In Depth Look

2008

China's At-Risk Factories
Time, by Bill Powell  (April 17, 2008)
Over the past several years, China’s soaring export growth rate has fueled an equally impressive growth in domestic manufacturing. As demand for cheap Chinese-made goods surged, thousands of new manufacturing firms sprouted up across the country. But many firms are now facing a myriad of problems that include rising labor and commodity costs, a strengthening currency, and a potential global recession. These issues are poised to test China’s long-term manufacturing might.

Oasis Economies
Strategy+Business  (April 10, 2008)
As oil-rich nations in the Middle East benefit from record oil prices, leaders in the region are experimenting with new ways to ensure that growth is sustained in the long term. Among the top priorities is the creation of a middle class, which will be aided by the construction of several economic cities, the first of which boasts a $30 billion price tag. The region is reinvesting profits, attracting foreign investment and building infrastructure at break-neck speeds, all while maintaining its traditional culture and business ethics. The question remains whether today’s growth can be sustained in the long term, or whether the progress seen recently is just a mirage.

Flying Trans-Atlantic is About to Get Easier With 'Open Skies'
International Herald Tribune, by Michelle Higgins  (March 25, 2008)
On March 30, a new open skies agreement goes into effect between Europe and the United States. The new agreement will essentially open trans-Atlantic flights to free competition and airfares should drop significantly. Many airlines will enter the trans-Atlantic market and create new routes from several different cities.

Mexico Plans Big Splash With New Baja Port
LA Times, by Marla Dickerson and Ronald D. White  (March 25, 2008)
A project proposed by the Mexican government would create a massive new port in the small village of Punta Colonet. The proposal calls for the port terminal operators to work in tandem with railroad companies to create a unified system that would unload cargo from ships, and efficiently place it on newly constructed rail lines bound for the United States. The plan has roused several prominent backers, though early setbacks have also caused a number of critics to speculate that construction of the nation’s largest infrastructure project will never even begin.

Sunset for the European Mobile Phone Industry?
International Herald Tribune, by Kevin J. O'Brien  (February 10, 2008)
As the cell phone industry continues to globalize, Western Europe has seen the loss of tens of thousands of jobs to outsourcing in recent years. Corporate profits have grown but analysts do not believe the outsourcing trend has benefited European consumers.

Global Sugar Trade
Globalization101.org  (February 7, 2008)
Sugar is one of the most regulated and subsidized agricultural products. Globalization101 takes looks at the current state of the industry and what the outlook is for the next couple of years. Reduction in quotas and tariffs are playing a large role in reshaping the industry, as is the increasing popularity of ethanol. Specific analysis is provided for the United States, European Union, Brazil, and Africa.

Mexico Near-Sourcing Grows More Attractive
World Trade Magazine, by Gail Dutton  (February 2, 2008)
For years, U.S. companies have been courting China and India in the hopes of cutting costs and improving efficiency. Many of these companies are now finding that a better solution may lay closer to home. Agreements such as NAFTA as well as Mexico’s own domestic efforts have resulted in significant changes to make the country more business-friendly. Massive infrastructure improvement and increased cooperation between Mexico and the U.S. on issues such as customs inspection are just a few of the reasons more companies are looking to “near-sourcing” rather than “out-sourcing”.

Moving Abroad Can Strain a Marriage
Wall Street Journal  (January 22, 2008)
The decision of whether or not to take an overseas assignment requires careful consideration of many factors. One factor that is neglected by a surprising number of individuals is the potential affect the move can have on your family. An informal survey of 200 expatriates found that about half of all respondents hadn’t even considered how their move would affect their personal situation. When considering moving abroad it is important to weigh both your personal and professional goals.

Israel is Embracing the Electric Car on a Wide Scale
International Herald Tribune, by Steven Erlanger  (January 21, 2008)
A new deal between the Israeli government and a joint-venture has the potential to change the way the world thinks about electric cars. The deal will allow for tax incentives to make the electric cars cheaper to purchase than a normal car, and requires users pay a monthly fee for mileage. It is expected that the total cost of owning and operating one of these vehicles will be significantly cheaper than a traditional gasoline powered car. If successful, the experiment could help Israel move towards energy independence and create an opportunity for the electric car to drive into the larger world market.

The Silk Road Revisited
Globalization 101  (January 20, 2008)
2,000 years ago the Silk Road served as a vital stream of commerce between Europe and Asia. At the end of 2007 the Asian Development Bank approved a loan to Uzbekistan earmarked for the improvement of a vital Central Asian highway. This and other developments in the region are the preliminary steps of creating a modern version of the Silk Road. Despite the political and logistic barriers that still exist, inflows of capital to the region are laying the groundwork for significant development and trade along the Silk Road.

Davos 2008
BusinessWeek  (January 17, 2008)
As the 2008 World Economic Forum begins, leaders from business, government, the media and academia are flocking to Davos, Switzerland. This special report from BusinessWeek coincides with the forum and focuses on the changing face of globalization. While in the past, being a “global” company meant simply having offices in multiple cities around the world, the new globalization requires streamlined and coordinated efforts from a company's entire workforce, regardless of the location of individual employees and offices.

Israel's Winemaking Revolution
BusinessWeek, by Stacy Perman  (January 16, 2008)
Israeli wines have traditionally been disregarded by sophisticated wine drinkers, but the success of the Golan Heights Winery is quickly changing perceptions. By making use of high-technology practices that produce top-quality vintages, the Golan Heights Winery has refocused the entire industry to play to Israel’s competitive advantages. Now demand exceeds supply, and the consumers around the world are discovering the latest player in the high-end wine market.

Fashion and Globalization
Globalization101  (January 13, 2008)
The fashion industry, along with most others, faces many challenges due to globalization. Due to outsourcing, brand name companies struggle to produce clothing in a way that allows them to label it “made in” places such as Europe or the U.S. Designers are demanding intellectual property protection in the U.S., as within weeks of their new designs coming out the market is flooded with copies. The environment is another concern as tons of clothing gets thrown into landfills, despite efforts by people to recycle and donate.

'What Are You Giving Away?' The Challenges of Marketing in Asia
Knowledge@Wharton  (January 9, 2008)
Foreign marketers working in Asia have often been confused by the dissimilarities between Asian consumers and their Western counterparts. Traditional notions of brand loyalty are seemingly non-existent in Asia, creating headaches for marketers wishing to gain faithful customers. To add to the confusion, general patterns of consumer behavior vary drastically from city to city. To operate successfully in Asia, marketers must have a good understanding of their target market, as well as understand consumers’ perceptions of their brand.

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2007

India, a Stirring Giant, Is the New Place to See and Be Seen
New York Times, by Heather Timmons  (December 13, 2007)
Waves of business delegations from all over the world are swarming to India in a race to grab the country's attention and establish inroads for trade. From Iceland to Uganda it seems that every country wants to tap into the massive Indian market. But it isn’t all good news in India, a fairly unstable government and shabby infrastructure still provide significant obstacles to overcome, while the extremes of income inequality are more than enough to drive some investors away.

Can Greed Save Africa?
BusinessWeek, by Roben Farzad  (November 29, 2007)
On a continent notorious for poverty and health problems, the best chance for improvement might lay in capitalist greed and profit-seeking. New investors and entrepreneurs are transforming seemingly desolate areas of Africa into productive and profitable businesses, all while drastically improving the quality of life of their workers. While not philanthropists by any stretch, these business-owners require healthy and productive workers, and are accordingly willing to invest in mosquito control, power lines and potable water as a means of improving their bottom line. The highly successful institution of microfinance practices in Africa provides more evidence to suggest that saving Africa might be a job best-suited for Wall Street.

India Feels the Heat of the Dragon in Uganda
Business Standard, by Bhupesh Bhandari  (November 26, 2007)
The current Indian population in Uganda of about 16,000 dominates business in the country. However, in the last few years 12,000 Chinese have come to Uganda and are quickly taking up a substantial share of the economy. As the demand for natural resources increases, these two Asian countries have brought their competition to Uganda.

Uganda: Where to Put Your Money
The Monitor, by James Abola  (November 25, 2007)
James Abola, a reporter located in Kampala, highlights what he considers to be the best areas for investment in Uganda. For those living in distant places, he recommends the Uganda Securities Exchange which has seen substantial growth in recent years. The other two industries he highlights are in real estate and road construction.

Best Countries for Global Business
Time  (November 15, 2007)
The second annual Global Competitiveness Index was recently released, with the United States taking the top spot yet again. The index measures 113 factors that give a detailed picture of a country’s competitive position in the world economy, as well as their ability to foster efficiency. The details of the report tell the story of a country’s economic position, as well as highlight strengths and weaknesses of interest to business and governmental leaders.

Biofuels Can Match Oil Production
Financial Times, by Ricardo Hausmann  (November 6, 2007)
The feasibility of biofuels as a major source of energy has long been the subject of scrutiny, but Ricardo Hausmann of the Financial Times argues that biofuels stand poised to take the lead in the global energy market. Steady progress in technology, along with abundances of viable land and market forces all seem to be combining to prime the biofuel industry for takeoff. If realized, this set of events could trigger and end to both the price-setting of Opec and agricultural subsidies present in today’s energy market.

Foreclosure Wave Sweeps America
BBC News, by Steve Schifferes  (November 5, 2007)
This year there has already been 1.7 million home foreclosure proceedings in the United States, and it is predicted that two million homes will be foreclosed in the next two years. This in-depth article uses Cleveland as an example, where one out of ten homes in the city is vacant. However, the problem exists across the nation and the only feasible solution depends on the sympathy of private lending companies.

The Business of Green
International Herald Tribune  (October 30, 2007)
An ongoing series of articles from the International Herald Tribune takes a close look at the multifaceted world of green business. From the engineering challenges of hybrid cars to the distribution of carbon credits, green business has far-reaching implications on the environment as well as corporate profits. The feasibility of ethanol and country-specific policies and pollution problems and are just a few of the topics addressed in this extensive report.

Little Green Lies
BusinessWeek, by Ben Elgin  (October 29, 2007)
Businesses often tout their efforts at environmental protection. Lately there has been a win-win mentality that saving the environment can actually increase profits. However, reality is showing that even when this has been true, profits are likely to be higher through alternative investments. This has led to companies forgoing investments in environmental protection. BusinessWeek shows how many companies have taken small steps to help the environment but pretend they are doing much more than they are. Examples include renewable energy credits that have been used to hide increases in carbon emissions. These are some of the many little green lies that companies have been telling.

Hungary 2007
Financial Times  (October 25, 2007)
Financial Times provides a special report on the state of the Hungarian economy at the end of 2007. Despite its successful ascension into the EU, solid relationships with Russia, and much greater economic wealth for its citizens, Hungary faces many challenges in the upcoming year. Austerity measures instituted by the Prime Minister have caused the first decline in real wages in over a decade. Coupled with his private admissions to lying about the economy to win his election, there is also political instability in the nation. This report addresses these issues but also takes a deeper look at the energy, healthcare, and banking industries.

IBM Global CFO Study: Nearly Two Thirds of Enterprises Experienced Major Risk Events and Almost Half Were Not Well Prepared
IBM  (October 24, 2007)
Everyone knows about the tremendous opportunities for growth globalization can offer, but all too often the inherent risks are ignored. A recent study of CFOs from 79 countries found that many firms are inadequately prepared to handle a high risk strategic, geopolitical or environmental event. Integrated Finance Organizations (IFOs) have instituted common processes, charts of accounts and data definitions among other tools that standardize work while minimizing risk. According to the study, IFOs outperform their counterparts in fields ranging from stock price to operational performance and responsiveness.

Bringing 'Lean' Principles to Service Industries
HBS Working Knowledge, by Julia Hanna  (October 22, 2007)
As evidence from one Indian IT firm suggests, 'lean' principles can be applied beyond the manufacturing realm. Software developer Wipro brought the ideas of standardization and coordination out of the factory and put them to work in a cubicle. Sizable increases in efficiency were coupled with greater employee satisfaction as lower-level workers entered into the innovation process. The successful experiment at Wipro could signal the beginning of a greater streamlining of processes with the potential to increase both efficiency and the problem-solving capabilities of service-oriented firms in India and throughout the world.

Young Urbanites in India Shun Their Parents' Gold Standard
The Washington Post, by Rama Lakshmi  (October 9, 2007)
Gold has traditionally held a special spot in Indian culture. It is seen as a prudent investment, treated as an auspicious metal at religious rituals, and most importantly, parents save gold for their daughters’ wedding. However, gold is facing competition as consumer income rises. Today’s urban residents are shifting towards luxury homes, cars, and expensive electronics as new alternatives to gold.

An Unexpected Finding in the Mexican Workforce
MSU Business Abroad Essay Scholarship Recipient, by Kelley Parzuchowski  (October 1, 2007)
Study abroad student Kelley Parzuchowski uses her experiences in Mexico to highlight the differences between U.S. and Mexican business culture. Though some businesses Kelley visited had questionable hiring practices and hazardous safety standards, the managers displayed a personal care for employees absent in many American firms. The hands-on style of these managers and competitive benefits creates a satisfied workforce and a surprisingly low employee turnover.

What's an SAR?
MSU Business Abroad Essay Scholarship Recipient, by Matthew Shaw  (October 1, 2007)
Matthew Shaw writes about his study aboard experience visiting two of China’s Separate Administrative Regions (SAR), Hong Kong and Macau. He notes Hong Kong’s entrepreneurial spirit and its safe environment, citing innovative developments such as the Octopus card. In contrast, Shaw describes Macau as a less developed SAR but growing at a tremendous rate, complete with a Vegas style casino district. Shaw is impressed by both regions and cites some his personal adventures both in the cities and through his explorations of the country-side.

Why ASEAN's Stock Markets Must Work Together
McKinsey Quarterly  (October 1, 2007)
The stock markets of Southeast Asia face a number of problems that could hamper their long-term viability. With the average stock on most of these exchanges trading less than once every two years, very low turnover has resulted in exceedingly high trading costs, naturally resulting in a lack of foreign investment. If Southeast Asian exchanges are to succeed in bringing in additional foreign capital and consolidating operations, strategic collaboration and gradual integration may be better than outright merger. (Free registration required to view this article.)

The Key to Successful Branding in China
BusinessWeek, by Shaun Rein  (September 25, 2007)
Much can be learned from the follies of several multinational corporations when they introduced their brands in China. Many companies failed to focus their brand on a specific target market, resulting in a dilution of their brand identity. Others have failed in marketing to Chinese consumers in a manner that encompasses their own culture and aspirations. To gain brand loyalty among the Chinese, companies must be able to successfully define their brand position, understand and relate to their consumers, and gain the trust of the Chinese youth to ensure future growth.

India Tries Outsourcing its Outsourcing
International Herald Tribune, by Anand Giridharadas  (September 24, 2007)
As the world looks to India for its outsourcing solutions, the south Asian nation is looking back for the same reason. In an attempt to better meet evolving global business needs, Indian outsourcing giants are venturing abroad, outsourcing their clients’ outsourcing. Stemming from a theory that suggests the eventual spread of outsourcing across the planet, India is hoping this bold and novel concept will keep it ahead of countries seeking to imitate its success.

How Can Your Company Build an Excellent Supply Chain? Let Us Count...
Knowledge@Wharton  (September 20, 2007)
Historically neglected, supply chains are now proving to be a critical component of just about every business model. Many companies are now turning to India as a base their global supply chain operations. With the rapid growth in global commerce, the need for efficient logistical systems has come to paramount importance. Customized supply chains are not only limiting costs, but also increasing revenues by scooping up sales that would have been otherwise lost.

Aerospace Top 100 Special Report 2007: Capacity Crunch
Flight International, by Graham Warwick & Helen Massy-Beresford  (September 4, 2007)
The top 100 in the aerospace industry posted revenue growths of 12% for 2006; however, this level of growth is unlikely to continue into 2007. The problem is that the bulk of the growth stems from the commercial market; increases in revenue levels from the defense market have been much lower. As such, constraints on commercial aircraft capacity among the top two revenue earners, Airbus and Boeing, mean even 10% growth would be ambitious. As for the performance of the companies themselves, Airbus managed to remain number one for 2006, but reported only 10% revenue growth, compared to a whopping 33% from Boeing. Tier 1 and 2 suppliers in the industry experienced greater revenue growth than prime contractors like Boeing, but experienced much more variation in their operating margins, revealing less tightly run operations.

Europe: A Branding Dichotomy
Interbrand, by Alycia de Mesa   (September 3, 2007)
In the world of global branding, cultural differences have put a damper on success in emerging markets. While firms have traditionally employed a cookie-cutter branding strategy across all markets, consumers are increasingly demanding proof of a brand's quality that caters to their own culture. In many cases this requires a total restructuring of the brand message and even the human resources responsible for creating that message. While this requires a great deal of learning on the parts of both consumers and global brands, if the firm plays their cards right they can reap the rewards of success in a growing market.

In a Growing World, Milk is the New Oil
International Herald Tribune, by Wayne Arnold  (August 31, 2007)
As the expanding global economy continues to raise people out of poverty, the demand for milk is increasing. This phenomenon has been leading to inflation in countries around the world, as the supply of milk is limited. The growing demand appears to be contributing to a much larger international trade of dairy products.

A Fish Tale on a Macro Scale: How Sushi Has Changed Globalization (and the World)
Knowledge @ Wharton  (August 27, 2007)
The unusual dish of rice, raw fish and seaweed serves as an exceptional example of global commerce and food culture. The overfishing of Bluefin in Japanese waters during the 1970’s led to the import of fish from Canada aboard passenger airplanes with improved refrigeration technology. As globalization crept across the world, this technology allowed sushi to gain a foothold in international markets such as India, the Bahamas and Peru, with each locality adding a different twist to the delicacy. Sushi’s story provides a positive example of globalization as it relates to technology and cultural identity.

Power Plays: Business Implications of the Indo-U.S. Nuclear Deal
Knowledge at Wharton  (August 9, 2007)
The U.S. and India are in the middle of negotiations to greatly increase India's civilian nuclear power program. The deal would have enormous business implications for both nations but some political leaders on both sides are in opposition of the agreement. This in-depth article analyzes the agreement from several angles and provides insight on its future.

Even Nonhousing Markets Feel U.S. Mortgage Fallout
International Herald Tribune, by Julie Creswell and Michael J. De La Merced  (August 7, 2007)
The shortcomings of the U.S. home mortgage market have had a strong impact across the nation's economy. As mortgage lenders close shop, large banks have begun loaning out less and corporations are paying more for loans. Some estimate that the high-yield market alone has lost nearly $50 billion in value since early June. The Bush Administration claims that there is no need for alarm as the nation's economy has seen positive growth. Many believe that in the past few years credit has been too affordable and accessible and the market is just now reacting. Avoiding risk, drastically lower high-yield and high-quality bond offerings were made in the past month than what has been the norm. Yet, many are confident that the credit market will rebound soon.

Third World Way
The Economist  (July 20, 2007)
The United Nations Global Compact was created in 2000 with the goal of bringing NGOs, businesses, and governments together in an effort to make the world a better place. Since then over 3,000 firms have signed up from 116 countries and the compact has steadily gained legitimacy. The Economist evaluates how the compact has grown in the past few years and the challenges that lie ahead. Highlighted topics include the profitability of Corporate Social Responsibility (CSR) approaches, the intentions of businesses, and improvements in monitoring and evaluation.

China and the U.S.: The Ties That Bind
BusinessWeek, by David C. Michael  (July 18, 2007)
Boston Consulting Group's David Michael discusses the gains that can be made from China-U.S. cooperation and the losses that would result from a trade war. The U.S.-China trade deficit reached $232.5 billion in 2006, but it should be realized that sixty percent of China's exports are driven by non-Chinese companies. The U.S. and other countries invest in China at a rate of $1 billion a week. While the trade deficit is high it also must be noted that China is America's fourth largest export market. The U.S. and China should attempt to enhance the trade on both sides instead of erecting barriers. Only then would the two countries be able to come together and agree on other economic and social issues.

India's Outsourcing Status Under Threat
ZD Net Asia, by Edwin Yapp  (July 16, 2007)
India's status as the world leader in the shared services and outsourcing sector is in jeopardy, as a study by Frost & Sullivan shows other countries in the region to be growing substantially. While the study did find India to remain as the top outsourcing location, it is losing ground quickly. This process has been associated with India's high attrition rates, poor infrastructure, rising wages, and the appreciation of the Indian rupee against the U.S. dollar. Frost and Sullivan predicts that the shared services and outsourcing market will be worth US $1.4 trillion by 2009.

Vietnam: From Catfish to Computers
Business Week, by Frederik Balfour  (July 6, 2007)
An influx of high-tech investors over the last couple years are helping to make Vietnam become Southeast Asia's fastest growing electronics manufacturing center. A little more than a year ago, Intel invested $1 billion to build a test and assembly facility in Vietnam. This program has led several other IT companies to realize Vietnam's potential. Many experts credit the economic development to Vietnam's joining of the WTO last January.

Russia's Economic Might: Spooky or Soothing?
BBC News, by Jorn Madslien  (July 4, 2007)
Russia's economy is currently growing at a staggering pace. Since 2002, Russia's GDP has grown from $345bn to $984bn, nearly tripling its value. Meanwhile, inflation has been nearly halved. Many critics associate the economic growth with luck rather than skill, as Russia's economy is largely resource-based. The country's international image is in question, as many people around the world frown at its aggresive energy policy used to elevate political power. However, with 56% of the world's proven gas reserves, Russia will surely continue to grow as an economic and political force.

Russia Bids to Become a Tech Tiger
BusinessWeek, by Jason Bush  (June 26, 2007)
The technology sector is booming, and Russia wants in. Hot on the heels of giants such as India and Ireland, Moscow is now vigorously channeling funding into the research of various emerging technologies. Russia’s Soviet legacy has also left it with an ample pool of talent and research institutes, while its universities continue to produce about 200,000 science and engineering graduates annually. Yet, the Russian revival of the tech race appears to be shadowed by shady dealings. Matters involving cronyism and intellectual rights continue to plague this emerging giant.

Job Security in Corporate Pakistan
All Things Pakistan, by S.A.J Shirazi  (June 18, 2007)
It is a precarious world in corporate Pakistan, especially if one is an employee. The results of a private survey reveal a severe state of job insecurity in the nation, with employers issuing dismissals at their whim and fancy. It also stated that this trend could potentially lead to an eventual lack in both trust, and productivity. Hence, it is suggested that reforms and regulations be made to the Pakistani corporate sector, with the hope of fostering a better self-motivated, and creative work force.

Wealth Gap Grows and Solidarity Fades as Rebellion of Rich Spreads Across EU
The Guardian, by Ian Traynor  (June 11, 2007)
Cracks are forming in the European Union (EU), and they reveal a worrying trend. The way that tax-money is used has left the wealthy more than a little agitated. Many of Europe’s prospering regions are unhappy that most of the money is used to better, and fuel poorer communities, instead of their own; others are lamenting the seeming special benefits showered on the latter. It is feared that such resentment could mar the EU's history of successful wealth redistribution. Already, separatist talk has begun to surface, amidst the fading unity of this regional community.

Sports Sponsorship: A Risky Game
BusinessWeek, by Jack Ewing  (June 7, 2007)
The benefits of sports sponsorship may be boundless, but so are its risks. As recent doping scandals and mediocre performances have shown, such advertising ventures can be quite the double-edged sword. While a successful campaign could rake in the riches, backing a disgraced outfit could very well lead to grim losses and a sullied name. Interestingly, firms who have been burnt, such as BMW and Deutsch Telekom, continue to remain loyal and unfazed by this fickle pursuit.

To Appeal to Women, Too, Gadgets Go Beyond 'Cute' and 'Pink'
New York Times, by Michel Marriott  (June 7, 2007)
Technology has a new lover, and her name is Woman. Once a male domain, consumer gadgets are undergoing a subtle revolution, headed by their engineers and designers. Signs are pointing towards a move away from the superficial pinks and pastels, and a growing focus on feature-based changes that appeal to women. This is due, in part, to manufacturers recognizing plausible differences in gender roles, and how each views consumer technology. (Registration might be necessary to view this article.)

Djibouti Reaches Out to Trade and Tourism
BBC News, by Ginny Hill  (June 3, 2007)
Blessed with stability and strategic geography, tiny Djibouti is a rising star on the African continent. Attracted by its crucial position between the Mediterranean and the Indian Ocean, investors are in a partnership with the government to construct a new, state-of-the-art container terminal. Ostentatious tour packages are also in the works, as Djibouti bids to attract wealthy tourists to savor its many natural beauties. But, in a country with a 60% unemployment rate, the greatest benefit from its exciting ventures could be the jobs they generate.

Outsourcing Innovation?
Forbes, by Paul Maidment  (May 29, 2007)
Despite the progress China has made in R&D, it is still struggling to improve the overall quality of its research. One problem in the quest for innovation is a lack of an entrepreneurial class. Large companies are mostly government-run and unwilling to take on risky R&D projects, resulting in clever but not fantastically innovative products.

Extreme Investing: Inside Colombia
BusinessWeek, by Roben Farzad  (May 28, 2007)
In recent years Colombia has seen strong GDP growth while lowering both inflation and unemployment. Despite this positive economic news, the country has not been able to shake off its image as a haven for drug lords and criminals. A closer look into the cities and businesses of Colombia reveals safer streets and more efficient businesses. These improvements have increased confidence among both investors and consumers, though the economy as a whole remains fairly volatile. The mixed signals Colombia is sending paint an unclear picture of the nation’s future as an economic hub for Latin America.

Giants Forced to Dance
The Economist  (May 24, 2007)
Amidst dipping profits and corporate scandals, a massive shake-up is in the works for European firms. Despite success comparable to that of their American counterparts, recent snags have left several giants with new head honchos, but vague directions. Many believe this uncertainty could mean the end of a rosy decade; others feel that it could just be the nudge that Europe’s driving force needs. Whatever it may be, it is clear from the present disarray that European corporate big wigs must quickly learn the ropes of globalization.

Home on the Range
Newsweek, by Ruth Olson  (May 21, 2007)
Buffalos are making a comeback – on the dinner table. Hunted close to extinction almost a century ago, the humble buffalo is now bred for its meat, which has become a fad of sorts amongst health-conscious individuals. While still a minnow compared to its popular, “beefier” counterpart, this resurgent industry is reluctant to topple the latter. Rather, it is seeking to establish a specialty, niche market, that it hopes will maintain the integrities of both product and animal.

Boom Turns Irish Life Upside Down
BBC News, by Stephen Fottrell  (May 21, 2007)
The Celtic Tiger is on a rampage, but at what cost? In what used to be a nation of agricultural communities, a thriving mix of wealth and modernity now grace the historical streets of Ireland. Yet, the Irish economic metamorphosis has also meant a diminishing of rural societies and cultures. Additionally, the new race to riches is currently fueling increased isolation amongst a once warm populace. And, struck by this stark dichotomy between prosperity and a seeming decadence, many Irish now question the direction their country is moving towards.

Why Aren't Americans Using Less Gas?
Fortune, by Alex Taylor III  (May 10, 2007)
One would think that soaring gas prices would make consumers feel the pinch. Apparently, not. While sales of compact cars and trucks in the United States have risen in recent times, they come at the expense of mid-sized vehicles, and not their larger, gas-guzzling counterparts. However, this might all be changing soon, as automakers continue to be pressured to boost R&D for smaller, more fuel-efficient automobiles.

When Everyone's A Critic
Time, by Bill Tancer  (May 2, 2007)
The Internet has been a boon to many, and not least, the shopper in us. Brimming with online user reviews, the Web has become an unprecedented force for consumer-empowerment. With the help of fellow savvy shoppers, one is now able to seek out the nitty gritty details of everything, from obscure books to exotic locales. However, a keen eye is still needed if one is to discern between genuine insights, and misleading rants.

How Bad is Inflation in Zimbabwe?
New York Times, by Michael Wines  (May 2, 2007)
Each day in Zimbabwe the value of a dollar drops by five percent. Inflation in Zimbabwe is astronomical, prices of various items multiplying up to four times every couple of months. A roll of toilet paper is almost $150,000 in Zimbabwean currency. It seems as if President Mugabe has no grip on the situation. His 26 years in office haven't financially stabilized the country in any way; he had money printed just to pay off debt to the IMF. Citizens of Zimbabwe are struggling more than ever to cover basic living needs. Three million dollars for rent each month is something that very few Zimbabweans can afford to pay.

Deal or No Deal
World Trade Magazine, by Jeremy N. Smith  (May 1, 2007)
About thirteen million people inhabit the landlocked, tropical west African nation of Burkina Faso, and ninety percent of those who work are subsistence farmers. The agricultural overproduction programs maintained by developed regions like the U.S. and Europe pay farmers to grow more than is necessary, driving down world market prices and making farmers in less developed countries unable to provide for their families. An impasse on development talks regarding the Doha trade agreement is making it difficult to rectify the problem.

England's Goal Rush
TIME, by Lawrence Griffiths  (April 26, 2007)
The sun never sets on U.K.'s Premier League empire. The football league boasts some of the best teams in soccer history, enormous revenue and growth, and sprawls across several continents. Since departing from the Football League and giving birth to the Premier League, several U.K. teams have dominated the field and commanded a sea of fans. The Premier League has not only improved its stadiums in the U.K., but reached out to its fans everywhere. Asian fans are enamored by the fast-paced play and players from more than 20 countries join the Premier League to be a part of it. America has caught on and investors have dropped hundreds of millions of dollars on the teams to reach fans not only of the U.K., but of all the football-watching nations. The Premier League has all the talent and fan base of every investor and player's dreams.

Bottled Water: No Longer Cool?
Fortune, by Marc Gunther  (April 25, 2007)
Bottled water is coming under heat, and all that H2O might not douse the flames. It is usually not any better than tap water, and critics are also pointing to its non-environmentally friendly nature. Many claim that its production adds to global warming, while used bottles lead to littering. As a result, several opponents have begun to encourage lesser use of bottled water. However, producers are saying that, just like other beverages, there is always an appropriate time and place for their products.

Running Like a Clock ... and Fast
New York Times, by Paul Burnham Finney  (April 24, 2007)
For many American business travelers, rail is fast becoming the way to go. Continual expansions of high-speed rail networks have meant increased accessibility to various parts of the world, and at shorter times. Corporate commuters, many tired of the airport hustle and bustle, are also raving about the convenience and cleanliness of this evolving mode of transportation. In light of this growing business rush, several rail operators have now moved towards airline-inspired pricing systems, and even discount programs for their new corporate clients. (Registration might be required to view this article.)

When Chinese Companies Go Global: An Interview with Lenovo’s Mary Ma
The McKinsey Quarterly, by Gordon Orr and Jane Xing  (April 20, 2007)
McKinsey Quarterly recently met with Mary Ma, Chief Financial Officer of Lenovo, to gain her insight on the challenges facing Chinese companies venturing abroad. Ma believes gradual deregulation in China has meant that firms are now better able to enter the global arena. However, she notes that cultural differences, and the size of business, form critical factors in determining the success of overseas growth. Finally, Ma touches on the importance of private-equity investors, and their valuable experience in business decision-making. (Free registration is required to view this article.)

U.S. Market is Losing its Appeal, Chinese Say
International Herrald Tribune, by Keith Bradsher  (April 17, 2007)
The American market is no longer as attractive to China as it used to be. Or, at least that is what several Chinese businesses claim. Many blame the steady weakening of the dollar and intensifying protectionism in the United States (US) as reasons its diminishing importance. The Chinese are also hoping to prevent an over-reliance on a single export market, and are expanding in places such as Russia and the Middle East. Ironically, China has recently surpassed Canada as the largest exporter to the US.

An Industry in Search of its Identity
JoongAng Daily, by Ines Cho  (April 10, 2007)
South Korea is not a country known for its fashion, but rather a culture that turns the other cheek at flaunting the latest handbag. For centuries Koreans have felt that being fashionable or being caught in a style storm was a "social evil." The country is trying to step away from the old vanity issue and into the fashion world with Seoul Collections fashion week. The government lobbied major fashion houses and brought in journalists from around the world spending $1.6 million for the week. However, the rest of the world was not impressed with copied looks, even though the fashion week has gotten much bigger since it opened in 2000. South Koreans are struggling to find their place on the catwalk but feel they'll find their footing soon. It is a new frontier for the country, but there has been much investment from the government and young designers have their hopes set high.

Cricket in India: It's Big Business but Not Businesslike
Knowledge @ Wharton  (April 5, 2007)
There is no better time than now to be in the cricket business. Proceeds from the 2007 Cricket World Cup alone are expected to make the International Cricket Council (ICC) $239 million. In India, things seem even better. The Board of Control for Cricket in India (BCCI) is the world's richest cricket association, and India's best cricket player, Sachin Tendulkar, earns around $30 a minute. It is no mistake that the cricket business is thriving, but the recent disappointment over India's World Cup defeat suggests that the current model may be flawed. India may look to professional leagues in other countries for a improved structure.

China's Appetite for Meat Feeds a Brazilian Soybean Boom
International Herald Tribune, by Alexei Barrionuevo  (April 5, 2007)
It seems everything in China is undergoing change, and its residents’ taste buds are no exception. With their ever-increasing paychecks, more and more Chinese are demanding beef, poultry and pork. The animals in turn need more soy, a scarce commodity in China. The answer to China’s grain problem could lay in Brazil, whose underutilized farmland could be used to satisfy the middle kingdom’s craving for soy. If a stronger partnership is to be reached, problems with Brazil’s deteriorating infrastructure will need to be handled with firm commitments of capital, and Brazil’s farmers must be ensured of a more sustainable living.

The Business of Global Poverty
Harvard Business School, by Gary Emmons  (April 4, 2007)
Professors at Harvard Business School studying global poverty have made critical revelations in the field. Michael Chu, senior lecturer at HBS, says that doing business with the bottom of the wealth pyramid is not just morally sensitive, but is just perfect business sense. The poverty stricken individuals may only have dollars of dispensable income, but 2.8 billion people is large market in itself. Microfinancing is one way to work with people below the poverty line. One example is the Grameen $200 loan, which some 7 million people have taken out, that has a 98% repayment rate. Global poverty is probably the biggest socioeconomic problem and won't be fixed with a band-aid, but can over time be dramatically improved.

Globalisation's Offspring
The Economist  (April 4, 2007)
As globalization descends upon the world, a new breed of multinationals is emerging in its wake. Mostly from the BRIC countries, these firms are agile and aggressive, and giving their established counterparts a good run for their money. Though still a far cry from the old giants, many up and coming minnows have already launched successful takeover bids for foreign businesses. And, as both groups continue to tread gingerly, the true winner of this global tussle might just be the consumer.

India's Edge Goes Beyond Outsourcing
New York Times, by Aanand Giridharadas  (April 4, 2007)
Offshoring jobs to India has evolved from simple skilled tasks to highly technical projects. Companies are devoting more to training and fostering the intelligence and talent of their workers. Many new jobs in India are for writing software and even investment banking. Not to worry, there is still high demand for work to be done here. The job markets will shift and be more open for face-to-face business, like the medical field.

Migration Intricacies
BBC News, by Evan Davis  (March 29, 2007)
The pros and cons of migration are like the ebb and flow of the seas. One positive effect draws a negative consequence simultaneously. In "Notes on Real Life," Evan Davis teaches his "Evanomics" of migration. This is an interesting article displaying bilateral ideas. For example, he credits the Polish immigrants in Britain with building new houses, while at the same time filling them up.

Chasing the Dragon
Fortune, by Clay Chandler  (March 28, 2007)
It's hard to miss China when talking about global business, and for China it's hard to not be scrutinized over its explosive economy. China hasn't been able to control the side-effects of super success. The gap between rich and poor has grown and more efficient - and sustainable - resources are necessary, as well as less of a dependence on exports. Expert economist Stephen Roach warns that China is "unstable, unbalanced, uncoordinated and unsustainable."

Sierra Leone's Cool Entrepreneurs
BBC News, by Katrina Manson and James Knight  (March 26, 2007)
Fishermen in Sierra Leone are getting a cool uplifting - literally. They are now better able to keep their catch fresh, with a steady supply of ice from a new factory in town. Named Ice Ice Baby, after the popular rap, the business opened its doors to the rainy season and lukewarm reception. However, as receding clouds led to the casting of nets, demand finally came in for the company’s product. The income of fishermen has doubled, even with the additional cost in ice, revealing a golden opportunity for development. However, while foreign investments stream into the growing nation, local money continue to flow outwards due to a lack of confidence in the government.

Chávez’s Banking Plans Cause Apprehension
Financial Times, by Richard Lapper  (March 22, 2007)
The prospect of a South American development bank has just taken a leap towards reality. First forwarded by Venezuelan president, Hugo Chavez, initial reactions to the idea were lukewarm at best. However, recent announcements that the potential institution could begin lending in early 2008 have left some rattled. Officials from regional rivals – the Inter-American Development Bank (IDB) and the Andean Community Corporation – are concerned about the likely adverse effects it could have on regional divisions. Some in both institutions are also worried about the possibility of diminished roles.

Moore's Law Hits Physics in Memory Chips
Reuters, by Scott Hillis  (March 21, 2007)
It seems the laws of physics are finally catching up with Moore’s Law; and memory chips could be the first to bear the brunt. With current technology already allowing for miniscule 50 nanometer circuits, the time when silicon memory chips cannot be made any smaller might not be too far off. This has prompted a rush by industry leaders to seek alternative methods of memory storage, some of which resemble the stuff of science fiction. However, with technology also comes nagging questions of feasibility and capability, of which answers might not be as forthcoming.

The Ex-Elite Flier Club
The New York Times, by Barbara S. Peterson  (March 20, 2007)
Loyalty programs are good, only when members are loyal. Frequent fliers tend to find out the hard way, when their elite statuses are cut due to hiatuses, for reasons such as maternity leave and military service. Many are now lamenting the prospect of long lines and the economy squeeze, saying that it leads to a drop in personal productivity. As such, some have taken upon themselves, armed with justifications and negotiating skills, to overturn the seeming insensitivities of the airlines. (Registration is required to view this article.)

Green Business
BusinessWeek  (March 19, 2007)
With the recent spike in interest around clean energy, there has been much debate about the extent to which we can minimize our footprint and the best methods to do so. From ethanol cars to environmentally friendly wedding dresses, big businesses and ultimate consumers alike are hopping on the eco-friendly bandwagon. It is becoming increasingly apparent that being environmentally responsible can also bring financial rewards. The biggest question that remains is which green fuels will take off and which will bust.

Singapore and Neighbors Just Can't Get Along
International Herald Tribune, by Wayne Arnold and Thomas Fuller  (March 15, 2007)
Since its separation from Malaysia in 1965, Singapore and the surrounding countries have been in constant quarrels. Indonesia’s recent halt of sand exports needed to fuel Singapore’s construction boom has aggravated tensions even further. While the price of sand has tripled since this cease in exports, analysts warn that tense relations and trade quarrels could have a greater economic impact on the growth of the entire region. ASEAN’s goal of a single unified market by 2015 could prove to be unattainable if conditions fail to improve.

Corporate Wikis Go Viral
BusinessWeek, by Dan Carlin  (March 12, 2007)
The seeds of Wiki are slowly but surely being sowed in the corporate arena. Led by Nokia and Dresdner Kleinwort, the business world is gradually warming up to the mass collaborative phenomenon. First gripped by uncertainty, wiki converts in both companies are now raving about the time and cost effectiveness of the tool; other benefits of the new practice include increased productivity, coupled with a reduction in email use. While still not a mainstay in most firms, wikis are set to take the corporate by storm, backed the successes of Nokia and Dresdner Kleinwort.

Preserve Bulgaria's Nature
Sofia Echo, by Petar Ganev  (March 12, 2007)
As becoming "green" popularizes around the world, some nature-oriented organizations are surprisingly being protested. In Bulgaria, Natura 2000 has put many of it's citizens in worried state, which they say is not surprising. Natura 2000 is a European network aimed at keeping regions of land untouched. Since Bulgaria has joined the EU, Natura 2000 has set strict limitations on land across the nation. In the belief that man has the right to do what he wants with his own land, the people of Bulgaria want to farm and utilize natural resources. Some poverty stricken societies that depend on large mining projects are also protesting the regulations of Natura 2000 to financially support themselves. They argue that NGOs can save land and make money as well.

Harvesting Latin America's Agribusiness Opportunity
The McKinsey Quarterly, by Jorge A. Fergie and Matias Satz  (March 1, 2007)
Rising global demands for foodstuffs will help agribusiness expand. Brazil and Argentina seem to be best poised to address this demand but will have to tackle problems in efficiency, financing, innovation, and organizational structure. McKinsey highlights the practices of select companies to shed light on potential solutions and strategies necessary for sustained success. This article is also available in Portuguese and Spanish. A free registration is required to view this article.

An EU Directive Pits Environmentalists Against Developers in Bulgaria
International Herald Tribune, by Matthew Brunwasser  (February 23, 2007)
Conflict abounds in Bulgaria, the newest member of the EU. Blessed with a virgin nature and country, the developing, Southern European nation is embroiled in hostilities over Natura 2000, an EU environmental protection measure. In a country where land ownership holds more than mere economic significance, the government treads a fine line between private and environmental concerns. Backed into a corner by furious landowners and environmentalists, the administration of Prime Minister Sergei Stanishev must also contend with pressure from its new friends in the EU.

African Trade Fears Carbon Footprint Backlash
BBC News, by Victoria Averill  (February 21, 2007)
Solving First World problems could be creating Third World troubles. Kenyans are up in arms over a recent announcement by UK supermarket chain, Tesco. The statement called for the cutting of air freighted imports by half, and the adoption of "carbon counting" labeling, all in an attempt to reduce the company’s carbon footprint. However, many are deploring the specious aims of the move, and its potentially dire effects on consumer mindsets, and Kenyan producers; even if consumers boycotted African produce, total emissions in the UK would only dip by less than 0.1%.

Is Panama City the Next South Beach?
Washington Post, by Ceci Connolly  (February 18, 2007)
The latin metropolis of Panama City is that of a posh and urban-chic vibe, yet embraces you with the warm and friendly gestures of the South American culture. Tourists from all over the world are drawn to this unique city for more than it's charm, it's also a wallet-friendly place to visit, for now. The eyes of the business world have also noticed Panama City with the likes of Donald Trump building his own skyscraper. Prices will soon soar, especially when the Panama Canal locks project is finished. Either way, Panama City is fast becoming a hot destination for travelers and businesses.

Arming the E-mail Road Warrior
BusinessWeek, by Jack Ewing  (February 16, 2007)
The battle is finally heating up in mobile business communication. While suits with mobile e-mail devices are already a common sight, they make up little more than 1.5% of the 650 million global, corporate e-mail boxes - a number that mobile giants, such as Nokia, are keen to tap. Unfortunately, exorbitant costs have proved a hindrance to the growth of this untapped market, and the widespread, corporate adoption of mobile e-mail services.

Getting Rich off Those Who Work for Free
TIME, by Justin Fox  (February 15, 2007)
Wikipedia, Youtube, Linux - they might be free now, but they could be the Eldoradoes of this digital age. What open-source products and services lack in originality, they more than make up for in betterments and coordination. However, trying to profit off of volunteers, without looking greedy, could make these cash cows tricky to milk.

Kenya: Where Youth Risk Life And Limb to Harvest Sand Inside a River
allAfrica.com, by Nicholas Okeya  (February 8, 2007)
At the River Nzoia in Kenya, youths are in a routine race against time. Armed with only strong lungs and the urge to survive, the teenage sand harvesters brave long periods in snake-infested waters for a meager 300 Kenyan Shillings ($4.37 US dollars) each day. An important economic activity along the Nzoia, sand harvesting has drawn countless youths from the region. And, while advice about education and personal well-being regularly rings through their ears, all the children want is to earn that much-needed buck for the family.

Kia Investment Boosts Slovakian Growth
BBC News, by Jorn Madslien  (February 6, 2007)
In Slovakia, assembly lines are churning and lives are changing. Generating thousands of jobs and sparking the creation of better infrastructure, the seeds of economic growth are being sowed by Kia Motors' new plant in Zilina. And, with other foreign investors close behind the Korean automaker, Slovakia is slowly but surely becoming a major player in Europe.

India and China Wise Up to Innovation
BusinessWeek, by Harold Sirkin  (January 30, 2007)
Innovation drives top economies. The Japanese found that out in the 1950s and ‘60s, followed by the South Koreans in the late 1990s. And now, two of the fastest growing economies almost have it in their grasp. China and India have set themselves ambitious and elaborate goals, hoping to evolve into innovation-driven economies. R&D has seen steady increases in both countries, with investments in India achieving an annual growth rate of 40%.

Go Green, Get Rich: 8 Technologies to Save the World
Business 2.0, by Saheli Datta and Todd Woody  (January 29, 2007)
This article highlights 8 super-hero technologies. The damsel in distress being mother earth, some companies have decided it's time to protect her. With technological advances ranging from an endangered species tracker to toxin eating trees, these progressive thinking businesses could also make a huge profit for themselves.

Still Waiting: Record Labels Long for Digital to Rescue Dwindling Sales
The Guardian, by Katie Allen   (January 18, 2007)
Rosy digital sales are hardly enough to mask the flagging fortunes of the record industry. While music downloads hit the $2 billion mark in 2006, they have done little to offset waning demand for physical formats, such as CDs. However, record labels remain less than deterred. Putting up a brave front, many are raving about the digital age, citing phenomena like MySpace, and the highly-anticipated Apple iPhone, as budding cash cows.

Abandoned Iraqi Factories Now Manufacture Hope
International Herald Tribune, by James Glanz  (January 18, 2007)
Several factories litter the poignant landscape of battle weary Ramadi, in Iraq. Once state-owned enterprises under Saddam Hussein’s regime, they remain miraculously pristine, spared from the scars of war. In the wake of unrealized American aid, these factories have sprung to the forefront of reconstruction. Many hope that the economic oases will boost rebuilding efforts, while curbing insurgency by increasing employment.

Middle East Attracts $43.3b FDI in 2006
Khaleej Times Online, by Babu Das Augustine  (January 13, 2007)
Over the past year, $43.3 billion came to the Middle East in foreign direct investment. The oil market as well as the rapidly expanding domestic markets of these countries have been attractions to investors. Overall, 2006 marked a 25% increase in FDI for the Middle East.

Asean Pursues EU-style Regional Integration
International Herald Tribune, by Carlos H. Conde  (January 12, 2007)
A cousin could soon be on the way for the EU, in the form of a "new" Asean. Members of the association are toying with the idea of an integrated Southeast Asia, a concept not unlike that of the EU. The proposition was put forward as a much needed evolution of the 40 year old organization, which many feel has been weakened by inaction. Supporters believe that a more homogeneous community would lend greater weight to the regional body and its actions.

Russia's Progress and Regress
Japan Times, by Charles Wolf  (January 11, 2007)
Throughout the past decades, Russia has undergone many changes in the business world. The country has opened its doors to many other areas of the world and other policies, but where is the market now? Labeled as a transitional market, Russia's economy has yet to find stable ground for itself. (free registration required)

Cloned Beef Burgers:
BusinessWeek, by Pallavi Gogoi  (January 11, 2007)
Cloned food is safe. Or, at least the Food and Drug Administration says it is. While still unavailable for sale, the FDA is expected to give its final stamp of approval, following a review of public feelings on the issue. Unfortunately, it could be public opinion that is toughest to chew on. Many already have some beef with cloned food, citing issues such as the supposed cruelty of the cloning process.

A New Oil Plan for Iraq
TIME, by Vivienne Walt  (January 11, 2007)
A plan to divide Iraq's oil wealth among all Iraqis and shared with outside companies is in the works. As written, the legislation would allow big businesses 10 years of experimenting with Iraqi oil fields, then possibly negotiating production deals with Iraq National Oil Company. Also included in the document is the proposed idea of sharing the income among all Iraqis, possibly ensuing battles between rich production areas against the dry regions. With Iraq's infrastructure in its current battered shape, a clear view of how this could turn out for oil companies and Iraqis alike is a long way off.

Cultural Revolution
The Economist  (January 11, 2007)
A revolution is in effect in the shady annals of Chinese accounting. The beginning of 2007 saw a new financial reporting system come into being. Based on the International Financial Reporting Standards, the switch from old to new is mandatory of firms listed on the Shenzhen and Shanghai stock markets, and optional for the rest. However, China’s sudden devotion to transparency is believed to be blurry at best. Many lament the Asian giant’s dubious history, and acute lack of accountants, as significant barriers to financial integrity.

5 Energy-Saving Tips: More Important Now Than Ever
Industrial Maintenance and Plant Operation Magazine, by Peter Cleaveland  (January 9, 2007)
Industrial Maintenance and Plant Operation (IMPO) Magazine has compiled a brief list of tips to aid industries in prudent energy usage. While plugging leaks and motor efficiency are by no means newfangled methods, they are tried and tested ones; other interesting accompaniments include the use of solar energy, and even free consultations.

BRIC Crumbling?
IndustryWeek, by John S. McClenahen   (January 1, 2007)
BRIC (the term used to refer to Brazil, Russia, India, and China) is supposed to be the driving force of the world economy for the next couple decades. IndustryWeek provides analysis as to both trends and practices that hamper economic development and ones that promote stability and growth. Specific manufacturing industries are cited to provide additional insight to individual issues that are pertinent. Some key insights include Russia being a good choice for sourcing into the Europe but not necessarily the United States; India having the greatest long-term potential; and China being the mature outsourcing location.

Opportunities South of the Border
Label and Narrow Web, by Jennifer Dochstader  (January 1, 2007)
Latin America is showing a promising future for label printing companies. Sales and exports from label companies in the region are up, especially countries besides the big stars like Mexico and Brazil. Locals are privileged with heightened incomes and are therefore able to buy products (like packaged foods) from the printing companies driving the sales. Printing companies are also becoming more competitive in the global market with aesthetics on their actual products and by using higher quality machines and printers. The newfound competitive edge is warmly welcomed by Latin America.

ERP Breaks Barriers
IndustryWeek, by AMR Research Inc.   (January 1, 2007)
Enterprise resource planning (ERP) is a software application that started within the manufacturing sector and is now gaining increased attention. ERP provides companies with a more comprehensive view of their business environment and allows different company segments to share information on a real-time basis. In 2007, production will likely garner the largest share of ERP investment due to increasing pressures placed on manufacturing from globalization. In a related article, three companies provide case-studies on successful implementation of ERP systems.

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2006

Uncertainty Over China Prompts Textile Importers to Diversify
Shipping Digest, by Alan M. Field  (December 25, 2006)
The U.S. importers of textiles are set to diversify the sources of their goods as political opposition to China runs high. Potential beneficiaries to this diversification include Vietnam, Indonesia, India, and other low-cost Asian countries. This article looks into the challenges that sourcing from these countries poses and the likely trends in textile trades. Apart from Asian countries, Shipping Digest also examines the potential role Central American countries will play with the passage of CAFTA (Central America Free Trade Association).

Spam Doubles, Finding New Ways to Deliver Itself
New York Times, by Brad Stone  (December 6, 2006)
Spam is back - with a vengeance. With antispam technology getting the better of junk e-mail in recent years, many assumed that the pesky frustration had become the stuff of history. However, spammers are hitting back, aided by sophisticated methods that are successfully thwarting spam detectors. Alas, as antispam companies struggle to keep up, and business servers clog up, spammers are looking up and smiling all the way to the bank. (Registration is required to view this article.)

Putting the Malaise into Malaysia
The Economist  (November 30, 2006)
In what was once a progressive nation, social discord now threatens to flush Malaysia down the economic drain. Even after being showered with preferential treatment, it appears some indigenous Malays are still disgruntled with the Chinese and Indian minorities. Opponents of this positive-discrimination claim that it is hindering both economic reforms and privatization of business. And, as the prime minister stifles another attempt at inter-faith discussion, Malaysia’s 50th year of independence could be one to forget.

Is Corporate Social Responsibility Responsible?
Forbes, by Betsy Atkins  (November 28, 2006)
A lot of buzz in today’s business world seems to surround corporate social responsibility. While a worthy cause, it is, like many notions of political correctness, a muddy one to tread. Achieving the balance between social causes and profitability may be a delicate process, but it is an unavoidable one. A firm ought to be responsible, not only to society, but its shareholders as well; they are in the business of making money after all.

Free Flow: Shipping Companies Counting on India to Help Fill Empty Containers
International Herald Tribune, by Vaudine England  (November 15, 2006)
The titanic Chinese trade surplus could be dropping a couple chunks. Fretting shipping companies are setting their sights on India, relying on this Asian tiger to tip the balance. Teeming with raw materials, and a prospering middle class, Delhi could be just the tool to rein in Beijing’s runaway surplus. And, free trade pacts, while still far into the horizon, could be a reality as the two powerhouses begin to cozy up to each other.

Red Alert or Green for Go
Daily Mail & Guardian, by Sanusha Naidu  (November 9, 2006)
As China and Africa cement their recent economic marriage, many are looking at the union with mixed emotions. Some see salvation in the Asian giant’s interest – its exciting growth and trade commitments breathing new life into the forlorn continent. Others, however, approach the alliance with great apprehension, gripped by the fear of exploitation repeated. Disagreements aside, wherever this path takes Africa, her fate ultimately lies in the hands of her populous and their leaders.

Taming Ireland's Celtic Tiger
Fortune, by Christopher Redman  (November 7, 2006)
From rags to riches in one generation, the Irish fairy tale is one that many envy. However, the spectacular success of the Celtic Tiger has stumped more than a few. Many point to EU handouts, while some sing the praises of the education system; still, there are others who trace it to a 1980s demographic shift. Almost everyone is struggling to decipher the mystery remedy, in a bid to sustain it. However, with rising debt and dependency ratio, this roaring feline could lose its final life before it can even be saved.

Wales Struggles to Reinvent Itself
BBC News, by Clare Davidson  (November 6, 2006)
Just a decade ago, Wales was riding high on waves of Asian investments. But, as Eastern Europe found its economic footing, desperation caused the British nation to fall for its investors’ idle commitments. Firms promised skill developments, only to sacrifice it for a fast buck. Now, as LG, the last of the major investors, prepares to take its leave, the Welsh dragon is left to lick its wounds.

From Bench to Bedside
The Economist  (November 2, 2006)
Plagued by red tape and banal ventures, the pharmaceutical industry has seen a steady decline in drug discovery. A concentration on generic drugs, instead of R&D, has ensured a saturation of copycat treatments in the market. Fortunately, there is a new kid on the block. Innovation-rewarding venture funds are just now entering the arena. Armed with gumption, and deep pockets to boot, they could be the long-awaited panacea of both the industry and the world.

Australia's in Luck
Forbes, by Paul Maidment  (October 31, 2006)
Plagued by racial strife and protectionist dawdling, Australia seemed to be drifting into the mists of oblivion. Now, fresh from a forty-year transformation, the continent has become an economic force to be reckoned with. Copiously blessed with natural resources, the outback now plays host to some of the biggest multinationals. And, as it begins saddling the ever powerful East Asian economic surge, its only potential undoing would be its own inaction.

Boomtown in Venezuela Confronts Mining Ban
New York Times, by Simon Romero  (October 29, 2006)
Six-shooters and high noon gunfights are probably not a common sight in La Paragua. But, the Venezuelan mining settlement is fast becoming a modern day Wild West. As the lure of diamonds and gold whets the appetite of fortune-hunters, President Hugo Chavez is struggling to halt their advance, supposedly for environmental reasons. Clashes between miners and government troops have already taken six lives, and sparked off a wave of violent protests. Yet, locals remain skeptical of the government's intentions, and miners continue to trudge towards their prize. (Registration is required to view this article.)

The Innovation Sandbox
Strategy+Business, by C.K. Prahalad  (October 26, 2006)
In the past, a market breakthrough has been the focal point of new innovations, but today, innovations are designed to change lives. The idea behind modern innovation is to create a low-cost, high-quality business model. The process includes identifying four conditions, all of which are complex and require free-form exploration. However, if companies can successfully execute innovations with these four conditions, the quality of life for people of the developing world will be greatly improved. (Free Registration is required to view this article)

The Tyranny of King Cotton
The Guardian, by Joseph Stiglitz  (October 24, 2006)
It seems actions do speak louder than words. While the United States (US) continues to harp on free trade, its economic policies point increasingly towards protectionist dabbling. Many believe that American subsidies for its cotton industry are the root for the Doha breakdown, and the perpetuation of poverty in the Third World. It is widely expected that a rekindling of the Doha flame would yield favorable results, especially for the US; that is, if it decides to put its money where its word is.

Road Warrior Health Hazards
Forbes, by Hannah Clark  (October 18, 2006)
Touring executives toil to keep their companies in the black; they also face an equally challenging struggle to keep themselves in the pink of health. Many believe that being fit is key to business success. And, from Capoeira, to circulation-enhancing socks, businesspersons are discovering an increasingly endless list of creative ways to stay active and fresh.

Europe's Young Entrepreneurs
BusinessWeek, by Andy Reinhardt  (October 9, 2006)
When people think of entrepreneurs they often skip over Europe. Although Europeans still do tend to be more risk-adverse, a new breed of young entrepreneurs has emerged. These young individuals have not only based their ideas on new technology and venues such as the Web but also traditional outlets such as film production. BusinessWeek takes a closer examination of 15 of these young entrepreneurs.

Making Money in Afghanistan: Still Risky Business
Fortune, by Eric Ellis  (October 5, 2006)
The picture seems to be glowing for war-torn Afghanistan. Per capita income is steadily rising, and prominent investors, such as Coca-Cola, are dumping millions into the embattled nation. However, behind the rose-colored facade lies a shady world of strife and corruption. Afghan returnees are being ousted by warlords who are hungry for a piece of the action; and, the narcotics trade makes up a third of the country's economy. Coupled with a fierce Taliban resurgence in the south, the Afghan dream could be going the way of its past - in shambles.

Cityscape: For Egyptians, Life is a Bowl of Ful
International Herald Tribune, by Michael Slackman  (October 1, 2006)
As Egypt feels the assimilating pressures of globalization, an oft forgotten group - the poor - is fanning the flames of its fading culture. Peppered with traditional trades, the poor-dominated informal sector makes up about 60% of the nation's economy. And, each day, many more rural immigrants are riding into Cairo, on the backs of dreams and hopes. It could be high time for the national capital, and perhaps all of Egypt, to expand its economic horizon.

The Smart Way to Invest Overseas
World Trade Magazine, by Mark Bernstein  (October 1, 2006)
The power of United States businesses abroad has rarely been in question. And, with the shifting of economic paradigms, the world superpower is again redirecting its overseas investments. Yet, experts agree that just mere, convenient dumping is, more often than not, a recipe for failure. Most still believe that sound investments are still built on the most basic of principles, such as political and economic stability, infrastructure, and the likes.

Wireless Networking May Soon Get Faster. Will Anyone Care?
The New York Times, by Martin Fackler  (September 26, 2006)
With Bluetooth and 3G deflating like wheezing balloons, skeptics are wondering if wireless networking is really worth all the fuss. Yet, throngs have already jumped onboard the 4G bandwagon, with many more in tow. Hundreds of millions are being pumped into the 4G bubble, as competitors vie for a piece of the action. Unfortunately, judging from past experience, this is likely a pie that is fillled with nothing but a whole lot of puff. (Registration is required to view this article.)

Panama: A Bubble Waiting to Burst
Latin Business Chronicle, by Walter Molano  (September 26, 2006)
A country most associated with its famed canal, Panama is bursting at the seams. The country's economy is rising, largely led by the construction boom. Many international big businesses are investing in Panama and people around the world are migrating to this small country for retirement. Panama City has given birth to skyscrapers and high rise housing complexes that glam up the skyline. The country still has hurdles to jump in the face of things like infrastructure and healthcare, but Panama has set a foot in the right direction and is trying with all its might to keep walking tall.

Managing in Chaos
Fortune, by Geoffrey Colvin  (September 19, 2006)
"Change is the only constant," goes the old adage. Yet, it seems to have fallen on deaf ears, especially in the dynamic business world of today. Many a giant, built on change-resistant strategies, are now faltering because of their xenophobic reactions to new, untested ways. And, as the change express comes round every four years, without any sign of slowing down, the business dynasties of old may be just that - old.

New Alchemy: Grass Into Fuel
International Herald Tribune, by Christopher Knight  (September 17, 2006)
As unflinching demand and scarcity cement oil prices at exorbitant levels, interest in biofuel is beginning to spike. Environmentally friendly, and cheaper than its black counterpart, it could be the stone that kills two birds. Yet, this gem is not without its rough edges. Due to budding demand and increased land usage, biofuel crops are gradually rising in price. Fortunately, research on wood and cellulose fiber is shedding light on a new generation of biofuel crops - one that could spell the beginning of the end for black gold.

How to Be an Outsourcing Virtuoso
Strategy+Business, by Vinay Couto and Ashok Divakaran  (September 14, 2006)
In contrast to what some were predicting only a short time ago, the outsourcing industry is experiencing a surge of growth and sophistication. The global services industry, which provides assistance in information technology, customer care, finance, human resources, engineering, procurement, real estate and facilities management, and data analytics, is expected to hit $641.2 billion in market value by 2009. This growth equates to nearly 11% per year, and with these kinds of figures, more and more companies are seeking out the "outsourcing virtuosos" to gain the knowledge needed to succeed in this industry.

Japan: Rising Sun, Setting PM
Fortune, by Clay Chandler and Cindy Kano  (September 13, 2006)
With a stable GDP growth of 2%, Junichiro Koizumi leaves the Japanese economy gleaming in the twilight of his political career. Yet, as the Japanese Prime Minister prepares to take his bow, a worrisome anxiety also descends upon the land of the rising sun. Peeking over the horizon are an increasingly greying population, and a grossly inflated debt-to-GDP ratio of 170%. And, with a potential successor more bent on political instead of economic reforms, Japan’s light at the end of the tunnel could be that of an oncoming train.

Trade Finance Goes Creative: Supply Chain Visibility Is Transforming Trade Finance
World Trade Magazine, by Robert J.   (September 4, 2006)
Unlike physical supply chains, their financial counterparts are still struggling to cope with offshore supplies. Financial institutions, unsatisfied with current supply chain visibility, are reluctant to fund necessary capital. Fortunately, this double-edged sword of off-shoring might soon be double-teamed. The innovative amalgamation of two traditional competitors - physical and financial supply chains - could bring forth a golden era, in which everyone from supplier to consumer lives happily ever after.

Why India Will Overtake China
Money, by Cait Murphy  (August 31, 2006)
For all its lauded, explosive growth, China's economic success might not be all it's cut out to be. Behind the Chinese shadow of shady bureaucracy and political repression lies a challenger waiting to pounce - India. Armed with confidence, freedom and cultural reforms, this emerging economic giant is anticipated to tame the Asian tiger. More than that, India is expected to surpass the already outstanding Chinese economic success.

Africa — Beyond Aid and Bono
The Globalist, by Ferial Haffajee  (August 22, 2006)
Many officials are now realizing that giving aid to Africa is becoming a failing solution. With years of Western aid flowing into Africa and relatively little progress, many are becoming to realize that aid is not the sole solution for Africa. The editor of South Africa's Mail and Guardian, Ferial Haffajee, believes that sustainable growth will be realized only when necessary structural changes are made.

Congestion, Skyrocketing Fuel Costs, and a Barrage of New Federal Regulations
World Trade Magazine, by Lara L. Sowinski  (August 1, 2006)
Escalating fuel costs and federal regulations are threatening to drag transportation rates through the roof. Coupled with congestions and ballooning travel times, the future seems bleak for the supply chain industry. Fortunately, these have given service providers an impetus to begin looking at creative means to combat this issue. From innovative vehicle designs, to simple idle times and traveling speeds, there is certainly no shortage of ideas. Even the government is chipping in, creating a national strategy for reducing congestion. All that remains to be seen is the human nature of problem resolution.

Challenges on the Road to Democracy in the Middle East (Part I)
The Globalist, by Alon Ben-Meir  (July 19, 2006)
Recently, there has been a growing emphasis on expanding democracy in the Middle East, but there are many challenges to address before doing so. The Muslim World has a history of authoritarianism, tribalism and religious and cultural sectarianism, which has complicated the introduction of democracy into the region. The author suggests that democracy must be introduced in a number of steps including gradual change and economic incentives. In addition, the introduction of a democracy should fit the needs of the country and should not be done on any definitive timeline.

Globalization and European Growth
The Globalist, by Jason L. Saving   (July 12, 2006)
The economies of the European Union (E.U.) and the United States (U.S.) have altered from one another over the course of the last 25 years. The U.S. experienced growth, while the E.U.’s economy was primarily stagnate. Now, the E.U. has to choose whether to strive for increased liberalization and global competition or to have a more closed economy as many European officials are wondering if globalization will work for them.

Building Brands in China
The McKinsey Quarterly   (July 11, 2006)
Complied by The McKinsey Quarterly, this special report addresses various aspects of Chinese consumers. The report addresses the demographic shifts associated with the emerging middle class, the challenges of keeping up with changing Chinese consumers, and the buying power of hard-to-reach consumers with hidden reserves. (Free registration is required to view this article.)

Forging a New Regional Architecture for Asia
The Globalist , by Lee Hsien Loong   (June 29, 2006)
Asian countries are experiencing increased stability through growing cooperation between a number of Asian countries. Together, this stability and cooperation has contributed to Asia’s growing influence on the rest of the world. Intra –regional trade now accounts for more than half of the total trade in Eastern Asia. Questions still remain on if Asia’s growing independence will lead to conflict with the West and how Asia will handle their new geostrategic leverage.

As the World Flattens
BusinessWeek, by Randall Frost  (June 21, 2006)
Globalization was once believed to threaten to bring the end of local culture and markets. But as globalization expands to the remote ends of the earth, it is bringing a renewed interest in local cultures and traditions. Some analysts believe that cultures around the world are responding to the economic change at a better than expected rate. The country of Thailand has been able to experience renewed interest in the history, language, literature, and culture of their local ethnic groups.

Is the EU Destined to Fail?
The Globalist , by Charles Kupchan   (June 16, 2006)
Some critics are now starting to question the viability for the existence of the European Union (E.U.). Over the course of the past couple of years, the E.U. has suffered a large number of set backs. The proposed European constitution last year was rejected by both France and the Netherlands, effectively ending the initiative of a uniform constitution. Economic nationalism and protectionism is on the rise within the E.U. as France, Spain, and Poland took measures to protect their national industries from takeover. Also, national boundaries have been rebuilt as there is increased hostility towards immigrants.

The Global Benefits of Biofuels
The Globalist  (June 15, 2006)
With rising energy prices recently, there has been a greater push for the use of biofuels, which would benefit both the environment and developing nations. Of the world’s 47 poorest countries, 38 import oil, while many of these countries have significant amounts of agricultural goods. According to The World Bank, biofuels require about 100 times more workers per unit of energy produced as compared to fossil fuels. By switching to biofuels, poorer countries could boast higher employment rates and greater use of their own resources.

Pandemics and the Global Response
The Globalist, by Jeffery Matsu  (June 7, 2006)
In 2003, the SARS outbreak brought concerns of a global health pandemic. Now 3 years later, only 30 percent of corporations have created contingency plans to address the issue of disruptions caused by a pandemic health issue. Disruptions, such as a pandemic health outbreak, could seriously halt the global economy, which generates 12 trillion dollars in annualized trade flows. In most industrialized nations, private corporations account for 80 percent of the gross domestic product (GDP), which is crucial to consider for any effective public health policy.

The FIFA World Cup 2006
Forbes, by Paul Maidment  (June 5, 2006)
Forbes.com has compiled a number of articles pertaining to the 2006 FIFA World Cup in Germany from multiple viewpoints. Special focus is given to corporations involved with the tournament, in addition to the effects of modern technology on the tournament. The implications of corporate marketing are also investigated, as is the player’s motivation to play well in the tournament.

Russia Through the Vodka Glass
The Globalist , by Alexi Bayer   (June 1, 2006)
Published by theGlobalist, this three part story provides analysis of how “vodka economics” could have contributed to the Soviet Union’s demise. The article analyzes on how the three ruble price tag on a bottle of vodka became the common price for many goods and services. The series is completed by Vodka Part II: Sobering Up the USSR and Vodka, Part III: Market Riches After Communism.

Malaysia Focused on 2020 Vision
BBC News, by Gavin Stamp  (June 1, 2006)
In 1991, Prime Minister Dr. Mahathir Mohamad stated his vision of a fully developed Malaysia by 2020. Now fifteen years later, Malaysia has a thriving economy that has experienced positive growth in all but one year since 1991. In addition, several industries are becoming competitive in the global market and the country is becoming a key player in Asia. An improved transportation system has been installed and a growing number of multinational corporations are looking to conduct business in the country.

How Sturdy Are BRICs?
BusinessWeek, by Sonja Ryst  (May 31, 2006)
Many analysts are starting to have doubts in BRIC (Brazil, Russia, India, and China) Investments. While the BRIC nations are growing in global prominence, so is their volatility. Some analysts are comparing BRIC Investments to previous emerging market investments, which include the failures of the Tequila Crisis of 1994, the Asian crisis of 1997, and the Russian crisis of 1998. The source of this volatility stems from the doubt that BRIC nations can continue to experience growth while maintaining a current-account surplus.

The Facts and Figures behind the Fortunes of India and China
BBC News  (May 25, 2006)
With one in three people in the world living in either China or India, it is important to place their economies into perspective. Both economies are growing at a rapid pace as well as their importance in the global economy is increasing. BBC News has compiled a detailed report that compares and contrasts the population, ageing societies, economies, and living standards in each of the countries.

R&D Offshoring: Is It Working?
BusinessWeek, by Pete Engardio  (May 10, 2006)
A recent survey of 186 of some of the largest corporations found that 77% of them will place new research and development (R&D) centers either in India or China within the next three years. A recent study by Booz Allen Hamilton and France's INSEAD business school found that companies are placing R&D facilities in India and China because they are either closer to their manufacturing plants or the large amount of cheap highly qualified labor. The only problem that remains is that companies haven't fully integrated the brainpower potential that exists in China and India.

Emerging Alternatives in the Global Apparel Industry: Just Garments and the Single Mothers' Co-operative
Briarpatch, by Daniel Martinez and Claudia Quintanilla  (May 1, 2006)
Workers in developing countries have been subject to the whims of large multi-national corporations when it came to job stability. Few multi-nationals works with unionized labor forces and often relocate production to the lowest cost producer, leaving previous employees to fend for themselves. In the textile industry, the last few years has witnessed the emergence of such companies such as Just Garments, single Mothers’ Co-operative, No Sweat, and JustShirts. These companies strive to provide workers with better working conditions and targets conscientious consumers who are willing to spend more to promote worker rights. However, there are challenges in obtaining enough production volume and maintaining profitability. With the help of NGOs in the developed world, a few co-operatives have managed to survive.

A New Organizational Model For Airlines
The McKinsey Quarterly, by Yael Heynold and Jerker Rosander  (May 1, 2006)
As large aviation companies diversity their businesses into related areas due to increased competition, new challenges have arisen. Increased organizational complexity has led to decision-making bottlenecks at the top of some companies. In addition, top executives’ focus on the core passenger airline has led to a lack of attention to emerging opportunities in higher-margin businesses. To solve these problems, McKinsey suggests companies change from a functional organization model to a business unit model. Note: To view this article a free registration is required.

Hostile Takeovers, Euro-Style
BusinessWeek, by William Boston  (April 21, 2006)
Unsolicited bids, previously used primarily by American corporations, are now becoming popular within Europe. Over the past four months, European companies have launched 13 hostile and unsolicited takeovers worth 193 billion dollars. Some reasons for the rise in the number of hostile takeovers stem from increases in the number of publicly listed companies and the number of European executives that have received MBAs in America. In addition, globalization has brought more competition and an increase in the number of hostile takeovers originating overseas.

The Good in Globalization
International Herald Tribune  (April 10, 2006)
The Federal Reserve Bank of Dallas set out to discover what type of relationship exists between globalization and public policy. The study ranked 60 countries by degree of globalization. Then, the ranked countries were divided into 4 groups in order to understand how each fraction performed on policies that shape economic performance. The study found that the more globalized nations use policies that achieve faster economic growth, lower inflation, higher incomes and greater economic freedom. The least globalized countries, on the other hand, make use of policies that interfere with markets and lead to stagnation, inflation and diminished competitiveness.

Oil and Petrol
The Guardian   (March 14, 2006)
The Guardian has composed a special report titled, “Oil and Petrol”. The report contains a number of articles pertaining to oil consumption, new oil field discoveries, products that conserve oil, and many more items. Articles are continuously added to the report as they are written. Also contained within the special report are interactive guides on such topics as “Arctic Oil Exploration” and “Conflict with Iraq-Oil Reserves”. In addition, links are provided for oil producing nations and the major corporations within the oil industry.

Dominican Republic 2006
Financial Times  (March 10, 2006)
The Dominican Republic is the most popular tourist destination in the Caribbean. In addition, its economy has been in revival since the election of center-left President Leonel Fernández. However, it continues to face challenges in creating jobs and reducing high poverty levels. Financial Times provides an extensive analysis of Dominican Republic, highlighting issues such as energy, government, banking, tourism, and free trade. Relevant statistics are also provided ranging from foreign aid to crime.

Making China Your Second Home Market
The McKinseyQuarterly   (March 7, 2006)
Many companies are now targeting China as a second home market. Companies within both the European Union (EU) and the United States are looking to set up operations in China, as consumer demand is growing at an increasingly rapid rate. In addition, China offers low wages which will allow companies to sell some of the Chinese output around the world while selling products locally at a considerable markup. (Free registration required to view the article.)

The Future of Outsourcing
BusinessWeek  (January 30, 2006)
BusinessWeek recently comprised a section focused solely on Outsourcing, with a number of articles on the topic. The history, problems, benefits, and future of outsourcing are all talked about in depth. Specific industries are mentioned as possible candidates to conduct more operations overseas, while particular regions are indicated to be the most likely recipients of this new outsourcing. Special focus it made on current Outsourcing cases such as, “Can Latin America Challenge India?” and “From Russia with Technology?” (Free registration is required to view the articles)

China's Five Surprises
strategy+business, by Edward Tse  (January 18, 2006)
China has been the fastest-growing economy the last ten years, but many believe that the past is not the best gauge to use for the future. With its 9 percent Gross Domestic Product (GDP) increase annually over the past twenty years, China is predicted to be the world’s largest economy by 2030. With this growth, there are five predicted “surprises” in China’s future: China’s move beyond being low-cost commodities producer, its emphasis on rapid-fire research, ability to attract and retain high level executives around the world, a move away from connections and ethnic background to conduct business, and becoming a catalyst of sustained economic growth in the emerging markets of the developing world.

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2005

Emerging Markets: Beyond The Big Four
BusinessWeek  (December 26, 2005)
Many investors have focused their attention on Brazil, Russia, India, and China (BRIC) as the fastest-growing economies, but there are other countries that are promising emerging markets. Egypt, Mexico, Poland, South Africa, South Korea, and Turkey all have impressive growth, but not quite the population as the BRIC nations. All of the smaller countries are making dramatic economic improvements, such as Turkey’s attempt to gain admission to the European Union (EU), but also have a large amount of risk. These countries tend to have very little liquidity in their economy and thus investors could see prices tumble, maintain, or even skyrocket.

Final Round for Global Trade Deal
BBC News, by Steve Schifferes  (December 21, 2005)
With the end of the Doha round of trade talks, it appears that the world’s leading economies are unprepared to reach a deal that will unlock trade globally. As the United States has a growing trade deficit and European economies are still suffering from slow growth, many leading countries are feeling protectionist pressures not to expand trade globally. It appears as though Europe’s farmers are unready and unwilling to have European agricultural subsidies reduced and eventually eliminated by 2013, which is the current deadline set by the World Trade Organization (WTO). As world trade negotiations have stalled, some countries are still establishing regional and bilateral trade deals to meet their own objectives, like the United States and China. Many are predicting that 2006 will be a pivotal year if the 2013 deadline for the elimination of agricultural subsidies will be maintained.

The Paradox of Plenty
The Economist   (December 20, 2005)
Many African countries are rich in diamonds, gold and oil, but much of the African population lives in poverty. Often times, African governments spend the proceeds from these precious materials immediately, even though the income fluctuates largely over time. New stabilization policies have recently been implemented to create a cushion fund. For example, when oil prices are high, revenues are set aside in this fund and when oil prices drop, the money in the fund is used to soften the drop in income. It is hoped with these new economic efforts, stability and prosperity will soon be present in Africa. (subscription required)

Ruses that Spring from Brazil's Woes
BBC News, by Robert Plummer   (December 14, 2005)
As Brazil becomes increasingly involved with global trade, it will face a number of difficulties. Currently, there is a tremendous amount of underemployment within the country. Underemployment is when there are jobs within the economy that do not contribute to productivity, such as a person to assist you at press a button in an elevator. In addition, there is a considerable amount of fraud, bribery and corruption occurring within the nation, as it ranks sixty-second in the annual corruption perception index of Transparency International in 2004.

Global Survey of Business Executives: Inflation and Pricing
The McKinsey Quarterly  (December 6, 2005)
In a McKinsey Quarterly survey, executives around the world were asked about their expectations for inflation in the coming year. Almost half predict that the inflation rate in their country will raise one percentage point over the next year, while more than half of the executives say they will not be able to raise prices. This article provides detailed graphs of the data collected in the survey and information about possible drivers behind the inflation.

How France can Win from Offshoring
The McKinsey Quarterly, by Tony Blanco, Diana Farrell, and Eric Labaye  (December 5, 2005)
French companies have been slow to offshore service functions because of practical hurdles and regulatory constraints, but research from the McKinsey Global Institute (MGI) reports that policy makers should aim to make the most of offshoring. Compared to other countries, such a