In-The-News
October Edition
Indonesia
“Indonesia leverages size of China’s “upper class” to grow
economy”
Indonesian and Chinese businessmen have teamed up to sell
high end furniture in China. It seems that Indonesia has found a
niche as the Chinese upper classes are demanding “classier”
products in their homes. With Indonesian export furniture
climbing at 20% for the past five years, four “House of Indonesia” locations were opened in China. Even though the “wealthy”
class in China is only 1-2%, this is roughly twenty million people. Furniture exports to China are already at $24 million. The
hope is to increase this to $5 billion annually by having easier
access to goods through retail outlets.
http://www.antara.co.id/en/news/95783/houses-of-indonesia-as-outlets-to-promote-products-inchina
“Uni-Charm leveraging the growing Indonesia’s “consumer”
class to boost sales”
Uni-Charm Indonesia is the Indonesian arm of the Tokyo-based
diaper and feminine-care company, Uni-Charm. This year, UniCharm Indonesia is launching several new products that are targeting the ever-growing consumer class. It is estimated that the
“consumer class” will make up 50.8% of the country’s total 250
million population in 2016; up from 33.5% in 2011.
http://www.thejakartapost.com/news/2014/09/20/uni-charm-boost-sales-with-newproducts.html
Volume 2, Edition 2
Indonesia Facts

-Indonesia is a new member of the “emerging”
world economies called the BRICIS; which include Brazil, Russia, India, China and South
Africa.
-The Republic of Indonesia became an independent country in 1945, following the end of
WWII. It is, in fact, a vast archipelagos that
comprises over 17,000 Islands of which only
about are 6000 are inhabited. The nation's capital city is Jakarta.
- Indonesia, with an estimated population of
over 252 million people, is the fourth largest
country in terms of population
-The country is the largest economy in Southeast Asia and a member of the G-20 major economies. According to World Bank affiliated report data, the Indonesian economy was the
world's 10th largest by nominal GDP in 2013.
-Indonesia is the 27th biggest exporting country
in the world. The country's major export commodities include oil and gas, electrical appliances, plywood, rubber, and textiles
Did you know?
-Indonesia contains the most volcanos in the
world; more than 70 are historically active.
-The official language is Bahasa but less than
15% of the population considers it their first
language. Almost half the population considers
Javanese as its first language.
-Three calendars are in common use in Indonesia; The Western calendar, Arabic calendar and
Javanese calendar.
-The word “tomorrow” in Bahasa Indonesia is
“besok.” It does not literally mean “within 24
hours.” It can mean “the day after tomorrow”,
“the day after that” or even “in a week”. So
we’ll get back to you “besok”.
Key events in 2014:
July 9 - Presidential election - 2014
August 25 - Indonesian Independence Day
October 25 - Islamic New Year
China
Brazil
“China's Xi Jinping Signs Landmark Deals on
India Visit”
Brazil Speaks on Economics of Climate Change and
Despite the dispute over their borders and accusations
of China’s territorial incursions, Chinese President Xi
Jinping and India’s Prime Minister Narendra Modi
signed 12 agreements, one of which China will be investing $20 billion in India’s infrastructure over five
years. China is currently one of India’s top trading
partners. Both countries are emerging in the global
economy and will most likely be U.S. businesses’ biggest competitor as well as consumer opportunities.
http://www.bbc.com/news/world-asia-india-29249268
“Alibaba raises price of share sale as demand
Sustainability
In her General Assembly speech at the UN, Brazilian President Dilma Rousseff spoke about the impact of climate
change on Brazil. She detailed the R$400 million dollars
Brazil has recently invested in projects to help mitigate climate change. It is estimated that climate change mitigation
programs have the potential to cost Brazil R$10 million per
year by 2050.
http://riotimesonline.com/brazil-news/rio-business/brazil-speaks-on-economics-ofclimate-change/
increases”
The online "Amazon" of China originally was set to sell
shares at $60-66 in its NYSE IPO, but now expect to sell
shares between $66-68 a share. This means its new
market value of $168 billion would make it larger than
Amazon. Alibaba's sales growth reflects the growing
middle class that helped them reach a $2 billion profit
in three months to the end of June. Alibaba caters to
President Dilma Rousseff speaks at the U.N. Climate Summit in New York,
80% of all online retail sales in China, and plans to use
photo by Roberto Stuckert Filho
the IPO funds to expand in the US and Europe.
http://www.bbc.com/news/business-29216405
Chile
“Chile Central Bank Cuts Economic Growth
Forecast”
Chile’s economic growth is expected to be between
1.75% and 2.25%, down from the previous forecast of
“Brazil Begins Dairy Exports to Russia”
Brazil and Russia are strengthening their political and economic ties. Brazilian dairy companies have begun exporting
milk to Russia. They have taken the place of EU dairy suppliers who have left Russia with a 57% gap of imported
dairy products. The gap is a result of a one-year food embargo implemented by Russia.
http://rt.com/business/190260-brazil-begins-dairy-exports-russia/
between 2.5% and 3.5%. Investors has been pulled
Argentina
back from the important mining sector and consumer
“Argentina enacts law restructuring government debt”
spending is lower than expected.
Argentina’s congress approved to restructure the countries
http://online.wsj.com/articles/chile-central-bank-cuts-economic-growth-forecast-
debt to try to bypass a U.S. court ruling that caused the coun-
1409763406?KEYWORDS=chile
Chile: Workers must observe "mandatory" national
try to default. Argentina settled with creditors by trading low-
holiday
er value bonds for the defaulted ones, but a group refused. US
The Chilean government is cracking down on em-
District Judge Thomas P Griesa ruled that Argentina could not
ployers who do not give their employees this Thurs-
pay its creditors until it addressed the creditors that refused to
day and Friday off. The days are used to celebrate
take the deal. The new legislation will allow Argentina to cir-
the country's independence and its armed forces.
If a business is caught breaking the law, it can be
fined up to $1,600.
http://www.bbc.com/news/blogs-news-from-elsewhere-29259347
cumvent the U.S. ruling by allowing creditors to exchange
their bonds for new ones under the local legislation, cutting
the U.S. financial system out of the equation.
http://www.theguardian.com/world/2014/sep/12/argentina-lawrestructuring-government-debt-default
Japan
“Why Has Japan Fallen So Far Behind China in Trade With
India?”
Japan has been one of the largest sources of direct foreign investment in India for decades. However, new trade data reflects that
over the last five years, Japan has fallen behind China in selling
goods to India. Since 2009, Chinese exports to India have gone up
about 60% while Japanese exports to India have risen a mere 12%.
If this trend continues, Japan will need to look elsewhere for potential markets. The increase of Chinese imports to India can be attributed to lower prices, while Japanese manufactures have not had
the right products at the right price to satisfy India’s market needs.
http://blogs.wsj.com/indiarealtime/2014/09/03/why-has-japan-fallen-so-far-behindchina-in-trade-with-india/?KEYWORDS=japan
“Starbucks Buying Full Control of Japan Unit for $914 Million”
Starbucks Corp. has planned a two-step deal to purchase the remaining 60.5% share of Starbucks Coffee Japan Ltd. The deal is being valued at $913.5 million. This gives Starbucks a controlling 79%
Turkey
“Why the Global Giants Want to Invest in Turkey”
Because of its location in the middle of Europe, Asia, the
Mediterranean Sea, and North Africa, Turkey has become a big harbor of international investment. Over the
past decade, Turkey has received foreign direct investment (FDI) in the amount of USD $135 billion. FDI has
increased in Turkey recently because of the country’s
investor-friendly policies. Major companies such as Microsoft, Intel, and Ericsson have their regional headquarters in Turkey. Turkey has increased its spending in
hardware, software, IT services, and telecommunication
sectors in the past few years. This is due in large part to
its young population – over half of its 76 million populations is under the age of 30. The international business
market is increasing in Turkey, and its future economic
conditions look very promising.
http://business-technology.co.uk/2014/09/why-the-global-giants-want-toinvest-in-turkey/
share of the Japanese Starbucks market, which consists of 1,050
“Turkish, Iraqi Business Men Agree on Further
stores and will be Starbucks’ second largest market in terms of rev-
Cooperation”
enue. The deal is expected to be finalized during the first half of the
2015 calendar year.
South Korea
“Stephen Harper signs Canada-South Korea trade deal”
After a decade of negotiation, South Korea and Canada have
signed a free trade deal. This will be Canada's first step into the
East Asian economy and a major growth factor for South Korea. Harper also stated that this action will help South Korea
stay communist free. This deal may very well add to what each
Turkey and Iraq brought together several local members
of commerce and agreed that it was beneficial to both
parties to increase trade between the two countries.
Turkish businesses have played a major role in the reconstruction of Iraq. Turkish Contractors have taken on
over 850 projects so far. At this point, Iraq is Turkey’s
second largest trade partner.
http://www.dailysabah.com/money/2014/09/24/turkish-iraqi-businessmenagree-on-further-cooperation
country is missing in the global market.
Philippines
http://www.cbc.ca/news/politics/stephen-harper-signs-canada-south-korea-trade-deal-
Manila Port Gridlock Constricts Economy
1.2773899
“Korean Carmakers to Benefit Most from FTA with
Canada”
The port gridlock was an unintended consequence of a
local government plan to improve traffic and reduce
pollution in the City of Manila. Containers have piled
Korean auto manufacturers accounted for 43% of total ship-
up at Manila’s main port since February when a day-
ments from Korea to Canada. The tariffs will be abolished on
time ban on trucks plying the city roads came into ef-
these cars within the next 10 years. The 6.1% tariff being absent
fect. With the backlog of 20,000 containers expected to
in the coming years will allow the carmakers to have a greater
take months to clear, there are worries about the impact
market share in Canada. Other industries such as washing ma-
on exports.
chines and refrigerators will become more competitive with
http://www.bworldonline.com/content.php?section=TopStory&title=
these changes as well.
manila-port-gridlock-constricts-economy&id=95095
http://english.chosun.com/site/data/html_dir/2014/09/23/2014092301930.html
Saudi Arabia
Russia
“Saudi economic growth eases to 3.8% in Q2 “
Sanctions hit Russian economy as ruble plummets.
growth eased to an annual 3.8 percent, the lowest rate in a
The value of the Russian ruble has fallen to an all-time low
year. The reason behind this decline has to do with the
after a new round of sanctions has been issued on Russia by
slowdown in the oil sector. Recently, OPEC revealed that
the European Union. The Russian economy has also experi-
the nation exported just below 7 million barrels of oil per
enced rising prices and economic worries. Russia has fallen
day during the summer months
19% year to date. The prices of food has risen in Russia but
http://www.arabianbusiness.com/saudi-economic-growth-eases-3-8-in-q2-
Russian economists declared that this was rising before the
For the second quarter of 2014, the Saudi Arabian economic
565895.html
sanctions and the economists expect prices to rise and the
value of money to weaken as the sanctions continue.
http://www.usatoday.com/story/money/markets/2014/09/16/russia-ruble-plummetseconomy-sanctions/15718187/
India
“India’s Big Manufacturing Push: Time to Make in
India?”
In order to accommodate India’s booming population,
economists are saying roughly one million jobs need to be
Aramco, GE and TCS Open Saudi Arabia’s First All-
created per month in India. India’s prime minister, gath-
Female BPO
ered hundreds of business leaders, journalists, and diplo-
In 2013, Saudi Arabia’s unemployment for women reached
mats together for a live broadcast to publicize the oppor-
34%, so they implemented a Nitaqat system which required
tunity. India’s “ease of doing business” assessment ranks
private companies to recruit a required percentage of Saudi
them 134th most difficult in the world. Many business
women. However, this system may no longer be necessary.
leaders are appalled by this and claim that India should be
Riyadh has opened the first all-female business process ser-
in the top 50. In improving this ranking, it is thought that
vice center. This center offers specialized finance, account-
much red tape should be removed, infrastructure im-
ing, HR, materials supply and office services to improve
proved, and working with government made easier.
operational efficiency, support localization targets and
http://www.economist.com/blogs/banyan/2014/09/india-s-big-manufacturing-
boost economic diversification within the area.
push
“PM Modi's US visit: Modi visit offers golden opportunity to repair India-US ties”
When India’s Prime Minister Narendra Modi attends the
UN General Assembly meeting in the United States he will
also be meeting with President Barack Obama in an attempt to revitalize business ties between the United States
and India. The United States is interested in partnering
with New Delhi on developing India’s next-generation aircraft carriers, to sell India unconventional oil and gas, and
to permit US companies to use Indian space launch services. India would most likely be focused on the Defense
Trade and Technology Initiative or new solutions for overcoming the impasse over the nuclear liability law.
http://economictimes.indiatimes.com/news/politics-and-nation/pm-modis-usvisit-modi-visit-offers-golden-opportunity-to-repair-india-us-
Geneseo International Business Club
ties/articleshow/43308752.cms
Editors: Brigid Lonergan & Leah Swarthout
Contact: [email protected]
http://gulfbusiness.com/2014/09/aramco-ge-tcs-open-saudi-arabias-first-femalebpo/#.VBjU2mXD_cs
South Africa
“South Africa Makes Nuclear Deal With Russia”
South Africa has agreed to purchase up to eight nuclear reactors from Rosatom, the state-owned Russian nuclear energy
company. The project is likely to be completed by 2030 South
Africa has two nuclear power plants that generate roughly six
percent of its electricity. This new deal could be what the overmatched South African electrical grid needs as the country is
heavily dependent on coal to supply power. This move made
clear that South Africa trusts in the stability of nuclear power
even with the recent meltdown at Fukushima still in the
world’s memory.
http://abcnews.go.com/International/wireStory/south-africa-makes-nuclear-deal-russia25698880