globalEDGE Blog - Page 192

The trend toward globalization is rising and as globalization's popularity grows worldwide, companies are inclined to develop globally. Therefore, cross-border mergers and acquisitions (M&A) are becoming more fashionable these days as they offer increased opportunities and cheaper alternatives to building companies internally. However, a great majority believe that cross-border M&A is complicated and contains many variables that can lead to business failures.

The World Economic Forum (WEF) has released its annual Global Competitiveness Report (GCR) for 2013-2014 on September 3rd. The 2013-2014 GCR is unique in a way that it is a significant measure of the health of global economy during an economic shift. As emerging nations continue to fuel rapid economic growth, and financial-burdened countries regain positive economic momentum, the report captures the economy during a sensitive shift. The top three spots from the previous years’ report remain unchanged as Switzerland, Singapore and Finland respectfully prevail in descending order. The GCR can be found as a ranking for each country under the indices section on country pages such as Switzerland. The Netherlands, Denmark and South Korea dropped three to five spots for larger losses. On a positive note, Norway, New Zealand, and United Arab Emirates gained an impressive four, five and five spots representing a strong push for global competitiveness.

Japan has had a very successful year so far. It had one of its biggest periods of economic growth in the first half of the year, much bigger than what was originally projected for the country. In addition to this, it was announced on Saturday that Tokyo will host the 2020 Olympic Games. It all presents a positive outlook for Japan as it climbs steadily but surely out of its previous economic slump. According to several central financial officers, this also presents good news for the world economy. Despite this good fortune, there are still many problems that the country must overcome, and it is not certain that the Olympics will be the economic boon to Japan that it appears to be.

For as long as most people can remember, receiving a Master of Business Administration (MBA) degree has been the first step in becoming an entrepreneur and starting one’s own business. After gaining some significant prior work experience, an MBA degree candidate is expected to dedicate two academic years to taking courses structured around core business concepts.  These programs are costly; the 2 year MBA degree at Harvard Business costs upwards of $56,175. And even with 65% of students receiving some form of financial aid, many are beginning to wonder: is the cost of education worth the risk of starting up a business that has a chance of failing?

As time goes by, we often forget about the fast paced and dynamic environment that we live in. Over the past five years, the international business world has changed dramatically. Believe it or not, in just five years, rapidly growing countries have emerged onto the global economic scene, various industries have been drastically altered by technology, and start-up businesses have grown into international powerhouses. Today, in honor of the 5th year anniversary of the globalEDGE blog, we will look at global business facts and trends in 2008 and compare them to that of 2013.

In the five years that the globalEDGE blog has been operating, much has changed in the area of global trade and investment. It all began when the global financial crisis came about in 2008 and this led to major changes in the global trade markets. Global trade relative to GDP plummeted around thirty percent during the financial crisis, and the crisis seemed to have come from problems such as poor trade regulation, bad credit, and poor bank strategies. There are many changes that have been made to the global economy and many challenges that have been faced in the area of global trade since 2008. Here’s a look at what has happened.

During the globalEDGE Blog’s first five years, it has served the international business community not only as a resource for global business news analyses, but also as a time capsule for events that significantly influenced international markets. Born in September 2008, the resounding news of the blog’s launching was understandingly dwarfed by other major events of the time, such as the rapid spread of cell phone use and business in Sub-Saharan Africa and, of course, the global financial crisis that’s effect on the global economy was comparable only to the Great Depression. In this blog, we will not only go back and revisit the news that captivated the world’s attention in the first months of the blog, but will also discuss the lasting effects of those events and how they continue to impact the world in 2013.

This week we are celebrating the birthday of the globalEDGE blog! With its inception on September 12, 2008, the blog is now turning five years old and we are starting our celebration with a blog post about what has transpired in emerging markets over the past five years.

Usually unrest in the Middle East translates into booming gas prices for American drivers, but so far the Syrian conflict has had little to no effect on US gas prices.  Slight increases, as of late, in average gas prices nationwide have been attributed to Labor Day weekend and its tendency to induce higher prices at the gas pump.  An increase in the number of fuel efficient cars on the road and a push for sustainable oil consumption are all contributing factors that have kept gas prices in check.

Nigeria’s economy has been faltering due to struggles in the oil industry. The country is the largest oil producer in Africa, outputting around two million barrels per day and consuming just 267,000 barrels per day. Interestingly enough, Nigeria has a strong dependence on fuel imports. Their struggles stem from the fact that they simply don’t have enough refineries, and the ones that exist are not maintained well enough to work to their full capabilities. The industry has been slipping into turmoil, as industrial scale theft and inefficient fuel subsidy policies have slowed production significantly.