International Trade Blog

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.

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.

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.

USA is one of the largest and currently viewed as the most powerful country in the world. Although hit hard by the global economic crisis it is still very present in the global market. More often than not the counterpart in your business endeavors might be an American so it would be wise to know at least the basic principles of American business etiquette.
Although the population of USA consists of mix of people from various races and heritage and they have no real nationality, we can use the term ‘’Americans’’ Actually everybody already uses it and there are no misunderstandings so lets stick to this. More often than not when we think of an American businessman we imagine a cocky man with an leather jacket, cowboy hat and boots. Well this might apply to a businessman from Texas, but in general an average American businessman looks and acts like his European counterpart.
Americans also prefer dark business suits although also more relaxed attire is appropriate if the situation suits. In more rural areas an informal wardrobe is allowed. Nevertheless the wardrobe should be clean and neat. If the situation is appropriate men may wear jeans. Women prefer business dresses or maybe a skirt and a blouse.
In some countries gifts may be an ordinary part of a business encounter, but not so in the USA. A gift might be misconceived as a bribe and that could cause some serious implications. Business meetings can take place at a public establishment or during the meals, but more often than not during a meal a conversation is more of a social kind. Remember that USA has very strict laws about smoking in public places.
A firm handshake is an appropriate greeting. During conversations eye contact is vital. Smiling is conceived as a sign of friendliness so use it. An American businessman has a generally more relaxed style of communications. So business meetings are not so stiff as compared to West Europe. In general an American businessman is very friendly and more often than not will introduce you to his family which is not that common for businessmen from other countries.
No matter what is your viewpoint towards USA the general idea behind a successful business deal is respect! If you will respect your partner he will do the same to you and a successful business deal means more profit for both.

It is probably safe to say that global recession affects us all, but I would have never thought that one of Asia’s powerhouses could be in trouble. Yet Japan is in big trouble, its economy is in downward spiral due to declining export levels.

Japan is one of market leaders in electronics, cars and IT technologies so one might think that the added high value would be enough to stabilize the economy. But actually we forgot one thing – during a global economic crisis the spending habits op people change. Simply said if people do not receive as much money as before and unemployment is a constant scare then they will not spend money on fancy things such as; high end electronics and cars. The only enterprises that may feel somewhat safe in an economic crisis are the food producers because people will always eat no matter how big the crisis is. So because of this simple fact Japan’s economy is in such a bad position. Continue reading »