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

India’s Soaring Currency Attracts Foreign Investors, but Exports Suffer

The Indian rupee has climbed 9% against the dollar in the last 16 months.  That has taken a toll on a key Indian export -- textiles -- because it makes exporting more expensive.  Instead of fighting the appreciation like Brazil, however, India is letting the currency strengthen for now.  A stronger currency is helping the country to develop a modern consumer economy, and is fueling a boom in inward investment from giant shopping malls to new car dealerships.

India’s Soaring Currency Attracts Foreign Investors, but Exports Suffer

Once Banned, Dogs Reflect China’s Rise

Twenty years ago, there were hardly any dogs in Beijing. In the communist era, dogs were likely to be herders, guards, or meals, rather than companions. China's rapid globalization and increasing wealth, however, means that dogs are common these days, and increasingly pampered.

Once Banned, Dogs Reflect China’s Rise - NYTimes.com

Aviation World at Odds Over Loans for Aircraft

This week, negotiators from the U.S., E.U., Japan and Brazil are meeting to discuss the sensitive topic of how airliner sales should be financed and how much government assistance should be permitted to state-owned airlines in buying new aircraft.  Under a current "home-market" rule, airlines based in the U.S., France, Germany, Britain and Spain cannot use government loans to help them buy aircraft.  That may change under a new agreement.

Aviation World at Odds Over Loans for Aircraft - NYTimes.com

The Simpsons

In response to allegations that The Simpsons outsources most of its animation to a company in South Korea, UK graffiti artist Banksy created this controversial opening sequence for the show last week.



YouTube - Simpsons: "- Sent using Google Toolbar"

Jili Journal - Silk Craft Fades in Village That Clothed Emperors

The Chinese village of Jili was once known throughout the world as a producer of extremely high quality silk.  Using traditional methods of sericulture, villagers produced silk for emperors and royalty everywhere.  Now, industrialization means most silk is produced in factories.  Environmental degradation means the water in Jili is no longer clean enough for sericulture.  And higher wages in booming cities elsewhere means there are no longer any young people willing to learn the craft of silkmaking in Jili.  Within a few years, the town will probably close its last silk mill, as the NY Times reports.

Jili Journal - Silk Craft Fades in Village That Clothed Emperors - NYTimes.com

Singapore Casino Experiment Pays Off

Singapore Casino Experiment Pays Off - WSJ.com

Rampant Fraud Threat to China’s Brisk Ascent

From students who cheat on college entrance exams to pilots who fake their flying credentials to dairy companies that sell poisoned infant milk to scholars who promote fake or unoriginal research, rampant fraud is beginning to emerge in China. Fang Shimin (above), exposes academic fraud on his website, New Threads. He has exposed more than 900 cases of fakery, some involving university presidents and nationally known researchers.

Rampant Fraud Threat to China’s Brisk Ascent - NYTimes.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

In Vietnam, Politburo Tries 'Friending'

In communist Vietnam, the authoritarian government clings to tight control of the media and squashes dissent even while the economy is allowed to flourish under relatively free enterprise rules.  The rise of social media sites like Facebook and Twitter has the government worried about subversives, so the government has launched its own social media site, go.vn, with many features that would look familiar to a Facebook user.  The big difference?  Pre-registration with a person's real name and government-issued ID number, as well as government monitors who closely read what's posted online.

In Vietnam, Politburo Tries 'Friending' - 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

Philippine Low Cost Carrier Jazzes Up Inflight Safety Demo to Lady Gaga