in the Asian-Pacific region rose 60% from a year earlier.  Volume in dollar terms more than tripled to about $25 billion.  This drastic surge has been fueled primarily by Chinese and Japanese companies.  In contrast, M&A activity in Southeast Asia has been falling as of late, as the region only accounted for 13% of Asia’s M&A activity this January – down from 18% a year ago.

In December of 2013 the Federal Reserve (FED) announced that it would begin to taper its bond-buying program by $10 million per month. As a result of quantitative easing (QE), the FED had been purchasing $85 million in assets in order to stimulate the economy. As the Federal Reserve continues to reduce its monthly purchases, there will be certain effects on globalization. Since tapering was announced, emerging market economies have been struggling. As the FED continues to taper, emerging markets could continue to see and outflow of funds and fluctuations in their currencies.

In today’s globalized world, products are made from components all over the world. The interdependence among countries is more important than ever and international trade serves as the backbone of economic growth prospects. With this interconnectedness comes great risk; however, great opportunity also results.

According to the first ever corruption report by the European Commission, the European Union (EU) is losing over 120 billion euros a year because of widespread corruption in many member nations. The report stated that the corruption regulations and controls in many countries are not adequate enough to effectively fight the fraud occurring across the EU. The loose regulations and inspection has allowed for much of the corruption to occur in local governments and communities in all member countries, showing that the Commission believes that corruption is a problem across the EU.

The French unemployment rate has hit a record high, currently standing at about 11.1% for 2013. In December alone, about 10,200 people listed themselves as jobless.  This 0.3% is only a fraction of the 3.3 million who registered as out of work for the entire year, a figure that has never been higher. Additionally, increases in unemployment have been observed across all sectors and also take part-time workers into account. The 5.7% rise in unemployment is unfortunate news for French President Francois Hollande who had previously promised that joblessness would fall by the end of 2013.

Employee resource groups (ERGs) are very popular with companies in the United States, but it is becoming increasingly important for companies all over the world to adopt this workplace habit. Employee resource groups are groups of employees who join together in their workplace based on shared characteristics or life experiences. Global companies need to hone in on this, and take full advantage of what ERGs can do for a business.

When one strolls into their favorite coffee shop on a typical arctic-conditions day like the ones we've been enjoying in Michigan lately, they usually see coffee beans imported from well known "coffee countries," such as Colombia, Brazil, or perhaps an African country like Ethiopia, Kenya, or a rising coffee-exporting nation like Zambia. In spite of this, reports show that Vietnam is actually the world's second largest exporter of coffee, with its share of the global market rising nearly 20% within the last 30 years. Vietnam's coffee industry, which employs 2.6 million people, produced nearly 3 billion pounds of coffee in 2012-2013. The country's coffee exports have landed primarily in Germany and the United States, but imports from other European Union countries, as well as Japan and South Korea, have also contributed to Vietnam's rapid and surprising growth in coffee exports.

People’s attention shifted to the U.S. stock market again when stock prices dropped by 10 percent and hit a record low since October 2011. Although the recent ease-money government policies played a role in the price drop, the main reason for the decline was the global growth slowdown.

The city of Detroit, Michigan was once looked at as one of the strongest cities in the United States, but due to the decline of the automobile industry and financial problems it has become a bankrupt city with a large struggle. However, the resilience and pride that its inhabitants still portray is incredible. In this day and age where a lot of the manufacturing takes place in Asia, people still want to own products made in their own country. For example, Americans take great pride in driving a car or owning an appliance that is “Made in America”. What better way is there than to use a loyal population and hopeful city to brand a product? “Made in Detroit” is a phrase that could help the city of Detroit bounce back, while boosting sales for a company.