Oil Prices `Blessing in Disguise' for Asia, Jen Says

Oil Prices `Blessing in Disguise' for Asia, Jen Says
(Bloomberg – Kim Kyoungwha)

Record oil prices are “a blessing in disguise” for Asian economies and currencies as high transport costs will force the region to become less reliant on exports and more on local demand, Morgan Stanley said.

Surging oil prices that are raising Asian exporters' costs to ship everything from cars to clothes to the West will encourage them to rely on domestic customers and this will help reduce global imbalances, according to Stephen Jen, chief currency strategist at Morgan Stanley in London. Crude oil reached an all-time high of $141.67 a barrel today.

“In the short run, this is clearly a negative shock to Asia, and for Asian assets, including currencies,” Jen, who used to work at the Federal Reserve and the International Monetary Fund, wrote in a report yesterday. “In the long run, however, this shock could accelerate the move away from exports.”

Global imbalances “should normalize” as Asia's trade and economic growth, which have thrived partly due to the low cost of transport in the past two decades, are affected, Jen said.

Five of the 10 most-active Asian currencies outside of Japan fell this year, led by a 12% decline in the Thai baht and an 11% loss in South Korea's won, according to data compiled by Bloomberg. Taiwan's dollar and China's yuan are the biggest gainers.

Oil prices have more than doubled over the past 12 months, causing global inflation to accelerate and prompting some governments in Asia such as Indonesia and Malaysia to increase local fuel prices.

Japan's household spending slumped in May, the ratio of jobs available fell to a three-year low and the inflation rate almost doubled, data showed today, signaling that the economy's longest postwar expansion may be over. New Zealand's economy contracted 0.3% last quarter, putting the nation on the brink of its first recession in 10 years, while India's inflation accelerated more than estimated to the fastest pace in 13 years.

Rising oil prices are also bolstering import bills and squeezing trade accounts in Asia. South Korea posted a current account shortfall for a sixth month in May, the longest run of deficits since the 1997 Asian financial crisis, data showed today.

High transport costs act like “tariffs” and undermine trade, Morgan Stanley's Jen said, adding that the increase in oil prices coincided with the decline in China's re-exports. Asia exports raw and intermediate goods to China, and China, in turn, applies the final phase of production before shipping manufactured goods overseas. The proportion of goods that are first imported from elsewhere and then re-exported out of China declined to 44% from 57% in late 2001, Jen said.

“The ultra positive long-term outlook many investors may have on Asia should be tempered somewhat,” Jen said. “High costs of transport will act as a temporary headwind for many Asian currencies.”

The Baltic Dry Index, a measure of shipping costs for commodities, gained for a second consecutive day. The index tracking transport costs on international trade routes advanced 229 points, or 2.5%, to 9,473 points, according to the Baltic Exchange in London.

While this oil “shock” may encourage more regionalization as high transport costs erode some differences in labor costs, financial globalization is likely to continue to accelerate, according to the report. More global capital should be attracted to Asia, Jen said.

“The root cause of high transport costs will be a main driver of financial globalization,” he said. “Financial protectionism is likely to be a more serious issue than trade protectionism.”

Chronicle of a Farce Foretold, by Kang Chun-suk

Chronicle of a Farce Foretold, by Kang Chun-suk
Chosun Ilbo July.4,2008

What will Korea be like in July 2009? Of course we cant predict that far ahead: we can barely see beyond our noses. But here are some things that might well happen.
The production team of the MBC news program "PD Diary" are ordered to take a 15-day tour of the U.S. and call an emergency meeting. America, they know, is mad cow disease hell, a nightmare country that butchers 7 million cattle over 30 months old a year and flogs them to fast food outlets. A movie star, though he was seen enjoying a beef burger in Los Angeles, said, "It's better to drop potassium cyanide into your mouth than eat American beef." There is no guarantee that no U.S. beef is used in the oxtail soup dens of New York and cold noodle parlors in Washington that Korean tourists flock to.



The four-member team has to choose from a handful of alternatives. One is to prepare enough frozen box lunches to last them 15 days. That totals 180 boxes, so the bulk is a serious problem. Plus they lack the confidence to ask all the hotels where they will stay to keep the lunch boxes in their refrigerators. A second alternative is to eat only in vegetarian restaurants. But will all the cities they visit have them? What's more, they are not sure if they will have the strength to carry the heavy equipment if they eat only greens.



“We shouldn't have knowingly fabricated the story that an American woman died from variant Creutzfeldt-Jakob disease (vCJD), the human form of mad cow disease, and suggested that a downer cow was infected with BSE,” they reflect. But it’s no use crying over spilt milk. How to get away with prompting a middle school student to cry, "I feel condemned to die of mad cow disease before I have realized my dreams," that is the challenge before them. Just a note at the end of the program would have got them off the hook: "The number of American cattle confirmed to have been infected with BSE is three. All three were born before powdered meat and bone feed was banned in 1997. While the age of cattle is an issue in Korea, no instance of BSE cattle has been confirmed in the U.S. since.” Ah well.

The question is what to do now. The team decides their best choice is to demand that management pay allowances and take out insurance identical to those paid to reporters covering the Iraq War. They are risking their lives, after all.



Now the network has some thinking to do. The origin of BSE is Britain, where tens of times more cows than in the U.S. have died of BSE. Nor did other European countries escape the scourge. Ninety-six countries including Asian ones import U.S. beef without restrictions, so management will have to treat all reporters and producers dispatched to any of those countries as war correspondents. The costs would be immense, and the company would face massive embarrassment if the world press found out. In the end, the whole “PD Diary” team hand in their resignations.



Reports have it that opposition lawmakers who publicly called their children home from study in the U.S. for fear of mad cow disease have secretly sent them back. News that a co-chairman of the People's Association for Measures Against Mad Cow Disease was spotted by college students buying U.S. beef from an alley butcher is so commonplace that newspapers can find no space for it. Leaders of the Korean Confederation of Trade Unions, who staged walkouts on the pretext that if workers eat U.S. beef, it will affect working conditions, hang their heads as U.S. consumer organizations, provoked by moves in Korea, start boycotting Korean-made cars and electronics products. But members of the Korean Teachers and Educational Worker's Union are made of sterner stuff and persist in putting up posters opposing U.S. beef imports in front of schools.



But ordinary Koreans seem to have recovered from mad cow disease. Housewives who took part in the candlelight vigils wheeling their baby carriages now keep the TV unplugged. They have no great hopes for the incompetent administration that sowed the seeds of the farce in May, June and July the previous year. What remains is pity, for the government and for the KCTU, and the looming question how we can keep importing expensive oil if we squander the US$10 billion in our trade surplus with the U.S.

Chronicle of a Farce Foretold, by Kang Chun-suk

Chronicle of a Farce Foretold, by Kang Chun-suk
Chosun Ilbo July.4,2008

What will Korea be like in July 2009? Of course we cant predict that far ahead: we can barely see beyond our noses. But here are some things that might well happen.
The production team of the MBC news program "PD Diary" are ordered to take a 15-day tour of the U.S. and call an emergency meeting. America, they know, is mad cow disease hell, a nightmare country that butchers 7 million cattle over 30 months old a year and flogs them to fast food outlets. A movie star, though he was seen enjoying a beef burger in Los Angeles, said, "It's better to drop potassium cyanide into your mouth than eat American beef." There is no guarantee that no U.S. beef is used in the oxtail soup dens of New York and cold noodle parlors in Washington that Korean tourists flock to.



The four-member team has to choose from a handful of alternatives. One is to prepare enough frozen box lunches to last them 15 days. That totals 180 boxes, so the bulk is a serious problem. Plus they lack the confidence to ask all the hotels where they will stay to keep the lunch boxes in their refrigerators. A second alternative is to eat only in vegetarian restaurants. But will all the cities they visit have them? What's more, they are not sure if they will have the strength to carry the heavy equipment if they eat only greens.



“We shouldn't have knowingly fabricated the story that an American woman died from variant Creutzfeldt-Jakob disease (vCJD), the human form of mad cow disease, and suggested that a downer cow was infected with BSE,” they reflect. But it’s no use crying over spilt milk. How to get away with prompting a middle school student to cry, "I feel condemned to die of mad cow disease before I have realized my dreams," that is the challenge before them. Just a note at the end of the program would have got them off the hook: "The number of American cattle confirmed to have been infected with BSE is three. All three were born before powdered meat and bone feed was banned in 1997. While the age of cattle is an issue in Korea, no instance of BSE cattle has been confirmed in the U.S. since.” Ah well.

The question is what to do now. The team decides their best choice is to demand that management pay allowances and take out insurance identical to those paid to reporters covering the Iraq War. They are risking their lives, after all.



Now the network has some thinking to do. The origin of BSE is Britain, where tens of times more cows than in the U.S. have died of BSE. Nor did other European countries escape the scourge. Ninety-six countries including Asian ones import U.S. beef without restrictions, so management will have to treat all reporters and producers dispatched to any of those countries as war correspondents. The costs would be immense, and the company would face massive embarrassment if the world press found out. In the end, the whole “PD Diary” team hand in their resignations.



Reports have it that opposition lawmakers who publicly called their children home from study in the U.S. for fear of mad cow disease have secretly sent them back. News that a co-chairman of the People's Association for Measures Against Mad Cow Disease was spotted by college students buying U.S. beef from an alley butcher is so commonplace that newspapers can find no space for it. Leaders of the Korean Confederation of Trade Unions, who staged walkouts on the pretext that if workers eat U.S. beef, it will affect working conditions, hang their heads as U.S. consumer organizations, provoked by moves in Korea, start boycotting Korean-made cars and electronics products. But members of the Korean Teachers and Educational Worker's Union are made of sterner stuff and persist in putting up posters opposing U.S. beef imports in front of schools.



But ordinary Koreans seem to have recovered from mad cow disease. Housewives who took part in the candlelight vigils wheeling their baby carriages now keep the TV unplugged. They have no great hopes for the incompetent administration that sowed the seeds of the farce in May, June and July the previous year. What remains is pity, for the government and for the KCTU, and the looming question how we can keep importing expensive oil if we squander the US$10 billion in our trade surplus with the U.S.

Booming back-alley sales for U.S. beef in S.Korea

Booming back-alley sales for U.S. beef in S.Korea
Reuters, Kuly 2, 2008

By Kim Junghyun

SEOUL, July 2 (Reuters) - U.S. beef returned this week to South Korea for the first time in nine months, but consumers may be hard-pressed finding the one store that is happy to let the public know that it is selling it.

No major retailer has put U.S. beef on its shelves due to street protests sparked by fears of mad cow disease and surveys showing that most South Koreans do not feel the product is safe.

But down an alley in a working class Seoul neighbourhood, a butcher shop about the size of two compact cars proudly displays U.S. beef in its cramped showcase.

"If customers are looking for U.S. beef, isn't it the responsibility of importers to provide it," asked Park Chang-kyu, who heads A-Meat and a local meat importers' association.

No other store has announced to the media that it is selling U.S. beef and A-Meat has been doing a booming business with its regular customers who are attracted by prices that are less than half of Korean beef.

Customers have told local media they have relatives in the United States eating U.S. beef and they see the product as safe.

The store sold out its initial supply of about 400 kgs (900 lbs) of beef when it first went on sale on Tuesday, Park said.

Park said he has received some threats, lots of inquiries and can list South Korea's prime minister as one new customer.

South Korea has seen street protests on nearly every night since early May against a deal to import U.S. beef.

The protests were first among those concerned about mad cow infection but later turned into a lightning rod for criticism against the four-month-old government of President Lee Myung-bak.

About 5,300 tonnes of U.S. meat has been in frozen storage in South Korea since October 2007 when the country suspended imports due to prohibited material being found in a shipment.

More than 600 tonnes of that meat has cleared inspection under new rules that went into effect last week limiting imports to meat from younger cattle and restricting trade in parts thought to pose a higher risk for mad cow disease.

Analysts said it may take weeks before U.S. exporters start sending more beef to South Korea, once its third-largest market, due to safety concerns. And it could take years before U.S. beef catches Australia as the top foreign supplier.

But Park's son said local customers should give it a try.

"I've been eating U.S. beef my whole life and I'm okay.," said Brian Park, who goes to university in the United States. (Writing by Jon Herskovitz, editing by Miral Fahmy)

Buying frenzy greets US beef in Korea

Buying frenzy greets US beef in Korea
4/07/2008 10:38:00 AM
Meat and Livestock Australia

A buying frenzy has greeted the release of US beef in Korea, despite the mass protests from consumers concerned about potential health risks.

According to Korea's JoongAng Daily, the office at A-Meat in western Seoul has been a frenzy of activity with employees taking an average of 100 calls an hour with orders for US beef.

A-Meat is the first company to sell newly inspected US beef, which has been readmitted to the Korean market.

"We've been getting orders from all parts of the country, even from Jeju Island," said Park Jong-min, a manager at the company.

According to Money Today, an A-Meat employee said the company sold 300-400 kilograms on its second day of trading US beef, twice as much as the first day's sales.

Most customers were general consumers, making orders from their homes.

However, according to SBS, protests from angry citizens persist, with consumer groups visiting the A-Meat beef shop in Shiheung to protest their role in selling US beef.

The protesters strongly complained that there should be reliable safety measures provided before selling US beef.

The beef shop had to stop sales for about an hour while the protests went on.

But once the consumer groups started to leave, sales started again and customers constantly came in to buy US beef.

'Failure to innovate' sinking economy: report

'Failure to innovate' sinking economy: report
CBC June 13, 2008

Despite the ever-strengthening loonie and the lowest unemployment rate in a generation, Canada is mired in a "mediocrity" that leaves it lagging behind its international competitors, the Conference Board of Canada says in a harsh new report.

The Conference Board report, which graded Canada on six components (economy, innovation, environment, education, health and society) compared to 16 other major industrialized countries, was released Wednesday.

The research body ranked Canada fourth from the bottom in terms of innovation, saying Canada's "failure to innovate" largely explains "a mediocrity that is hampering what we can do and what we can be."



Fewer scientific articles are published in Canada, fewer patents are granted and even though the government provides subsidies for research and development, the take-up by companies is low, the authors of the report said, calling it a "stunningly poor" showing.

It all falls in line with what Conference Board CEO Anne Golden called Canada's "culture of complacency."

"We're not a risk-taking country because of our history, because of our nature, whatever," Golden said. "We just don't have the same drive."

Canada placed 11th out of the 17 countries on the economy, but that also falls short of the country's potential, given its educated workforce and the richness of its natural resources, the blunt assessment said.



"We're not a low-wage economy, we're a high-wage economy. We're never going to be able to compete just on price," Golden said. "We have to compete on innovation, on new technology, on new products, high-level services in unique niches. And we're not doing that."

The Conference Board also gave poor marks to Canada for its record on the environment, noting the country has not yet enforced curbs on greenhouse gases and also generates more waste than comparable countries. And when it comes to health care, the report says we're not prepared for the strain that aging baby boomers will place on the system.

Although Canada performed well in education, scoring an "A," the report card said our universities were not turning out enough post-graduate students in the fields of science and technology — fields that boost innovation.

Canada losing ground, Conference Board says

Canada losing ground, Conference Board says
June 30, 2008

Canada is in the middle of the pack of the 17 wealthiest countries in terms of social and economic rankings, the Conference Board of Canada reported Monday.

It gave Canada four Bs — for economy, education, health and the social environment — but only a C on environment and a D on innovation. The board gives a B to countries in the second quartile, a C in the third and a D in the bottom.

Its 12th benchmarking report card was "disappointing," the board said.

"While Canada is still in the gifted class among nations, its report card tells the story of a country moving to the back of the class because of its underperformance in almost all subjects."

Canada's standard of living has slipped to ninth this year from fourth in the 1970s, the report said.

Canada's ranking out of 17 countries
Education 2
Health* 9
Social 10
Economy 11
Innovation 13
Environment 15
*Out of 16 countries; no data for Belgium
Source: Conference Board of Canada


The report links Canada's lack of innovation to flagging economic performance, which means there is less money to spend on services such as health and education.

"Canada's deteriorating transportation infrastructure, its longer hospital wait times, and the collective sense of urgency about the affordability of social programs are all directly linked to Canada's lagging productivity, which in turn is linked to its innovation problem," the report said.

Canada does not have an innovation policy, which would help commercialize discoveries and allow new world-beating industries to develop. Instead, resources are used to shore up fading industries, the board said.

The lack of innovation has hurt economic performance, where slower productivity and other factors have opened the gap between U.S. and Canadian individual purchasing power to $6,400 US now from $3,200 in 1985.



Canada came third last in the environment ranking, ahead of only Australia and the United States. Like them, Canada has a resource-based economy and long distances to travel, but the board said the record is poor in areas such as climate change, smog, and cutting waste.

"Canada now generates more waste per person than any of its peers," the board said, and is producing more greenhouse gases as petroleum and forest products exports rise.

On the B team
Canada's No. 2 ranking in education is a bright spot, because high school and college graduation rates are very high. But there are problems, including the 40 per cent of adults who have trouble coping with the literacy and numeracy demands of life and work.

Moreover, "Canada also trails its competitors in fostering PhD graduates and in producing graduates in the fields that underpin innovation — mathematics, science, computer science and engineering," the report says.

In terms of health, Canadians have fewer problems today than several decades ago, but higher rates of diabetes and obesity suggest that young Canadians "may be the first generation of children in over a century who can expect to be less healthy than their parents."

Canada does pretty well as a place to live, as our "social safety net" helps many people. But "many Canadians would be surprised to find out that the U.S. has a lower burglary rate, a lower suicide rate, and greater gender equity than Canada," the report said.

The reduction in senior poverty is a major success story, but the low ranking on child poverty is troubling.

"Much evidence suggests that children who grow up in poverty have lower educational attainment and poorer health, and that they are less able to contribute to their communities," the report said.

Canada was ranked against Australia, Austria, Belgium, Britain, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, Norway, Sweden, Switzerland and the U.S.

Smaller European countries, particularly Switzerland, did very well. It was ranked second in three categories, fourth in two and fifth in one.

The U.S. led in innovation, but was last in environment and society, and second-last in health and education. It ranked seventh in economy.

Rosewood Case Study: Discussing Transport Options

Rosewood Case Study: Discussing Transport Options

a) Transport by truck CIP Laredo, Texas

CIP denotes a land based shipment of goods from Canada to Laredo, Texas as well as freight charges and costs for customs clearance from Canada to the USA with only minimum insurance required so this in fact represents one facet of lower costs and risks for Rosewood. If the carriage is limited to one shipping company the risk remains entirely with Rosewood as to liability for damages. However if there are any transfers of carrier the risk is also transferred. CIP Laredo implies there will be a transfer to Monterrey specified by the buyer.

b) Transport by vessel CIF Tampico, transshipped in Miami

CIF denotes minimum insurance coverage paid for by the seller as well as freight charges and costs for customs clearance with the added responsibility of marine insurance charges with transhipments in Miami. The difference in actual costs quotations between CIP Laredo, Texas and CIF Tampico with tran-shipment in Miami will impact choices over lower costs and risks and despite distance factors ocean freight might prove cheaper than road transport freight due to current fuel costs.

For example if Rosewood is located in Montreal then the actual distances between destinations may provide an idea of which transport costs will be higher and thus which insurance costs will be higher.

Montreal to Laredo: 3029 km
Montreal to Miami: 2276 km
Montreal to Tampico: 3399 km

Laredo to Tampico: 616 km
Miami to Tampico: 1828 km

These distance calculations made on absolute distances irrespective of geography raise interesting questions. Cost comparisons might necessarily be made questioning whether CIP Laredo makes sense when Miami appears over 700 km closer. In addition the absolute distance to Tampico from Laredo is only a little over 600 km. Various quotations and possible routings will determine minimum costs and liabilities. At this point CIP Laredo may require comparisons among competitor freight forwarder companies. Montreal to Miami to Tampico appears a great deal longer in terms of absolute distance. However freight volumes may be higher through ocean bound delivery routes and thus costs may in fact be cheaper. Only real time quotations between both freight options will provide the information to determine the best costs and risks minimization.

City Distance Calculator service provided for FREE by Geobytes, Inc.

Crated and containerized: This would appear the best method of ensuring product quality considering the premium product prices being charged for these furnishings. However it is also the most costly in terms of packing and takes the most freight volume and weight. In the case of a direct to customer delivery this would appear the best method of shipment. Least possible damages to cargo. More expensive than palletized freight.

Palletized and containerized: This would exemplify the most economical freight movement volume and weight considerations requiring minimal additional packing. However upon arrival assembly and instructions will be required as well as perhaps additional costs such as field corporate technicians at assembly point to ensure quality of product delivered. It would appear unlikely that a desk set costing more than the price of an economy car would arrive to the customer in unassembled form. However certain portions such as perhaps table leaves or sectional pull-outs and/or optional additions, pop-outs and do-dads might be best palletized as options and features which a contracted distributor might be required to have on hand depending on Rosewood's marketing or customization strategy.

However the Monterrey shipment represents a delivery similar to pro-forma sample which indicates direct to customer delivery. In the case of delivery to franchisee or distributor palletized and disassembled sets would probably work well. Damages more likely to occur. Less costly than crated products.

Franklin & Marshall College invites applications

The Department of Business, Organizations, and Society (BOS) at Franklin &
Marshall College invites applications for seven tenure-track faculty positions,
beginning fall semester 2009. Five are in traditional functional areas of business
education, and two are thematic positions open to faculty of any relevant
background. This hiring initiative is part of a multi-year process to extend and
refine the College’s signature undergraduate program. The department will
move into a renovated historic building in fall 2009.

Franklin & Marshall College is a small (approximately 2,000 undergraduates), highly selective, residential liberal arts college with a fully integrated business program. The BOS Department (www.fandm.edu/business.xml) expects research, teaching, and service competencies and offers a collegial and supportive environment. BOS includes courses in accounting, business ethics, finance, human resource management, law, marketing, organizational behavior, and strategic management. The teaching load is 3/2 and includes participation in the College’s general education program. We will offer competitive salary and support at Assistant and Associate Professor ranks.

Positions
We seek to fill five positions with faculty who can teach in specific functional
areas and to fill two positions with faculty from any relevant background that
supports our core curriculum.

Functionally Specialized Positions
- Accounting
- Finance
- Organization Behavior (two positions)
- Marketing, Management, or Strategy

Thematically Specialized Positions- Sustainability: Organizations and the natural and social environment,
sustainable business practice, social and environmental sustainability relevant to
business and organizations
- International: Globalization, cross-cultural analysis, or related aspects of
international business

Applicants should possess, or be close to completing, a doctorate in
accounting, finance, international marketing, management, marketing,
organizational studies, strategy; a related discipline (e.g., economics,
psychology, or sociology); or other areas with a thematic emphasis related to
our mission. Faculty rank will be assistant or associate professor, depending on
qualifications.

Applicants must have a strong commitment to teaching undergraduates in a
liberal arts setting. Teaching capacity for traditional functional areas of
management education is required. Capability of teaching our introductory
course is expected, and capability of teaching in multiple areas — including
social science statistics and research methods, analysis of business and society,
corporate citizenship, business social responsibility, ethics, and the legal
environment of business — is desirable.

Responsibilities include teaching, advising, and mentoring undergraduates;
research oriented towards publication in high quality academic journals; and
participation in department and college governance.

We will begin reviewing applications on July 15 and continue until the positions
are filled. Only complete applications will be considered. Candidates should
send a letter of application, curriculum vitae, graduate transcript, three letters of
recommendation, teaching and research statements, and teaching evaluation
forms. We will not accept electronic submissions. Be sure to specify the
position(s) for which you are applying. All application materials should be sent
to:

Prof. Jeffrey Nesteruk
Chair, Department of Business, Organizations, and Society
Franklin & Marshall College
P.O. Box 3003
Lancaster, PA 17604
OFFICE: 717-291-4069 FAX: 717-358-4568
jeff.nesteruk@fandm.edu

Franklin & Marshall College has a demonstrated commitment to cultural
pluralism. EOE

Softimpact is now recruiting in Lebanon

Softimpact is now recruiting in Lebanon

Senior Software Developer Ref: (SSD)
Assist in the development of client/server and web applications
Test and document applications

Profile
Fresh graduate up to 2 years of experience
Excellent inter-personal communication skills
Disciplined and Dynamic
Works under pressure
Enjoys multi-tasks jobs

Requirements
Holds a university degree in computer science / engineering. Knowledge in:
VB.net, ASP.net, VB6 is a must
Microsoft SQL Server
HTML, XML, Javascript.
PHP is a plus
Flash / Action scripts is a plus
Fluent in English & Arabic: written and spoken.
Send CVs to: hr@softimpact.net with Ref:(SSD)

IT Sales Consultant. Ref: (ISC)

Qualifications:
IT Engineer or business computer
Fluent in Arabic, English , French is a plus;
Previous experience in selling IT / Web solutions is a plus;
Male or female;
Motorized

Benefits:
Fixed salary (Depending on experience) ;
Commission on sales as per company commission structure;
Transportation allowance;

Send CVs to: hr@softimpact.net with Ref:(ISC)

Graphic / Flash Designer Ref: (GFD)
At least 2 years experience
Bachelor's degree in Graphic Design or Multimedia
knowledge in Action Scripting within Flash
Self motivated, organized and excellent team player

Job Description
Creating top quality web sites, Flash presentations, and other Flash enabled products for our National and International clients.

Send CVs to: hr@softimpact.net with Ref:(GFD)

Executive Secretary Ref: (SEC)
Compose, type, edit and proofread correspondences and documents
Follow up on pending issues
Receive calls and greet visitors, take and relay messages and respond to requests for information
Perform administrative duties such as filing, handling incoming and outgoing mail, schedules and appointments, etc.
Able candidates should hold the following credentials and qualifications:
Minimum 1 year of relevant experience
Good command of Arabic and English. French is a plus.
Good Knowledge of Microsoft Office (word, excel, powerpoint and Outlook)
Good computer typing skills in Arabic and in English

Send CVs to: hr@softimpact.net with Ref:(SEC)

Job Opportunity - Executive Coordinator - Canadian Business Council Abu Dhabi

Job Opportunity - Executive Coordinator - Canadian Business Council

The Executive Committee of the Canadian Business Council -Abu Dhabi is accepting applications for the staff position of Executive Coordinator.

The Canadian Business Council is a membership organization for Canadians and those interested in doing business with Canadians. The Council provides opportunities for networking and the exchange of business information, as well as assisting Canadians and Canadian companies exploring or establishing companies in the UAE.

The incumbent will report to the Chairman of the Executive Committee and will have key responsibilities for extensive liaision with the Executive Committee which includes arranging and attending meetings; membership and outreach; office management ans taff supervision; public relations; event management; and project management.


Qualifications:- Canadian citizen
- University degree, preferably from a Canadian University.
- Min. 7 years working experience out of which 3 years in a similar organization, preferred
- Strong command of English language
- Candidates with resident permits will have the priority
- Hours of work - 35 hr per week with 25 days annual leave. Other terms and conditions will be as per the UAE's Ministry of Labour Laws and regulations.

A fuller position description and salary information will be provided to short listed candidates.

Interested candidates should submit their CV's by July 2, 2008 to the attention of:
Jack Matar
Chairman
Canadian Business Council
Email: admin@cbcabudhabi.com
Fax: 02 -677 2797
http://www.cbcabudhabi.com/

Closing Canada’s Trade Culture Gap: EDC CEO Talks About Canada’s Future

Closing Canada’s Trade Culture Gap: EDC CEO Talks About Canada’s Future
(Export Development Canada)

Eric Siegel, President and CEO of Export Development Canada (EDC) today called for the federal and provincial governments, industry and the financial sector to invest in effective partnerships to elevate Canada’s trade competitiveness.

Mr. Siegel addressed the growing gap between Canada and the rest of the world in promoting its own trade culture during a speech at the Economic Club of Toronto.

“Over the years I have seen Canadians get a lot better at trade. I am here today to say that I am afraid we have to get an awful lot better. There are real danger signals out there, and they concern me deeply,” said Mr. Siegel. “We may be growing, but not nearly enough. Not in comparison to what the rest of the world is doing. It’s not just India and China, who get all the media attention, that are passing us by. We’re also being outpaced by our traditional competitors in the U.S. and the rest of the industrialized world.”

The speech, entitled “What the Future Holds for Canada's Trade”, examines the importance of trade to economic growth, Canada’s place in global trade and what Canada needs to do to regain its competitiveness. Involved in 12% of Canada’s trade annually, on average, EDC is active in all areas of Canada’s trade. Mr. Siegel said that governments, private industry, the financial sector and EDC need to look at four key areas where Canada needs to invest to improve its sliding trade competitiveness.



These are:
• improving Canadian education and skills related to trade;
• celebrating, supporting and learning from Canada’s key global performers;
• doing a much better job of branding and promoting Canada abroad; and
• getting more Canadian companies involved in trade.

Mr. Siegel has been active in Canada’s trade finance sector since 1979. Mr. Siegel’s remarks are available online at http://www.edc.ca/english/mediaroom_speeches.htm.

World Bank Raises China Growth Forecast To 9.8%

World Bank Raises China Growth Forecast To 9.8%
(The Canadian Press – Associated Press)

China's economy is weathering the global slowdown better than expected, the World Bank said Thursday as it raised its growth forecast for the Asian giant to 9.8% from 9.4%.

The World Bank cited the country's strong domestic demand and sustained competitiveness in exports as key strengths.

“Amid weaker and uncertain global prospects, China's growth will be supported by strong international competitiveness and a robust domestic economy,” David Dollar, the bank's country director for China, told reporters in Beijing.

Just two months earlier, the World Bank had lowered its growth estimate for China to 9.4% from 9.6% on weakening demand for its exports.

The back-and-forth revisions reflect the uncertainties prevailing at a time when the U.S. economic outlook remains murky due to the fallout from the mortgage lending crisis. They also result from a revision in China's own gross domestic product growth estimate for 2007, which was raised by a 0.5 percentage points following the bank's most recent half-yearly report in early April.

Despite the upbeat overall message, the quarterly report did note that China's growth is moderating as investment in factories, construction and other fixed assets slows.

Although the nominal rate of growth in such investments remains above 25% on an annual basis, much of that increase reflects surging prices. Adjusted for inflation, real growth in such spending slowed to 16 % in January-May, with the greatest deceleration in industry – a sector most exposed to global trends, the report said.

“Global growth is on course to slow further and commodity price-driven inflation has become a complicating factor everywhere. These developments imply considerably more international uncertainty and risk,” Dollar said. “The upward revision to our growth forecast largely reflects revised GDP data showing stronger service sector growth,” he said.

The World Bank's current forecast is for growth to slow to 9.2% in 2009.

The Chinese government has set a growth target for this year of 8% following last year's sizzling 11.9% expansion.

The Washington-based bank said it did not expect the calamitous earthquake that struck central China last month, killing about 70,000 people, to have a significant impact on the wider, national economy. However, it noted that reconstruction might actually boost growth in the months ahead.

The bank lauded China's progress in combating inflation, which fell to 7.7% in May from 8.5% in April. It forecast that the inflation benchmark, the consumer price index, will rise 6% for all of 2008.

The report noted that the gradual strengthening of the Chinese currency, which has gained 20% against the U.S. dollar in the past three years, can help reduce inflationary pressures by boosting China's purchasing power at a time of surging prices for crude oil and other crucial commodities.

At the same time, inflows of speculative funds from overseas, which have been flooding into China in anticipation of the future strengthening of the Chinese yuan, might be discouraged if Beijing changes its policies “to effectively change exchange rate expectations,” it said. It did not elaborate on how that might be done.

The report also noted the difficulties Beijing will have in maintaining price caps on fuel, food and other necessities – controls are intended to insulate domestic consumers and businesses from surging international prices and to control inflation. “With China's economy more interlinked with the global economy than in the past, such price gaps will be more difficult to maintain over time,” it said.

China is facing increasing pressure over the ramifications of its fuel price controls, and the subsidies it pays to refiners to compensate them for the widening gap between soaring costs for crude oil imports and the prices they can charge consumers. Such subsidies are costing China about 330 billion yuan ($47.9 billion) a year, or about 1.2% of the country's GDP.

“Keeping prices low distorts demand behaviour,” the report said. It reiterated its call for Beijing to instead direct its subsidies to individual consumers rather than state-run oil companies. “It's in China's interest to let prices rise to the world level and be passed through for investments and households to be more energy efficient,” Dollar said.

Hong Kong, Singapore Most Global Trade Friendly: WEF Study

Hong Kong, Singapore Most Global Trade Friendly: WEF Study
(Agence France-Presse)

Hong Kong and Singapore are the two economies most conducive to global trade, according to a ranking by the World Economic Forum released on Wednesday.

The World Economic Forum's new Global Enabling Trade Index survey of 118 economies looked at ten factors impacting trade, such as tariffs, customs administration efficiency and availability of transport and communications infrastructure.

The forum ranked Hong Kong number one thanks to its "very open market" as well as a "secure and open business environment."

Singapore's open business environment was also complemented by a "highly efficient and transparent border administration" and a well-developed transport and communications infrastructure.

Third and fourth places were taken by Sweden and Norway respectively, while Canada was ranked fifth.

The world's largest economy United States, however, did not figure in the top ten, coming in at number 14, dragged down by its border administration, judged to be "lacking some efficiency."

"Customs procedures (in the United States) are seen as comparatively burdensome (ranked 42nd) and there is a relatively high cost to import (ranked 65th)," said the WEF.

Export giant China fared even worse, ranked just 48th, reflecting "underlying weaknesses in its economy and its trading regime."

"Above all, China is a fairly closed country. Although its economic success relies heavily on exports, imports are still severely inhibited by tariff and non-tariff barriers, despite the country's accession to the WTO," it said.

Fellow Asian giant India ranked even further down the list, at 71st place, due to its market access, which is rated as "severely restricted."

Brazil was not far behind India, at 80th place, as its markets remain "fairly closed, with tariffs... inhibiting goods imports."

**************************************************


Enabling Trade Index: Korea (Lots of room for improvement)
2008 (Rank out of 118)
Index:24 5.0
Market access: 72 4.1
Tariff and non-tariff barriers: 96 3.1
Proclivity to trade: 33 5.1
Border administration: 18 5.5
Efficiency of customs administration: 2 6.0
Efficiency of import-export procedures: 22 5.6
Transparency of border administration: 31 4.9
Transport and communications infrastructure: 19 5.2
Availability and quality of transport infrastructure: 30 4.6
Availability and quality of transport services: 12 5.3
Availability and use of ICTs: 8 5.8
Business environment: 30 5.0
Regulatory environment: 44 4.6
Physical security: 24 5.4
(Source: WEF 2008)

South Korean Strike Halts Trade Worth Almost $5 Billion

South Korean Strike Halts Trade Worth Almost $5 Billion
(Industry Week – Agence France-Presse)

Export-dependent South Korea said June 17 that a strike by container truck drivers in protest at soaring fuel prices has disrupted international trade worth almost five billion dollars. The stoppage by more than 13,000 drivers, in its fifth day, has crippled major ports and inland cargo terminals where containers are stacking up.

The Ministry of Knowledge Economy said the strike had affected exports worth $2.31 billion and imports worth $2.43 billion as of late June 16.

More than 23,000 construction drivers – largely those who drive dump trucks, bulldozers and concrete mixer lorries – have also downed tools since June 16 – also in protest at rising fuel prices.

The construction and container truckers want steps to cut fuel costs or to be able to raise their fees in the face of the soaring price of diesel. Some 20% of normal truck movements in and out of ports and cargo terminals was continuing, with the help of military drivers.

Five cabinet ministers at a press conference announced a 100 billion won (US$97 million) package to modernize the transport sector and improve truckers' welfare. Part will be spent on increasing the number of trucks fuelled by natural gas and some on toll fee discounts.

Officials at the largest port Busan fear the stoppage will hit its status as the region's main transhipment port as storage space fills up, the JoongAng Daily reported. "We worry that shipping companies will move their transhipment hubs to foreign ports," it quoted port authority marketing manager Kang Bu-Won as saying.

Local firms are beginning to face problems receiving raw materials and exporting finished goods. "Shipments have come to a halt now," a spokeswoman for steelmaker POSCO said. However she said the firm, as a precaution, had secured more raw materials than usual and increased supplies to customers before the stoppage began.

South Korea Strike Spreads; Ports Clogged

South Korea Strike Spreads; Ports Clogged
(Reuters – Jack Kim)

South Korean construction workers went on strike on Monday to press for cheaper fuel and higher pay, joining thousands of truckers who walked off the job last week, crippling the export-dependent country's ports.

More than 18,000 operators of construction machinery are also angry over the policies of President Lee Myung-bak, who came to office in a landslide victory but has seen his support plummet after an unpopular deal to resume imports of U.S. beef.

Adding to his woes, the militant Korean Confederation of Trade Unions (KCTU), which opposes Lee's privatisation and pension plans, is set to announce the results of its all-but-certain vote to go on strike later on Monday.

The strikes have so far cost the country $3.5 billion, according to the commerce ministry.

They come as Lee grapples with massive street protests that initially called for the repeal of the U.S. beef deal but broadened to attack a range of his policies.

The demonstrations, which have hit a lull in recent days, could reignite after the trade ministry said on Monday talks between South Korean officials and the United States to address public health concerns over the beef deal had broken down.

Lee's entire cabinet and all his top aides at the presidential office have offered to resign, and Lee is expected to replace a sizable number of them.

Unionised truckers represent only a small portion of the country's drivers but play a key role in moving goods in and out of ports. About 14,000 walked off the job on Friday after talks on higher pay and cheaper diesel broke down.

Movement of cargo containers through the country's biggest port of Busan picked up slightly due as replacement drivers were brought in, but remained precariously slow, with the port's container yard filled to 85% capacity, a port authority official said by telephone.

Lee has pledged to boost Asia's fourth-largest economy by 6% this year, which economists say is overly ambitious in the face of record high oil prices and a global slowdown.

Speaking to finance ministers from Asia and Europe on Monday, Lee warned the world economy was facing its gravest crisis in more than three decades and called for tighter coordination among regional organisations to tackle the problem.

Russia-China Trade Up 44% to $48 bln in 2007

Russia-China Trade Up 44% to $48 bln in 2007
(RIA Novosti)

Trade between Russia and China increased 44%, year-on-year, in 2007 to $48.2 billion, a Chinese government official said on Sunday.

Speaking at the 19th international fair for trade and economic cooperation in Harbin, Ling Ji, deputy director of the Europe department at China's Ministry of Commerce, said that bilateral trade between both countries continued to expand rapidly as it increased 39% in January-May 2008, year-on-year, to $22.1 billion.

Ji said that in 2007 China posted a surplus of $8.8 billion in trade with Russia for the first time in the past 15 years, adding that the country would also build up Russian imports to balance mutual trade.



Ji said the exports of Chinese electronics and engineering products to Russia in 2007 accounted for about 40% of total exports to Russia ($10.3 billion) while imports from Russia mostly included energy products and raw materials, which accounted for more than 90%.

Rosewood Case Study: Form CI1, Canada Customs Invoicing

Rosewood Case Study: Form CI1, Canada Customs Invoicing

Sending a sample:

A sample Form CI1, Canada Customs Invoice may be accessed at the Canada Border Services Agency website. I would first send this link and instruct the Brazilian exporter to print their required number of copies for practice and to be used as a guide in writing first and then type the necessary form out online which may then be printed in typed form all of which requires possible download of pdf adobe acrobat software reader.

Information on completing it:

This Form CI1 may be submitted together with commercial invoice and includes similar information in 25 points:

1. Vendor (name and address).
2. Date of direct shipment to Canada.
3. Other references (includes purchaser's order No.).
4. Consignee (name and address).
5. Purchaser's name and address (if other than consignee).
6. Country of transhipment.
7. Country of origin of goods.
8. Transportation: Mode and place of direct shipment to Canada.
9. Conditions of sale and terms of payment (i.e. sale, consignment shipment, leased goods, etc.).
10. Currency of settlement.
11. 12. Specification of commodities (kind of packages, marks and numbers, general
description and characteristics, i.e., grade, quality).
13. Unit price.
14. 15. Total packages.
16. Total weight - Invoice total.
17. Net Gross weight.
18. If any of fields 1 to 17 are included on an attached commercial invoice, check this box Commercial Invoice No.
19. Exporter's name and address (if other than vendor).
20. Originator (name and address).
21. Agency ruling (if applicable).
22. If fields 23 to 25 are not applicable, check this box.
23. If included in field 17 indicate amount:
i. transportation charges ii. construction charges iii. export packing
24. If not included in field add:
i. transportation charges ii. construction charges iii. export packing
25. Check (if applicable): i Royalty payments ii Purchaser supplied goods of services for production

Following completion of the form I would make a request for the Brazilian exporter to forward a copy to me for review of any possible discrepancies prior to documentary submission.

Rosewood Case Study: Export Documentation

Rosewood Case Study: Export Documentation

a)other documents necessary to fulfill documentary obligations in Rosewood export transaction to Mexico:

Commercial invoice: preferred as proforma invoice acts more as a quotation or price check on a product sent to a customer prior to shipment and pre-order rather than acting as a bill of sale. Multiple copies will be required to fufill any L/C credit transactions according to transferring and confirming bank requirements.

Export declarations (Forms B13-A/E-15): required in Canada for the export of most goods and probably likely required concerning potentially export controlled products like exotic wood veneers.

Customs invoice: should be in agreement in terms of valuation in both Canadian dollars and Mexican pesos especially in the case of a contract stipulated requirement regarding transaction currency.

Certificate of origin: could be tricky as these veneered products represent potentially multiple root sources of origin.

Clean onboard ocean bill of lading: multiple copies will be required to fufill any L/C credit transactions according to transferring and confirming bank requirements for evidence of title and trustee terms with a possible additional shipper's letter of instruction highly recommended.

Cargo insurance certificate: multiple copies will be required to fufill any L/C credit transactionsaccording to transferring and confirming bank requirements.

Additional certificates: Possibly required special health certificates concerning wood or agricultural products exports and trans-border regulations in Mexico.

Export/Import Trade Permits: may be required under NAFTA regulations.

Warranties or after-sales agreements: Possibly required according to Mexican import regulations.

Standards conformance certificates: Possibly required according to Mexican import regulations.

ATA Carnet: May or may not be applicable.

b) additional information required, or information to be presented differently:

Contact details: Email address absent from contact address. Useful and essential in our internet connected world. Also website to confirm pricing in case a tax or duties valuation check is made by Mexican Customs authorities.

Invoice Number: Should include Mexican customer's internal reference number to provide evidence that this order was indeed placed by the Minister of Trade's Office.

Name of Customer: The name of the Minister of Trade should be given as in the interm period between placement and delivery his or her position may have changed due to political events such as recent replacement of Canadian Minister of Trade Emerson in Canada.

Shipping Vessel: Should be named to fulfill insurance issuance requirements.

Date: In agreement with date no fixed date should be given however the arrival date should not exceed the date of validity of the L/C terms of payment.

Shipping weights (net and gross): required additions.

Cubic volume: addition required.

Insurance and shipping costs: addition required.

Validity period: addition required.

Total charges: addition required.

Currency of sale: US dollars commonly used however Mexican/Canadian transactions might prefer to specify payment in either of their national currencies as every currency transaction is processed in favour of the banks and not the customers. Why not limit the number of exchanges required?

Country of Origin: details may not be correct particularly the trans-national nature of exotic veneers.

Packing: No description indicates a problem in any or all insurance claims which may require inspection and if found negligent in such terms may void the insurance due to insufficient packing leading to damages or loss.

*Unrelated* Documentary Specialists ?:

STEP is currently recruiting for a Trade Development Specialist

Saskatchewan Trade & Export Partnership (STEP) is a unique public-private partnership led by industry and established as a non-profit corporation in 1996 by the Province of Saskatchewan. STEP works in partnership with Saskatchewan businesses to maximize commercial success in global ventures with a team of professionals delivering custom export solutions and market intelligence to member companies across the Province.

STEP is currently recruiting for a Trade Development Specialist - Agri-Value as part of their dynamic team of international marketing professionals. Reporting to the Director, Trade Development - Agri-Value, your role will be to promote STEP member export interests within the agri-value sector. You will undertake trade development activities to advance the interests of Saskatchewan exporters in markets around the world.

Primary responsibilities will include organizing outgoing trade missions, attracting international buyers to Saskatchewan, counseling members on their export plans, and working closely with market intelligence personnel within your team. You will be responsible for developing and implementing strategies and meeting your individual targets within the Agri-Value Trade Development Group. You will assist with international marketing intelligence activities to target markets with requirements and financial capability to purchase Saskatchewan products and services in conjunction with the team Market Intelligence Specialist. Your strong communication and team building skills will help you to work within the STEP organization, and more importantly, with member companies and international contacts. Your global network within the agri-value sector will assist you in helping STEP members develop and implement their international marketing plans in their pursuit of sales, contracts, and projects.

This is a full time permanent position.

To qualify, you will possess the following knowledge, skills and abilities:

Bachelor’s Degree or an equivalent combination of education and experience in the areas of international marketing and international sales.;

Minimum of three years of recent and relevant experience, preferably in the field of marketing agri-value products and technologies (i.e. agri-food, agricultural biotechnology, etc.);

Certified International Trade Professional (CITP) designation through the Forum for International Trade Training (FITT) is desirable.;

Ability to work both independently and under supervisor’s direction.;

Strong project and time management skills.;

Excellent interpersonal skills and a strong focus on client service with well developed communication skills.;

Strong knowledge of Saskatchewan export capabilities and international business practices.;

Thorough knowledge of federal and provincial policies and programs addressing trade development.;

Strong relationship building capability with senior executives of private companies and dealing with the highest levels of governments - locally, provincially, federally and internationally.;

Please note any added foreign language skills, if applicable

For more information or to apply, please email: inquire@sasktrade.sk.ca - Please do not respond to FITT directly.

- JOB OPPORTUNITY - Director, Business Development - Gulf Region

- JOB OPPORTUNITY -

JOB OVERVIEW
Director, Business Development - Gulf Region
Queen’s Executive Development Centre - Queen’s School of Business

JOB SUMMARY
Reporting to the Executive Director, QEDC and in consultation with senior Queen’s School of Business colleagues, the Director, Business Development Gulf Region is responsible for directing and managing programs, resources, and staff while identifying, pursuing, and generating new business opportunities in the Gulf Region. QEDC has targeted the Gulf Region as a base from which to develop an international line of business. The Director is responsible for maintaining and developing relationships with existing clients and partner organizations, continuing to grow the customer base, and driving both the revenue and profit side of the business in the Gulf Region.
KEY RESPONSIBILITIES
• Responsible for the growth and overall management of School of Business executive education programs offered in the Gulf Region.
• Responsible for enhancing relationships with corporations and partners to maximize the customer base, and drive both the revenue and profit side of QEDC’s business.

REQUIRED BACKGROUND
• Masters degree in Business Administration, with five or more years experience in a business development capacity. Consideration will be given to the equivalent combination of education and experience.
• Significant experience in making and developing business-to-business contacts at a Senior Executive level, with an international perspective.
• Demonstrated experience in strategy development and implementation, budget and revenue forecasting, and program analysis.
• Demonstrated experience in a management role with skills in organizing, motivating, and directing staff, outside consultants, geographically-dispersed teams, and clients as required.
• A sound knowledge of the executive education market in the Gulf Region
• Knowledge of Queen’s School of Business or QEDC programs would be an asset.
• Demonstrated experience in complex budget management.
• Experience in responding to Request for Proposals (RFP), public speaking, and creating and conducting presentations.

Please contact:
Jillian McCullough
Program Manager, Gulf Region
Queen's Executive Development Centre - Dubai
Queen's University, Canada
+971 50 345 7200
www.execdev.ae

Where's my book?

I am still waiting for my book for this!

Rosewood Case Study: Legal Aspects of Rosewood's Sales in Mexico

Rosewood Case Study: Legal Aspects of Rosewood's Sales in Mexico

Key factors to consider with regard to the legal aspects of Rosewood’s sales transactions in Mexico:

The first concern is establishing a cost effective method of direct shipment which may be fully beyond Rosewood resources. However it may be preferred and more efficient in future. Therefore establishing a mutually beneficial and profitable contract with a local agent or distributor will be an essential legal hurdle.



The terms of agreement must meet Canadian and Mexican legal requirements and will implicate review of the contract by both Canadian and Mexican legal firms. For example, Rosewood must ensure that all products meet legislative certifications and safety standards for both nations. Failing to meet them will be costly. In distributor agreements legal liability terms must be clearly determined for the agent or distributor.



Definitions for terms of use, specificity of goods, effective validity dates, measures for damages in compliance issues, excape or exit clauses, force majeure clauses, mediation and arbitration laws, applicability of Geneva Convention or exclusions of terms of convention, terms excluded and agreed by both parties, specific prices of goods, terms of sale, terms of payment, currency of settlement, compliance terms and responsible parties for regulatory standards, codes, packaging and labelling laws, dispute resolution methods, warranty protection and product liability responsibilities must be discussed, negotiated, agreed and in compliance with both Canadian export and Mexican import trade laws.



The contract should also include terms of minimum stocking orders, parts orders and emergency or special order terms which are recommended as the distributor or agent must act in the interest of Rosewood according to these terms of contract.



By necessity these contracts must be explicit, are at times lengthliy and may take several revisions, modifications and translations to be mutually acceptable to both parties. Under negotiation they may often appear similar to the pattern of order offers, counter-offers and acceptances. Thus prior negotiation of terms must be included in selection of agent or distributor and research of indirect competitor contracts and terms should also be considered to ensure Rosewood is not missing essential clauses which could be considered legal loopholes creating disadvantages for the company. In contract terms operating in Mexico regardless of EDC recommendations Rosewood will be at a perennial disadvantage unless Mexicans are included in the management team at HQ there will always be an interpretation and legal context disadvantage.



Further inclusions and considerations recommended by John R. Jagoe at The Export Institute USA would be:

1. Regular and routine sales reports tabling requirements of products from Mexico to Rosewood HQ to assist in MRP/DRP scheduling.

2. Regular notifications regarding changes in governing Mexican regulations over product certification and licensing to allow Rosewood to modify product when necessary.

3. Ensuring Rosewood retains legal right to fulfill orders made directly from Mexican buyers to Rosewood Canada. This would allow an online presence for sales orders seperately from Mexican agent or distribution contracts (eventually such a market presence may preclude the needs of agency or distributorship as the market grows).

4. Minimum validity periods on all supply product quotations which will ensure agents or distributors may deliver a solid price quotation to customers. Short validity periods will harm Rosewood's image in foreign markets. Variables in pricing should be regular and forecast inot porduct pricing.

5. A flexible and cost-effective agent or distributor product education program specifying terms of education and frequency of training in-house or at Rosewood HQ. Nothing could be worse than an un-informed distributor or agent.

6. Terms of emergency repair or technical assistance Rosewood will provide on site in Mexico, maximum frequency of technical assistance and terms of visit.

7. Ensure exclusivity of product category. For example, it would not be in Rosewood's interest if Mexican distributor or agent was also stocking direct competitor's products.

8. Rosewood should expect to in addition to develop a personal and familiar relationship with Mexican agent or distributor, his family, and personal circle of business contacts in Mexico. Therefore Rosewood's management team should be prepared for at least biennial or triennial trips to Mexico to develop that relationship. Such extra-legal measures wille ensure mediation of contract is a ritual rather than a legal procedure as time progresses.

9. Steps to select an agent or distributor should be pragmatic and thorough. Nothing could be worse than the wrong legally contracted agent or distributor.

10. Regular review of performance and recommendations dialogue between Rosewood and agents or distributors to maximize sales in Mexico.

Rosewood Case Study: Improvement of the inventory management system

Rosewood Case Study: Improvement of the inventory management system

Improvement of the inventory management system will require a long-term perspective on monitoring and managing the problem. Several strategies may be taken to improve Rosewood's situation.

Year-end inventory levels rising: Annual clearance sales of excess inventory may be a solution at such sites as http://www.overstock.com many furnishing companies reduce warehousing by transferring disposal to allow costs to be absorbed. But this represents a short-term solution.

Carrying costs rising:

1. Re-evaluate customer service level required: Are short-lead times required in current and future export markets? How much of Rosewood's inventory may be localized to poinot of sale warehousing in disassembled shipping loads? How much finishing specialisation and options are required to satisfy customers? What is the most cost effective method of meeting customer needs in terms of inventory?

2. Channel Options: What are the best service options in terms of order cycle time (immediate requiring stockpiling versus direct delivery from Canadian manufacturer) or fill rate required (time required between production of each unit and required delivery time) and any possible costs for delay or immediate delivery cycles based on communication with customers. This would require further review of customer "moments of truth" in terms of satisfaction.



3. Overall Transportation Costs: Rosewood will have some serious decisions to make concerning line balancing inbound and outbound delivery schedules for all export traffic. Excesive stem point distances may already exist in terms of US markets, further distant Latin America will challenge Rosewood's current inventory management system exponentially. Warehousing for stockpiles in Rosewood's primary customer regions may already be a reality or soon a requirement. Securing and minimizing costs in the nearest markets will preapre Rosewood's management for configuring a cost effective system in proposed future markets.

4. Carrying Costs: Furniture carrying costs are described as quite low therefore Rosewood is expected to have larger stock volumes and more diversified stocking points at all times trying to carry as full loads as possible prior to customer delivery. Applying the economic order quantity variable may assist in determining where Rosewood may reduce carrying costs and generate higher liquidity of assets allocations. For example, reduced tax holding in maquilladora zones of Mexico may prove an ideal shipping destination for full-loads prior to redistribution to US customers which may be break-bulked and partially shipped through reimport freight forwarding facilities with other products manufactured there.



5. Inventory Handling: However whichever costs prove most effective choices ideally Rosewood's customers would be willing to wait for their premium designed and produced product. Reducing facilities costs with a relocation to Mexico would easily encourage Rosewood to do so with its labour cost savings and relocate the entire manufacturing facility to Mexico as well. However this is the paradox of North American production. Most small and medium sized manufacturers in Canada and the United States remain family run and managed. Very few of these entrepreneurs have fully divested themselves of an ethical and moral relationship to the communities of their origin. As a result while these remain candidates for relocation to Mexico they also represent a resistance to relocation as the essence of their management is localized and self-interested control of family assets. So far it appears emigration from rather than immigration to Mexico is the socio-cultural norm regardless of perceived cost savings.