Chesapeake Bay Candle Struggles to Open U.S. Factory

Chesapeake Bay Candle is a major player in the multibillion dollar scented candle industry.  In spite of its name, all its candles are made in Vietnam and China.  Recently, due to increasing wages in those countries and high shipping costs, the company decided the time was right to start making candles in the U.S.  What the company did not account for was how much more expensive it is to build a factory in the U.S., with many laws and codes to comply with.  The factory is now over budget and delayed, and the founders are wondering whether the U.S. is ready to compete with Asia for manufacturing business.

Chesapeake Bay Candle Struggles to Open U.S. Factory

GE Remodels Businesses in India

Like many multinational companies, GE has struggled with India.  High levels of bureaucracy, corruption, and differing consumer needs and tastes made commercial success difficult in the wide array of industries GE competes in, from locomotives to jet engines to medical equipment.  Now, the company is starting to see results from a turnaround that started with a realignment of the business.  The company started by creating a separate P&L for all of India, something the company rarely does at the country level.  Then, it focused not just on marketing and sales, but also on research and development for low-cost products for India as well as other developing countries.  The company sells a baby warmer, for example, for $3000 to hospitals throughout India and other parts of the world, while incubators in the U.S. sell for four times that price.

GE Remodels Businesses in India - WSJ.com

Internet Start-Ups Cater to India's Affluent

Although India is home to many internet-based or IT companies, there's surprisingly little e-commerce happening within the country.  That's beginning to change, as more companies try to become India's next Amazon or Groupon, as this WSJ article explains.

Internet Start-Ups Cater to India's Affluent - WSJ.com

Dollar's Fall Rocks Far-Flung Families

The U.S. dollar is struggling.  Against all major world currencies, a dollar buys less currency today than it used to.  Within the U.S., this makes imports more expensive but also helps the export competitiveness of U.S. companies by making U.S.-produced goods cheaper overseas.  Outside the U.S., however, the dollar's fall is having dire consequences for many economies that rely on the exchange rate.  One such economy is the Philippines, where the exchange rate has strengthened the Philippine peso 15% against the dollar in the last year.  Over 10% of the Philippines GDP is made of remittances, where Overseas Filipino Workers (OFW) send money back to the Philippines.  These workers typically earn U.S. dollars, which means their remittances are now worth less in the Philippines.  This had led some in the Philippines to argue that the time has come to stop depending on these remittances and to start creating job opportunities at home.

Dollar's Fall Rocks Far-Flung Families - WSJ.com

Alabama Sock Town Suffers as Cotton Soars

Fort Payne, Alabama, calls itself the "sock capital of the world."  Ten years later, about one in eight pairs of socks came from Fort Payne.  Sock manufacturing is largely automated, so labor is not a huge component of the cost.  The closing of the sock's toe, however, is still done by hand so any cost advantage becomes important when multiplied over high volume.  A few years Ft. Payne fought to re-instate a sock tariff to protect itself from cheaper laborers in South America, but today, more mills are still closing in Ft. Payne.  The culprit this time is the high cost of cotton, up to $2.40 per pound, double last year's price.  Only 10 mills remain in Fort Payne, and while some are focusing on higher end (and profit) product like organic socks, the industry is once again in deep trouble.

Alabama Sock Town Suffers as Cotton Soars - WSJ.com

Rising China Bests a Shrinking Japan

It's official -- China is now the world's second largest economy, displacing Japan from a position it's held since 1967. At the same time, it's still one of the world's poorest economies, with over 100 million citizens living on less than $2 a day. This dichotomy is explored in today's WSJ article, as well as the video above.

Rising China Bests a Shrinking Japan - WSJ.com

In Nigeria, Used Cars Mark a Step Up for Middle Class

The World Bank predicts that the number of middle-class Africans, whose income exceeds their basic needs, will rise to 43 million by 2030 from 13 million in 2000.  That growth extends to Nigeria, the most populous country in Africa and a budding economic powerhouse.  The average income per capita is $2700, meaning that most Nigerians can only afford used cars.  This has led to a booming used car import industry, and the establishment of used cars as status symbols for middle class Nigerians.

In Nigeria, Used Cars Mark a Step Up for Middle Class - WSJ.com

Singapore Casino Experiment Pays Off

Singapore Casino Experiment Pays Off - WSJ.com

China's Car Economy Revs Up

China has built more than 30,000 miles of expressways in the last decade.  Auto sales were up 46% last year to 13.6 million vehicles, and there are expected to be 200 million vehicles on the road by 2020.  Business models that started in the U.S. fifty years ago to capitalize on this new car culture are taking off in China.  From McDonald's drive-in's (there are currently 105 with 100 more planned for each of the next three years) to suburban strip malls to big box retailers to hotels to tourism to parking lots to commercial radio stations, the domestic car culture is driving big investment -- and big profit potential -- for these industries.

China's Car Economy Revs Up - WSJ.com

Yum Brands Raises Profit Outlook, Helped by China

Faced with a mature market and slow growth in the U.S., Kentucky-based Yum Foods (which owns the Taco Bell, KFC and Pizza Hut brands) has looked to China to propel new profits.  That strategy is paying off, with the company reporting a 6% jump in revenue in China, compared to only 1% in the U.S.

Yum Brands Raises Profit Outlook, Helped by China - WSJ.com

Volkswagen Aims At Fast Lane in U.S.

German automaker Volkswagen says it wants to overthrow Toyota to become the world's biggest carmaker.  In order to do that, it has to do something to improve its sales in the U.S., which at 2.2% market share are behind even Kia.  Now, VW says it's about to do something it's never done before -- tailor its cars for mainstream American driving tastes.

Volkswagen Aims At Fast Lane in U.S. - WSJ.com

Captain's Release Sparks Furor in Japan

The Chinese boat captain captured by Japan and arrested for being in territorial waters claimed by Japan has been released after China began to withhold exports of rare earth minerals to Japan late last week.  That has sparked a furor in Japan, where many Japanese citizens believe the government caved in to China.  Now, China is demanding an apology and compensation from Japan, something Japan has flatly denied it will do.  Japan in turn is seeing compensation from China for damage caused to its naval vessels during the incident.  Above, protesters rally in Hong Kong with signs saying "Japan Get Out."

Captain's Release Sparks Furor in Japan - WSJ.com

Boeing Received Illegal Aid, WTO Says

A preliminary report by a WTO dispute panel ruled that Boeing received illegal aid from the federal government as well as Washington state.  Airbus is jumping on the report claiming that it vindicates their claim of illegal aid to Boeing, but Boeing and American officials are urging restraint until the report is made public
Boeing Received Illegal Aid, WTO Says - WSJ.com

Volvo's Big China Gamble

When Chinese car manufacturer Geely bought Swedish car manufacturer Volvo, it announced plans to expand the Volvo brand in China, where it is currently tiny (selling only 24,000 cars last year, in a market of over 13 million).  Yesterday, Geely group chairman Li Shufu revealed much more ambitious plans -- Volvo will build as many as three assembly plants in China, each capable of producing 100,000 cars a year, and all for sale in China.  This would cement Geely as one of China's largest auto makers, and may position the ambitious Chinese company for global growth.

Volvo's Big China Gamble - WSJ.com

EU Raises Tariffs on Wheels

At the urging of wheel manufacturers in Europe, the European Union has agreed to extend antidumping duties on aluminum wheels from China, and to raise those duties to more than 23%.  The move was fiercely opposed by car manufacturers like BMW and Volkswagen, who fear that their businesses in China may be affected by retaliation by the Chinese government.

EU Raises Tariffs on Wheels - WSJ.com

Cuba to Cut State Workers in Tilt Toward Free Market

More than 85% of Cuba's 5.5 million workers are employed by the communist state.  Now, in a recognition that this is a failed policy, the government has announced plans to lay off half a million workers and create hundreds of thousands of private sector jobs.  Up next: a recognition that private wealth is good?

Cuba to Cut State Workers in Tilt Toward Free Market - WSJ.com

Red Shirts Test Thai Limits

Months after a deadly government crackdown on Thai protesters, the "Red Shirts" are regrouping and re-organizing.  This weekend, they held a rally in Pattaya that drew 4000 people and featured a telephone call from their leader, ousted former Prime Minister Thaksin Shinawatra.  Whether this means the Red Shirts will escalate their demands again or whether this is a limited display remains to be seen.  One thing's for sure -- efforts at healing and reconciliation in Thailand will remain slow and measured.

Red Shirts Test Thai Limits - WSJ.com

Currency Trading Hits $4 Trillion

Currency trading volume has hit a whopping $4 trillion worldwide, a 20% gain from the $3.3 trillion last recorded in 2007.

Currency Trading Hits $4 Trillion - WSJ.com

In China, Western Firms Keep Secrets Close

Cree, a North Carolina-based manufacturer of LED diodes and lights (above), continues to manufacture wafers in the United States even though it owns a factory in China.  Why?  Because of fears that the valuable intellectual property may fall into the hands of competitors or rivals willing to steal the technology.  More and more Western firms are following Cree's example as intellectual property theft and violations continue to be a serious problems for companies doing business in China.

In China, Western Firms Keep Secrets Close - WSJ.com

U.S. Likely to Find China Subsidized Aluminum

The U.S. Commerce Department is expected to announce tomorrow that China illegally subsidized about $550 million worth of extruded aluminum (aluminum squeezed into shapes like the window frames above), opening the door for higher duties as early as next week.


U.S. Likely to Find China Subsidized Aluminum - WSJ.com