The Paramounted Importance of Critical Analysis in International Trade Policies

International trade is largely based on the constant fluctuations in the world-wide economy, this resulting in constant changes with regards to tariffs, trade subsidies and unending amendments of regulations with regards to international trade. “Trade policy and economic Growth”, a paper by Keith Maskus, PhD, focuses on the relationship between trade policies and the growth of the economy or lack thereof, the main point of interest of the paper was to establish whether the variance of trade policies will affect the economic growth of any country. The conclusion reached was that open economies tend to grow faster than closed economies, ceteris paribus. therefore concluding that open competition is good in the sense that it improves resource distribution and the country gains in Investment and innovation.

An organisation that is involved in international trade has to pay special attention to such information. There might not be any countries with closed economies however there are countries that have low imports to the point that they are regarded as closed economies for instance Brazil. In 2011 Brazil recorded 13% as its import percentage which was quite low for a country of its stature. Is it not then imperative to constantly be up to date with changes in the trade policies of countries one is interested in pursuing trade relations with? since there is a proven positive relationship between the openness of an economy to competition (thus meaning the country is greatly involved in trade) and the growth of that country`s economy, this serves as an indication of how lucrative and profitable a business venture would be under such circumstances. The Critical analysis aspect then comes into play by determining how much gain or loss would result from substantial changes to the policies, which are measures and instruments that can influence export and imports, the objective being the policies influence the trade sector to the result of profit for the business venture. one might feel a degree in commercial management is then needed in order to fully understand all the kinks and edges of the international business, and they would be right, but the eventuality is that it will always boil down to intelligence and efficiency in the analysis of trends, calculation of potential profit/loss, predictions of future stability or fluctuations in the world economy prompting changes to prices in the trade sector.

There is one other important factor that can alter potential business plans, and that is the politics of the country in question, policies are easily influenced by the politics of the nation, and it is thus advisable that critical analysis be also engaged, this results in better understanding of the country and its stability thus reducing the chances of incurring a bad business eventuality. Nations are not governed by robots, unfortunately, but are governed by people with interests and human nature desires to differ from individual to individual making it difficult to maintain a constant effective system. if politicians are elected they tend to focus on altering policies for their own benefit, and the benefit of those they promised (if there are still honest politician available) from that point it is important that international business consider such factors before pursuing business. Prime examples being, whenever there are strikes in South Africa investors tend to shy away, and most of the strikes are birthed from political influence, thus deeming South Africa an Unstable nation to invest in, or Zimbabwe a nation sanctioned, due to political infringements, making the country undesirable for investment irregardless of the profitability of the business idea. It is thus an excellent idea to firstly research in-depth to the politics of the country before hand and invest with,much-needed information, guiding the innovative decision made.

The Upside to Trade Finance Advisory

Popular search engines are excellent examples, with over 75% annual earnings before five decades. Upon study of APICORP’s history, strategy, activities and achievements, and valuable industry research, you’ll find some helpful information about ways to mitigate risks whenever you are in a global trade. It is possible that even during intervals of low oil prices and financial crises, one can efficiently facilitate the access to capital for the business. It’s important to know about the further costs related to making use of a letter of credit.

Many emerging markets provide opportunities which you cannot get in the country anymore. Through the years, the energy industry in the area has grown to play a critical role in the world economy. The company buying the receivables is known as a factor. So as your company grows so does the quantity of funding that is available to you. Trade finance is related to the procedure for financing certain activities related to commerce and worldwide trade. If you are worried about bad debts, many discounting companies can supply a facility that includes bad debt insurance policy protection for extra security. But if you’re using traditional loan and overdraft facilities that the bank won’t increase, then such a facility will give a solution for cash flow.

There are a few circumstances where overpayments can be arranged. However, this kind of advance is going to be determined on the grounds of the way the facility was maintained and if a successful and dependable transactional history was built up. This scenario would be exactly the tip of the iceberg on how best to get started researching a global stock. Moreover, you would like to be aware of just how much time you are eager to spend researching investment opportunities. The entire idea with stock timing is to learn the length of time you have until you’ll really want the money. Because it takes time to understand the company, you may stay assured that your facilities will be structured around the authentic enterprise you do, taking into consideration your distinctive requirements at several phases of your trade cycle. It is comparable to those people who fear others because they don’t attempt to understand them. I think it is suggested to begin investing globally because lots of people have a fear of the unknown.

After you start to formulate what risk you’re comfortable with and also your long-term goals for investing, the next thing to do is to recognize a strategy that fulfills your requirements. One goal is to make certain that businesses have the sales-financing tools required to drive sales and better their competitiveness. The important thing is to understand what risk levels you’re comfortable with and the best target of your investing strategy. For any business the prospect of terrible debt will stay a problem. We are aware that achieving great effects in the world market needs a thorough comprehension of best practice principles. There are many trade tools which are designed to aid businesses since they learn more on the topic of international trade.

The Advantages of Trade Finance Advisory

In the long run, through this program, the country is going to have sizeable manufacturing base, which then will make gigantic growth and developmental opportunities for all participants. The city provides a good quote that could encompass our MBA international experience in addition to investing in an international economy. The discounter will subsequently continue to supply you with as much as 85% of the worth of new sales invoices, normally within one day of you raising them. It is represented in more than 30 countries worldwide and provides an extensive selection of insurances, provision services and products.

It is always important to search for the best trade finance advices you can get before making any investment. You should spend your assets wisely.

4 Innovative Trade Show Booth Design Ideas

There are a host of factors that contribute to attracting and converting leads at marketing events. Proper preparation, a sound business plan and well-trained staffers can certainly go a long way to ensuring success, but the small space carved out on the floor for each business always represents the best opportunity to make an impression. Conceptualizing and implementing trade show booth design ideas that will draw attention, retain interest and ultimately convert qualified leads to paying customers is a responsibility that should not be taken lightly. Modern display designs can be customized to fit any need, but it’s up to you and your marketing team to ensure that they’re used to their fullest advantage. Here are just a few options to consider.

Full Display Branding

While any reputable designer will have plenty of “standard” shapes and layouts to choose from when considering trade show booth design ideas, there is also the option of a fully customized design. The trade show display itself is a (sometimes literally) huge opportunity to advertise a brand. Rather than square banners, tie the shape of advertisements into a branding strategy to make them stand out by constructing them in a shape that is relevant to your product. Create kiosks and tables that resemble a product or represent a service. Modern construction techniques allow for nearly any shape, enabling the opportunity to construct a large version of a product to serve as the setting for event marketing efforts. What better way for an industrial fastener provider to distinguish themselves on the show floor than by telling attendees to look for them inside the giant bolt.

Office Space Included

Despite all the noise and distraction on the show floor, many major business decisions can be made during marketing events. Consider incorporating a more private meeting space as one of your trade show booth design ideas. Create a miniature boardroom, separate from the main selling floor, to retreat to with qualified leads to discuss details of working together. Not only will such a space provide more privacy, but it demonstrates forethought in your commitment to the business at hand.

Integrated Technology

Advancements in technology have made their way onto the show floor in the form of screens and displays of every type. While setting up an iPad to display product details or a video is a good place to start, there are countless other options for using modern tech trends to your advantage. Social media integration is one of the easiest and most cost effective ways to increase visibility. You might incorporate screens that display a Twitter or Facebook feed, or track a desired hashtag. The ease of live webcasting means you’ll have the ability to broadcast your event presence and engage even those who can’t attend. When considering trade show booth design ideas, think about how QR codes might be tied into an overall branding strategy to link together all of your marketing materials from literature, to business cards and even the attire, name tags or badges employees wear. There’s truly no end to the possibilities modern social trends play in a successful plan.

Trade Show Booth Design Ideas That Can Be Changed On The Fly

Avoiding stagnation is a key to success in any business, and the same applies to advertising materials. While it’s certainly a good idea to update any overall marketing strategy regularly, consider utilizing fixtures that allow you to change the look of a booth even during the show. Manufacturers are constantly updating their product lines to include products that are easier to assemble and simple to change. Retractable bannerstands that can be easily swapped mean that a display might look completely different from one day to the next. Innovative inflatable fixtures allow for entire booths to be rearranged or swapped out with little effort, and at the push of a button. Keeping things fresh will ensure that potential clients aren’t put off by stale designs or out-of-date information.

Cheap Ad, Cheif Trade

Introduction

Just a child then, when television broadcasting had begun in a makeshift studio at Akashvani Bhavan in New Delhi. A low power transmitter and 21 television sets were used as foundation stone for this globalize television broadcasting in 1959. Really, it is a great achievement for those who had witnessed that particular occasion. Bhaskar Ghose, former Information and Broadcasting Secretary shared the joy of that moment, “images of a gramophone record were being shown on television as the music blared away.” (Kohli 2003, p. 59) That gramophone picture and fantastic music became a landmark for Indian television broadcasting. People got more than enough what they have visualized as television before.

A new appliance entered into our periphery with its uncommon characteristics. Have you ever thought about the family members of a newborn baby? Every day and every moment, they are anticipating some changes in their child. Like that, we were expecting for new significant changes in television broadcasting.

The journey from 21 television sets to 80 million has been marked by many milestones: Regional Kendras; DD metro; satellite transmission; and cable broadcasting among others. In 1976, television broadcasting was ‘de-linked’ from All India Radio (AIR) with a new appropriate synonym for distant vision (i.e. Doordarshan). As a public service broadcaster, it was also claimed as an ‘advertisement-free’ electronic media. The revenues for Doordarshan were funded through a combination of television licenses and allocation from the annual budget. But the need of advertising revenue was felt by DD only after the telecast of first commercial on 1st January, 1976. Though the advent of commercial could fulfill only 1% of Doordarshan’s budget, however later advertisements become the only major source of revenue for Doordarshan.

Cable Television Industry

Cable has grown from an apartment connected together in 1980s to coverage of nearly 42 million households in India. During the last decade, the cable network mushroomed as an industry. There are about 280 channels that beam their signal over India. Generally the MSOs are delivered 80 channels (31 are pay channels and 49 free-to-air channels) to the viewers. Gradually the large broadcasters or cable companies stepped into this business as multi-system operator (MSO). They had the capacity to set up a large control room and subscribe maximum number of pay channels.

Now the cable industry is fragmented with over 40,000 cable operators. These cable operators are controlled by MSOs. Some major MSOs in India are Siticable, IndusInd Media, InCable Net, Hathway Cables, Sun TV and RPG Netcom. They are not only controlling the four metropolitan cities but have also covered some major cities in India. Siticable has the highest market share (5.4 million) of Indian Cable industry while IndusInd Media has its subscription base of four million homes.

Multi-system operators (MSOs) are backed by large corporations to invest money in this business.

Siticable is a joint venture between Zee TV and Rupert Murdoch’s News Television. InCable Net is managed by the Hinduja group; property baron Rajan Raheja’s Hathway Cables has come out of nowhere to become a powerhouse over the last couple of years; the most dominant cable force in south India, Sumangli Cable Vision is run by southern media baron Kalanithi Maran; and RPG Netcom is promoted by the RPG group, who holds sway over West Bengal. This is just like any other business. Think of MSOs as a wholesaler of the signal while the small cable operators (SCOs) are the retailers of the trade.

Obviously, these small cable operators have a control over the viewers. They collect subscription fee from the cable home every month. Barely 15-20 percent of every subscriber’s share goes to multi-system operator. Though, this monthly cable charges vary from place to place, the MSO’s share is almost equal everywhere. The multi system operators (MSOs) know that it is very tedious task for them to touch the threshold of the last mile. So, they don’t have any direct control over the cable homes. But in some cities like Bhubaneswar and Trivandrum, the MSOs have controlled the cable homes directly.

Let us take an average of Rs. 100 per subscriber per month, India’s 61 odd million cable and satellite households shell out a cumulative Rs. 61 billion. This is one major revenue stream for the cable operator/MSO. After launching of pay channels, they are looking for any other source of revenue to get more profit in this trade. If you consider the structure and the way revenues flow through it, then the cable industry is just like a pyramid. The satellite channel broadcasters are up-linking the signal from their earth stations and these signals are captured by the multi system operators. The small cable operator (SCO) distributes the feed in his territory which covers between 200 and 300 households of its neighborhood. The main aim for cable connection is to get clear reception and enjoy matinee and night show cinemas, which was telecast in the cable channels.

These cable channels belong to MSOs like SitiCinema belongs to Siticable, CVO belongs to InCable and C-News belongs to Hathway. In small towns, the small cable operators (SCOs) also have their own channel in which they telecast Hindi movies, regional movies, songs, religious discourses, fairs, community games and regional news. The cable operator has all type of control over these channels. If any blockbuster movie is to be telecast in cable channel, they have given a prior notice to their viewers about the timing of the movie. Sometimes, they also use this channel for some statutory warning (pay your monthly fee on time; else without notice your home will be disconnected from the network.)

Some local advertisers were interested to show their messages as scroll item in the bottom of the television screen. Instead of advertisement tariff, they pay very less amount to the cable operator for their service. At the beginning, they have accepted the money as an extra income. However, son they got a positive response from their consumers. Gradually, this became another growing stream of revenues, which so far has gone unnoticed.

Cable Advertising

From scroll item to message plate, from animated to full-fledged television ad, the cable ad have passed through various stages of growth. As we know, television is one of the most expensive and effective media for mass advertising. If you are booking for a television slot, do not forget that it is very expensive. For a prime time 10-second commercial in a national television channel will cost several thousands of rupees. So, television advertisements are out of reach for most small and medium sized businesses.

As far as small business is concerned, it has its own target consumers and those consumers are confined to a particular geographical area. Television advertisement lacks the ability to restrict your advertisement to closely target audience. Sometimes the marketer feels that advertisement is the only way to enhance the sale. Instead of choosing a proper channel, the marketer advertises in different slots of different programmes in different channels. Many times, the investment may not be very productive as per your expectations because thousands of people may not be interested in your product so they may skip your advertisement.

The taste and choice of the consumers in the developing countries are more vulnerable to that of developed countries. After globalization, the multinational companies entered the market with different promotional activities. Advertising counted as a major activity in which local brands had to face stiff competition with their multinational counterparts. Even the best local product may not survive in the market unless it is advertised. On the one hand, they have to advertise their product to survive in the competitive market. On the other hand they have to choose a media which touches the grass root level.

Cable TV provides a solution, especially for small business. Cable TV advertisements tend to be less expensive, even though their audience is huge. Almost half of all Indian homes subscribe to cable. In a research it is found that cable’s subscribers watch more television and belong to higher income groups. Cable also has the ability to send your commercials to specific parts of town and neighborhoods. If you have a product or service that can be visually demonstrated, cable television can work wonders.

Before cable television the local advertisers have very less opportunities to advertise for their business. In small towns, they were distributing some leaflets or advertised in the local print media. In some cases, they did not get the proper channel for advertisement. I spoke to a small marketer about cable advertising. He expressed that generally in two situations they prefer to advertise.

(1) When they want to create awareness about the shop or product.

(2) Whenever they are offering any discount/rebate, they are heading towards advertising. Before cable advertising, they used outdoor advertising (leaflets, hoardings, etc.) for the purpose.

After advent of cable advertising, they are spending more revenue in this channel due to instant result. Sometimes, after a few minutes of telecasting the ad in cable television, the customers rush to shop. Though, they have a limited budget for the advertisement, they take every step in a careful and calculative way because it counts the success and failure of their business. Let’s have a glance on overall advertising industry in India.

India has one of the lowest advertising spends to the GDP ratios in the world. If you compare with developed economies – UK (1%), Germany (0.8%), France (0.6%), Japan (1.1%) – as well as developing economies – Latin America (1.2%) and China (0.6%), the ratio of advertising expenditure to nominal GDP in India is about 0.4%. On the advertising front, consultancy firm KPMG estimates that the overall advertising pie was Rs 118 billion in 2004. Press advertisements took a share of 48% followed by television with a share of 41%. Radio advertising, outdoor advertising and cinema advertising has their respective share 3%, 7% and 1% in the advertising revenue. India has almost 108.2 million television homes with comparison to 213.1 million total homes. Out of these, almost 61 m homes have cable connections. The last few years have witnessed a conscious shift of advertising revenue. Indian companies spent a total of Rs 48.5 billion on TV ads in 2004.

The advertising pie consists of five major advertising channels – print, television, radio, cinema and outdoor. Lack of transparency keeps the growing cable advertising market away from the major advertising channel family. Everyday, every moment, cable ad is stretching its tentacles in all possible directions. That’s why it marches ahead against all other media. Though, print media has a major share in the advertising pie, but unnoticed and unobserved media, cable TV has covered a wide populace of 61 million.

Newspapers have a limited and stable readership with compare to cable advertising. Newspaper readership has declined with every passing generation while cable TV viewership continues to rise. As we know, geographically and demographically radio has reached all the nooks and corners of India. As a portable medium, radio has a very strong grip over the audience during the morning and evening commutes.

Cable TV reaches viewers through out day particularly in primetime viewing hours. But when we think from the advertiser’s angle, cable advertising impresses more than radio advertising because of the visual notion. Cable TV viewers are active, because TV itself is an intrusive, emotionally charged medium. As a big brother, broadcast TV covers a large number of diversified viewers – even viewers with no interest in the advertised product or service. Cable advertising can target the approximately exact consumers through unique programming that appeals to their interests and lifestyle choices. In the same time, having all the features of big brother, cable advertising prices are very low and cost effective because cable TV offers less waste through more strategic program targeting. Now let us familiarize ourselves with the advantages of cable advertising.

Advantages of Cable Advertising

If you compare cable advertising with the television advertising, you will find a very thin line between them. Cable advertising offers an audio-visual medium, motion, colors, like television advertising with an additional benefit (i.e affordable rates). It also has the ability to cover geographically and demographically target specific customers. The peripheral area of television may be larger than cable television but this is targeted at the ‘right’ customer. However, as a business strategy, every marketer wants to increase the area of the marketing sphere. So, they give first preference to the television channel. But due to high advertising rate, they cannot afford it for long time.

In many cases, some small makers may advertise for a limited period in the prime time. Others may choose a non-prime time slots if they want to have any long-term frequency. Unlike having a big budget and a particular allocated amount for promotional activities, it is very difficult to survive in the market. That’s why more and more small firms are turning to advertising on less expensive alternative, local cable channels.

Local cable television advertising can be highly effective, and very affordable. It can quickly create awareness of your business, product or service. It also establish your image and educate viewers about your products.

When your target viewers are limited and confined, cable advertisement is a perfect channel for micro target groups. You can compare cable advertisements with other television advertisements, cable advertisements are very cheap. You can achieve frequency on a limited budget, which often moves fence-sitters into action. Televsion advertisements may be missed by viewers due to bouquet of channels and the cable viewers are always in a fickle mood to switchover from channel to channel. There are many cities in India, where the viewers watched cable channel for their local news, films and some non-fiction programmmes. Because the private satellite channels are either in Hindi or English. In some states, you will find private regional channels. But in maximium states, the viewers have to satisfy with the only Doordarchan’s regional channel because they have no aternatives and the viewers need more entertainment programmes.

Cable operators take this opportunity by telecasting some regional films, songs and local news. It is also found that, these cable channels have a large viewership in compare to other satellite channels. So for a local advertiser, cable channels allow to communicate enough information to prompt people to call for an appointment, send in an order or request additional information. If you think about the medium’s cost in terms of the number of the number of people it will reach, then it will be the unbeatable vehicle for your advertisement. You can enhance and stretch the power of other existing advertising you might be doing. Though televison overcomes the barrier of literacy which is a major obstracle as far as print media is concerned.

In cable advertising, you may be able to reach a different segment of the population, one that doesn’t read newspapers or magazines. Overally, it fulfills all the functions of television advertising with a cost of less than the print media.

InCable is a leading cable and satellite distributing company in Hyderabad and subhurbs. The MSO distributes the signals through a single control tower connecting to small cable operators through optic fibre cable covering a radius of 30 Kms. In the local cable channel, InCable telecast two telugu news programmes, three movies (two tulugu and one hindi) daily. Though it telecast basically two types of programes, the ad tariff slots have catagorised into morning, matinee, night and news slots.

ETV Oriya, a 24 hour satellite regional channel, telecated oriya programmes exclusively for oriya viewers. This regional channel has covered larger geographical and demographic area than cable channels. ETV Oriya telecast at least 20 programmes round the clock. The ad tariff in a regional channel is catagorised on the basis of programme’s television rating point (TRP). In ETV Oriya, the tariff slots are divided in five groups (O1, O2, O3, O4, and O5). The duration of advertisemnt is calculated in 10 seconds. Whereas in local cable channel, the advertiser will be offered two types of slots ( 20 and 30 secconds). The rate for 10-second advertising slot in prime time (20:00 hrs) in regional channel is just 38 times less than regional channel. If you compare the same slot in a national channel, the difference is hell and haven (around 400 times). After this finding, the big advertisers are turned up towards the local cable advertising.

How to place your advertisement in cable

A ten second spot in television is actually equivalent to 80-second spot in cable television. One also has number of choices on the hand. You may produce an advertisement for 30 second spot or you can telecast the 10 second advertisement for eight times. A 30 second advertisement may contain more visual and information, which can portray your sale massage very attractively and effectively. The most important thing is the ability to target specific groups of viewers. A clothing store specializing in kids cloths can advertise on matinee movie. It is not a matter to count number of eyeballs watching your advertisement but a careful targeted audience that gets results for your business.

The next phase is to book a slot in a cable television.

Cable rates are highly negotiable. Some channels will cost more than others. The zones you choose to send your spots to, the size of your town, and the time of year, all have an impact on the spot price you pay. Don’t wait until the last minute to place your spots. Plan weeks in advance. Placing your order early will ensure you get the times and channels you want at a lower price. Call the sales department of your local cable operator. Find out spot rates and coverage areas. Before entering into the trade, make a sketch of your plan. It may need some research and good planning. You should have a ‘second look’ on your advertisement before releasing to the cable operators. Do not leave everything on media sales people, because they are good at devising clever strategies to use your entire ad budget. It is better to trust your own instincts and stick to your plan.

When you are buying cable slot, think horizontally, not vertically, when scheduling your advertisements. In other words, advertise on the same few networks at the same few times on the same few days of the week, week after week, month after month. The goal is to reach the same people over and over again. This is the best way to reach to your consumer. The consumer is exposed to your advertisement repeatedly. The best formula to reach a person with a second and third exposure to your ad is to go back to the same channel at the same time on the same day of the week that you reached him the first time. Do not scatter your ads across many different networks at many different times of the day. Yes, it will reach too many people with too little repetition to ever secure in their minds. It is nothing but to reach 100 percent of your city and persuade them 10 percent. But it is always better to reach 10 percent and persuade them 100 percent.

Conclusion

Due to powerful and persuasive advertising medium, cable advertising is become a smart choice of small and medium marketers. By positioning itself as an alternative to network television, cable television has found itself judged using the same parameter of network television that of mass reach and low cost. If you compare with magazine and direct mails, cable will score higher on its audiovisual capabilities. This is where cable should innovate. Cable industry can develop a time selling framework that lets advertisers buy cable slots on a local cable system basis. Now cable television is booming in a rapid way. MSOs are expanding their business not only in term of the number of subscribers but also in term of number of people employed by them. They should have separate advertising department that looks after this trade. In some cities, the big advertisers are also turned up towards cable advertising. No doubt it is a cheap ad but at the same time it is a chief trade.

Sources:

[http://www.businessworldindia.com/archive/201113/cover1.htm]

[http://strategis.ic.gc.ca/epic/internet/inimr-ri.nsf/en/gr119406e.html]

[http://www.equitymaster.com/research-it/sector-info/media/]

[http://www.mpw.org/cable_why_advertise.htm]

[http://www.etv.co.in/etv_d3/sponsership.php?channelname=Network&fromhome=index]

[http://www.incableap.com/adtariff.htm]

Trump Wins Trade War As Global Markets Plummet

It is early July, well before this article goes online, yet the landscape is pretty clear from where I stand. The U.S. and China both raised tariffs on $34 billion worth of goods Friday, July 6. This did not deter the S&P 500 from continuing its charge up to the January 26 all-time high. To boot, unemployment is historically low and the Fed is set to raise rates twice before the year ends – all this amidst a stealth discretionary spending recession.

So, how about that trade war? Let’s recap. Most folks would agree that the free trade of goods would be best for all concerned. Goods would be less expensive and those that could not compete on price would do so on quality, leading to a beneficial improvement of goods. All is well and good until protectionism and nationalism rear their ugly heads. Some nations have goods that find it difficult to compete on the basis of price and/or quality. Globally, world leaders of such nations are unapologetic in pursuing their nation’s interests at the expense of others. In trying to avoid the image of the ugly American, we have often placed ourselves at a disadvantage. Nowhere is this more evident than in trade were our trading partners often have a clear advantage.

U.S. Census Data shows that we have a trade deficit with every trading region except for South and Central America and Australia/Oceania. At only $33.14 and $14.38 billion, respectively, the last four years and a combined trade of $310.44 billion this pales in comparison with the deficit for the rest of the world, -$844.66 billion, whose combined trade is $3.578 trillion. Below are 2014-2017 averages for most of the world in billions:

Canada: -$20.01

European Union: -$149.61

Asia: -$547.49

Africa: -$2.60

China is a case in point. Aware of the huge financial benefit that comes with their 1.38 billion consumers, they extract huge concessions from their trading partners, including the U.S. When they have not barred certain U.S. business sectors, they restrict or regulate business, place tariffs on goods, or coerce intellectual property release. Note this goes one way; there is no intellectual property sharing.

These noncompetitive business practices are not fair, but until now, U.S. companies have accepted them without much push back as the cost of doing business there. That is until Trump. What Chinese leaders need to realize is that they are not in a good bargaining position and the longer they hold out the more harm will come to their economy.

Here is why. Leaders of the government-run economy are well aware of their history and realize the huge Chinese population is not going to put up with poor conditions forever. To keep discontent at bay, they have a policy of inflated economic growth. According to Trading Economics, they have averaged 11.7% GDP growth for the past 10 years but chinks in their armor are showing. From the 2010-2011 heyday, where GDP grew 19% and 24%, growth has dropped steadily and sometimes precipitously. It was 5.56% and 1.14% in 2015 and 2016, respectively. Little wonder that worried central government figures have made a big push since then for increasing their global exports, including those to the U.S., resulting in a resumption of GDP growth to 9.35% in 2017. The prospect of increased tariffs, which would make their goods less competitive, runs afoul of those plans. China’s economy is struggling and their stock market is testament to that. The smaller Shenzhen composite moved into bear market territory in February and the Shanghai composite closed in bear territory on Tuesday, June 27. The indexes went as low as -26.5% and -25.0 on July 5 but have recently recovered to -22.5 and -21.2%, respectively, as global markets have climbed in tandem with U.S. markets. That is still in bear market territory, which will curtail much need foreign investment. Meanwhile, U.S. GDP is growing steadily, the economy seems to be healthy, and the stock market is nearing new heights. Trump can ratchet up the tariff game longer knowing he has more economic wiggle room. Moreover, he can inflict more pain to the Chinese economy than they can to ours.

To see why, let’s look at the trade numbers. The trade deficit with China has averaged -$358.68 billion the last four years in a rising trend. While U.S. exports have vacillated between $110-129 billion since 2012, Chinese imports have steadily increased from $315 to 375 billion. Last year the deficit was -$375.58 billion, of which $129.89 billion were U.S. exports to China and $505.47 billion were U.S. Chinese imports. Not only is trade unbalanced, so are tariffs. Prior to this year, U.S. tariffs on Chinese agricultural and non-agricultural goods were 2.5% and 2.9%, respectively, while Chinese tariffs on U.S. goods were 9.7% and 5% for the same. True, these had been going down from a 14.1% average prior to 2001 when China joined the World Trade Organization but that was part of the price and tariffs are much higher for some industries.

Below are the top 10 U.S. exports to China in 2017 according to the International Trade Centre Trade Map http://www.intracen.org/marketanalysis:

Aircraft, spacecraft – $16.3 billion

Vehicles – $13.2 billion

Oil Seed – $13 billion

Machinery – $12.9 billion

Electronic equipment – $12.1 billion

Medical, technical equipment – $8.8 billion

Mineral fuels including oil – $8.6 billion

Plastics – $5.7 billion

Woodpulp – $3.4 billion

Wood – $3.2 billion

Total – $97.7 billion

Together they account for 74.8% of all exports that year. Note that except for oil seed, mostly soybeans, the rest are non-agricultural products. But their tariffs are not the same and depend on how strategic the product is. For example, Chinese cars cannot compete with American ones so the latter have duties ranging between 21% and 30%. Compare that to a maximum of 2.5% for Chinese car imports to the U.S.

Therein lies the rub. The Chinese can only raise imports so much more on these goods, some of which have few suppliers outside the U.S. As a result, some of the announced tariff hikes are empty rhetoric with few teeth. Just as an example, China announced 25% tariffs on aircraft, but not all aircraft – just those with an “empty weight” of 15,000 to 45,000 kilograms. While it may seem like China is taking aim at Boeing, it turns out the stipulations only target older 737’s being phased out of production, while not touching the larger models comprising the bulk of Boeing’s trade. China desperately needs to grow their airline industry. It is estimated 7000 new planes will be needed in the next 20 years. With Airbus working at near full capacity, there is no alternative but to turn to Boeing for the remainder.

The same goes for soybeans, the bulk of Chinese agricultural imports. China is the world’s top pork market and they need soybeans for feed. It turns out Brazil and the U.S. are the top two global soybean suppliers. Brazil has been cranking up production for years and now constitutes 57% of Chinese soybean imports. This came mostly at the expense of the U.S., but Brazil does not have the capacity to make up for the remaining 31% in U.S. soybean exports to China. As a result, the planned 25% increase in tariffs will hurt Chinese pork farmers directly.

Ultimately, the sheer size of the trade imbalance will play in Trump’s favor. With $500 billion dollars of goods at risk for China vs. only $130 billion for the U.S., China’s fate is sealed. That is, provided Trump is persistent in raising the bar while keeping disgruntled American businessmen at bay. Historians may recall a similar unrelenting raising of the bar eventually caused Russia to capitulate during Reagan’s tenure. It does not help China that it is already running up against its tariff limit.

We are already seeing that endgame play out. Just four days after both countries raised taxes equilaterally, Trump announced 10% tariffs on $200 billion in Chinese goods. There was no equilateral retaliation China could muster after the late Tuesday, July 10 announcement. Instead, China announced it would hit back in other ways – probably by selling U.S. Treasuries, which would flood the medium- and long-term bond market causing bond prices to fall and yields to rise.

Regarding the latter, Trump’s victory will come at a cost. Bolstered by his success with China, Trump will continue to pursue his trade normalization agenda with other trade partners. Although trade is fairly balanced with the U.K., the European Union had a $173.58 billion trade advantage last year on a $839 billion trade. Not only that, but the E.U. has made it a habit to go after American tech giants it cannot compete with. Think Qualcomm in 2018, Google in 2017, Facebook in 2017, Apple in 2016, and Microsoft in 2013. Japan is on the same boat. Our deficit with Japan averaged -$68.59 billion from 2014-2017 and stood last year at -$68.88 billion on a $204 billion trade. Although government regulations have eased under Prime Minister Abe, Japan has a culture of impeding foreign investment, particularly in the financial sector. Moreover, they have high tariffs on dairy (up to 40%) and meat (38.5% on beef) products, which account for $6.1 billion of U.S. exports to the country. Trump has made it clear they are also in play and they have fired salvos in return.

Given the posturing by all parties involved, tariffs will be higher going forward than they were before. This will raise the price of U.S. goods abroad, making them less competitive. This will, in turn, impact earnings for our larger, international firms. Our stock market may be flirting with highs right now, but I believe this will be the catalyst to the market downturn as Investors, looking ahead, bid down these stocks. Moreover, tariffs on imports will inevitably lead to inflation. We are already at the Fed’s 2% comfort level so any visibility on higher inflation will incite the Fed to head it off by hiking fed funds rates beyond their current path. Their incentive to do so will be bolstered if China retaliates with a Treasury selling program, as higher 10-year Treasury rates relieve the Fed of yield curve inversion worries.

A stock market downturn will reverse the wealth effect we have been seeing recently on our economy and combined with export losses, this undoubtedly will lead to job losses and higher unemployment. On top of all that, the stealth discretionary recession we have been experiencing, will make itself clearly evident as U.S. peak spender populations continue to decline all the way until 2023. This is not an incident unique to the U.S. World population growth increased from 1946 to 1968, peaking at 2.09% per year that year, coinciding with the bulk of our Baby Boomer bulge. Since then it has been steadily decreasing until it reached 1.09% at the beginning of this year. Peak spenders are those 46-50 years old and if we take 1968 as the mid-point of their population zenith, they topped out in 2016. That is a main reason populous nations, like China, have been concerned with slowing consumerism the past couple of years. The upshot is we will see a global drop in discretionary spending for at least the next five years. This will result in an accelerated global economic downturn for the next five years and plummeting global stock markets for the next few years.

Why You Should Hire an Exhibition Designer for Your Next Trade Show Event

The visual aspect of your company’s marketing materials will make the biggest impact on your target audience. Everything from shape and structure, to colour, logo placement and taglines will make an impression – and you’ll want it to be a good one.

It’s no secret that, as consumers, if we receive an uninspiring flyer through our letterbox, we’re likely to throw it in the bin without as much as a second glance.

An exhibition stand is exactly the same. To spark interest, a display needs to be innovative, current and eye-catching, using the highest quality materials. These days, people have increasingly short attention spans, so if something doesn’t generate immediate interest then they’re likely to move on to the next thing without hesitation.

Most businesses understand full well the impact of visual marketing materials, but creating high quality design is often easier in theory than in practice. Perhaps you simply don’t have the right tools for the job? Without access to the latest software or a team of designers, it’s easy to get left behind, despite your best marketing efforts.

But there is little point attending these events if you don’t intend to make an impact. This is where the phrase ‘Go big or go home’ comes to mind. Competition between businesses of every sector is vast in the current climate – you won’t want new and upcoming entrepreneurs stealing your limelight with a more professional display.

Employing an experienced designer could be the solution your business needs to create a real buzz. There are hundreds of highly qualified designers out there with invaluable marketing and events expertise, and they are probably itching to get their hands on your company logo design and give it the refresh it needs.

Your upcoming trade show could be the excuse you’re been waiting for to revive your marketing materials and start gaining new custom. An experienced designer will work alongside you every step of the process to create something unique to represent your brand.

You may be anxious about the costs involved in hiring an exhibition designer, but there are many companies out there offering high-quality services with affordable price tags, specifically aimed at small businesses. Besides, they will be able to offer a range of services – from booth design to full event management – and you don’t need to go the whole hog.

If you do decide to employ someone to take care of the entire event process, you could end up saving yourself a whole load of time and company resources. An experienced events manager will take care of everything, from the design and build of your exhibition stand, to the logistics of the event, so you can carry on with the day to day running of your business.

Not only will an events manager oversee the design of your innovative, show-stopping booth or stand, they will also liaise with delivery teams and coordinators to ensure your display materials are delivered safely and on time – so all you’ll have to worry about is turning up and representing your brand.

What’s more, you’ll end up with a booth or stand that you can use for future events. Many of these designs will be versatile, so you can alter their size of structure to suit different marketing occasions. Some companies will even arrange storage for you until your next exhibition, saving you from having to seek out storage space and spend extra company resources.

Exhibition design companies can be found online, where you can browse their vast array of services and compare the best prices. For an accurate quote, it’s best to speak to an advisor directly by seeking out their customer service telephone number.

How to Trade Cryptocurrencies – The Basics of Investing in Digital Currencies

Whether it’s the idea of cryptocurrencies itself or diversification of their portfolio, people from all walks of life are investing in digital currencies. If you’re new to the concept and wondering what’s going on, here are some basic concepts and considerations for investment in cryptocurrencies.

What cryptocurrencies are available and how do I buy them?

With a market cap of about $278 billion, Bitcoin is the most established cryptocurrency. Ethereum is second with a market cap of over $74 billion. Besides these two currencies, there are a number of other options as well, including Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).

Being first to market, there are a lot of exchanges for Bitcoin trade all over the world. BitStamp and Coinbase are two well-known US-based exchanges. Bitcoin.de is an established European exchange. If you are interested in trading other digital currencies along with Bitcoin, then a crypto marketplace is where you will find all the digital currencies in one place. Here is a list of exchanges according to their 24-hour trade volume.

What options do I have to store my money?

Another important consideration is storage of the coins. One option, of course, is to store it on the exchange where you buy them. However, you will have to be careful in selecting the exchange. The popularity of digital currencies has resulted in many new, unknown exchanges popping up everywhere. Take the time to do your due diligence so you can avoid the scammers.

Another option you have with cryptocurrencies is that you can store them yourself. One of the safest options for storing your investment is hardware wallets. Companies like Ledger allow you store Bitcoins and several other digital currencies as well.

What’s the market like and how can I learn more about it?

The cryptocurrency market fluctuates a lot. The volatile nature of the market makes it more suited for a long-term play.

There are many established news sites that report on digital currencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. Besides these sites, there are also many Twitter accounts that tweet about digital currencies, including @BitcoinRTs and @AltCoinCalendar.

Digital currencies aim to disrupt the traditional currency and commodity market. While these currencies still have a long way to go, the success of Bitcoins and Ethereum have proven that there is genuine interest in the concept. Understanding the basics of cryptocurrency investment will help you go in the right direction.

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