International Trade Blog

I am sure that I am not the only one who has received various ‘’excellent’’ offers via email or generally the internet. Lately I have started to wonder what is the point ofd all this. I really do not believe that you can curb your enterprise using such tactics, but maybe I am wrong.

First of all lets start with and excellent example. Apparently at least a half of world population needs some sort of a dildo. I won’t elaborate on what this is if you are interested then use google.com and find out. But really has anyone bought this item due to the fact that it was advertised in an email. Lately I do not even bother to read these so called spam mails. Of course they are not all attempts of fraud there might be some real bargains, but simply I get to angry to react properly to them and basically delete them on sight. But someone actually made them, used their time and perhaps invested some money into them. So is it worth? Yes a simple homepage might look too boring so to add some color why not use cheerful and interesting banners. It livens up the place and maybe perhaps someone even buys something. For someone it may work, but I really not sure that it is worth all the money and time invested.

Maybe its is me, but I will probably never believe online advertisement. I accept it, but in most cases do not agree with it. In my opinion a good product does not need an extensive advertising campaign. Quality should speak for itself. But everyone must choose what is right for them.

The global economic crisis has had a major effect on the economic activity worldwide. Various markets have collapsed and a huge number of people have lost their jobs. So what actually is there to do during a crisis?

When the crisis hit everyone was ready to predict that shops would empty and go out of business due to the lack of customers with any money to spend. Some part of this came true, but only a part. Yes a huge amount of people lost their jobs and thus their income. This had a dramatic effect on the overall economic activity as there simply was no money to spend, but this is true to a certain degree because only some specific type of shops went out of business. We must remember one thing that does not change no matter what – people must eat. So to fulfill that need they must spend the money they still have on seemingly basic stuff like food. This is why only high end retailers experienced difficulties. Of course the number of newly bought cars decreased, but food and basic clothing numbers stayed the same. Actually the crisis did one positive thing it decreased the rather high basic commodity prices that were pushed to unrealistic heights due to the previous inflated economy.

Although currently everyone is speaking about the imminent recovery the economy is still in very bad shape. It may have won the fight with death, but still will need a lot of good doctors to fully recover if that is possible at all. What do we do for the time being? Everything that can be done to scrape by and pray for the glorious return of a healthy economic activity!

Yes the global economic crisis is still governing our minds and while some governments have taken the necessary steps to rejuvenate the economy some only issue bold and reassuring statements, but actually does not do anything. Granted not all countries have the necessary amount of additional money to inject into the economy, but there are always other ways.

Of course not every country is able to invest huge amounts of money into their economy like, for example, China, but nonetheless there are several economic tools which can have a positive and rejuvenating effect on the economy. Let’s take a look at the taxes. Many markets have crumbled and companies have a very hard time to sell their goods. Huge tax burden does not help either and so to cut expenses they have to downsize by letting go employees and thus decreasing their economic activity. The decreased economic activity on its part hampers the overall economic recovery. The best way to fight the economic recession is to drastically decrease such taxes as Income and VAT. While at the beginning it will surely decrease budget income, but as economic activity will increase, due to the lowered taxes’’ so will the income. Sadly many government officials do not see this way. Quite opposite, they are planning to defeat the crisis by increasing income with a substantial raise of taxes. Any half good economist will tell you that this is the most foolish action you can take in such a situation. Nevertheless government official still think that they are smarter than any professional of the field.

We need some drastic moves to be maid to overcome this recession, but these steps must be carefully researched and debated over. In order for any of them to work they must receive acceptance from the general population. Let’s hope that government officials will listen to the voice of reason.

The number of job appointments has increased for the second month in row. Sound like good news? It sort of is, but the overall situation in UK is far from picture perfect.

Although the unemployment level is the highest since 1995 that last two months have shown good promise. While job market is still very far away from booming one positive fact can be mentioned. It seems than the rate of job losses has reached its peak and that means that the unemployment levels will not drastically increase. Even more good news is that there is appearing more and more permanent and periodical new job opening which can be directly connected to the increasing stability. Many companies have understood that the country has withstood the hardest blow of the global economic crisis and has entered the path of recovery. The faster the stability level will grow the faster will the job market expand.

While the statement that the global crisis has been defeated did no actual good for the general population these news give at least a small ray of hope. Now at least the people have something to look for. While finding a good job is still a very hard undertaking at least it is possible no matter the chances. Three months ago this was not so. We have to grab hold of every little piece of hope or otherwise we might crack and give in to depression. Let’s hope that we will receive more and more good news all over the world.

Despite all positive predictions and statements that the crisis is over we somehow still experience and probably will experience for some time the ‘’magnificent effects of the global crisis. If not the crisis itself then we will sure feel the full wrath of its aftershock.

Global market has been crushed to pieces and many trade dependent countries are experiencing harsh times. Numerous jobs have been lost. Real estate market is non existent right now. Construction sphere experiences major difficulties. Basically the overall happiness levels have plummeted. What should we do in such times? Well the government should take care of us right? It should, but only in a perfect world. Sadly this is a cruel one. Its like a deathmatch – everyone fights for themselves. Even the government officials in the highest places have forgotten for whom they actually work and who pays their salary. The basic credo of today is ‘’hang to anything you can’’. Those of us who still have a job and a steady income should really feel lucky. Of course not everyone is affected by the crisis negatively. Some actually use the crisis to make profits not always in morally correct ways. Still they have found a way to make a living and on some level I admire and even understand them. What the future holds no one knows. Yes the crisis may end and it most definitely will end, but people tend to forget that the effects of the crisis won’t magically go away in one day. Countless lives may have already been inadvisably ruined.

What to do right now? I do not have an answer. Duck, cover and hope for the best could be my only advice. I really do hope that everything will turn out okay, but if it does not I won’t be very surprised.

The unemployment rate in USA has almost reached the 10% mark and currently stands at 9.8%. Although the economy has been growing for the last three months the unemployment levels have not apparently heard about that. While somebody might be perplexed about this situation I am not because I already predicted that this will happen.

Yes the economy is improving there is no denying that, but it is still only improving on paper and no actual improving cannot be seen. I do not think that this situation will greatly change in the next tree months. The unemployment levels will start to decrease only when stability returns. Stability will bring back consumer confidence which means more money influx into all markets. Healthy markets will create new jobs as recovering companies will need more workers to reach previous levels of productivity. When will this happen? Who knows! I hope that 2010 will be a good year and that certain stability will return. If the economy keeps it course then the companies will gain more confidence and thus decrease unemployment levels.

What can we do in the mean time? Basically nothing! Those who still have of job will do anything possible to keep it. Those who do not have a job will basically just do anything. The winter will be hard for us all so lets hope that the new year will bring better news that this one.

China is a major player in the global market and although it has not yet reached the development level of Western Europe countries and USA it still plays an important role in global market. Trading with Chinese can be a very profitable undertaking, but to succeed you must n\know at least a bit about their business traditions.

As most their business counterparts Chinese men prefer a conservative wardrobe with the appropriate colors. Women should stick to very conservative clothes as Chinese frown upon women who ‘’show too much’’. Jeans are allowed for both genders, but not for official business meeting. Avoid large hand gestures and if you must point to something use the palm of your hand. In general Chinese are not very keen on personal contact. Gifts are accepted, but you must be very careful what you present your partner with. One of the big no no’s is to gift a watch as it is connected with death and therefore should be avoided. Giving gifts to government officials is illegal and is viewed as attempted bribery. Chinese are very punctual so you should always arrive early for a business meeting. While it is very common in other countries do not discuss business affairs during a meal. Remember that Chinese prefer large quantity of small portions during a meal. Do not completely finish your meal or it may be translated that you did not receive enough food and are still hungry.

The general greeting is bowing, but there is a chance that you be offered a handshake. Always wait for your counterpart to offer it. Use formal introductions. Have several copies of all written documents. Chinese value rank and status very highly. The Chinese party will always be the first to leave the meeting. Although some Chinese speak English it would be wiser to use a translator as most Chinese people still do not understand English.

Granted it can be quite hard to successfully conduct business with the Chinese, but the reward can be very satisfying. Respect is a key part in every business deal.

Despite the latest news from various analysts about the end of the global economic crisis the average US consumer still does not feel safe. Consumer confidence is down in numbers in comparison with previous months.

What could be the main cause for this? Yes the analysts say that the crisis is over and predict soon recovery, but in reality the everyday consumer still does not feel the difference. Basically the consumer is completely right because until now the recovery is still a recovery on paper. While different indexes and other economic tools might prove that the crisis is defeated in real life there is no actual change. Salaries are still low and unemployment levels are still very high. There are still no realistic guarantees that the unemployment level will not grow further and many more people lose their jobs. This is actually quite possible as for many countries winter is nearing and this means no more seasonal jobs. The consumers are very concerned about long term income as no one can guarantee that. I believe that the confidence will grow, but it will take some time. If you would ask me to predict I would say that overall consumer confidence will start to improve beginning 2010, but only if the predictions about recovery come true.

Nevertheless there is a positive change in the US market. Home prices are starting to grow. Although they are still far behind 2008 levels this is considered to be quite significant.

Confidence is very important and the only thing that can influence it is stability. The faster countries and the whole world itself regain stability the sooner the consumer confidence will return.

I have always been somewhat skeptical towards advertising. Does it really work and if yes how effective it is? I have never been fully convinced that consumers buy goods due to advertisements and that investing money into advertising is foolish and ineffective. A waste of money so to say!

Let’s face it most consumers only buy what they really need and only a small percentage buy just for fun. This of course depends of the wealth of an individual. If the product is good then the quality will speak for itself and the need for advertising is only required in the initial phase when a new product enters a market. When the product has established itself in the market and aggressive advertising campaign can do more harm than good. People get bored or even offended with too aggressive advertising campaigns and may not buy the product in spite. At least that is how I react to overaggressive advertisements. If a product has established a solid consumer base in a market more advertising will not drastically expand the consumer base. Granted it may grow, but the growth might be quite slow and will not cover the extra costs of advertising. Generally more important than advertising is reputation. If a product acquires a positive reputation it is probable that it will establish itself as the market leader because most consumers still mostly rely on mouth to mouth propaganda. The most excellent advertising campaign cannot rival with an excellent reputation. While it may experience temporary success in the ling term the consumers will return to the product with the best reputation.

Of course the role of advertising is important in international trade, but it is somewhat over hyped in my opinion. A good advertising campaign will not save a bad product no matter how much money you spend. None the less advertising can be used as a tool to establish the needed reputation of a product.

The next G20 meeting plans to call for serious changes in global economy. While the current economy shows signs of improvement, they believe that the improvement is too slow. While this may sound good we must remember that G20 have no actual real power. All will depend on individual rulings of various countries.

The main idea behind all these changes is that countries with huge debts cut their spending and increase savings. The only organization able to influence this process seems to be the International Monetary Fund (IMF), but only to a certain level as the countries with the biggest debt are USA and UK. So what really can the International Monetary Fund (IMF) do? The other step is for more saving oriented countries like Germany and China to increase their spending. While this may be a good idea as it will pump more money into the markets again there is no real organization that can enforce this. While German population may be encouraged to spend more I really doubt that the average Chinese will increase his spending habits considering the fact that they have to save money for health care and retirement as the national support is very low.

Yes global economy should be reorganized, but this reorganization cannot be forced. Countries must realize this on their own that something is not right with the current situation. If they do that then there is hope of a new global economy. If you ask me I do not think that the world is ready for this, at least not all of the world.