Latest Updates on International Trade
For some, this week's news stories brought both good and terrible news from the worlds of technology, business, economics, trade, and entertainment.
To start with, word on the street is that the tech sector is doing rather well.
The fact that the world's three largest cellular phone technology companies—Nokia, Sony Ericsson, and Motorola—participated in the 3GSM World Congress in Barcelona is evidence of the thriving technological industry. These businesses showcased their newest wares at the expo, with the majority of them utilizing cutting-edge 3G technology. Moto unveiled ROKR. Nokia 6136 is set to be released, according to Nokia. The K610, a phone and music player, was announced by Sony-Ericsson. Also, a partnership between Sony Ericsson and Nokia will be working on mobile TV technologies for cellular phones.
On the other hand, some buyers hold out for last year's technologies in the hopes of saving money on this year's models. But that won't happen this year since manufacturers and retailers can now easily share sales and inventory data, so stock is kept low. However, if the buyer is willing to put in the time and effort to learn about the technology, they can still receive the greatest deal.
Last weekend, in Turin, Italy, a plethora of businesses flocked to see the twentieth Olympic Winter Games. The International Olympic Committee oversaw the partnerships between businesses and the Turin municipal authorities. Advertising its product on the uniforms of athletes competing in the event, flooding television slots with commercials, and covering the venue with ads are all ways they want to achieve international attention.
Business partnerships, layoffs, and acquisitions have all been announced this week.
There will be 20,000 layoffs at Volkswagen between 2006 and 2008, the automaker said over the weekend. Even though they are up against tough competition and seeing falling markets, they still aim to boost their market standing. Shares of Volkswagen soared to nearly a three-year high, despite the fact that the decision to lay off workers disappointed investors. Additionally, the firm anticipates a 61% rise in profit.
Lucasfilms Ltd., owner of the Star Wars franchise, and the Toy Company Lego Group have extended their cooperation until 2011. The rights to manufacture Star Wars toys were acquired by Lego in 1999. While "Star Wars Episode 1: The Phantom Menace" was in theaters, Lego made over $400 million.
In the next months, this service will be launched by Hello LLC, MySpace's new owners, in conjunction with SK Telecom and Earthlink, Inc. Mobile phone access to MySpace is a new service that the firm is going to give its members. Launching alongside MySpace's mobile phone access service are the 'Hero' and 'Kickflip' phones, made by Pantech and VK, respectively.
A new mobile phone using CDMA chips and 3G technology will be developed by a joint venture between Nokia and Sanyo Electric Co. While Sanyo is hoping to get out of its financial bind, Nokia is targeting the American and Japanese markets.
Arcelor intends to thwart Mittal Steel's aggressive bid by raising its payout by 85 percent. After turning down Mittal's offer, Arcelor enlisted the help of investment banks to devise a strategy to counter the takeover. Nevertheless, the European Commission will closely examine Mittal in the event that the acquisition were to occur.
Having said that, there is a business that was involved in some sticky situations but has now gotten out of them. Google has developed a search engine just for China and has pledged to follow all rules set out by the Communist Party. China has hired thirty thousand internet censors to prevent its residents from accessing websites that cover or discuss topics that are controversial with Chinese government policy. Experts in the field were perplexed by Google's cooperation, but it was all part of their plan to corner the lucrative Chinese market, which has over 100 million Internet users.
This week, companies were also impacted by the weather.
Thousands of dollars' worth of property insurance was cancelled and businesses were forced to close on Monday due to the snowstorm that hit the Northeastern United States, including New York, on Sunday morning. More than $5 billion worth of structural damages were caused by Hurricane Katrina last September, which generated issues for insurance firms.
Authorities and citizens in New Orleans, Louisiana are getting ready for Mardi Gras, the first celebration to take place since Hurricane Katrina devastated the city in August of last year. Despite the ongoing repair work on the city's infrastructure, the event is anticipated to revitalize the city by reviving their tourism economy.
In 2005, the US trade gap grew even worse due to the country's increased demand for imported goods and the record-high price of oil, which reached almost $71 per barrel over five months ago. China's rising economy poses a threat to the US as well, since Chinese products are more competitive in the market because of their lower prices. The growing national debt is a source of concern for the White House as well.
But things are looking up in Europe, where market shares ended the day on an upward trajectory. Italian bank stocks were up on rumors that major Italian banks could be merging with foreign institutions like Banco Bilbao Vizcaya Argentaria and Banque National de Paris Paribas.
Some difficult challenges are also being faced by international organizations.
Since1998, the European Union has banned the import of genetically modified foods, which the World Trade Organization claims is a rule violation. A complaint was lodged against the EU restriction by the United States, Argentina, and Canada, the world's three largest exporters of agricultural products. But the World Trade Organization's latest action has social justice organizations like Friends of the Earth unhappy. They assert that the ban's implementers—Italy, Greece, Luxembourg, Austria, Germany, and France—have the right to self-determination.
Meeting for the first time this past weekend in St. Petersburg, Russia, the Group of Eight Nations—the most exclusive club of industrialized nations on the political and economic stage—discussed the effects of increasing oil prices on global economic development and energy supplies. Russian officials reassured the G8 that oil and gas exports will remain unchanged this year, even though Russia cut off gas supplies to Ukraine and all of Eastern Europe. Topics covered at the G8 summit included the possible spread of avian flu across Europe and Asia as well as the recent change in Palestinian leadership, which the United States views as a terrorist group.
Iran, the world's number four oil exporter, resumed its uranium enrichment program and severed ties with the UN's nuclear agency on Monday, sending oil prices soaring once more. According to reports, Iran has intermittently cooperated with international inspectors and is using uranium to create nuclear weapons. The kidnapping of Royal Dutch Shell employees and demonstrations in Nigeria against multinational oil firms have further exacerbated the oil price crisis.
Iran has declared that it will resume its uranium enrichment activities and has severed ties with the United Nations' International Atomic Energy Agency. Iran is the world's fourth-largest oil exporter. This led to a resurgence in oil prices on Monday. According to reports, Iran has intermittently cooperated with international inspectors and is using uranium to create nuclear weapons. The kidnapping of Royal Dutch Shell employees and demonstrations in Nigeria against multinational oil firms have further exacerbated the oil price crisis.
There have been reports that China is becoming increasingly involved in global trade as well.
Algeria, Angola, Chad, Equatorial Guinea, Gabon, Nigeria, and Sudan are some of the African countries from which China has imported oil to meet its increasing energy demands and power its booming manufacturing sector. Nonetheless, the United States and other nations are worried because of their oil interests in this continent.
In January, representatives from both countries gathered in Canberra to discuss the prospect of China purchasing uranium from Australia, with the understanding that such a sale would be subject to strict regulations to prevent its use in nuclear weapon production. Greenhouse gas emissions and the prospect of future Chinese nuclear industry resistance to international monitoring are among the disastrous implications that environmentalists and the majority of Australian residents are warning about.
Fortunately, there is some good news: the entertainment business is thriving.
Popular films that were either entirely or partially shot in New Zealand, such as Peter Jackson's "King Kong," the "Lord of the Rings" trilogy, and "Chronicles of Narnia: The Lion, the Witch, and the Wardrobe," contributed to the country's booming film industry. Local film production budgets are expanding as a result. Thanks to the country's beautiful landscapes and attractive production subsidies, Hollywood has decided to film here instead of in other countries.
Forbes magazine published their annual list of the 100 wealthiest celebrities in 2004. The three most wealthy people in Hollywood were named Sir Paul McCartney, Sir Elton John, and Madonna. Also, it's a sign that the movie and music industries are booming. Among the other artists on the roster are 50 Cent, Dave Matthews Band, Greenday, The Eagles, Kenny Chesney, Celine Dion, and the Rolling Stones.
