Friday, July 25, 2008

Discussion: Political/Legal versus Cultural/Social Export Obstacles

Discussion: Political/Legal versus Cultural/Social Export Obstacles

What are the legal obstacles? What are the political obstacles? Are these subject to local interpretation? Is the company large enough and able to (within ethical limits) influence local legal and political obstacles? For example, if the target market is China can the company afford to take on consultants like the seeming immortal Henry Kissinger?

If the company is small or a start-up what target markets exist with free or open policies to foreign entrants and products? What cultural obstacles exist in these markets? What logistical challenges exist in these markets? What freight forwarders and/or agents are recommended for these particular markets? if the target market is Dubai and our products are mainly pork sausages such as Schneider's can we in fact deliver "everything but the squeal" here with any significant profits other than a small expatriate community of either non-Muslims or non-Hindu 100% veg.?

What weighing in aggregate values will be given to these various obstacles? What ranking will be completed which is in accordance with the company’s ability to overcome obstacles or challenges unique to a particular market? Ultimately which markets will make it from priority to target designation will only be measured according to our assessment of priorities.

Examples of wasted research

Examples of wasted research

Spanish search for El Dorado.Geographical exploration of the Nile and Congo river systems. Sony's development of the beta video-tape recording system. My favourite wasted research is Allenby & Co. Outfitters.

A whole host of wasted research gets tossed out with technology flops like:

Apple Lisa
Apple Newton
Digital audio tape
DIVX
Dot-bombs
Dreamcast
E-books
IBM PCjr.
Internet currency
Iridium
Microsoft Bob
The Net PC
NeXT
OS/2
The paperless office
Push technology
QUBE
Smart appliances
Speech recognition
Virtual reality
Web TV
Other

Top Twenty Tech Flops

Export Scenario: Tires for Nigeria

Export Scenario: Tires for Nigeria

We may use the funnel process to provide for a general to specific approach to focus the results of research. Management have defined the objectives. There follow several questions to be answered regarding tires exports to Nigeria.

1. BASIC NEED: Is there a need for car tires in Nigeria? What level of reliability will our resources represent? How comprehensive are the data resources and are they comparable and cost effective? To what secondary and primary resources may we access?

2. MACRO-ECONOMICS: What are the macro-level conditions in Nigeria? Will this involve exploratory or descriptive research approaches or a blend of both?

3. PERFORMANCE POTENTIAL: What is the performance potential and industry attractiveness of car tires in Nigeria? What mix of qualitative versus quantitative data will provide an accurate picture of our chances of success?

4. ELIMINATE RISK OPTIONS: What low return/high risk options are there? What impact will a failure in tires trade with Nigeria have on the export company? Does our company have experience trading in central African nations?

5. TRADE STRATEGY: What specific requirements are needed for adoption and management of trade in Nigeria? Are there multiple levels of protectionism or freedom of entry? What impediments to successful trade can be anticipated?

6. ELIMINATE OPTIONS: Are there any unrealistic options relating to exports to Nigeria? For example, are ports of lading for example in operation or tied with fifty years worth of concrete imports, which would take twenty years to unload?

7. BUDGET AND TIMING: Finally estimate budget and time requirements and compare expected costs with anticipated value of research. Do the risks outweigh the rewards?

8. CONCLUSION: What is our conclusion? Is it an initial "go" or "no go" decision?

MSW Case Study: International Business Plan Implementation

MSW Case Study: International Business Plan Implementation

First of all I would approach the business plan as an evolving concept rather than a boilerplate document.

I would then implement the continuous feedback loop of Figure 3.1 which includes:

Defining the business: As a small regional player in the Canadian bottled water market is it going to be the wisest move to jump to international marketing of a product that has not yet been successfully sold in nine out of ten provinces?

Gathering information: Relevant to the nature of the business vision, is this water company going global? If so with which products? If then to which markets? What information provides context, budget and time relevant sense to making the best targeting decisions for this export product?

Updating the business plan: Plans go sour just as spring water sometimes does. Which countries will or are providing low or negative profits? Which countries are or could provide better target sales profits? Is water product all we should market? Are there other niches (like spa quality muds), which might also be successful?

Implementing changes:
How quickly can we enter or exit profitable new or unprofitable markets? How easily can we react to customer suggestions surveys or changing preferences in size, quality or quantity of product? How quickly can we react to external opportunities and threats relevant to the target market?
Will we profess to implement SWOT and forever SWOT our business on a routine basis much as a lighthouse sweeps the shore for the benefit of the avoidance of shoals? If we SWOT then what SWOT analysis is relevant and what SWOT is not?

Evaluating and revising assumptions: What qualitative or quantitative research methods and results will we need to make the best business decisions which fulfill our growth targets or corporate vision? Will we be flexible enough to revisit our corporate vision (with or without the aide of a swami or guru)?

Maple Springs Case Study: External Opportunities and Threats in China

Maple Springs Case Study: External Opportunities and Threats in China

Opportunities

Government factors: A certain degree of regional and local autonomy exists within the nation providing possibilities in development of relationship-based remedies to regulatory and departmental red tape. Attraction of FDI and global investment remains competitive.

Economic factors: The top 10% income earners represent nearly 35% of consumption nationally. This would be a favourable group to target for premium bottled water consumption and would represent higher and upper-middle classes.

Technological factors: While overall figures suggest a lagging position in terms of innovation the top 10% of the market consumer profile may exhibit global leading statistics in the area of possible media channels of marketing in mobile phone and Internet usage.

Ecological factors: Asia in general possesses a consumer interest in green or eco-friendly products despite environmental conditions for example termed the well-being movement here in Korea.

Cultural factors:
While nearly 93% of the population is Han Chinese a further 8.5% of minorities in terms of languages and customs will need potential consideration dependent upon regional or provincial market area of choice.

Threats:

Government factors: Multiple levels of government bureaucracy and corruption will ensure difficult conditions which will stifle or make a joint-venture with a Chinese company invariably unprofitable for a foreign partner. Import duties and tariffs remain high despite improvement in these areas in recent years. Regular delays in delivery of customs cleared goods also occur making export readiness of any joint venture subject to target country inventory stocking.

Economic factors: Exchange rates, share volumes and prices, commodities prices and investor rights are virtually all centrally controlled in this Communist State. Furthermore the government remains unable to manage high rates of unemployment due to massive closures of unprofitable state run enterprises (of which the potential Chinese joint venture partner may be one of them).

Technological factors: The overall position of China in terms of technological advancement is medium to poor. Such factors would limit overall market share if inadequate media are available to match desired growth targets.

Ecological factors: A horrendous record of environmental destruction has resulted from uncontrolled economic growth in China. As in a majority of developing nations, sustainability has taken a back seat to profits (as it did during the industrial revolution).

Cultural factors: The regional and cultural differences across China due to ethnic differences and localities will make it difficult to have anything but a regional and provincially based consumer market area. While this may be ideal for a small company like MSMW similar growth might be more easily found in other nations.

What is your expert opinion?

Caveat empor! Proceed extremely carefully in any contract negotiations in China as the legislative arbitration of disputes or settlements almost invariably favours the Chinese partner. Seek short terms of renewable mutual consent clauses (every three months for the first year possibly) and continuously monitor accounting. Ensure that a Canadian Chinese member of a global chartered accountants association is given full access to all invoices, accounts, records and enormous responsibility to ensure Chinese partner is not double booking finances. Treat every accounting document handed over by Chinese partner as a potential justification for dissolution of contract. Recommend Korean partner over Chinese one.

Conclusion: Continue to define, gather information, update business plan, implement changes, evaluate and revise assumptions concerning any joint-venture partnership in China. Always have the opportunity to run away quickly with rock-solid exit clauses and agree to invest nothing but the product to reduce any possible losses based on distribution or marketing in China which should be the Chinese partner's full responsibility. It might be a better idea to find a pure source of water in China for direct export to Canadian market dissolving Canadian operating costs overnight.

Sources: CIA Factbook and World Economic Forum China

Canadian Export Environment: "Something is rotten in the state of Denmark." (Hamlet)

Canadian Export Environment: "Something is rotten in the state of Denmark." (Hamlet)

Finance: Canada's four largest banks rank in the world's top fifty while at the same time are outpaced and outranked by competitor nation banks. Canada's banks could improve this performance over time especially considering their abilities to develop niche marketing techniques, adapt more successful competitor models of investment, gain insider reflection of target customers and make alliances with larger global banks.

The World’s Safest Banks 2007
http://www.gfmag.com/index.php?idPage=612

Human Relations: Canada's workers are well skilled and trained in comparison to many nations. However in terms of outsourcing Canada has often been a source location of outsourced contracts for the US market rather than an outsource client of such contracts meaning a core element of the international business environment required to succeed in exporting is missing.

http://www.outsourcing-canada.com/nearshore.html

Planning: Canada and Canadian businesses are often considered risk averse. While this protects many companies from losses, international trade planning is supposed to reveal instances where opportunities and potential gains outweigh or mitigate possible risks or uncertainties. However without a managerial openness to global markets development Canadian companies are doomed according to the Association of Canadian Manufacturers and Exporters.

http://www.cme-mec.ca/national/template_na.asp?p=471

Technology: Canada's ranking of 14th place or a D Grade in Innovation in the study of 17 OECD nations is abominable and requires more than a grunting acceptance that significant changes are desperately needed to propel Canada's future record of innovation.

Innovation Nation
http://www.cata.ca/Media_and_E...s/cata_pr10180601.html

Procurement: Canada's abhorrence or shunning of global trade and development or lack of international proclivity to trade must be reversed through any or all possible means as such an indicator must project beyond the business environment to reflect negatively upon Canadian culture itself regardless of its supposed multicultural nature and implicates a problem in the roots of Canadian national identity. Weaknesses in multilateral trade rules openness is not an option in today's globally connected world and gives Canada an overall appearance of excessive nationalism and/or protectionism.

The Global Enabling Trade Report 2008
http://www.weforum.org/documen...r08_browser/index.html

After Sales Service, Marketing and Sales, Operations: All appear flopsy, minuscule and insufficient.

Inbound/Outbound Logistics: Canada’s logistics capabilities are excellent. All of the fixtures are there so why is it not working?

Production: Canada manufactures 55.6% of its exports, and only 27.4% could be considered natural resources or raw materials, along with agricultural products at 11.4%. (The Global Enabling Trade Report 2008). In conclusion The Conference Board of Canada has issued a report card on Canadian competitiveness:

Economy: B
Innovation: D
Environment: C
Education and Skills: B
Health: B
Society: B

“By benchmarking Canada’s performance against its international peers, Canada can learn what it can do to sustain a high quality of life and also what should be avoided.” (A Report Card on Canada, 2008)

How Canada Performs: A Report Card on Canada
http://sso.conferenceboard.ca/HCP.aspx

"Something is rotten in the state of Denmark"

Summer Holiday 2008

Summer Holiday 2008

Bangkok arrival was uneventful I took two local buses to near my destination for about two dollars. The hotel location is still pretty quiet but a couple of nearby streets are full of foreign businesses from Africa, India and other parts of Asia. The area already has many freight forwarders companies but now has many local foreign buyers. In particular I found an Indian restaurant just around the corner with an amazing street for people watching which reminded me a lot of the market area of Aswan.

The Loy Nava dinner cruise was really special they sent a van to pick me up and take me to the pier. Then I was almost late for the early dinner cruise. But they came back and got me.There were only about 15 people on the boat but it was really beautiful food, the river in Bangkok is surrounded with well lit temples, bridges, palaces and hotels. It was really exotic and I had chosen the fish menu so I didn't mind eating and there was really enough for two. I bought a few light weight shirts/shorts at a large market called MBK.

Loy Nava Cruises

Flight to Colombo was uneventful and the food was very good they had grilled sea bass (hamour) a fish I have actually caught once in the Persian Gulf. Steven from BlinkBonnie was there as planned and he took me the 2.5 hours to Kandy. I had a choice of rooms and selected one with a private balcony. The first morning I took my bag and laundry to market (to have a zipper repaired) and then did a little shopping for batiks and spices/oils. Also I bought genuine Columbia travel trousers for 25 USD.

Blink Bonnie Guest House

Earlier in the week I went to the Kandiyan Dancing Hall to see their performance for three dollars. They changed location. Yesterday I went to an aryuvedic massage place I had visited in 2002 the price went up but I got a discount 37 dollars for three hours including the oil pot dripping down over the head and steam bath. I also went to the Buddhist Publication Society to buy a few books on Sri Lanka's history and culture. Then I went to the Queen's Hotel Pool for a swim for a 1.50 USD. Then after dinner ( I usually have a curry at my guesthouse) I went to one of the three bars here (in a city of 1.5 million) across the lake from my hotel.

Kandyan Dance

Queens Hotel

My schedule is tentative one day study/homework and one day leisure. I am progressing on courses in international management planning and international trade market research. I am starting fourth chapters in third week and have templates for both major assignments (international business plan and international market comparison) both done. I have hunted around for a cool internet cafe with a/c and found one a couple of days ago. As well a plan for the weekend is to walk to a tea factory museum 7km from my hotel in the morning and then go for another 1.5 hour massage in the afternoon before dinner.

A couple of mornings ago raucous monkeys attacked my patio furniture and rifled around on the balcony as I had left a banana out there by accident. They made a muddy mess of footprints and got the impression that their logic draws the conclusion that what is mine is theirs.

Thursday, July 17, 2008

FITT recruiting for Manager, Education and Certification and Coordinator, Marketing.

FITT, the world’s leading international trade training and professional certification authority, is presently recruiting for 2 positions in Ottawa: Manager, Education and Certification and Coordinator, Marketing.

The new Manager, Education and Certification will manage, coordinate and implement FITT’s educational and certification programs which are administered through a global delivery network of educational partners. The Manager will be responsible for managing all aspects of individual certifications; educational partnerships (delivery and accredited partners); educational partner relations; course exemptions; and, assist in the development of financials for the unit and initiate cost efficiencies. Salary range: $50-60K.

The Coordinator, Marketing will be responsible for coordinating, implementing and supporting FITT’s marketing communications activities with a view to client retention/recruitment, brand recognition and expanding market presence. The Coordinator will also be responsible for the administrative duties required to support the marketing and business development activities and maintain the overall integrity and accuracy of the marketing and membership database. Salary range: $35-42K.

Please forward your curriculum vitae and cover letter by August 6, 2008 to info@fitt.ca. Visit www.fitt.ca/about/employmentopportunities.htm for full job descriptions. We thank all candidates in advance and advise that only those selected for interview will be contacted.

Monday, July 14, 2008

Michael Porter's Value Chain and Canada's Competitiveness



Michael Porter's Value Chain and Canada's Competitiveness

Finance: The Royal Bank of Canada ranks as Canada’s safest bank listing and comes in at 17th out of 50 in 2007 World’s Safest Banks at Global Finance with a Standard and Poor’s AA-, Moody’s Aaa, Fitch’s AA and total assets of 503 billion USD. Wells Fargo scores significantly higher with fewer assets.

Toronto Dominion comes in at 27th with a Standard and Poor’s AA-, Moody’s Aaa, and Fitch’s AA- and total assets of 368 billion USD. The Commonwealth Bank of Australia scores higher with fewer performing assets.

Bank of Nova Scotia ranks 38th Standard and Poor’s AA-, Moody’s Aa1, and Fitch’s AA- with 355 billion USD in performing assets. The Australia and New Zealand Banking Group is ranked higher with fewer performing assets.

Finally Bank of Montreal squeaks in at 48th with Standard and Poor’s A+, Moody’s Aa1 and Fitch’s AA- and 300 billion performing assets. Svenska Handelsbanken of Sweden performs better with fewer assets. At the same time Canada is considered a low-risk nation politically, socially and economically.

http://www.gfmag.com/index.php?idPage=612

Human Relations: May be interpreted as CSR or industrial or labour relations. However the ILO or International Labour Organization has seen significantly higher complaints tabled from Canada since 1982 possibly as the result of exclusion of labour rights in the Canadian Charter of Rights and Freedoms. The large number and variety of Canadian labour jurisdictions are described as a source of multiplicity of complaints carried over to the ILO as compared to other developed nations which have fully centralized labour legislation such as the USA, the UK and Australia. Legislation concerning collective bargaining, right to strike and freedom of association are considered regional political issues rather than national judicial ones as they are in comparative developed nations. (Blaike, 2002) Such regional disparities in legislation might contribute to Canada’s Human Development Index 4th place ranking for 2007/2008. Iceland comes first, Norway comes second and Australia comes third. These issues may be considered cultural issues: negotiations, marketing, barriers

http://www.cec-cce.ca/research/canada_and_the_ilo.doc

http://hdrstats.undp.org/countries/data_sheets/cty_ds_CAN.html

Planning: The Competition Policy Review Panel released its report, “Compete to Win” on June 26, 2008 recommends lowered taxes across the board from corporate to personal incomes, generous support for excellence in higher education, higher foreign students volumes and reformed immigration policies, greater tax controls for cities, increased venture capital for small businesses, elimination of regional barriers to the flows of goods, services and people between provinces, reversal of border thickening with the USA, conclusion of trade agreements with priority list trading partners, assessment of regulations reducing competitiveness, increased innovation and research & development policies which result in growth. The report concludes, “that Canada must raise its productivity through greater openness to talent, capital and innovation, through vigorous competition, and through a more ambitious mindset.” These issues could be considered negotiations, marketing, and barriers-based opportunities for improvement.

http://www.ic.gc.ca/epic/site/cprp-gepmc.nsf/en/home

Technology: Canada ranks 14th place or a D Grade in Innovation in the study of 17 OECD nations which is ripe for improvement according to the Conference Board of Canada and the Canadian Advanced Technology Alliance (CATAAlliance). The CATA recommends development of a national brand (Eg. Denmark: Milk also something I fully recommend), creation of an industrial strategy covering virtually every trade sector in the nation, removal of all trade barriers, attraction and retention of the world’s best talent, encouraging continued executive leadership training and commitments to lifetime learning among managers, development of special IT training incentives for women, advancement of ICT adoption in small businesses. "We are also challenging all the political parties to evaluate their respective platforms against those of Canada's High Tech Party . . . CATAAlliance. For Canada to prosper we must adopt an Innovation Nation mindset and culture. Let's set the gold standard." (Reid, 2007) These issues could be considered negotiations, marketing, and barriers-based opportunities for improvement.

http://www.cata.ca/Media_and_Events/Press_Releases/cata_pr10180601.html

Procurement: Imports primarily sourced in the USA at 54.9%, the EU at 12.3%, China at 8.7%, Mexico at 4% and other nations aggregated as 20.1% with no other nation exceeding Mexico’s 4%. However overall proclivity to trade is seen as 17th place globally out of 118 nations. Canada’s procurement policies are lagging in terms of breadth of international markets indicating a greater opening to the world from 26th place and could learn much from a study of Germany’s leading position in this area. Regional sales are not a significant problem. However great weakness in terms of multilateral trade rules openness at 53rd place indicates much could be learned from Hungary in terms of how to negotiate trade terms with foreign nations. (The Global Enabling Trade Report 2008).

http://www.weforum.org/documents/getr08_browser/index.html

After Sales Service: Very few pages turn up on google when the key words Canada and “global after sales service” are entered leading to a suspicion that local distributors spend a lot of time sitting next to a dusty telephone on Canadian global after-sales services.

Marketing and Sales: Few global marketing and sales agencies.

Operations: "canadian global operations" on google comes up with four pages.

Inbound/Outbound Logistics: The 2008 Global Economic Forum Global Enabling Trade Report scores Canada in availability and quality of transport infrastructure and transport services as two of ten essential pillars to global trade. Designed by Michael Porter this index is useful in assessment in concert with the Global Competitiveness Index.

http://www.weforum.org/documents/getr08_browser/index.html

In terms of transport infrastructure Canada scores 3rd overall out of 118 member nations covered in the study. However Canada’s weaknesses in infrastructure are displayed in its score of road traffic congestion ranked 49th out of 118 nations with Bangladesh leading in least congested roads. Canada’s airport density is only second to that of Norway which suggests one underutilized cargo shipping method prohibitive due to soaring fuel costs. Transshipment connectivity is ranked 17th but the range in scores between Canada’s 523 and the UK’s 580 indicates that the range of differentiation in ranking is slight among the top competitors. Airport infrastructure is also very narrowly ranged in global scores while Canadian railroad planners might look to Switzerland to increase rail transport quality. Similarly Canadian road planners might look to France to improve road quality. Finally Canadian port planners might seek quality improvement of port infrastructure examples in examining Singapore. Canada’s logistics capabilities are excellent.

In terms of transport services Canada places 15th overall out of 118 member nations covered in the study. Weaknesses are revealed in liner shipping connectivity and Canada could be taking lessons on this in China. Ease and affordability of shipment and competence in logistics are scored quite close to world leader The Netherlands. Ability and ease of tracking as well as timeliness of delivery to destination also closely follow world leader Singapore. Postal service efficiency remains strong in relation to world leader Japan. Canada’s logistics providers could learn more from global leaders.

Production: Canada manufactures 55.6% of its exports, and only 27.4% could be considered natural resources or raw materials, along with agricultural products at 11.4%.

In conclusion The Conference Board of Canada has issued a report card on Canadian competitiveness.

Economy: B
Innovation: D
Environment: C
Education and Skills: B
Health: B
Society: B

“By benchmarking Canada’s performance against its international peers, Canada can learn what it can do to sustain a high quality of life and also what should be avoided.” (A Report Card on Canada, 2008)

http://sso.conferenceboard.ca/HCP.aspx

Friday, July 04, 2008

Port Hoping Fix Is Quick [Halifax]



Port Hoping Fix Is Quick [Halifax]
(ChronicleHerald – Tom Peters)

The Halifax Port Authority is concentrating on getting over the short-term pain before it turns its attention to long-term gain, says authority president and CEO Karen Oldfield. "We are so focused on getting our volumes up, increasing our business through the port, we are not even looking at 2009," she said Thursday after the authority’s annual meeting.

The port, like several others across North America, will show a continued decrease in container cargo when six-month figures are released in July. Ms. Oldfield would not say how big a decline she expects, but James Foote, CN’s executive vice-president of sales and marketing, estimated its volumes through the port are down about 15%.

"We are looking very, very short term. Long-term prospects are excellent. Short term, we are in choppy water and we are working really hard at every aspect of the business – the reefers (refrigerated cargo), retail, every little place that we can find commodities that go into boxes that go across our port. That’s where we are," Ms. Oldfield said.

Paul DuVoisin, the port’s commercial director based in the New York / New Jersey area, told the annual meeting that international shipping lines expect to see a turnaround in 2009. Imports into North America, particularly into the U.S., have dropped significantly this past year, a decrease attributed to factors such as the mortgage crisis. Household furnishings account for a large percentage of imports.

Ms. Oldfield said it is difficult to predict when Halifax will begin to see a cargo upsurge but she is optimistic about short-term prospects.

"We feel we are in good position . . . but it is very hard to actually seal the deal, if I can put it that way," she said. "How it works is, we have our front line and deal-makers, which are our terminals operators and CN. We support them. We help them. We do all the analysis for them, but at the end of the day, it is the terminal operators and CN who actually sign the contracts with carriers," she said.

Ms. Oldfield was also adamant that the cargo decline has not affected overall port operations. "We want people to understand the HPA is a rock-solid financial organization. We have received an A stable credit rating from Standard & Poor’s, that is investment grade. Why I make that point is, it means we are in a great financial position to weather the chop and to continue to reinvest ourselves and with our partners," she said.

Ms. Oldfield also stressed the port is about more than just containerized cargo. "We are talking about our cruise business, which is rock-solid. We are talking about considerable real estate holdings, which are very strong, and we are also talking about break-bulk and other kinds of cargo that are doing quite well too," she said.

The port’s cruise sector is having a record year with 131 cruise visits scheduled, which will bring in an estimated 215,000 to 220,000 passengers. On the real estate side, the port continues to work on its $110-million seawall project, which has already attracted a number of tenants. The authority is also giving consideration to the development of a hotel on its property.

Paul MacIsaac, senior vice-president, said in his financial report that the authority has a strong balance sheet. The authority has $154 million in assets and carries a debt of $25 million. Final revenues for 2007 were flat at $28.2 million, down slightly from $28.4 million in 2006. The authority had net earnings of $6.2 million, down from $7.8 million in 2006, and cash flow of $14 million, down from $14.7 million the previous year.

New Dalhousie Initiative Builds Momentum for Atlantic Gateway




New Dalhousie Initiative Builds Momentum for Atlantic Gateway
(Atlantic Canada Opportunities Agency)


Dalhousie University is launching an exciting and unique Atlantic Gateway initiative through its new Centre for International Trade and Transportation.
Dalhousie’s “Atlantic Gateway Initiative” is a two-year partnership between the Centre for International Trade and Transportation, the Atlantic Canada Opportunities Agency (ACOA) and the Province of Nova Scotia. The province has invested $50,000 and ACOA has invested $115,000 in the two- year pilot project.

“We know the Atlantic Gateway will play a vital role in the economic success of our region," said Premier Rodney MacDonald. "The potential benefits for Nova Scotia are endless. This initiative is the next step as we move to take advantage of the opportunities the Atlantic Gateway will provide. It's wonderful to see Dalhousie University, and the federal and provincial governments working toward this common goal.”

“Our government is pleased to be working with provinces and universities to develop education and research programs that support and advance the country’s gateways and corridors,” said Peter MacKay, Minister of National Defence and Minister of ACOA. “Combined with our other trade corridors, the Atlantic Gateway is a vital link in the international trade system, linking North America with the world.”

The Centre for International Trade and Transportation was originally created as the Centre for International Business Studies in 1975. In late 2007, Dalhousie decided to rename and refocus the Centre, making the Atlantic Gateway Initiative its first major project.

"The Atlantic region is a key national gateway for people and products and it has been so since the pre-Confederation era," said Greg Hebb, director of the Dalhousie Centre for International Trade and Transportation. "Our centre at Dalhousie is uniquely positioned to grow and to transfer the skills, knowledge and context required for this historic role. We welcome the support and guidance of ACOA and the province of Nova Scotia."

By providing a combination of research and educational support, the goal of the Initiative is to bring the academic community into the development of the Atlantic Gateway strategy. The pilot will see expanded course offerings, working papers, and an international conference.

A steering committee, with representatives from the three partners and the academic and private sectors, will provide input during the two-year pilot.
Nova Scotia’s potential as an international gateway includes exponential growth in container traffic, and significant growth opportunities in international air passenger and cargo traffic handling, and the cruise ship industry.

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.

Thursday, July 03, 2008

'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.