International Trade Blog

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.

The times are hard for everyone, countries are weakened by the global crisis, companies suffer great loses, but the actual biggest looser is the Average Jo; meaning you, me and basically most people in the world. Somehow we tend to forget. But I do not blame anyone because who actually cares about an Average Joe?

When countries and corporations think in billions and millions, all the Average Joe cares is about the next salary and the possibility to feed himself and his family. When corporations are worried about the loss of profits, the only worry for Average Joe is to survive. Today we have lost such a luxury possibility to quit the job if we do not like it because the chance to find a new and better job is very small and most of us simply cannot afford a time of unemployment. So we are ready to do anything or employer asks us to do, we accept salary cuts without any protest, we do extra work without any additional pay. Basically we do anything to stay on the good graces of our employer. The worst part is that the employer knows we have no other choice and many of them, not all of them of course, take full advantage of that. When your employer decides to cut salary does he or she actually prove that the financial situation of the enterprise is bad? More often than not no because they do not have to do that, after all we currently have the global economic crisis and this fact justifies almost anything. So we are screwed and have to accept any cut our employer deems necessary. Of course there are enterprises that have valid reasons to cut salaries to survive the crisis, but I am convinced that some just use the global crisis as a cover to decrease costs and increase profits. Because lets face it if global crisis means that someone is loosing that means that someone has to be winning. I believe there are people who are benefiting and profiting from the crisis.

But after all what can an Average Joe do? Virtually nothing! We have to move with the flow and hope for the best. Of course we can go on strikes and protest marches, but more often then not; this will not provide the necessary the results. We always have been only pawns in this game of chess we call life.

Yeah the global economic crisis is ruling the world and the export sector has suffered huge loses, but who said that there is only international trade? There is also national or domestic trade and in general it can turn out very profitable.

Well the global export levels might be down, so maybe ot would be wise to turn our attention towards domestic trade. For some countries domestic trade can be as profitable as international trade. By this I mean the countries like USA, China, Russia, India and some other larger countries. Though to be successful in your corresponding domestic market you must carefully research the needs of the given market. What does the market need and what does the customer require. It would be pointless to start selling exclusive cars in Outer Mongolia. It would be just plain stupid. Food and first need item would be the correct logical choice. Even if your domestic market is oversaturated with different offers there is always a way to break into a market. Be elastic if your domestic is over flooded with food item then maybe look farther that it ant turn your attention to such public services like restaurants and low cost eateries. There is always a way to make money no matter the overall situation. So even if international trade seems unprofitable there will always be the domestic market and if somebody is making money of it why should not you do the same?

No one can actually tell when exactly this global crisis will end. So what should we do in the meantime, just sit with our hands in pockets and do nothing. Hell no! If there is money to be made why should we remain on the sideline? You probably won’t be able to make millions, but you sure as hell can make a living. Although who am I to say that you cannot make millions. These are uncertain and weird times. You can loose all your fortune at a heartbeat, but at the same time various possibilities present themselves to you at such a time. Use whatever means possible and take advantage of all tools at your disposal. This might be a time of despair, but at the same time it can be a chance of a lifetime.

The economic crisis has hit more or less everybody in the world and while some might secretly be very happy that, for example, USA is hit hard and struggling, we sometimes forget that on some levels we are all connected. That is why they call it global economic crisis.

We must admit that the US dollar is the most widespread currency. Many national currencies are aligned to the dollar and very much react to the changes of the dollar’s value. Many governments have obtained huge securities from USA and the low value of the dollar decreases its own value. The same connectivity applies to the economy. Basically as long as USA economy is struggling so will many other country economies. Because, lets face it, USA is currently the most powerful country in the world. Countries like China, Japan, Mexico and many others are quite dependent from trade with USA. Although the relationship between China and USA is not the best one, China has understood that the unstable US economy and the low value of dollar is affecting them all as their own exporters are struggling just because of this fact. So China has requested talks with USA president Obama about the economic situation and possible solution. A commendable fact in deed! No matter the previous relationships we must see farther our own yard and apparently some countries have began to do just that..

The global crisis can be beaten, but it can be only beaten by combined global efforts. There is no off switch for the crisis and it will not magically stop at a certain date. At least temporary we should forget all the bad blood between us all and try to pull the cart out of the dirt all together. When the situation is resolved we can return to previous state of mind. We must remember who actually suffers the most during this crisis. It is not the countries or the large corporations; it is the people, me included. So let’s stop screwing around and do something about it.

While it may seem that starting a business in these turbulent times is complete madness it is actually the other way round. A lot of people use the economic crisis open new businesses and you do not have to be an experienced entrepreneur to pull it off. Just think before you do.

A question may arise how logical and safe it is to conduct business in the time of economic recession. So let’s try to answer it. First of all you must choose a suitable niche of action. It would be very foolish to try to sell expensive cars during the crisis when people do not have extra money to spend. You have to consider the everyday needs of your potential customers. No matter the situation people will always have the need to eat. That does not mean that you have to start to import food items, you will never be able to compete with big supermarket chains, but you could open a diner or a restaurant. The latest statistics from my country show that such type of enterprises are doing quite well and even new ones are developed and successfully conduct business. So it is possible to conduct bossiness and with a wisely chosen concept it is possible to increase your profits.

What else do the people need? Do not always think product remember there is also service. The same as the need to eat there are other everyday needs. One of the sectors who benefit from the crisis is the security sphere. As unemployment levels grow so does the crime levels thus increasing the necessity for more security. Today it is fairly easy to find a job in the security sector. Remember also that you have to spend money to make money. Profit is not generated from nothing. You must be willing to invest some money to support your business endeavors.

Successful business in these times of turmoil is possible, but nothing is guaranteed. Business in general is always risky. In fact the higher the risk the bigger the possible profit. There is no way around it, no sure things, but a smart and adventurous person can use this time to start something big. Just think carefully before you act and use all the possible tools at your disposal and success will not be very far.

Now is the time of recession, the global economic crisis is ravaging through the world and ordinary people struggle to scrape by. When this all will end or at least when things start to improve? Well not everything is as bad as it sounds. Some small rays of hope start to shine through the dark skies.

I can only speak about the processes in my own country, but probably these things can be applied to a global level. Well our salaries have been cut and the living costs are still high, but something has started to change. Food is becoming increasingly cheaper. Although we already experienced price drops for high end goods, this decrease finally benefits us all. At least the chance to feed the family is somewhat increased. Some services are becoming cheaper and more affordable, for example, in the construction sphere. Basically the construction costs before the crisis had reached ridiculous heights and construction men were making really unfair profits. A simple help earned more than a college professor. At least the crisis cooled them a little bit down. More and more special offers appear on the market as entrepreneurs have understood that only a good offer will convince the potential customer to act.

People will always have the need to relax and travel. If a year ago most popular travel destinations were more exotic countries like Egypt or Turkey, today people are realizing that there are things to see and experience in their own country. It has two positive effects; the costs for traveling can be significantly decreased and all the spent money remains in our own country thus boosting the economy. Despite the economic crisis domestic tourism sector is increasing its productivity. The situation will probably change when the effects of the crisis decrease, but for now we must be happy with what we get.

There is a light at the end of the tunnel and, although I cannot tell you how long this tunnel is, I refuse to give in to despair. If nothing else works remind you one thing – it cannot get much worse as it is now and if we survive today we will surely survive tomorrow.

The crisis is currently ruling the world and everyone is just trying to survive. So what does China do? Amidst the global recession China’s economy is still growing. And growing good!

The experts predict that the growth will reach the 8 % mark in 2009. That is hell of a lot higher if we compare this, for example, with the prognosis of USA (1-1.5 %). Still experts warn that China is not completely out of the woods yet and there are a lot of problem that have to be solved. Largely this economic growth is contributed thanks to the huge government economy stimulus plan which was launched in the autumn of 2008 (585bn dollars). Hell a lot of money, but apparently it worked. Most of China’s experts warn that the growth is not stable and it would be much too soon to speak about a full recovery of China. Although the firmaments of recovery are still considered unstable and weak the average income has increased by approximately 10 %. And in general that is a good sign for the population. While that may be a good thing people are still afraid to spend more money and consumer level of China is still decreasing. Not by much, but still it is decreasing.

Export has suffered a significant decrease compared to the previous year. China is exporting approximately one fifth less than last year. Many workers in the export sector have lost their jobs, but thanks to the plan launched by the government did not fell into unemployment. Various government infrastructure projects provided numerous jobs for the laid off workers. This is an admirable achievement for the government. The export levels still remain low due to the overall economic situation in the world. Sadly China’s economic recovery is not enough to pull the whole world out of recession due to the fact that China is not a major importer.

So good news for China! Yeah, but how does it benefit me, my country is still tumbling down the rabbit hole? The deliberation is very simple – if China can do it then we also can. Just don’t give up.

Global economic crisis has hit the world hard, there is no denying that, but not everything is as bad as it seems. Apparently the crisis has a somewhat positive side effect – the price for crude oil is falling, and what a fall it is!
Approximately a year ago the price of crude oil peaked at 147 dollars per barrel. Now, a year latter, a barrel of crude oil costs about 60 dollars. I would classify the difference as substantial. What has caused such a change? Well the obvious answer is – the worldwide economic crisis and more precisely the overall decrease in demand. Simply put; people have less money to spend on petrol and as using a car can be classified as an elite activity people try to save money by driving less. So now the big oil producers are starting to worry about their profits. For ordinary enterprises on the other had this is good news as transportation costs are lowered meaning the import and export business becomes more lucrative.
Most experts predict that oil prices will stay low until 2010 or even further on. Basically it all depends on how the developing countries will cope with the crisis. As soon as the recession diminishes the oil prices will start to climb. Will they reach previous heights? Eventually yes. So if possible take any advantage of the current situation.
Lastly why this is a consolation price? Yeah the oil prices are low and gas stations drop their prices, but the actual benefit to the general public is kind of small. What is the point of low oil prices if we still only can afford just to by food and somehow scrape by. So this is only good news for those with secure jobs and some extra money. But after all anything is better than nothing

The global economic crisis has affected us all in one way or another. Fore some the consequences of the crisis was the loss of a job, but those who were luckier it meant only a significant cut in pay. Well in general I understand that to overcome such troubled times we must consolidate our efforts and try to help our respective countries and employers and although I am not that into conspiracies I am starting to believe that someone out there might be using this situation to his or her benefit. Continue reading »