Updated Rules for International Trade

©iStock/thitivong

Globalization refers to the process of connecting the world economy more closely through the flow of goods, services, investment, technology, data, ideas, and workers. It began around 1870 and took off in the decades after World War II as countries started reducing restrictions on capital and trade flows in anticipation of benefits to growth and welfare.

Today we may be at another turning point in globalization’s history. So what is this powerful force that does so much to influence the world economy? How is it changing? And can it be improved?

Updated rules for international trade, coupled with stronger domestic policies, could make globalization more inclusive and sustainable.

Today in Global Small Business: The Conflict Between Israel and Hamas Puts Pressure on the Global Economy

©iStock/Oleksandr Baranov

What's affecting me, my clients, my colleagues and other global small business owners:

• The conflict between Israel and Hamas risks embroiling other Middle East nations and has the potential of fueling another bout of inflationary pressures and even tipping the global economy into a recession.
• Global outlook during turbulent times.
• Some say troubles are coming to the world economy.
• Quote of the week: “The speed of light does not merely transform the world. It becomes the world. Globalization is the speed of light." – Paul Virilio
• China's economic headwinds.
• Confronting inflation and low growth – global economy. 

Technology Fosters Globalization

©iStock/FeelPic

A conversation with Pol Antràs, the Robert G. Ory Professor of Economics at Harvard University.  He discusses the 8 questions below, international trade flows and what the evidence suggests about the world economy and the accompanying debate about whether an era of deglobalization may be at hand.

1. What is globalization?
2. Is the world entering an era of deglobalization?
3. Have we gone through deglobalizing phases in the past?
4. Are reshoring and near-shoring picking up momentum?
5. Is technology spurring or slowing globalization?
6. Supply chains faltered in the pandemic. Will companies hold larger inventories in the future?
7. How has globalization affected inequality across countries and within countries?
8. If trade is a net positive but still creates winners and losers, how can we compensate the losers?

Read the complete interview to appreciate that globalization remains a force despite pandemic and political strains.

World Trade Organization (WTO) Slashes Forecast for Global Trade in 2022

©iStock/Maria Shapilova

The Russia-Ukraine war has damaged the world economy at a critical juncture as the coronavirus pandemic - and Chinese lockdowns specifically - continues to weigh on the recovery.

The World Trade Organization (WTO) on Tuesday, 4/12/22, revised down its forecast for global trade growth this year to 3% from 4.7% because of the impact of the Russia-Ukraine war and warned of a potential food crisis caused by surging prices. 

Today in Global Small Business: China is a Viable Digital Commerce Opportunity

What's affecting me, my clients, my colleagues and other global small business owners:

• Think you don't have a chance selling in China?  Guess again.  Learn how a pro, Jennifer Bayon, VP, Business Development, PPI Beauty makes doing business in China a viable digital commerce opportunity on July 8th at 11AM CT (n/c) via Women Entrepreneur Global Global's wegginar.
• Are you operating in the brand licensing sector?  Then you might be qualified to apply for the Small Business Global Grants Fund. 
• Quote of the week:  "Asking the question 'are we doing enough' [concerning COVID-19] regularly and repeatedly is critical." – Dr. Maria Van Kerkhove, technical lead, World Health Organization, infectious disease epidemiologist
• The Covid-19 pandemic has required leaders to make decisions under considerable pressure. Many CEOs have been acting as the “chief crisis officer” as they work to ensure their firm’s survival and to manage the physical, mental, and social well-being of their employees.  See if you are functioning with any bias.
• Resilience.  Recovery.  Renewal.  Here's a roadmap to recovering.
• According to OECD, the world economy is on a tightrope.  

Today in Global Small Business: Discover the Design of Japanese Toilets

©iStock/stella_photo20

What's affecting me, my clients, my colleagues and other global small business owners:

• Global regulators say tougher bank rules do not curb small business lending.
• Quote of the week: “Let us find out what is desperately needed, although people may not know it, let us find out what will beautify the world, although people may not know it, then let's learn and learn and teach ourselves and support each other in doing that until we lose ourselves in those tasks." – 20th century inventor Edwin Land
• On Instagram @toilets_a_go_go, Hidefumi Nakamura documents the astounding breadth of public-toilet design in Japan.  International travel exposes you to different cultures yet even doing your routine daily activities can broaden your horizons :-).
• Global finance leaders meeting in Japan recently said they were increasingly worried that the trade dispute between the United States and China, which shows no signs of abating, could propel the world economy into a crisis.
• The retailer Ulta Beauty will be going international in order to "establish Ulta Beauty as a successful global brand," CEO Mary Dillon said in a statement. The first step of that process is launching operations in Canada, according to Dillon.
• President Donald Trump dangled the prospect of renewing his tariff threat against Mexico if the U.S. ally doesn't cooperate on border issues, while some of his Democratic challengers for the White House said the last-minute deal to avert trade penalties was overblown.

Uptick in Overall Optimism in America

©iStock/fotohunter

Some 69 percent of leaders from mid-size companies across the U.S. said they were optimistic about the global economy this year, more than double the 30 percent in 2017, according to a new study by JPMorgan Chase & Co.

The 2018 Business Leaders Outlook survey was conducted online among mid-size firms from Jan. 2 to Jan. 19, and included 1,685 executives and 955 small-business leaders across various industries in the U.S. Mid-size companies are defined as those with revenue of $20 million to $500 million, while small firms have $100,000 to $20 million.

There's an uptick in overall optimism in America as U.S. tax cuts and looser regulation improve the outlook for domestic growth, according to the report.

Read more about how U.S. companies are growing increasingly upbeat about world economy.

How to Better Compete in the World Economy

©iStock/Avosb

According to the Small Business and Entrepreneurship (SBE) Council, the United States need to provide tax relief for U.S. business to better compete in the world economy.

The United States’ 40 percent tax rate (federal plus state average) ranks 170th among 171 nations with only the United Arab Emirates imposing a higher rate (55 percent), explained Raymond Keating, SBE’s chief economist.

SBE Council claims the U.S. has the second highest corporate tax rate in the world.

Read more ...