International Trade Blog

China is on its way to become a superpower in global market. Even the global economic crisis that is currently wreaking havoc in the rest of the world has not been able to crush the prospering economy of China.

China is gaining power continuously for the pas 20 years. While twenty or fifteen years ago we sneered at the quality of Chinese goods, today we gladly purchase a lot of Chinese items. Yes the quality of Chinese products was really bad a few decades ago. China had a lot of cheap labor which in theory should be a good base of great industrial capacity, but China lacked education and technology. So the government of China, a communist government might I add, opened up the country to foreign investors. A bold move if you ask me, considering the ideology. None the less it worked. Western and USA enterprises allocated their factories to China due to the cheap labor costs thus decreasing the manufacturing costs and the overall price of the produced items. That meant good news for the everyday consumer. They brought advanced technology to China and the people who worked at the factories became more skilled thus increasing the quality not only of Chinese products, but also the quality of life.

Now China exports a lot of stuff all over the world and it means a lot of money. People are not any more afraid to buy Chinese goods as the have acknowledged the increased quality. I myself have purchased some Chinese goods and at least until now I have not been disappointed. If China stays on it course I believe it can achieve global market dominance. Where else can you find a rather cheap labor force numbering in more than a billion?

The export levels of India have decreased quite drastically and now the government has decided that it is the time to perform some countermeasures. A wise choice if you ask me. They have to decide to implement some taxes brakes and waive some import duties. That surely could boost some trade levels.

The main trading partners of India have always been the USA and Western Europe. Although the global economic crisis has not had a crushing impact on India, it wreaks havoc on European and US economies. These economies on the other hand affect the economy of India, meaning that the global economic crisis has caught up with India. Now the government plans to promote trade with Eastern Europe, Australia, Latin America and Africa thus increasing trade levels. If this plan succeeds that should lift the export levels and the whole economy of India.

Actually no matter the outcome the fact that the government is really taking some measures is superb. Lowering the taxes seems like the perfect tool to battle the global economic crisis, though some governments think that it is the time to increase various taxes to increase the overall income of the country. While increasing taxes may seem like a good idea in theory, in real life it has the opposite effect. It actually decreases the income as people have less money to spend and enterprises crumble under the heavy taxes. This is a perfect breading ground for shadow economy, starting form evasion from taxes till salary in envelopes. Sometimes it really seems that the people that we have voted in our governments have absolutely no clue about how the economy actually works.

Let’s hope that India’s example will influence other countries to similar actions, but I would not actually hold my breath about it.

The global economic crisis has had a terrible impact on world economy and basically our everyday life. But which is the most damaging weapon of the crisis? We all can somehow deal with salary cuts, expensive goods and inept governments, but uncertainty is something far more terrible.

What do we basically want to achieve in our lives? I am not talking about riches and fame because those can be only secondary goals in life. We strive for stability. Stability provides us with a feeling of certainty. We can make long term plans concerning our lives and professional careers. The global crisis has taken certainty out of this equation because nothing is safe anymore. Well you might have a job and even accepted a salary cut, but who is to say that two months from now your employer will come up to you and inform that there is no more work for you and that you should look for a new job. Actually in some cases this is the best scenario as it still provides some options. A more evil employer will use the global crisis to his own advantage. He can make you to take ridiculous cuts in salary; work overtime and maybe even orders you to do illegal or dangerous work. In most cases the employee has no options as to accept the demands because the salary is needed to support a family, no matter how small the salary is.

Another thing that provides unneeded uncertainty is the possible actions of governments. No one can actually tell which steps the government will take to battle the economic crisis. In some cases this could mean increase of taxes or maybe the decrease of minimal wage. Granted the government actions have a larger impact on companies and business people, but we must not forget who actually pays our salaries. Its the same companies and business people who if hindered by the government will on the other hand take it out on their employees.

We need stability. This should be the main goal for the moment. Only stability can pull us out of the global crisis. As soon as it will return the people will start to spend more money thus heating the economy. It is simple as that. But for now uncertainty rules the world.

What do you imagine when you think about Australians? A Paul Hogan look-alike cowboy type person with crocodile boots who only eats grilled food and calls everybody ‘’mate’’. I am sorry to disappoint, but you might be dead wrong.

I admit I had the same stereotype thinking when it came to Australians, but then I actually visited Australia and my preconceptions changed. The average Australian business person looks quite similar to their European and American counterparts. Men prefer conservative dark business suits, while women may wear a dress or a skirt and a blouse. Admitted Australians are somewhat more laid back and informal clothing is deemed appropriate at more informal business meetings. Despite their seemingly laid back attitude Australians value punctuality. Maintaining eye contact during business meetings is crucial. Gift giving is not appropriate in Australian business traditions as it may be confused with corruption. On the other hand if you have been invited to somebody’s home a small gift would be viewed as a token of appreciation.

As we all know Australia is an English speaking country so most business communication is done in English, but you must remember that Australia is a multi national country and a lot of people are of Asian origins. A handshake is the most commonly used method of greeting. Similar to Japan the exchange of business cards is quite widespread. In general Australians are very friendly and open people.

I do not know why, but sometimes we view Australians as simpletons and unimportant. We tend to forget that they have their own continent with a lot of natural resources and a huge industrial potential. The Australians in some ways have actually surpassed us, as they managed to out play the global economic crisis. Australia is currently one of the few countries where the impact of the crisis has been minimal. It means that they are quite efficient in business sphere and should be viewed as a major player in the global market. Use their strengths to your own advantage and maybe even become more like them.

The main experts in USA have proclaimed that the recession of US economy may have come to a halt and there are promising signs of recovery. This is not only good news for USA, but for everybody as US economy has a worldwide influence. Let’s hope that these predictions turn out to be true.

The Dow Jones index rose by 1 % and European markets also increased. US government officials said that it seems that the economy has recovered from the hardest blow, but they also warned that unemployment level will decrease only step by step. Still European officials remind that this recovery is very fragile. In fact US officials acknowledge this fact and do not promise a miraculous fast recovery. The general assumption is that the recovery will be a long and hard process and that at first the progress will be very slow. The International Monetary Fund (IMF) had earlier predicted that the economic growth of USA next year will be zero or even negative, but now they have changed the prognosis to 0.75 % growth.

The positive headlines of the different markets have had an impact on worldwide economy as most countries are starting to pull out of the economic crisis. The general fear of total financial collapse seems to have vanished or at least moved further back in our minds. I really hope that USA has defeated the global economic crisis as it only can mean good news. Let’s be real, the crisis will not stop in one certain day. It will be a long and demanding process, but we have to start somewhere. Stability and a certain financial safety is the key to overcoming the global economic crisis. An increasing consumer spending is the best news for every country in the world. Let’s hope that the good news of USA will convince their people to believe in a recovery.

To successfully conduct business we all need labor force. More precisely we need highly educated labor force. But is this actually true? Well it might not be.

The general conception is that the higher the education the higher the productivity and effectiveness. As a concept it applies perfectly, but in real life world economy would crumble if there were no more uneducated, cheap labor. Like it or not most economies is based on cheap uneducated labor and low salaries. Today it is almost a must to obtain higher education and it actually does not matter in what sphere. Apparently all you need is a paper that states that you have ‘’obtained’’ a higher education. Somehow we seem to have forgotten about professional education and mostly concentrate on academic education. While on one hand it may be a good thing as we increase overall knowledge level, but on the other hand now we have an overproduction of marketing and communication specialists. Do not misunderstand, I do not want a world of illiteracy, I just think we have to remember that there is a technical side of higher education.

Education is somewhat bad news for business people. The more educated the more demanding the people become, meaning that demand for higher salary will increase. Yes currently the labor force of Asia is the preferred labor market for western manufacturers, but as the overall education level of Asia is rising so will the salary requirements. Sooner or later the labor costs in Asia will reach the general level of other advanced countries. Where will the manufacturers turn their sights? Africa, Central America or maybe they will choose a more science fiction approach – AI and robots. I am not ready to predict that. We will just have to wait and see what the future holds.

B2B marketplaces provide excellent opportunity to conduct trade. These marketplaces make the trade process easier and more efficient. Today we will look at another B2B marketplace – www.easytrade.com.

As all major B2B marketplaces, easytrade.com main vision is to become the leading marketplace in the world. Their mission is to fulfill their client needs by providing excellent services.

Easytrade.com was founded in 2002 and in general this online platform was designed to provide assistance to small and medium enterprises. As most B2B marketplaces it is aimed at increasing trade between Western enterprises and Asian suppliers. Even the smallest enterprise can create a showroom via the online platform and sell their products in a worldwide market. Easytrade promotes their products and services in worldwide spectrum. Easytrade provides a series of valuable features and services like; a search engine, huge buyer database, a forum, trade show organization and much more.

Easyrade offers three types of membership; associate, standard and premier. Associate membership is for free so it is possible to give it a try without any additional costs. Of course the more advanced membership types provide more services and features. Easytrade organizes trade shows not only in Asia, but also in Europe and USA. So there are a lot of opportunities for product promotion.

Actually this B2B online platform looks quite good. Of course there are other B2B places and no one can actually tell which one is the best, but in my opinion each and every one provides additional help to conduct successful trade and become filthy rich. Give it a try! It won’t cost you anything, but maybe opens a new route to unseen profits.

Finally some good news arrived from the European frontlines against global economic crisis. The economies of both countries have shown signs of growth between the times April and June bringing an end to a recession that ruled for a year.

This was achieved thanks to a solid collaboration between the governments and population. Governments issued stimulus packages which stimulated exports and the population on the other hand increased spending habits therefore injecting the market with more money. Although some of these actions were carefully planed, the positive outcome was somewhat of surprise because no one actually expected results to be so quick. But this does not mean that Europe as a whole is safe because there is still a small decline of economic activity in Euro zone. None the less the UK market reaction to the success in Germany and France was quite positive as the FTSE 100 index rose. This only strengthens the belief that all economies are connected and that one positive change can influence the whole system.

Increased export and decreased import had a positive effect on the GDP of Germany and this provided the hope that the worst times are behind. But some analysts believe that there still are problems with the banking system in Europe and that this positive effect is dependant on government spending and eventually will come to a hold. So the question remains how strong this recovery actually is?

France also enjoyed positive changes in export levels and consumer spending. Especially the consumer spending is an encouraging factor as it is steadily holding up. This happened mainly thanks to government schemes and lowered prices. Still the experts warn that this economic recovery is very fragile.

No matter what, these are still very good news for everyone. This only shows that there is an end to this crisis and that international markets will sooner or later regain their health. This on the other hand will rejuvenate international trade and general welfare of people. Let’s hope that this happens as soon as possible.

The first step towards recovery from the economic crisis is spending money, more precisely spending money in the domestic market. UK seems to be moving in the right direction as retail sales keep increasing. This means that people in UK are again willing to spend money.

As British Retail Consortium officials have stated the main reason for this trend might be the rather bad weather in the second half of July. Apparently people are deciding not to go on a foreign vacation, but rather spend their money on home improvement. The extensive discounts have also had a positive effect on sales. The increase could be bigger, but it is somewhat hindered by the rising unemployment. The same trends apply to food and clothing sales. This is nothing strange as I have stated before that in times when people are not able to afford expensive and exclusive items, they rather spend their money on cheaper everyday stuff and with that somewhat improve the quality of life. So this is why sectors like food and clothing are less affected by the overwhelming global economic crisis.

So due to these facts some retailers seem to think that this may be the beginning of the end of recession. But as long as there will be the fear of sudden unemployment and salary cuts the improvement tempo will be fairly slow. None the less this means good news for everyone. It is possible that we have passed the deepest point of the economic crisis. As the stability returns the crisis diminishes. Let’s hope that UK is not the only place where positive things are beginning to show on the horizon.

I have always been very much intrigued by Brazil. I have read many books about it and imagined visions have always floated around in my mind. Sadly I still haven’t had the chance to visit this beautiful country. Maybe I should.

Brazil is the fifth largest country in the world and it covers a large part of South America. With a population of about 190 million people it is one of biggest nations in the world. The genetic background of the population is very diverse. Historically for a long time Brazil has been a target country for European emigrants and during the times of slavery a large number of black slaves were sold in Brazil. Today they are the ancestors of Brazilian nation. The climate and wildlife of Brazil is very variable. A part of Brazil is also the Amazon area which in general is called the ‘’lungs of earth’’. So Brazil is a vital part of the world.

Brazil has the largest national economy of the whole Latin America region. It has large and developed sectors in agriculture, industry and service. As it covers a large part of the continent Brazil has vast amount of natural resources which the successfully export. Currently Brazil undergoes a heavy investment phase meaning that its economy is viewed as developing and with a great potential. Of course Brazil also has experienced economic problems and in 2002 received a large monetary rescue package from International Monetary Fund. The loan was repaid in 2005. Due to the population levels Brazil also has a large labor force. The general prognosis for Brazil promises it a bright future.

Of course not all is that good and shiny. Despite the developing economy the poverty level is still quite high. Poverty on the other hand generates high crime levels and currently Brazil is not considered the safest place on Earth. Lot of robberies and kidnappings occur in Brazil and in most cases foreign visitors are the target audience. This fact can and probably is hurting the tourism sector of Brazil. But I imagine that as the economy grows so will the poverty levels decrease and with them also the crime levels.

Don’t be afraid of Brazil. Visit it, trade with it or invest in it. It can be the best thing for you to do. It is just another opportunity the life provides to you. What you do with that is solely your choice.