ºìÌÒÊÓƵ Blog - By Author: Daniel Cooke

In her novel , author and Georgetown University professor of international economics  researches and follows the lifespan of a simple commodity - a t-shirt - across the world, while examining the insights it provides into the markets, power, and politics of an increasingly interconnected global economy. Beginning with a street peddler selling shirts intended for tourists in Fort Lauderdale, , Rivoli investigates the roots and destinations of her t-shirt in an epic that spans the historical versatility and dominance of international markets, textile production facilities in , market demands for affordable commodities in the and Europe, and ending its journey in used clothing markets in .

Following a shockingly strong win for the in the recent elections, re-elected Prime Minister David Cameron promised an "in-out referendum" on the future of the U.K.'s membership within the before the end of 2017. The referendum has its roots in the understandably unpopular red tape and bureaucracy that affects  within the E.U., especially with regard to the trade bloc's employment laws and health and safety issues. In spite of this, Cameron's announcement was .

In recent developments of the ongoing deterioration of relations between the and , the sanctioned multiple officials for alleged human rights violations, demanded the release of political prisoners, and warned against blaming American policies for the country's continued economic and political problems. While this is nothing new for the U.S. and countries that differ greatly from its foreign policy goals, what makes this episode especially noteworthy is that it could entail significant consequences for American prospects for doing business within the , and especially within .

This past week, the cleared a plan to override federal regulations on oil drilling off of coast in the Arctic Ocean. The proposal is intended to , both of which are believed to be abundant in fossil fuels, and follows a growing emphasis in the international system on the Arctic's natural resources. Last January, 1,400 participants from several countries gathered in Tromsø, to stake their claims at the Arctic Frontiers conference. increasing interest in the region, coupled with its growing military presence throughout international waters, gave the conference unprecedented significance.

Shortly following the coronation of the new King Salman of , the recently minted monarch quickly assured the global energy community that . The king's message directly contradicts with global expectations that the death of might lead to fundamental changes in , but most analysts now agree that the royal family will resist any sharp changes in policy, especially as it tries to navigate multiple foreign policy challenges in the region.

In the , some of the regional bloc's major powers are . European leaders from Paris, Berlin, and Brussels have spent their time since the last building firewalls against the financial toxins that hurled Europe into the crises, and their stiff line also reflects their confidence that the eurozone would survive a Greek exit. Therefore, coinciding with the euro hitting a 9-year low against the dollar this past Monday and other external factors threatening the eurozone, the EU is preparing itself to make any hard decisions necessary to avoid falling into another significant depression.

Within the past few weeks, news of the has demonstrated once again the undeniable influence that individuals can hold over a major corporation due to the empowerment of the globalization of modern technology. Unlike any other time in human history, the rise of the which has led largely to positive global effects like easing barriers to trade, efficiency in communication or sharing ideas, and enhancing the private citizen's ability to raise awareness for social progress, has also enabled criminal activity to pose serious threats to not only fellow individuals, but massive corporations and governments as well. For this reason, has called the attacks on Sony a "serious national security matter" due to the effects that cybercrime can inflict not only on a nation's informational security, but also on the global economy.

Now that a year has passed since former Ukrainian president Viktor Yanukovych refused to sign Ukraine's EU Association Agreement, which began the protests in Maidan Square in , the dust from the conflict is beginning to settle allowing . Now that has signed the agreement, many economists are pointing towards rapid growth in the country's tech sector as a sign that clear skies are ahead for the European-aligned new Ukraine. In spite of this, crippling corruption and a brain drain are also casting doubts over Ukraine's foreseeable future.

Earlier this week, the and were able to reach a breakthrough in negotiations regarding food security issues, which international trade analysts have speculated . Debates regarding India's food security programs, which the country views as vital for ensuring meals for its poorest citizens, had continued for months since proposals of the Trade Facilitation Agreement (TFA) were first made at a summit in Bali, . With the breakthrough achieved, global markets analysts speculate that the achievement not only greatly benefits the policy goals of India and the U.S., but also the WTO and international system as a whole.

In the midst of an autumn season consisting of changing leaves, dropping temperatures, and , the have now officially been published! The intention of redesigning the former government pages was not only to provide key information and data in a user-friendly format, but to highlight the aspects of foreign governments that are the most important with regards to international business as well. With this in mind, the new pages include "Government Control of Economy" and "Political Risk" indicators, general tax information, and also information on foreign policy trends, regional trade bloc memberships, and security treaties that . Furthermore, the pages also include information on the main powers of foreign governments, election processes and cycles of a country's political branches, and information on a country's heads of state and government, constitution, and government type.

Due to a stagnant "eurozone" economy between April and June, the is , as well as contemplating the steps necessary for avoiding another lengthy recession. The slight decline of the reliable , which has diminished by 0.2% in GDP growth this year, has signaled that harder times are most likely in the eurozone's future and have already affected the U.K.'s manufacturing industry and exports to mainland Europe. Five of the UK's top six reside within the eurozone (, , , , and ), and this has prompted the nation's economists and political leaders to call for new economic policies to protect Great Britain's market interests.

As a direct result of increasing influence and perceived expansionism into Eastern Europe, . The two Nordic countries have long held interest in joining NATO, especially since Sweden abolished compulsory military service in 2010, but the recent push towards membership has been fueled by growing tensions with Moscow, especially by the unauthorized entry of Russian planes into their airspace. Although it is clear that both countries are joining primarily for , joining a security alliance such as NATO also holds important economic implications for the newly admitted countries and the international system.

As a summer filled with significant developments in the international system that have been highly influential over global business comes to an end, the world now turns its eyes to the British Isles as the vote on Scottish independence draws nearer. Although inherently a political subject, the vote that will take place on September 18th will also have important ripple effects for international business in Scotland and the should the movement pass. One of the primary economic concerns facing an independent Scotland includes the , which could have significant impacts on the business environment in Scotland.

Within the past week, the has approved new legislation that will allow the . As a result of these new reforms, not only will the state-owned oil giant Pemex lose its monopoly over the country's oil sector that it's held since 1938, but foreign oil firms will also be able to enter the lucrative Mexican .

Within the last weeks, few news headlines have been as heart-wrenching as the that has been suspected of being destroyed by a missile fired by pro-Russian separatists in . Stemming from the support of this group, many countries, including the and members of the , have . These sanctions would include banning people in the U.S. from banking with three Russian banks, as well as sanctions targeting the oil sector, defense equipment, and sensitive technologies.

The , despite its recorded 28% growth rate over the past decade, has due to the crisis in and changing economic and ideological ties towards the European Union throughout former Soviet satellite states. , and especially Venezuela, has experienced a 61% growth rate of its military expenditures since 2004, which is great news for a needy Russian defense industry that has seen the disappearance of its primary trading partners of Eastern Europe, , , , and Syria.

economic depression has changed many aspects of the country, one of them arguably including the abdication of its king, but recent reports have shown that Due to the lack of economic opportunities for Spain's youth, the cost of living, and high unemployment rate, many Spaniards have left the country. Spain experienced it's first population decline in 2012, with statistics now stating that over 310,000 citizens have left the country since the end of 2012. In spite of this, five million foreigners have entered the country's workforce, mostly from , , and other Asian countries in search of bargains for valuable factory properties, water sources, and natural resources.

The World Bank's and the have recently released the new , which now stands as the  The database's sources include government surveys of more than one million households in 92 countries, and provides thorough information on 4.5 billion potential consumers for global companies. The initiative is aimed at assisting international firms in discovering new sources of demand, as well as providing market research to evaluate business opportunities in emerging markets.

This past week here in , news outlets were dominated by the announcement of the abdication of King Juan Carlos, who has ruled the country since 1975. While the king's rule has been generally supported by the Spanish public, due to his implementation of a democratic system following the , Spain's support of the king has dwindled rapidly in pace with the country's economic deterioration over the past 6 years. Although the king proclaimed that the succession of the throne by his son Felipe would bring new energy towards facing Spain's economic issues, new political parties, including "Podemos" that won 1.2 million votes in Sunday's elections, believe that the economic and political system created by Juan Carlos' government .

While the ºìÌÒÊÓƵ team is comprised of students and professionals with various academic backgrounds, one common theme amongst us is our passion for international business and to experience first-hand the effects of an increasingly globalized economic, political, and cultural world outside of the classroom. In my case, I have been given an incredible opportunity to work this summer with a non-governmental organization (NGO) called in Barcelona, , which works to promote the coordination and multiplication of successful international relationships between the different sectors of the business world and projects aimed at social development. Alongside working in a dynamic international business-focused environment here in Barcelona, I will also be reading news articles from local sources, such as and to utilize different perspectives for analyzing global business news.

This past week in , the European Court of Justice struck down legal opposition by the in order to . Commonly known as the "Tobin Tax," named after American economist James Tobin who first proposed the idea in the 1980s, the law would tax the financial sector of the in order to cover some of the costs placed on taxpayers in the outcome of the recent financial and debt crises. The European Commission first announced the proposition of the new law in 2011, during which it stated that the financial tax law would require institutions in participating member states to pay a tax of at least a tenth of 1 percent of the value of transactions with other institutions. Since then, debate among EU member states regarding the effectiveness and possible consequences of implementing the tax has ensued.

Following six long years of recession, which reduced by a quarter of its size and rose unemployment to 28%, is finally expected to . A poll of 35 economists and strategists suggested an expected growth rate of 0.3% for the Greek economy, while analysts at the and proposed a slightly more optimistic 0.6% rate.

Last week, a panel from the announced that had and other metals critical to the The panel discovered that the export taxes, quotas, and bureaucratic delays in Beijing artificially raised the prices of exports and created shortages for foreign buying nations. The panel also determined that these export quotas, which the Chinese argued were intended for environmental protection, were actually instituted to achieve industrial policy goals aimed at promoting the continued growth of the Chinese economy.

In the midst of what appeared to be a comeback for the European automotive market, which includes western in international marketing figures, the current political crisis in has spurred on fears that Russia's days as a growing reliable source of car sales Seeing as Russian forces in the Crimea region has resurrected Cold War tensions between Russian and Western supported factions, and investors in the have reportedly lost confidence in Russia as a continued source of fuel for the sector's global recovery. These tensions come alongside economic turmoil that the international automotive industry has been handling in other emerging markets, which includes the currency market problems that are worsening prospects in the emerging-market countries of and .

With the lighting of the ceremonial torch in Sochi, last Friday night, the have officially begun. Beyond capturing the world's attention throughout the month of February, these Olympic Games, like other major sporting events, have profound economic and political effects that resonate throughout the entire international system. Therefore, as the world's eyes turn towards the showcase of some of the world's finest athleticism taking place in Sochi, this post will explore some of the less eye-catching, yet equally significant, aspects of events like the Sochi Olympics and their unique place within international markets and politics.

When one strolls into their favorite coffee shop on a typical arctic-conditions day like the ones we've been enjoying in lately, they usually see coffee beans imported from well known "coffee countries," such as , , or perhaps an African country like , , or a rising coffee-exporting nation like . In spite of this, that is actually the world's second largest exporter of coffee, with its share of the global market rising nearly 20% within the last 30 years. Vietnam's coffee industry, which employs 2.6 million people, produced nearly 3 billion pounds of coffee in 2012-2013. The country's coffee exports have landed primarily in and the , but imports from other countries, as well as and , have also contributed to .

As the Eurozone Crisis has progressed and countries have continued to struggle to devalue their currencies, with the goal of making exports less expensive for importing markets, many countries are now of dismantling workplace protections to reduce labor costs. In , the 1.9 million workers that were protected by collective bargaining agreements have now diminished to merely 300,000, while has agreed to ease restrictions on collective layoffs and unfair dismissal. The motive for these actions, as encouraged by the , European Commission, and the International Monetary Fund, is to restore competitiveness, increase employment, and recover solvency.

While most Americans view cities such as New York, Los Angeles, or Miami as truly global cities with a wide variety of different cultures, foreign businesses, and spoken languages, a recently released resource titled " reveals that often over-looked cities and counties throughout the actually contain more global connections than one would expect. Presented by the , , and , this resources contains data from over 3,000 counties in all 50 states regarding how globally connected Americans are to the greater international system with regards to economic, demographic, and educational factors.

Within the (EU), stands as the union's coal-producing giant. Although the country suffered declining production rates during the global financial crisis, has shown signs of recovery. More than 88 percent of Poland's electrical needs come from coal, and the mines at Belchatow are more than eight-and-a-half miles long, two miles wide, and have been measured to be the largest carbon emitter in Europe. Poland's coal industry produces 77 million tons of coal per year, making it Due to the importance of Poland's coal mining industry, the Polish government has been increasingly active in

As the 21st century has trudged on into its second decade, the increasing rate of that has encouraged integrated global markets has also brought emerging markets into the spotlight of international business. Although strong economies like , , and have captured most of the international community’s attention, sub-Saharan African countries are beginning to make their impact on the global economy. is now home to 6 of the world’s top 10 fastest growing countries in the world, and these countries have been projected by the to grow between 5 and 6 percent each year over the next two years. Additionally, exports to the region now exceed $21 billion per year. Clearly, the African continent of over 1 billion people and vast natural resources has tremendous potential for investors in a global economy, but one question remains: How exactly do you approach a market place as, frankly, notorious as sub-Saharan Africa?

oil companies that have held exclusive oil-extraction privileges for nearly a decade in are now facing resistance from governments who In , private auditors have recently uncovered large costs and impractical charges made by the , which has added another argument for the revisions of trade agreements that have already saved Niger tens of millions of dollars from the Chinese. In neighboring , the government recently shut down Chinese oil operations after discovering immense amounts of environmental pollution within their borders. has also joined in the fight against the Chinese petroleum corporation, which surprised the by withdrawing a permit from another Chinese state-owned company, , and giving it instead to a newly created national oil company.

During the ºìÌÒÊÓƵ Blog’s first five years, it has served the international business community not only as a resource for global business news analyses, but also as a time capsule for events that significantly influenced international markets. Born in September 2008, the resounding news of the blog’s launching was understandingly dwarfed by , such as the rapid spread of cell phone use and business in Sub-Saharan Africa and, of course, the global financial crisis that’s effect on the global economy was comparable only to the Great Depression. In this blog, we will not only go back and revisit the news that captivated the world’s attention in the first months of the blog, but will also discuss the lasting effects of those events and how they continue to impact the world in 2013.

While it is no secret that Sub-Saharan Africa has been plagued with poor infrastructure throughout the region’s history, the region’s economic prospects and investment opportunity just took another major hit. On August 7th, a , Jomo Kenyatta International Airport, causing the airport to close indefinitely with no flights arriving or departing since the blaze was first reported. What made the fire so devastating to the airport was that the Nairobi County fire department did not have a single working fire engine, due to an auction last month where three of their engines were sold in order to pay a $1,000 USD repair bail, which Despite the physical damage done to ’s major airport, the destruction caused by the flames is unfortunately only the tip of the iceberg when it comes to the economic havoc that this fire most likely will unleash upon developing Sub-Saharan Africa.

Following the call for safer labor conditions in an era of globalization, 17 major retail firms from North America have throughout . Bangladesh, which is the world's second-largest retail exporting nation and sends about 85% of its goods to the and , has notoriously suffered from hazardous working conditions in its factories. Labor groups have estimated that it would take $3 billion USD to raise the safety standards of the country's factories to an acceptable level, which prompted firms from the U.S. and to form the . The Alliance's goals include donating over $42 million USD over the five years of the plan, and for inspections to be carried out in the estimated 500 factories that the North American retailers use in Bangladesh.

For the first time since last October, the has core consumer price index, which includes energy but not volatile fresh food prices, rose 0.2 percent in May from April's recording of a 0.6 percent annual decline in prices. The fight against deflation, which has persisted for 15 years and caused the Japanese economy to fall behind as the world's third largest economy, has set their sights on reaching a 2% inflation rate within the next two years. Prime Minister Shinzo Abe has also made fighting deflation one of his top priorities since taking office 6 months ago, which he claims has been the source of waning profits, wages, and consumption.

According to a report by the , Sub-Saharan Africa is The stated that higher commodities, increased investment opportunities, and a steady recovery in the global economy should sustain the region’s GDP growth above 5%, while the global average remains merely 2.4% as of this year. Excluding , the region’s strongest economy, African economies are currently growing at 5.8 percent, higher than the developing country average of 4.9 percent.Coupled with an anticipated increase in global foreign direct investment, which is expected to reach $54 billion USD by 2015, the economic growth in Sub-Saharan Africa provides an immense opportunity not only to elevate the standing of African nations in the global economy, but also the chance to fight back against the region’s staggering poverty levels.

Since its inception in 1994, ºìÌÒÊÓƵ has been dedicated to utilizing its vast amount of resources to connect international business professionals worldwide to a wealth of information, insights, and learning resources on global business activities. As a key function of this goal, the online course modules in ºìÌÒÊÓƵ’s reference desk have existed since 2007 to provide interactive educational tools for use in the classroom or in executive training. These modules focus on issues relevant to international business and include a case study or anecdotes, a glossary of terms, quiz questions, and a list of references for further knowledge current topics. Partially funded by a Title VI B grant, the modules cover several subjects that relate to international business, such as “Doing Business In” specific regions and tutorials on exporting.

In an era where perpetually extends the frontiers of international business, a company's ability to have their products reach markets in developing, or even remote, locations has become an increasingly important factor for success in global markets. Statistics support this claim, seeing as the share of gross domestic product as a percentage of the international market in 2012 has clearly This trend has resulted from the growing middle classes of third-world economies having the ability to purchase goods for a higher quality of life, such as safe food, clean water, and secure pharmaceuticals. The astounding international demand for has elevated the packaging industry to deliver these goods in frontier markets, while simultaneously trying to reduce their environmental impact during this time of expansion.

In the midst of the that has has toppled governments and pushed a number of countries into a second recession, has With house prices on the emerald isle being 50 percent below their peak value, more than half of Irish mortgages worth less than the outstanding debt, and about 39% of homes in default, the has been forced to take steps that many economists would deem as far too risky to enact. The government is expected to sign a law that would encourage banks to substantially lower the amount that borrowers owe on their mortgages, which could prevent mass-scale foreclosures, and also a blueprint for other nations seeking to resolve their housing dilemmas.

In 1983, Professor Theodore "Ted" Levitt of Harvard's Business School announced that had arrived, and before long global companies would be selling products and services in similar ways all over the world. In spite of Levitt's prediction, only a limited amount of truly global brands exist in today's business world, although markets are undeniably in an age of economic globalization. The reason behind this stems from the immense amount of forces that , of which a select number of firms have overcome.

While most news headlines involving revolve around drug cartels, illegal immigration, and law enforcement, Trade between the and Mexico has been surging recently, including a 17 percent increase to a record level of $461 billion (USD) in 2011. Mexico is currently competing with for the title of America's second-largest trading partner following , and the became the top investment destination for the this year. Mexico's middle class, which is quickly growing to be the country's majority, has been responsible for much of the trade with the U.S. since they are buying record levels of American goods.

While the rest of the world scrambles to overcome the current global recession, the has been The island country has benefited greatly from increases in government efficiency, as well as a crack down on political corruption. The gross domestic product of the Philippines has grown 6.4 percent in the first quarter, which surpasses the performances of all other neighboring economies except , and its currency, the peso, has reached record heights in the past four years when compared to the dollar. As a sign of the country's unprecedented economic progression, the Philippines has pledged $1 billion (USD) of its $70 billion in reserves to the International Monetary Fund to aid the , which is the same fund that rescued the country in the 1980s.

For a country that has a deep and prosperous mining heritage, was shocked by the latest report from its Resources Minister Martin Ferguson: The statement came following announcement that there has been a 35% dip in profits and postponed plans to expand the nation's Olympic Dam mine. There have also been considerable concerns in the country that the weak global economy might also decrease the demand for coal, metal ores, and other commodities. For foreign investors and alike, a slowdown in the prosperous mining sector will surely leave a noticeable dent in Australia's economic growth.

As the international community continues to strive towards clean, renewable energy, has turned towards an abundant resource to power the future: the powerful waves of the Yellow Sea. Marine experts from Orkney, have recently agreed to The European Marine Energy Centre, or , has been operating in Scotland since 2003, where it has been Although the turbulent waves of the Yellow Sea have been noted as "very tough to work in," and EMEC spokeman has said that the waters offer some of the world's most tidal conditions, therefore making it a superb resource.

When the words German businesses are spoken, the images that tend to come to mind are usually those of large corporations like BMW or Siemens. Surprisingly to most, the true engine of the that has kept the country away from the is actually the , or the nation's vast amount of small and middle-size companies. Accounting for more than 60 percent of 's workforce, the Mittelstand focuses more on sustainability than growth, has not seen any effect on sales during the current debt crisis, and is reported by the to actually be cutting their debt. When compared to the debt-stricken economies of , , , and a debt-threatened , Germans argue that .

Although government bonds issued by the , , and are still the main safe havens for investors, trends now show that the slowing economic growth in America and , combined with the , have Countries that were once considered on the frontier of the investing world, like , , , , and , have been experiencing a rush of money from American investors looking to move abroad.  Common market characteristics in these countries include having little of the risk, or outsized returns, that were once attractive prior to the current global financial crisis.

For the first time in 25 years, Following 's recent political and financial reforms, sanctions have been repealed against the nation in an effort to bring Burma back into the international community. Following this trend, the is preparing up to $85 million in grants to give to Burma for community-driven development programs. According to World Bank group president Jim Yong Kim, these grants are intended to build confidence in Burma's reform process, help in the World Bank's mission of eradicating poverty, and help to restructure Burma's current debt $397 million.

In , where young workers have typically opted to join large corporations in the public or private sector, According to the , the number of Brazilians aged 18 to 24 that attempted entrepreneurship increased by 74% between 2002 and 2010, with the franchising model being the simplest and safest way to run their own business. The sector has experienced a 10-13% average annual increase since 2002, generated a profit of $44 billion USD in 2011 (89 billion reals), and is responsible for 837,000 jobs.

In a continent where the Internet is scarcely available, computers are often too expensive to buy, and online business transactions can be extremely complicated to conduct, Of the 695 million current mobile phone subscribers in , the vast majority of this demographic does not belong to the middle and upper class, where e-commerce is commonly conducted on computers. According to business development manager Susan Hansford, many mobile phone subscribers still live in small, remote villages, where advertising high-priced consumer goods would make little to no sense. Stemming from these circumstances, Africa has since provided innovators and investors the unique opportunity of reaching millions through markets based around mobile phone use.

After an 18-year effort, While the other nations of the had agreed to 's entry in December, the acceptance still required a majority vote in Russia's lower house of Parliament, known as the Duma. What could have been a routine acceptance, since President Vladimir Putin's United Russia party controls the Duma, was interrupted by strong opposition by the unusually vocal Communist Party. As the ratification dragged on, Russia's economic minister Andrei Belousov warned lawmakers that the agreement reached towards the end of 2011 would expire if not ratified by the mid-July deadline. This sparked a vote by the Duma, which voted 238 to 208 in favor of joining, with one abstention.

In the modern era of global markets and international working opportunities, record numbers of employees of both small businesses and large corporations have embraced the expatriate lifestyle to work abroad. Despite the noticeable increase of expatriates in the past decade, there was surprisingly very little information regarding the differences between working domestically and abroad, which lead to which explored the differences that an experiences while trying to balance their career and other life obligations. The results of the survey provide an excellent insight into what changes someone looking to work and live abroad should expect, as well as the potential challenges that they should be ready to overcome.

For a majority of small business owners interested in , complex African markets are typically avoided in comparison to more familiar markets, like those in Western Europe. In spite of this trend, Amethyst Technologies, a Baltimore-based company, has expanded into Tanzania and Kenya with support from the . Through working with government agencies, such as the U.S. Department of Defense and the U.S. Food and Drug Administration, Amethyst Technologies has found success in historically unpredictable markets, and has also made a positive impact through building laboratories that are used for drug testing and developing standards for education, health care, transportation, and agriculture.

As economic continues to make foreign markets more accessible, opportunities for small businesses to export abroad remain on the rise. In response to the ongoing global recession, the federal government has recognized the importance of small business owners, and the crucial aspect they play in a successful economy. Stemming from the government’s , many small businesses have stepped out of American markets and found success through exporting abroad, such as the .

In , those that have grown accustomed to downloading free, illegal music and videos from the internet have found themselves facing . Since the inception of the 2009 HADOPI law, which promotes the distribution and protection of creative works on the internet, French officials have noticed a sharp decline in illegal file-sharing. The three-warning system, which by the end of 2011 had sent out 822,00 warning e-mails, 68,000 second warnings, and 165 cases where offenders have been fined around $2,000 (USD), has had an immense impact on the in France. Following the implementation of the law, French music industry revenues have been stabilizing, digital sales markets are growing, and iTunes sales have risen more strongly than in any other European country, most notably by bringing an extra €13.8 million a year worth of iTunes music sales into the economy.

In a year plagued by economic uncertainty, natural disasters also made their mark on global markets in 2011. Shattering the previous record of $262 billion worth of economic costs in 2005, in Japan, Thailand, China, New Zealand, Australia, and the U.S. cost the economy $378 billion. The deluge in Thailand alone, which cost the country $40 billion, J.P. Morgan estimates set back global industrial production by 2.5%. Looking towards the future, as the world’s population and economic output continue to migrate towards global centers located in vulnerable areas, such as Shanghai or Kolkata.