Fiji Water to Leave Fiji

Fiji Water, makers of high-end bottled water from the Pacific island of Fiji, is a privately held company owned by a billionaire couple from California, the Resnicks, who also own POM Wonderful and a few other well-known brands.  Fiji Water is often criticized for the huge expense and energy cost of shipping empty containers to Fiji to fill up with water and then shipping it around the world to affluent consumers.  Fiji Water, on the other hand, argues that its operations create jobs for hundreds of Fijians who would otherwise be unemployed.  Fiji underwent a military coup in 2006 and is now widely viewed as a state in decline with a dictator in charge.  The country recently announced it was increasing the "extraction tax" on water from 1/3 of a Fijian cent to 15 cents a liter.  The company has responded by announcing that it will shut down its operations and pull out of Fiji, demonstrating that human rights abuses and a military dictatorship aren't enough to stop business, but an export tax will do it.

Fiji Water to Leave Fiji - TIME NewsFeed

Wal-Mart International Chief McMillon Seeking Growth in China, Brazil

Wal-Mart, the world's largest retailer, sees more opportunity in emerging markets than in Europe, according to the company's International CEO, Doug McMillon.  At the top of the list is China, followed by Brazil.  The company is looking overseas for growth as sales in the U.S. stagnate and slow down.  Wal-Mart operates 4100 stores in 41 countries outside the U.S., with annual sales topping $100 billion.  Its most recent entry is to purchase 51 percent of South Africa's Massmart for approximately $2.3 billion, stopping short of buying the entire company due to objections from local unions.  Hit the link below for a video interview with McMillon in which he explains the company's international expansion strategy.

Wal-Mart's McMillon Interview - Video - Bloomberg

China’s Censorship Backfires in ‘Li Gang’ Case

In late October this year, a college student named Chen Xiaofeng was inline skating with a friend on the campus of China's Hebei University.  A VW sedan, driven by a drunk driver, struck them head on, killing Chen.  The driver tried to speed away, but was stopped by security guards.  "My father is Li Gang!" he yelled at them.  Li Gang is the Deputy Police Chief in the Beishi district of Baoding.  When the Communist Party tried to suppress the story for fear of populist reaction to the son of a high-ranking official being given favored treatment, the opposite happened on the Internet.  Soon, the driver was arrested and the phrase "My father is Li Gang" has become a mocking catchphrase.

China’s Censorship Backfires in ‘Li Gang’ Case - NYTimes.com

Japan’s Farmers Oppose Pacific Free-Trade Talks

Japan maintains a 777% tariff on imported rice, as well 252% on wheat, 360% on butter, 320% on sugar, and 38.5% on beef.  As a result, Japanese consumers have to pay some of the highest prices in the world for basic foods.  Now, Japanese industry groups are urging the government to reduce tariffs in return for greater market access to big economies such as the U.S.  Japanese farmers, however, are terrified that dismantling the tariffs will lead them to ruin.

Japan’s Farmers Oppose Pacific Free-Trade Talks - NYTimes.com

Chinese Build 15-Story Hotel In Just Six Days, Rest On Seventh

Chinese Build 15-Story Hotel In Just Six Days, Rest On Seventh

Gap Joins a Retailer Rush to the Chinese Market

With sales in the U.S. sluggish, Gap Inc. is setting its sights on China's fast-growing consumer market, opening a flagship store in Shanghai today.  The company expects to open Old Navy and Banana Republic stores in the future.

Gap Joins a Retailer Rush to the Chinese Market - NYTimes.com

Free-Trade Pact With South Korea Still Not Finished

At the G20 summit meeting in Seoul, President Obama failed to reach an agreement with South Korea over the last two sticking points in a proposed US-Korea Free Trade Agreement.  The sticking points are autos and beef, both of which face a tough time in the Korean market.  Both sides have set themselves a deadline of weeks (not months) to finalize a deal that may mean better market access for Ford to the South Korean market.

Free-Trade Pact With South Korea Still Not Finished - NYTimes.com

Cotton Clothing Price Tags to Rise

Get ready to pay a lot more for T-shirts and jeans.  Flooding in Pakistan and bad weather in India and China means that there is a worldwide shortage in cotton.  This shortage recently led to a record high price for cotton, meaning that everyone in cotton's supply chain, from farmers to processors to manufacturers to retailers, are going to raise prices soon.

Cotton Clothing Price Tags to Rise - NYTimes.com