This Week's Update on International Trade

This Week's Update on International Trade

For certain people in the technology, business, economics, commerce, and entertainment industries or sectors throughout the globe, there was both good and terrible news this week.

First and foremost, the IT sector is said to be flourishing.

This year's 3GSM World Congress in Barcelona, which included three of the world's largest mobile phone manufacturers-Nokia, Sony Ericsson, and Motorola-is evidence that the technology sector is growing. These businesses showcased their newest goods at the trade show, many of which used cutting-edge 3G technology. Motorola has launched ROKR. The Nokia 6136 has been announced by Nokia. It was announced by Sony-Ericsson that the K610 phone and music player will be available in the fall. Apart from that, a joint venture between Sony Ericsson and Nokia will be working on creating mobile television technology.

Some customers, on the other hand, choose not to make use of this year's newest technologies in order to save money. This year, however, this will not be the case since shops and manufacturers may now exchange sales and inventory information, meaning stocks will be kept to a minimum. However, if the customer is willing to put in the time and effort, they may still receive the best deal.

The 20th anniversary of the Olympic Winter Games in Turin, Italy, took place over the past weekend, bringing a slew of events to the city. The International Olympic Committee supervised the cooperation between companies and the city of Turin. With the help of athletes participating in the sporting event, they want to get worldwide exposure by selling their product in their uniform, announcing it on television, and plastering the venue with their ads.

This week, a number of corporations have announced mergers, acquisitions, or downsizing.

Volkswagen made a surprise announcement over the weekend, saying that it would be cutting 20,000 positions between 2006 and 2008. Since they're up against stiff competition and seeing their markets shrink, they claim they want to boost their market share. Investors were delighted with Volkswagen's decision, even if the layoffs upset some of the company's workers, and Volkswagen's stock surged to its highest level in almost three years as a result. Additionally, the corporation expects to see a 61% rise in profits.

It has been decided that Lego Group and Lucasfilms Ltd. will continue their relationship through the year 2011. Toys based on the Star Wars universe were licensed to Lego in 1999. Lego made more than $400 million with the debut of "Star Wars Episode 1: The Phantom Menace."

As soon as Hello LLC takes over as the new owner of MySpace, the company will begin offering the new service in conjunction with SK Telecom and Earthlink, Inc. Mobile phone access to MySpace will be a new service offered to subscribers by the firm. Pantech and VK will release the "Hero" and "Kickflip" phones to coincide with the debut of MySpace's mobile phone access service.

New mobile phones featuring CDMA chips and 3G technology will be developed by a joint venture between Nokia and Sanyo Electric Co. Nokia intends to get a foothold in the lucrative U.S. and Japanese markets, while Sanyo is looking to pay off its debts.

Due to its competitor, Mittal Steel's aggressive acquisition of Arcelor, Arcelor aims to boost its dividend by 85 percent. After Mittal's proposal was rejected, Arcelor has hired investment banks to develop a defensive strategy. However, if a takeover occurs, the European Commission will investigate Mittal.

However, a business has been caught up in some trouble, but they've already found a way out of it. Search engine Google has established a Chinese equivalent and will abide by the Communist Party's rules. A government-hired army of more than 30,000 Internet censors tries to prevent Chinese residents from accessing websites that contain or debate topics that are politically sensitive in the country. In spite of the industry's skepticism, Google's compliance was in keeping with the company's goal of capturing the lucrative Chinese market, home to more than 100 million Internet users.

Businesses were also hit this week by the weather.

When a snowfall swept over the northeastern United States on Sunday morning, it triggered thousands of dollars' worth of property insurance claims and shut down businesses on Monday. When Hurricane Katrina wreaked havoc on New Orleans in September 2005, insurance firms were left reeling from the $5 billion in structural damage it wrought.

Mardi Gras will be the first to be staged in New Orleans since Hurricane Katrina devastated the city in August of last year, and citizens and officials alike are gearing up. It is predicted that the event will help revitalize the city's tourist economy, despite the fact that the city's infrastructure is currently being repaired.

A robust demand for foreign-made items and a record high price for oil contributed to the US trade imbalance widening in 2005, according to the International Monetary Fund. Due to cheaper prices, Chinese goods have a trade advantage over those from the United States, and this puts the US economy at risk. Even the White House is frightened about the growing national debt.

European countries, on the other hand, had a better day on Monday, with their market shares closing higher. Shares in Italian banks have risen as a result of expectations that leading Italian banks, such as Banque National de Paris Paribas and Banco Bilbao Vizcaya Argentaria, may merge with international banks.

Even international organizations have to deal with a number of difficult problems.

According to the World Trade Organization (WTO), genetically engineered foods have been banned from entering Europe since 1998. US, Argentine and Canadian farmers have launched a challenge against the EU's restriction on the importation of GM crops. The World Trade Organization's latest decision has been criticized by environmental organizations, including Friends of the Earth. They assert that the countries that have implemented the prohibition have the right to make their own judgments, including Austria, Germany, France, Greece, Luxembourg, and Italy.

As oil prices continue to rise, the world's most elite economic and political group, the Group of Eight Nations, convened for the first time this weekend in St. Peterburg, Russia, to debate the effect on global economic growth and energy supply. Although Russia shut off gas supplies to Ukraine and Eastern Europe, the G8 had been guaranteed that Russia would maintain its oil and gas export levels this year. Other topics discussed during the G8 meeting were Palestine's reorganization and the possibility of avian flu in Asia or Europe, which the United States considers a terrorist organization.

As a result of Iran's continuous uranium enrichment operations and the United Nations' International Atomic Energy Agency's termination of cooperation, the price of oil rose again on Monday. According to reports, Iran is allegedly utilizing uranium to build nuclear weapons, and it is cooperating with UN inspectors on a limited basis. Nigeria's rallies against international oil corporations and the abduction of Royal Dutch Shell personnel have made the oil price situation much worse.

Iran, the fourth-largest oil exporter, has stated that it has discontinued collaboration with the United Nations' International Atomic Energy Agency and will continue its uranium enrichment program. As a result, oil prices spiked once again on Monday. According to reports, Iran is allegedly utilizing uranium to build nuclear weapons, and it is cooperating with UN inspectors on a limited basis. Nigeria's rallies against international oil corporations and the abduction of Royal Dutch Shell personnel have made the oil price situation much worse.

Trade between China and the rest of the globe is also said to be increasing.

As China's economy continues to rise, it has acquired oil from African countries such as Algeria, Chad, Equatorial Guinea, Gabon, Nigeria, and Sudan. Although the United States is at risk because of its interest in the continent's oil resources, other nations, such as Russia, are not.

It was decided during the latest China-Australia summit, which took place in Canberra in January, that the uranium mined in Australia would not be utilized to build nuclear weapons in China. A majority of Australian residents as well as environmentalists fear that China's nuclear business would become more resistant to international monitoring, which would have disastrous effects such as increased emissions of greenhouse gases.

However, it seems that the entertainment business is thriving.

There has been a resurgence in the film business in New Zealand thanks to box office hits like Peter Jackson's' King Kong, 'The Lord of the Rings trilogy, and "Chronicles of Narnia: The Lion, Witch, and Wardrobe." As a result, local filmmakers are able to get more funding. As a result of the stunning landscape and the specific incentives offered by our nation, Hollywood has chosen to film in the United States.

An annual ranking of the world's wealthiest celebrities was published by Forbes magazine in 2004. Among the celebrities in Hollywood were Sir Paul McCartney, Sir Elton John, and Madonna. A burgeoning music and film industry is another indication of this. As well as those mentioned above, the list includes Green Day, The Eagles, Dave Matthews Band, Kenny Chesney, Celine Dion, and 50 Cent.