By Christian Losche, Research Associate for GLOBAL ID, LLC
Vietnam, in past years, has been posting economic growth rates consistently around eight percent. With inflation above 25 percent, the stock market taking a hit, and labor strikes, people are wondering if it was too much to fast. These are unusual events seeing as how a year ago Vietnam was predicted to be one of the top economies in the world. It would make sense with their population, low labor costs, and available resources. The inflation is not only due to imports, however; it would seem other elements contributing to the incredibly high rate are increased lending and government spending. This inflation rate has created problems for factory workers on minimal salaries, contributing to the labor strikes. With the inflation rate, labor strikes, and the stock market at a two-year low, people are seeing the true volatility of the economy. Considered to be the next emerging and extraordinarily successful market, Vietnam must now ride the wave of uncertainty and hope the economy reaches a balancing point.
Monday, June 30, 2008
Saturday, June 28, 2008
Why Consider Countertrade?
By Christian Losche, Research Associate for GLOBAL ID, LLC
Countertrade refers to the trading of goods for goods between countries, rather than currency. This is an excellent way to trade if a company is looking to break into the international market, but lacks the currency at the time. It will also help in building customer relationships in different markets as long as the goods provided in the trade are of promised quality. The question may arise, how does one make money during the process of a countertrade? Take PepsiCo, who entered into a countertrade with Russia. In exchange for syrup provided by PepsiCo, Stolichnaya trades vodka. PepsiCo makes money off of this trade by obtaining the rights to sell the vodka in the U.S. With the partnership, PepsiCo adds additional sales and an addition of a new market to its list of endeavors. There are numerous other examples of countertrades, but once again the point must be stressed, when entering into a countertrade, the products exchanged must meet the standard of quality promised.
Countertrade refers to the trading of goods for goods between countries, rather than currency. This is an excellent way to trade if a company is looking to break into the international market, but lacks the currency at the time. It will also help in building customer relationships in different markets as long as the goods provided in the trade are of promised quality. The question may arise, how does one make money during the process of a countertrade? Take PepsiCo, who entered into a countertrade with Russia. In exchange for syrup provided by PepsiCo, Stolichnaya trades vodka. PepsiCo makes money off of this trade by obtaining the rights to sell the vodka in the U.S. With the partnership, PepsiCo adds additional sales and an addition of a new market to its list of endeavors. There are numerous other examples of countertrades, but once again the point must be stressed, when entering into a countertrade, the products exchanged must meet the standard of quality promised.
Tuesday, June 24, 2008
Trade Adjustment Assistance
By Christian Losche, Research Associate for GLOBAL ID, LLC
The Trade Adjustment Assistance program is for workers affected by an increase in international trade. With the numerous benefits of foreign trade, it is difficult to not pursue that avenue from an economic standpoint. When employees are either laid off, or hours are severely cut due to trade, the Trade Adjustment Assistance program helps these workers in different ways. The program provides for training to acquire a new job, if the reason for the lay-off can be linked to increased trade. The program also provides income support and job search and relocation allowances, among other benefits. Although this program is a step in the right direction for trade-affected workers, it still is being criticized for inaccurate methods of allocating funds and inaccurate data. The focus must remain on the fact that the program, although not perfect, is in place to help trade affected workers find re-employment in a short period of time, which is an extremely positive program.
The Trade Adjustment Assistance program is for workers affected by an increase in international trade. With the numerous benefits of foreign trade, it is difficult to not pursue that avenue from an economic standpoint. When employees are either laid off, or hours are severely cut due to trade, the Trade Adjustment Assistance program helps these workers in different ways. The program provides for training to acquire a new job, if the reason for the lay-off can be linked to increased trade. The program also provides income support and job search and relocation allowances, among other benefits. Although this program is a step in the right direction for trade-affected workers, it still is being criticized for inaccurate methods of allocating funds and inaccurate data. The focus must remain on the fact that the program, although not perfect, is in place to help trade affected workers find re-employment in a short period of time, which is an extremely positive program.
Friday, June 20, 2008
A Reason to Outsource, how about Five
By Christian Losche, Research Associate for GLOBAL ID, LLC
In the business world today, outsourcing is proving to have numerous benefits for companies of any size. Several tasks and processes can be outsourced saving, and even improving, companies. Below are five common, but solid reasons for outsourcing:
1) Reduction of Operating Costs
Saving money is the most common reason for outsourcing. It costs less to outsource rather than create an in-house addition and accrue the costs that accompany it.
2) Use of Resources not Available Within a Company
Whether it’s a lack of staff or the specialized skills required, outsourcing is an efficient way of getting the job done.
3) Use of Skilled Specialists
When outsourcing, specialists are attained to quickly complete a task with no mistakes.
4) Time
With outsourcing, the process of training and monitoring is sidestepped.
5) Improved Company Focus
With the time being saved by outsourcing, it allows a company to focus and improve other aspects of the business.
In the business world today, outsourcing is proving to have numerous benefits for companies of any size. Several tasks and processes can be outsourced saving, and even improving, companies. Below are five common, but solid reasons for outsourcing:
1) Reduction of Operating Costs
Saving money is the most common reason for outsourcing. It costs less to outsource rather than create an in-house addition and accrue the costs that accompany it.
2) Use of Resources not Available Within a Company
Whether it’s a lack of staff or the specialized skills required, outsourcing is an efficient way of getting the job done.
3) Use of Skilled Specialists
When outsourcing, specialists are attained to quickly complete a task with no mistakes.
4) Time
With outsourcing, the process of training and monitoring is sidestepped.
5) Improved Company Focus
With the time being saved by outsourcing, it allows a company to focus and improve other aspects of the business.
Wednesday, June 18, 2008
Maximizing International Trade with South Korea
By: Kelly Kasic, president of GLOBAL ID LLC
South Korea is strategically located in the heart of Northeast Asia and is the 13th largest economy in the world. The U.S. has had a long history of successful trade with Korea and opportunities are continuing to increase due to this country’s sophisticated consumer markets and high-tech industry focus. According to the U.S. Department of Commerce, the U.S. and Korea exchange nearly US$83 billion worth of goods and more than US$15 billion in services annually -- that is more than 70 percent of the total bilateral trade that the U.S. enjoys with all 10 trading partners with whom we have implemented Foreign Trade Agreements since 2000.
Due to their favorable business climate, there are numerous reasons to expand your Asian presence to South Korea. The country houses several Free Economic Zones (FEZs), which are self-contained living and business districts that provide numerous advantages to a variety of industries. These districts are located in Incheon, Busan-Jinhae, Gwangyang, Hwanghae, Daegu/Gyeongbuk, and Saemangeum/Gunsan; and feature air and sea transportation, logistics complexes, international business centers, financial services, residences, schools, hospitals, shopping, and entertainment.
The main industries in which South Korea ranks high in global competitiveness include: Semiconductors, Shipbuilding, Automobiles, and Displays. According to the Korean Trade-Investment Promotion Agency (KOTRA), this country has captured 11.3% of the global semiconductor market, with US$39 billion in exports (2007). Additionally, KOTRA states that South Korea is ranked number one globally in terms of new ship building orders; capturing 40% of all worldwide orders.
With US$981.9 billion GDP in 2007 (a 4.9% real growth rate) along with low unemployment, South Korea is a viable market that should be considered; particularly in the industries of Information Technology, Biotechnology and Life Sciences, Nanotechnology, Aerospace and Defense, as well as the Entertainment industry.
When conducting business with South Korean companies it is important to building strong relationships with the best agents and distributors. Koreans tend to be more straightforward and individualistic in comparison with other Asian neighbors. When making business deals it is important to be sincere and honest; conduct meetings in person whenever possible. Sales and marketing techniques will need to be adapted to fit the Korean market. Companies should also consider joint venture partnerships. Whichever market entry method is chosen, ensure that you obtain legal consultation. Last, Korea is a collective culture where decisions tend to be made by group consensus; be patient as the process is often slower than in Western cultures.
GLOBAL ID LLC is a management consulting and international market research company that specializes in assisting small- to medium-sized businesses with international market expansion. If your company falls into one of the emerging industries in South Korea, contact us for a free 1 hour consultation: be sure to mention that you read this article in our blog. We can be reached at 720-334-6982 or Kelly@globalidllc.com.
South Korea is strategically located in the heart of Northeast Asia and is the 13th largest economy in the world. The U.S. has had a long history of successful trade with Korea and opportunities are continuing to increase due to this country’s sophisticated consumer markets and high-tech industry focus. According to the U.S. Department of Commerce, the U.S. and Korea exchange nearly US$83 billion worth of goods and more than US$15 billion in services annually -- that is more than 70 percent of the total bilateral trade that the U.S. enjoys with all 10 trading partners with whom we have implemented Foreign Trade Agreements since 2000.
Due to their favorable business climate, there are numerous reasons to expand your Asian presence to South Korea. The country houses several Free Economic Zones (FEZs), which are self-contained living and business districts that provide numerous advantages to a variety of industries. These districts are located in Incheon, Busan-Jinhae, Gwangyang, Hwanghae, Daegu/Gyeongbuk, and Saemangeum/Gunsan; and feature air and sea transportation, logistics complexes, international business centers, financial services, residences, schools, hospitals, shopping, and entertainment.
The main industries in which South Korea ranks high in global competitiveness include: Semiconductors, Shipbuilding, Automobiles, and Displays. According to the Korean Trade-Investment Promotion Agency (KOTRA), this country has captured 11.3% of the global semiconductor market, with US$39 billion in exports (2007). Additionally, KOTRA states that South Korea is ranked number one globally in terms of new ship building orders; capturing 40% of all worldwide orders.
With US$981.9 billion GDP in 2007 (a 4.9% real growth rate) along with low unemployment, South Korea is a viable market that should be considered; particularly in the industries of Information Technology, Biotechnology and Life Sciences, Nanotechnology, Aerospace and Defense, as well as the Entertainment industry.
When conducting business with South Korean companies it is important to building strong relationships with the best agents and distributors. Koreans tend to be more straightforward and individualistic in comparison with other Asian neighbors. When making business deals it is important to be sincere and honest; conduct meetings in person whenever possible. Sales and marketing techniques will need to be adapted to fit the Korean market. Companies should also consider joint venture partnerships. Whichever market entry method is chosen, ensure that you obtain legal consultation. Last, Korea is a collective culture where decisions tend to be made by group consensus; be patient as the process is often slower than in Western cultures.
GLOBAL ID LLC is a management consulting and international market research company that specializes in assisting small- to medium-sized businesses with international market expansion. If your company falls into one of the emerging industries in South Korea, contact us for a free 1 hour consultation: be sure to mention that you read this article in our blog. We can be reached at 720-334-6982 or Kelly@globalidllc.com.
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