international business

China’s Investment in Africa

It seems that every week we hear of further Chinese investments in the African economies. Although there are mixed opinions on how growth is being achieved, and at what “expense”, there is no doubt that the money is coming rolling in. South Africa’s Standard Bank, Africa’s largest bank, forecasts in their outlook for the next five years, that investment from China into Africa is likely to hit US$50 billion by 2015, up 70% from 2009.

The BBC reported at the beginning of 2011 that it will be a bumper year for Chinese investment and that Ethiopia is a good example. Addis Ababa, capital of the country which is home to an estimated 88 million people, is awash with cranes and half-constructed buildings, mostly financed by the Chinese.

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5 Tips to Export – America is on Sale

American apparel makers face increase costs due to two macro economic factors.

First, transportation budgets are out of control. I looked back three years ago and freight was 2.9% of sales, last year it was a whopping 5.5% of sales! That’s a 90% increase in three years. That pinches an 8% profit by 2.6% to 5.4%, ouch.

Second, the rapid decline of the dollar is making raw material prices spin out of control. For the last two years we’ve seen 15% annualized inflation for textiles coming out of Asia and Europe. Textiles and findings represent approximately 50% of an apparel items cost and it hurts to see 15% price increases.

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Cultural Intelligence – How To Be Culture-Savvy In International Business

For those of us who travel and live in different countries on a regular basis, learning about our destinations is essential. What can I expect when I move? What will be different? What will I have to adjust to? What are the people like? How does their culture differ from mine?

These questions can go on and on. Some of us try to answer them by researching in libraries and on the internet; others go through cross-cultural training; and yet others tap into whatever expertise the online expatriate community can offer. All these sources are wonderful and they provide a wealth of information, however, they often form no more than just a base of the information required for us to become really knowledgeable about the culture, and particularly about the people we interact with.

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