In the report, “The keystone pipeline authorisation could tip America’s trade balance with Canada,” the results of the Trumps decision on the new pipeline were discussed. While the approval of this pipeline is optimistic, there could be a range of questions about Canada-US commercial relations. Trump announced that it would proceed to renegotiate the North American Free Trade Deal by implementing the Alberta oil pipeline. Implementing new trade measures such as tariffs and foreign oil import charges can pose a negative threat to Canada. This analysis seeks to explain the importance of sound international relations and the approaches that should be implemented to create a favorable trading environment once the new pipeline is approved.
Politics and law play a very important role in shaping the international trade environment. The trading relationship between two nations is determined by the outlying political risks and legal issues. The policies and laws introduced should be formulated in such a way that they foster favorable international trading relations. The introduction of a new NAFTA would definitely put Canada at a disadvantage. Oil prices are always variable and as such, trade deficits may be inevitable between the two countries. A restructure of the agreement would create an uncertainty for other goods that are traded between the US and Canada (Clark, 2017).
For instance, the trade deficit between the US and Canada in 2014 was at $15 billion. Figures from the National Energy Board show that even though Canada exported more barrels of oil to the US during the year, oil prices had plummeted implying that its value had declined by $34.7 billion (Clark, 2017).
Mr. Trudeau needs to find a common ground with Mr. Trump so that the trade relations between the two nations remain unaltered. This can only be achieved by observing inter-national laws and formulating policies that would be centered on the political interests of both nations.
Why Africa’s Oil Crisis Could Lead To Growth
THE BLOG 10/14/2016 04:56 pm ET
By Zandre Campos
The article, “Why Africa’s Oil Crisis Could Lead To Growth,” seeks to explain the opportunities that may emerge as a result of the oil crisis in Africa. For years, Africa has been one of the fastest growing continent in the world. This, however, changed when the price of crude oil dropped below $50 a barrel. The impact of this downturn has been felt by giant oil producers in the continent, including Nigeria and Angola, who have experienced a decrease in the strength of their dollar. Ultimately, the 50% price decline led to a rise in inflation rates for Angola, which relies on imports. Consequently, this analysis provides a detailed examination of Africa’s oil crisis and how this situation can be used as an opening to achieve an economic transformation in the continent.
Globalization plays a very important role in the economies of developing nations. The introduction of technology has made it possible for Africa countries to maximize their Gross National Product in other economic sectors. The prevailing crisis has created the need for the countries to develop and expand their tourism industry. Africa is home to some of the best tourist destinations in the world (Campos, 2016). Angola, for instance has more than 1,000 miles of beautiful coastline. Its government plans to triple its tourism revenue by 2020. The case is also the same for other nations including South Africa, who plan to increase the number of five star hotels in the destinations.
The government plays a crucial role in shaping the outcome of an emerging economy. It should encourage the development of industries by ensuring that the business environment is favorable. This inspires the growth of industrialization and Agriculture in these countries. The introduction of industrialization and modernization in agriculture has greatly increased the productivity of African nations. Africa should therefore take advantage of the situation and develop methods that would see it rise to a greater position in terms of economic growth and prosperity.
Chinese and American Consumers Have Different Ideas About What Makes a Product Creative
Harvard Business Review FEBRUARY 23, 2017
The article, “Chinese and American Consumers Have Different Ideas About What Makes a Product Creative,” serves as an illustration that explains the disparities which exist between American and Chinese consumers regarding the ideas and cues of a creative product. The US and China have contrasting views regarding their vision of a product’s originality. It is imperative to understand that a product loved by an American may lack distinctiveness to a Chinese person. This paper provides a detailed analysis of how cross-cultural business influences the ideologies that surround the creativeness of a product between American and Chinese consumers.
The set of values, beliefs, rules and attitudes of a particular group of people will determine the taste and preference of their products. Consequently, the psychology of the two groups is governed by 26 cues, which both cultures relate to creativity. This shows that both groups are part of a larger subculture that shares some common attributes. Whereas American consumers have a shorter list of cues that relate to a product’s creativity, Chinese consumers consider a broader range of cues with a consideration of the market appeal (Mueller, 2017).
While the Chinese believe that products that are designed for a mass market are creative, Americans believe that this does not make a product creative. A good example is the Apple watch, which failed in the market because it was developed and advertised as a mass market product in the US. A product’s brand forms a highly compatible attribute for a creativeness in China. The case is, however, not the same in the US where brand can diminish a product’s creativity. 70% of Americans lose confidence in a product when it is introduced using a particular brand.
Marketers must undertake a careful study of the market to determine the most suitable mode of advertisement. Cross cultural business environments require a sophisticated approach that takes into consideration all the underlying attributes of a particular market group. The creativity of a product in this case is governed by different cues for American and Chinese consumers.
Under political pressure, Kuwait cancels major event at Four Seasons, switches to Trump’s D.C. hotel
By Judd Legum and Kira Lerner
The article, “Under political pressure, Kuwait cancels major event at Four Seasons, switches to Trump’s D.C. hotel,” attempts to describe the factors that led to the cancellation of the annual event. It also provides an insight of the implications of such a move with respect to international ethics. Days after Trumps election, Kuwait embassy terminated its contract with Four Seasons when it decided to abruptly move the event to Trump International Hotel. Thinkprogress believes that the embassy had received a considerable amount of pressure from members of Trump organization. Even though the ambassador, Salem Al-Sabah dismissed the claims, it is evident that the decision was motivated by political grounds. The analysis provides an examination of the reasons behind this move and its political insinuation in international ethics.
Organizations need to make decisions that are aligned to the guidelines of good business behavior. Kuwait Embassy sought to gain favor from the newly elected president through business entanglements (Legum & Lerner, 2016). Although the move was aimed at gaining leverage, it went against the stipulations of international ethics.
Trumps involvement in business issues while still in office has elicited mixed reactions from the congress (Legum & Lerner, 2016). His actions have shown that business and administration are intertwined even though this is not acceptable. The shift of venues is definitely a violation of international business ethics.
The engagement of Kuwait’s embassy is not only unethical, but has also proved to be unprofessional. Consequently, the president should delegate all his businesses, so that he can deal with his administrative role to the US. This will ensure that there is no conflict of interest
Dollar Store Town: Inside the World’s Biggest Wholesale Market
The article, “Dollar Store Town: Inside the World’s Biggest Wholesale Market,” examines the operations of dollar stores and the source of their products. Dollar stores have a variety of products from grocery to cleaning brands. All the other products they deal with are associated with a generic cheapness that comes from the Futian market. This is basically one of the largest markets that is made up of thousands of scattered stalls in four interconnected buildings. The estimated size of 43 million square feet is almost en times bigger than the mall of America. This analysis seeks to provide an exploration of the history, operations and procedures behind the Futian market.
International business provides people with a greater choice of goods and services. The purchase, sale and exchange of goods and services across national borders improves the living standards of individuals by availing a larger selection of products. The Futian market, located in the city of Yiwu, experienced a series of transformations from the 1970s when china was developing (99pi, 2016). At this time, Zhejiang already had a pre-existing history of trade and as such, many people aspired to join this economy. This led to the development of street markets which eventually developed to become the Futian market.
Wang Xioyang is a perfect example of a stall that functions as a component of the Futian market. It basically deals with Christmas items and as such, it’s surrounded by Santas who appear in different contexts. It is imperative to note that these businesses are not full time jobs for the people of Zhejiang.
The Futian market has tapped into foreign markets and gained a comparative advantage over other nations when it comes to the production of generically-cheap products. For years, it has managed to maintain a top position in the market as a monopolistic supplier to Dollar stores in the US, Australia, UK, Middle East and Mexico.
Campos, Z. (2016, October 14). Why Africa’s Oil Crisis Could Lead To Growth. Retrieved February 20, 2017, from http://www.huffingtonpost.com/zandre-campos/why-africas-oil-crisis-co_b_12471882.html
Clark, C. (2017, January 24). Keystone pipeline approval could tilt U.S. trade balance against Canada. Retrieved February 19, 2017, from http://www.theglobeandmail.com/news/politics/keystone-pipeline-approval-could-tilt-trade-balance-against-canada/article33711159/
Legum, J., & Lerner, K. (2016, December 19). Under political pressure, Kuwait cancels major event at Four Seasons, switches to Trump’s D.C. Retrieved February 26, 2017, from https://thinkprogress.org/under-political-pressure-kuwait-cancels-major-event-at-four-seasons-switches-to-trumps-d-c-1f204315d513#.lojmudcie
Mueller, J. (2017, February 23). Chinese and American Consumers Have Different Ideas About What Makes a Product Creative. Retrieved February 18, 2017, from https://hbr.org/2017/02/chinese-and-american-consumers-have-different-ideas-about-what-makes-a-product-creative
Wild, John J., Kenneth L. Wild, and Valladeres Montemayor Halia Mayela. International business: the challenges of globalization. Toronto: Pearson Canada, 2015. Print.
99pi. (2016, November 11). Dollar Store Town: Inside the World’s Biggest Wholesale Market. Retrieved February 26, 2017, from http://99percentinvisible.org/episode/dollar-store-town-inside-worlds-biggest-wholesale-market/