ºìÌÒÊÓƵ Blog - By Author: Jacob Simon

continues to slide towards a recession, as more reports from different industries show contraction. One of the more recent, undesirable stories comes from Russia’s auto industry. In the month of March, Russia’s auto industry faced a slew of indicators that reflect a downturn. A consumer report found that car demand decreased, while two of the world’s largest car manufacturers, General Motors based in the  and Volkswagen from , announced plans to downsize operations in Russia.

Imagine a scenario where a market is losing value (deflation), which in turn scares away investors and greatly reduces cash flow in the active market. This stems growth, as more people lose confidence in a downward spiraling market. This is a scenario that the European Central Bank (ECB) would like to avoid, as the Eurozone is . Perhaps the ECB’s most important response has been through quantitative easing, which has had a substantial impact on the Eurozone's economy.

’s manufacturing and factory sector hit an 11-month low in March, alarming investors worldwide. This indicator is yet . Ultimately these results are detrimental to the Chinese Government's 7% GDP growth target and will likely lead to new stimulus measures during a period of slow economic grw.

As the Eurozone progressively works on pulling out of financial distress, the economy is getting a much needed boost from its relatively weak euro. The euro has .The weak euro is a distinctive element for providing a big boost for exporters. Moody’s, z credit rating agency, explains the drop in the euro as “positive for companies that have the majority of their cost bases in the euro area with significant sales to regions outside it."

Exchange rates for currencies across the world are akin to a seesaw - they need a balance. As a result, the simplest differences in the exchange rates can have drastic ripple effects on economies due to the economic purchasing power principle. If your domestic currency is trading strongly (weakly) against a foreign currency, you have increased (decreased) your purchasing power and can purchase more (less) just from currency swapping. The effects of currency exchange on purchasing power can be in the form of , such as , or based on the nature of . As you will see, exchange rates can have a drastic impact on tourism globally.

Ask and you shall receive. The Greek population decided it was time for a change in government and just last week, Greece elected and swore in its new prime minister, Alexis Tsipras. The prime minister represents a leftist party and reflects the desire of the Greek people for reform just years after a major bailout. Tsipras ran his campaign based on the issue of .

This past Monday, Standard & Poor’s Ratings Services downgraded Russia’s credit rating to BB+, also known as “junk”, for the first time in more than 10 years. This means that it is below investment grade, reflecting the . The Russian economy has been thrown in a downward spiral because of intensifying pressure from sanctions from the and the over the crisis, and the much of its revenue from.

The has pledged financial support of to help them prevent a looming bankruptcy, and boost recovery efforts amidst the financial turmoil in Europe and Asia. is trying to recover and stabilize its economy, but the waging conflict in Eastern Ukraine with Pro-Russia rebels is hurting the economy and driving down consumer spending.

recently returned from a week long business investment trip to China. In an effort to promote international trade, Snyder continued his mission of increasing trade between and Asian countries. Snyder first embarked on this mission in 2011 and has made trips every year since. He has visited , and with a concentration on the automotive industry. He wishes to .

Amidst the overshadowing election events, a company defied the norm and exported domestic oil to a foreign customer, despite the government ban on exporting crude oil. This ban has been in effect since the 1970’s Arab Oil Embargo crisis. The company, . This is the first instance where a company has exported US crude oil without the consent of the government. Since the 1970 ban, the US has kept all crude oil within the country and as a result created a huge surplus in storage. With all of this extra oil build up, companies have been longing to sell it and remove the ban. However, this could have big implications for US consumers of oil.

What is something that we have we learned from medical epidemics? Globalization is a gift and a curse. As the world continues to unite and globalize goods, services, and cultures, there is one element that is still lagging behind - the globalization of healthcare. With globalization, traveling has never been easier as you can go from and to any part of the world in 24 hours. On top of that, growing cooperation between countries has decreased the alertness on country borders. Ultimately, this has become one of the , since they can spread at a rapid and dismantling pace. Attempts at addressing this problem and increasing globalization have been demonstrated through medical tourism, which has made progress but also suffered some setbacks.

It is no surprise that the has been instrumental in balancing the struggling Eurozone. , along with , are the Eurozone’s brightest economies and are leading the way towards a much needed economic recovery. Germany has been able to weather the strained economy and has held its own during the recession with positive growth projections. However, and are causing more setbacks than before. A survey taken by the shows that Germany's manufacturing activity has shrunk for the first time in fifteen months, an example of how the stalling Eurozone economy is affecting Germany.

As a result of a three day summit in which Chinese President Xi Jinping visited , both countries signed landmark deals that will open up vast commercial and trade channels for two of the most populous nations in the world. These events will help accelerate India’s economy and industry, as well as strengthen China's regional relations.

Nearly a decade ago, many foreign companies began or significantly increased their presence in . The country had many attractive business advantages including relaxed regulations, cheap manufacturing costs, and low labor wages, among others. China was providing companies with every reason to invest in its country. Now foreign companies from the , and are beginning to get the ‘cold-shoulder’ and feel unwelcome in China.

This past weekend, nations experienced eventful elections for the that will cause a stir on future economic reforms. This election term saw a very aggressive battle between two opposing forces – pro-European Union parties supporting strong central powers, and anti-European Union parties (also known as Eurosceptics), who are nationalists that want to decrease central powers of the union. The elections were forecasted to see .

As the western allies prepare to impose new sanctions on , the complexity of ’s relationship with Russia is becoming increasingly apparent. some states have with , as she sides with her western allies.

Thanks to positive growth measures, . Specifically, the release of the monthly Purchasing Managers Index (PMI) was an ample measure to earn more confidence from investors in European economy.

In an increasingly competitive business world, continuous technological advancements are providing businesses with more opportunities to get ahead of the curve. Specifically, geo-location is starting to become a big asset in helping businesses grow by giving them greater market reach. Successful businesses can only grow if they strategize to meet . Geo-location is able to fulfill this criterion because of the wide use of phones, tablets, and computers, but the collection of this sensitive data also pressures businesses to be cautious in their approach.

Have you visited the section of ºìÌÒÊÓƵ recently? If not, this would be a great time to start, as the second article in the 2014 Volume 8 edition has recently been released. What is the business review and what is its target audience you may ask? The ºìÌÒÊÓƵ Business Review is a collection of monthly comprehensive articles that focuses on major international business matters. The review examines a topic question and pieces together international research that includes a breakdown of background information, introduction of the topic issues, analysis of different characteristics in business operations, and offering strategic solutions in an abridged fashion. The review also includes helpful aids such as graphs and data tables that help visualize and support key points. Based on professional and highly acclaimed international research, feature topics target business executives with the purpose of identifying key areas of development, whether marginal or major, that can have a positive effect on business operations.

The resurging automotive manufacturer, Ford Motor Company, has made a big splash on the international automotive and commodity industries with their revolutionary light-weight body design. , automakers are scrambling to prepare their supply chains to handle the next big metal demand. This comes at a critical time when the international aluminum market is suffering. Though the metal is in healthy supply, stockpiles are entangled in financial transactions making it hard to get aluminum at all. 

This past week, the World Economic Forum (WEF) hosted its 44th Annual Meeting 2014 in Davos-Klosters, . Every year, the WEF brings together the leaders of the world to reflect on the past year and discuss the significant global issues to focus on for the year. The list of attendees are considered the world’s most influential leaders including government officials, economists, top corporate executives, actors and activists, among other prominent figures.

The effect of time zones has been a little-known but important issue for international business. Country time zones have been historically influenced by trading patterns and partners. Setting the same time zone to a partner makes it easier to conduct trading since business hours match. Different time zones force businesses to factor in when dealing with international business and can negatively impact worker productivity.

The World Economic Forum (WEF) has released its annual on September 3rd. The 2013-2014 GCR is unique in a way that it is a significant measure of the health of global economy during an economic shift. , and financial-burdened countries regain positive economic momentum, the report captures the economy during a sensitive shift. The top three spots from the previous years’ report remain unchanged as , and respectfully prevail in descending order. The GCR can be found as a ranking for each country under the . The , and dropped three to five spots for larger losses. On a positive note, , , and gained an impressive four, five and five spots representing a strong push for global competitiveness.