Thoughts for Kristin's Classes

NYSE Euronext merger with Deutsche Boerse blocked by EU (BBC News)

2012-02-02T10:24:00.008-05:00

This is a very appropriate news item, for us at least. On the agenda for tomorrow (Friday) is a discussion of economic and legal systems.

Today's business climate is one of mergers and acquisitions, though those mergers don't always meet with the approval of governments interested in enforcing antitrust laws (see here for a brief refresher on antitrust).

In class, we'll take a look at Microsoft and their troubles in the EU.

The BBC article deals with a proposed merger that's been going on for a while now. Like a lot of these, it goes beyond the merely complex.

NYSE Euronext is a merger (dating back to 2007 or so) of the New York Stock Exchange and Euronext, which was itself a merger of a number of European exchanges (not, however, including either London or Frankfort).

At one point, Deutsche Börse (Germany, based in Frankfort) wanted to buy Euronext, but was beaten out by the NYSE.

So, in early 2011, Deutsche Börse decided that they were going to acquire NYSE Euronext. At the time, the expectation was that the merger would happen fairly quickly. Per a Wall Street Journal article from a year ago:

A deal could be announced as early as next week, according to people familiar with the situation, though a host of regulatory challenges await on both sides of the Atlantic, according to competition experts.

Well, the deal isn't going to go through. The European Commission announced yesterday that the merger would violate EU antitrust provisions.

But, the US didn't have a problem with the merger, approving it in December of 2011.

The difference between the EU and the US is that EU regulators appear to be somewhat more aggressive in their enforcement of antitrust. For example:

The day after blocking the merger of NYSE Euronext (NYX) and Deutsche Boerse AG (DB1), the European Union’s antitrust chief vowed to veto other deals that hamper competition. The EU will continue to block deals “whenever necessary,”
Joaquin Almunia said in prepared remarks for a speech in Brussels today.

So, what does this all mean? There will most likely be additional consolidations in the world's markets; the London Metal Exchange is looking to be bought out soon. It does mean that, as a company looking to raise money in the equities market, that there'll be less choice as to where to list one's stock. Does that matter? In reading through the EU's press release on the NYSE Euronext / Deutsche Börse merger, they keep saying "competition is good," but it's not clear just why competition among financial marketplaces is a good thing.

Ok. Having nothing else to do, I decided to see if I could find out why. What I found was a very long and complex paper written by academic economists in 1998. I ran out of steam on about page 6 (out of 50), but if I'm reading this right, there's no good economic reason for a lot of competition. Also, prior to a single European currency and increased cross-border ownership of securtities, most world exchanges were already monopolies within their countries:

The presence of many exchanges in reality is not incompatible with this view, as exchanges were not competing with one another, at least in Europe, until a decade ago, due to different regulations and currencies that let them be monopolist in their relevant markets. In fact, in each country, either only one exchange existed or only one was dominant and absorbed the small regional ones (as in France, Italy, Spain, and Germany).

Today's story has been widely reported, but the more I think about it, the impact on businesses in general will most likely be a limited one. It's still an interesting story, especially when you look at the history behind it.

Some Sources for Your Expatriate Paper

2012-01-31T14:29:00.002-05:00

Just links, no commentary

General
http://www.kpmg.com/global/en/issuesandinsights/articlespublications/pages/the-expatriate-administrator.aspx

http://travel.state.gov/

http://www.telegraph.co.uk/expat/expatlife/

http://www.talesmag.com/

http://online.wsj.com/article/SB123926101221104491.html

http://www.economist.com/blogs/gulliver

Asia
http://www.chinalawblog.com/2010/03/expat_health_insurance_in_chin.html

Europe
http://www.telegraph.co.uk/health/expathealth/7499053/Expat-guide-to-Spain-health-care.html

Aging Japan

2012-01-31T09:42:00.005-05:00

According to an article in yesterday's Washington Post, Japan is undergoing a demographic crisis:

Japan’s population of 128 million will shrink by one-third and seniors will account for 40 percent of people by 2060, placing a greater burden on a smaller working-age population to support the social security and tax systems.

The article goes on to say that, by 2060, the retired (that is, not working) proportion of the population will reach 40%. The Japanese government is proposing tax increases to fund these looming pension liabilities, but faces parlimentary opposition in doing so. And, the standard retirement age is 60.

It isn't just an issue of money, though. The number of nursing homes and the avialability of caretakers are an issue as well. It's to the point where the Japanese are developing robots that can move patients, help the elderly dress, and, most frighteningly of all, provide companionship:

Scientists have invented therapeutic robotic babies that are intended to make life easier for nursing home residents. These Babyloids are being tested in facilities across Japan. During the tests, residents interact with the robots in eight-minute intervals for a total of 90 minutes each day. Designed to resemble infants, these robots simulate human emotions such as crying. This in turn tends to trigger a response among actual people. So far, the Babyloids are showing early promise at reducing depression and despair among residents.

And, this is in a retiree population that, having lost the personal ties from work, is already lonely.

There is, though an argument that the falling birthrate in Japan is an unintended consequence of a deliberate and rational decision on the part of the Japanese. To quote at length from the New York Times:

Take, for instance, how Western observers have viewed Japan’s demographics. The population is getting older because of a low birthrate, a characteristic Japan shares with many of the world’s richest nations. Yet this is presented not only as a critical problem but as a policy failure. It never seems to occur to Western commentators that the Japanese both individually and collectively have chosen their demographic fate — and have good reasons for doing so.

The story begins in the terrible winter of 1945-6, when, newly bereft of their empire, the Japanese nearly starved to death. With overseas expansion no longer an option, Japanese leaders determined as a top priority to cut the birthrate. Thereafter a culture of small families set in that has continued to the present day.

Japan’s motivation is clear: food security. With only about one-third as much arable land per capita as China, Japan has long been the world’s largest net food importer. While the birth control policy is the primary cause of Japan’s aging demographics, the phenomenon also reflects improved health care and an increase of more than 20 years in life expectancy since 1950.

The demographic trends in the EU and the US are not dissimilar. However, the participation of women in the paid labor force in the EU has room to increase, and in both the US and the EU, immigration (documented or otherwise) is another safety valve.

Despite the problems of issues in Japan, I'd rather be old in Japan than in China, where for all but the very rich, "nursing home" translates as "snake pit" or "hellhole."

Russia's Future (or at least guesses about it)

2012-01-30T11:38:00.013-05:00

Russia. Over the last few weeks, we've seen a fair amount of discussion as to Vladimir Putin's political future.

A brief recap. Mr. Putin served two terms as President of Russia (2000-2008). In the Russian system, the President is the one with the power and the Prime Minister is a figurehead. However, when Mr. Putin finished his second term in 2008, he was not eligible for re-election, so the new President was Dmitry Medvedev. Mr. Putin moved to the office of Prime Minister, but it's been pretty generally accepted that it's Mr. Medvedev who is the true figurehead here.

The current Russian constitution prohibits two consecutive terms, but additional non-consecutive terms are fine. So, Mr. Putin is running for re-election as President this year. Mr. Medvedev's future is unknown but not likely to be a glowing one. According to the Moscow Times,

As for Medvedev — who at one point was branded with the tag "pitiful" on Twitter — analysts said his political future is anything but certain. "President Dmitry Medvedev is worse than a lame duck, he's a dead duck," said Nikolai Petrov, an analyst with the Carnegie Moscow Center.

Ok. Back to Mr. Putin. At one point, he looked like a sure thing for re-election. However, he's lost a lot of popularity recently. This week-end there were protests in Moscow (the symbol appears to be white ribbons or balloons). But, this sentiment in Moscow and among the bloggers does not appear to be universal. Mr. Putin doesn't have any credible opposition, and he's at least a known quantity. Per the New York Times,

“Tell Putin to fulfill all of his promises, not just half of them,” said Sergei V. Verkhososov, 34, a mechanic from the nearby industrial town of Nizhny Tagil, who was bused in for the afternoon by his employer. “He needs to think about the future, and those people who fought for him. Take these words to him.”

.......

“In Moscow they insulted me, they insulted everyone who works honestly for the sake of the motherland,” Igor Kholmansky, a worker at a plant that makes train cars and tanks, said from the stage. “We came here today to say that the workers of the Urals are for stability, for Putin and for Russia.”

There does seem to be little question (right now, at least) that Mr. Putin will win re-election, though he's unlikely to regain the popularity from his first two terms. Bear in mind two things. First, Russia has a tradition of autocratic leadership. As an autocrat, Mr. Putin is following right in the footsteps of Ivan the Terrible and Josef Stalin. Second. It may be an urban legend, but the same Josef Stalin is popularly quoted as saying "It's not the people who vote that count, it's the people who count the votes."

As a commentator for Forbes put it, Mr. Putin will be re-elected, but let's not mistake this for democracy:

His December 15 response to charges of corruption displays his chutzpah. The Russian people do not need democracy, he assured viewers. He (purportedly among the world’s richest men) personally will ferret out and punish those who are corrupt. As an example, he accused a former cabinet member – now a lonely member of the opposition — of corruption.

In a remarkable display of double-talk, Putin dismissed bloggers and demonstrators: “If the people show their trust in me with the highest office of president, I will conditionally work in their interests. Whether I have this trust or not is not revealed on internet sites or demonstrations. In a democratic society, trust is shown only in voting. If I see that there is not such support I would not stay one day longer in office (polite applause).”

Mr. Putin faces a number of challeneges in his third term (assuming that you, too, read "challlenge" as "a big problem that nobody knows how to solve, so it's dumped on your lap"). First, there's Russia's economic future. Recently, Mr. Putin announced that he believes that Russia's economic future depends on taking the currency earned from oil and gas exports and using that to build a modern economy. In an article, written by Mr Putin and published this past weekend (and much commented on), he says:

Noting that “more than a quarter of Russia’s GDP is a result of the sale of gas, oil, metals, timber and other natural resources or primary commodities,” Putin admitted that “Russia depends on the world economy…more than most other countries do.”

..........

“Having an economy that does not guarantee stability, sovereignty, or decent prosperity is unacceptable for Russia,” Putin wrote. “We need a new economy with a competitive industrial sector and infrastructure, with a developed service industry and with an effective agricultural sector – an economy, operating on a modern technological base.”

The second issue, perhaps not as urgent, is the nationalities question. Russia contains a large number of people who are not ethnically Russian and not necessarily happy at being part of Russia (such as the Chechens). The Russians aren't always absolutely delighted, either.

Ok. Enough for now.

Renault sells $4.2B stake in truck maker Volvo - Yahoo! News

2010-10-07T10:33:00.005-04:00

Renault sells $4.2B stake in truck maker Volvo - Yahoo! News

Ok. This is where we need a handy laminated chart to figure out what's going on.

First, what Renault owned was not the automotive part of Volvo. The Chinese own that now; Ford did own it and recently sold it to the Chinese automaker Geely.

What Renault sold what their ownership in the still-Swedish-owned Volvo Truck.

Straighforward enough, you might say. Not really, because that's just the beginning of Renault's complex ownership structure.

Renault also owns 44% of Nissan. At the same time, Nissan owns 15% of Renault.

Let's bring in the Germans. I quote here directly from Renault:

"On April 17, 2010 the Renault-Nissan Alliance and Daimler AG announced a broad strategic cooperation that will enable both groups to already realize benefits quickly from a range of concrete projects as well as sharing of best practices. The two groups also announced an equity exchange that will give the Renault-Nissan Alliance a 3.1% stake in Daimler and Daimler a 3.1% in Renault and a 3.1% stake in Nissan."

Next. I'd never heard of AvtoVAZ before, but seems that they are the top Russian auto manufacturer. Renault owns 20% of AvtoVAZ.

Last but not least -- Fiat owns 35% of Chrysler.

I did find this, a chart of auto company/brand ownership, but it's from 2008, so the interest is primarily historical. It does give a nice feel for the complexity of it, though; the only problem is that it doesn't seem to pick up the 378 different auto companies in developing countries that are owned in part by one or the other of the EU-US-China-Japan-Korea cartel.

Checking with our in-house auto industry expert, Dr. Jeff Schultz -- his take is that the player to watch is Renault/Nissan, followed by Ford. He sees these two compnaies as having the best management of any of the major auto firms.

Burger King Said to Be in Talks With Brazilian Group - NYTimes.com

2010-09-02T12:37:00.002-04:00

In yesterday's (September 1) International Business class, we touched on the BRIC countries -- Brazil, Russia, India and Cihina -- and their growing economic power. Here's an example for you.

Burger King Said to Be in Talks With Brazilian Group - NYTimes.com

How to Find Cheaper College Textbooks - Bucks Blog - NYTimes.com

2010-08-10T10:30:00.001-04:00

The comments, so far, are illuminating.

A number of folks have advice on procuring the (much less expensive) international editions. I mention this for the sake of completeness, that's all.

How to Find Cheaper College Textbooks - Bucks Blog - NYTimes.com

Iran and China: New Developments

2010-08-09T11:24:00.027-04:00

For the past several years, China has worked to build trade relationships with African and Latin American countries -- Argentina, for example, as well as Sudan, Nigeria and Peru.

It's motivated (as we've discussed in the IB class) by China's growing need for raw materials -- such as recycled paper (for the cardboard boxes that Made-in-China TV is shipped in), soybeans, iron ore and gold. China has an advantage over Europe and the US here -- China isn't a former colonial power (not that the US really was a colonial power or anything, but who cares?). It's been a successful relationship. Even though Japan, South Korea and Taiwan are the biggest source of Chinese imports, China is now Brazil's largest export partner (ahead of the US); Angola, Chile, Democratic Republic of the Congo and Kazakhstan are among the countries sharing that honor.

One of the Chinese trade relationships that is currently troubling to the US is the Chinese relationship with Iran, based, of course, on oil. It goes beyond imports and exports; China has invested heavily in refineries and pipelines in Iran. Moreover, the Iranian government has proposed a system of rail links between China, Iran, Afghanistan, Tajikistan, Kyrgyzstan.

Trade sanctions (banning trade in strategic materials) against Iran have slowed, but not stopped trade between China and Iran.

What exactly can the US do here? Not much. The UN can make agreements, but China is going to act in their own interests. Neither the US nor the EU wants to see Iran with nuclear weapons, but it doesn't appear that the Chinese care.

Don't forget that the Chinese own a lot of US government debt [1]. And, the US exports a lot to China as well -- luxury products [2] such as wine and ginseng roots, but also basic raw materials, such as recycled paper and soybeans.

The batteries in my crystal ball need to be recharged, but I don't see much changing here. It's a tenuous balancing act between the EU [3] and the US, first, China second, and Iran, third. One solution might be for the US to take out Iranian nuclear facilities, making sure to give China plausible deniability. That could get very very messy, though. There's some indication that the Iranian government isn't all that stable, and changes there could very well make a peaceful solution possible. The US would probably have to concede in principle on Iran's right to peaceful nuclear use, though, which would be politically suicidal for the current administration.

Taking a broader and more long-term perspective, though, look at China's trade strategy overall.

China's motivations here are complex. At first glance, the whole point is access to resources. For example, the Democratic Republic of the Congo has copper, Iran has oil, Brazil has wood pulp, etc. China is also investing heavily in infrastructure development in its African and Latin American trading partners. They're thinking long-term. Remember, the Chinese are the folks who have kept track of the (more than 3 million) descendants of Confucius over a 2,500 year span.

Not everyone sees China's growing ties with Africa/Latin America to be a Big Problem; some believe that US influence in Africa is broader based and more likely to be lasting.

But, as we remeber from The Godfather, "it's only business." Trade appears to be the real motivation, with politics being only a means to an end.

It's clear that China isn't in this for their health; China cut off imports of Argentine soybean oil after Argentina imposed retaliatory tariffs in response to accusations that China is dumping textiles and kitchen appliances in the Argentine market.

Another indication that the Chinese government isn't seeing these relationships as one-sided are developments earlier with loans to Zimbabwe:

Deputy Prime Minister Arthur Mutambara says the Chinese want all loans to
be repaid before loosening its purse. According to the Mutambara the Chinese
President Hu Jintao revealed to him during a brief meeting at the World Economic
Forum in Switzerland that he considers Beijing relationship with Harare as
’business partners’ and not ’friends’.

If nothing else, the complexities of trade and politics between China and the rest of the world will give us something to think about for a very long time to come.

Notes

[1] There is some indication that Chinese purchases of US debt declined after the late 2008 economic meltdown. They still hold a lot, though by now China holds enough Treasury securities that it's probably unlikely that they could afford to unload them.

[2] Western luxury products are big in China, though most of these are imported from Europe.

[3] Europe trades a lot with China, too.

The downside of globalization

2010-07-19T10:20:00.003-04:00

Globalization is good, right? Not necessarily. Displaced workers, easy spread of disease, for example, are two negative consequences of globalization.

In class, we discuss the impact of globalization on women, specifically, that there's some evidence that women in more globalized countries tend to do better, in terms of access to health care and education, legal rights, etc.

However, I don't think it's a simple relationship. More globalized countries are also richer countries, an.d maybe it's just that women do better in countries where there are more resources available.

MIDEAST: Women Migrant Workers With HIV Get Raw Deal - IPS ipsnews.net

BBC News - Mothers tempted to abandon babies in Moscow

Human Trafficking in Europe a 2.4 Billion Euro Industry UN Dispatch

India has a new symbol for the rupee. Where do other currency symbols, like the dollar sign, come from? - By Christopher Beam - Slate Magazine

2010-07-16T11:40:00.002-04:00

India has a new symbol for the rupee. Where do other currency symbols, like the dollar sign, come from? - By Christopher Beam - Slate Magazine

Here's what it will look like.

Another indicator, if we needed one, where the world's economic center is moving to.

Of course, this means other folks will want a dedicated symbol:

Ukranian Hrvnia
Kazakh Tenge

Even more (see p. 3)

The Downside of Associative Power

2009-03-03T14:21:00.003-05:00

Looking for Mr. Far Right: Meghan McCain's dating problems, post-election

2009-03-03T13:40:00.006-05:00

New Trial Begins for Jailed Russian Tycoon

Mikhail Khodorkovsky's trial opened today in Moscow, though it's not entirely clear what the purpose of the trial is. No, actually, the purpose is quite clear. Khodorkovsky was formerly the head of the Russian oil company Yukos. And,

Khodorkovsky, at one point estimated by Forbes magazine to hold a $15 billion fortune, built Yukos into Russia's largest oil company and defied the Kremlin by publicly criticizing its policies and lending financial support to opposition groups critical of then-President Vladimir Putin.

That puts it all together, doesn't it?

Khodorkovsky was originally arrested in 2003 on charges of tax evasion (shocking, isn't it?), tried and sentenced, in 2005, to a nine year prison term, to be served in Siberia (a long Russian tradition). He's been brought back to Moscow to face additional charges, presumably to ensure that he stays in Siberia permanently, where he can work in the prison garment factory.

If you's like to show your support for Mr. Khodorkovsky, you can visit his webpage, though you'll need to speak Russian to do so (sorry, there is an English version).

More on Mr. Khodorkovsky from Frontline

2009-03-03T12:57:00.006-05:00

Why Skilled Immigrants Are Leaving the U.S.

Immigration, legal or illegal, has been a political hot button in recent years. Now, it seems, many immigrants are returning home -- unfortunately, these folks are the people that the US needs to keep.

There's no question but that innovation is the key to creating and sustaining competitive advantage, whether its on the level of the individual, the organization and the country (and if this doesn't compute, flip back in your notes to Michael Porter). What appears, though, to be happening, as described in this article, is that highly skilled individuals, often from India and China, are returning home and taking their skills with them. The article puts it quite simply:

The U.S. is no longer the only land of opportunity. If we don't want the immigrants who have fueled our innovation and economic growth, they now have options elsewhere.

So, where does this leave the US economy. Well, again, I think it's pretty simple. People such as:

Vinod Khosla (one of the founders of Sun Microsystems)
Arun Netravali (Bell Labs and Lucent)
C.K Prahalad (Distingiushed Professor of Management at the University of Michigan)
Roger Y. Tsien (2008 Nobel Prize winner in Chemistry and professor at the University of California - San Diego)

aren't the people that we need to pack up and leave the US.

Update on Isabel Peron

2007-02-14T11:05:00.000-05:00

Seems that Isabel Peron is in declining health, though the Argentine government hasn't given up on extraditing her for human rights crimes.

Wanted ex-Argentine president in intensive care, Spanish News, Spain, Expatica

Argentina Seeks Isabel Peron Extradition World Latest Guardian Unlimited

Valentine's Day in China

2007-02-14T10:31:00.000-05:00

This is the article I mentioned last night in the IB class.

China's rich spend big to celebrate Valentine's Day - Yahoo! News

Carrefour to Enter India (edited to add stuff)

2007-02-12T09:08:00.000-05:00

Carrefour is looking to enter the Indian market:

Moneycontrol India :: News :: Carrefour to enter India soon :: :: Business :: Carrefour,Kamal Nath,Wadia,Britannia,Danone,WalMart,Bharti

This may be the deciding point for WalMart -- can they really make it in the international market. Of course, it's not only Carrefour they have to worry about; British chain Tesco is also planning on entering the Indian market.

Here's a big problem, though, for all of the Western chains. India has several big retail chains already. Also, distribution channels in India are nor the same. There seems to be much more reliance on smaller neighborhood / village stores and street vendors, something which the Indian chains seem to be able to accomodate. And, Indian conglomerate Reliance Industries Limited has no plans to roll over and play dead !

A second issue, and one that could keep all of these companies out, is the legal / political climate. Basically, India isn't very welcoming to foreign direct investment, despite 15 years of efforts by some (but not all) Indian political groups to make foreign investors welcome. Walmart isn't giving up, though, and they may be able to bring political pressure to bear from the US government.

Added:

Lejoyi has an interesting angle here.....(as well as an extra credit point)

As we talked about with culture, there definitely does seem to be an Islamic backlash against what's perceived as the encroachment of Western secular values -- Mecca Cola, the Islamic Barbie, and any number of retailers of modest clothing styled for Western sensibilities.

And as for WalMart [and we'll talk more about this when we get to marketing], they just don't seem to have really "gotten it" when they've gone international. Especially in Germany, it was failing to understand cultural differences that sunk them.

Out of curiosity, I googled WalMart and a handful of major Islamic countries. I did come up with a recent rumor that WalMart is planning on entering Malaysia. They're also beginning to establish ties with a lot of Turkish manufacturing firms. I'd think that Turkey would be a good place for Walmart to expand their retail presence, a thought I found some confirmation for (though Carrefour has been in Turkey since 1993, with 539 stores, so maybe it isn't such a good idea...).

As for India.....

While there is a significant Muslim minority in India (13.4%), it's going to be Hindu values and Indian customs that WalMart will have trouble with. For an example of a Western company having some success in India, see McDonald's, oddly enough.

An Example of Diversification

2007-02-09T10:11:00.000-05:00

This seems to be appropriate to today's discussions.....an example of diversification. One extra credit point for a meaningful comment.

DenverPost.com - A wee distillery for Nebraska?

Why I Don't Remember Faces ???

2007-02-07T23:21:00.000-05:00

Yahoo! Health News: Single Gene Flaw Can Cause 'Face Blindness'

China's Hu promises win-win partnership in South Africa - Yahoo! News

2007-02-06T18:38:00.000-05:00

It appears that China has developed a deep interest in Africa. According to a news story today,

"Both sides vowed to deepen the political partnership and business cooperation for mutual benefit and win-win outcomes," said [Chinese President] Hu at a joint press conference on the sixth leg of an eight-nation tour of Africa."

Why is China interested in strengthening ties with Africa? According to some, it isn't altruism:

China is keen to tap into Africa's abundant natural resources to feed its economic growth but it has faced accusations of being too willing to turn a blind eye to the excesses of regimes, such as Sudan, as well as using Africa as a dumping ground for cheap goods, particularly textiles.

And, as pointed out in an October 2006 article in the Economist, trade with China only benefits Africa's elite, who are the ones who have control over minerals and petroleum.

Is it possible that the Chinese are sincere in their interest in Africa?

[South African President] Mbeki has previously stated that China will not "replicate the historic colonial economic relationship in terms of which Africa served as a source of raw materials and a market for goods manufactured in the countries of the colonisers."

However, that's what appears to have happened. China exports far more to Africa than it imports. On the other hand, China has forgiven debt and spent money on building roads and other infrastructure in several (oil -producing) Afriacan countries.

One throwaway comment in another Economist article caught my attention, though. China is beginning to import cotton from Africa. The only reason the US trade deficit with China isn't larger than it is -- US exports of cotton to China.

Your thoughts?

China's Hu promises win-win partnership in South Africa - Yahoo! News

Court says Wal-Mart must face bias trial

2007-02-06T15:10:00.000-05:00

The ongoing class-action suit against WalMart, brought by women claiming they did not receive the same pay raises and priomotions as their male counterparts, is back in the news.

WalMart would really realy like for this to not be a class action suit. In a class action suit, the plaintiffs comprise all possible individuals who belong to the class -- in this case, any woman who has worked for Walmart since December 26, 1998. Class action settlements tend to be quite expensive for losing defendants; the news story is using the term "billions".

WalMart can affort the expensive lawyers, who are attempting to demolish the whole concept of class action lawsuits. however the plaintiffs appear to be in this for the long haul.

The suit is entering into its fourth year, but don't be looking for a resolution any time soon. All that's been settled here is the class action certificantion. The testimony, expert witnesses, etc. are way off in the future.

A lot of employment discriminations suits are settled out of court. But, I really don't think WalMart is likely to settle, since any settlement is going to involve some admission of guilt, as well as a financial settlement. My best guess is that we won't see any resolution for 4 to 5 years, and longer wouldn't surprise me out of a year's growth.

Do I have an opinion? Glad you asked.....of course I do. This is a classic "adverse impact" suit, meaning that discrimination is established by statistical evidence establishing that outcomes are significantly different form men and women (the dreaded "4/5 rule"). Once that's done, Walmart has to prove that their promotion and pay practices are business-related (validity). I haven't seen any of the evidence, but, first, I suspect that there'll be a lot of statistical byplay on the 4/5 rule. Also, it isn't a matter of "guilty" or "not guilty" here. I'd guess that the plaintiffs can establish that there is discrimination going on. What the plaintiffs are going to need, though, is to find something in writing (internal memos, etc.) that establishes that the discrimination is intentional. That's, strictly speaking, not necessary for this type of suit, but it would sure help.

Stay tuned for more developments.

Court says Wal-Mart must face bias trial I'll add a more permanent link later on

More thoughts about Scandinavia

2007-01-19T13:23:00.000-05:00

Back in operation again.

In both of the international business classes (day and night), we've touched on Finland and their relationship with Russia. Here's a map showing the disputed territories. I've been looking around a bit, and it seems that I was incorrect in saying that the biggest obstacles to the Russians were General Snow and General Ice. The spring thaw is no fun either, since what that gives you is mud and swamps. Not so cold, but actually more difficult to get around in (after all, if there's snow cover, skis make it easy to get around). If military matters are of interest to you, the person to look at is the Finnish military commander, Marshal Mannerheim.

On a more pleasant note, we also discussed the impact of low birth rates -- an older population and the resulting strains. One part of Europe where, oddly enough, this is not quite as severe a problem, is Scandinavia, a result that has been attributed to these countries' generous social welfare system. Your thoughts on the merits of the Scandinavian approach to supporting families?

Wall-Mart pulls out of Korea - Yahoo! News

2006-05-22T12:19:00.000-04:00

Wal-Mart pulls out of Korea - Yahoo! News

What's interesting here -- toward the end of the article, it mentions that Carrefour is also bailing out of South Korea. The British (Tesco) are doing ok, but they're in a joint venture with a South Korean firm, Samsung (whose Shinsegae subsidiary bought the Wal-Mart operation).

The next step, China. The Wal-Mart folks say that the proceeds from the sale of the Korean units will go towards increasing their presence in China. Only problem is that the Koreans are saying the same thing:

"As a result, E-Mart will increase the number of outlets to 102 including seven in China and will take on all 3,356 workers hired by Wal-Mart."

"With the acquisition of Wal-Mart stores, we will secure the ground for our stable business at home. This will also help us step up our operations in China," Shinsegae president Koo Hak-Seo told reporters."

Stay tuned here for updates.....as far as success in China goes, I'd put my money on the South Korean firms.

"Emblems of Corporate Corruption"

2006-02-23T13:11:00.000-04:00

Very nice look, with a historical perspective, at the public image of Big Business. It's a British perspective, meaning close enough to understand US thinking, yet far enough to have some objectivity. I especially liked the insight about our love-hate realtionship with W**Mart.

America's most-hated companies The very bottom line Economist.com

A different take on gender issues in Japan

2006-02-21T17:04:00.000-04:00

If you'll recall, we touched on gender roles in Japan.

For example, it's only just now that the Japanese are considering changing the rules to allow a female heir to inherit the throne. Japanese women are less likely than women in the US to be part of the paid labor force.

It does seem as though these traditional gender roles are undergioing some change. More and more Japanese women are delaying or foregoing marriage. Japanese women control the household finances. On the other hand, these developments may well mean that women have different expectations, but that men still hold to traditional values. Why marry, if all that means is being a second class citizen. And, if you do marry, have some securtiy that you control.

I'd really like some comments on this one; press the little envelope button below to comment.

IB Exam, February 22

2006-02-20T18:25:00.000-04:00

Do you know what language is spoken in Brazil ??? You should.

Did you look over the Fortune Global 500 slides ?? You should.

Article You Might Use for IB Notebook

2006-02-20T18:22:00.000-04:00

BBC NEWS Africa Nigerian militants claim attacks

New Book on Vanderbilt Women

2006-02-20T15:46:00.000-04:00

This may be of some interest to the leadership class from fall 2005 (who are you kidding, Kristin ?) -- this recently published book is a detailed study of the 2 Vanderbilt women we saw for just a few minutes in the video.

'Consuelo and Alva Vanderbilt,' by Amanda Mackenzie Stuart - The New York Times Book Review - New York Times

Handy Phrases for Your Next Visit To France

2006-02-14T12:34:00.000-04:00

French phrases

Quick post for Feb. 14 -- Cross-Cultural Flirting

2006-02-14T02:22:00.000-04:00

Flirts: doing what comes naturally - Yahoo! News

Geographic Name Changes

2006-02-11T14:11:00.000-04:00

One minor source of confusion can be when a country, region, or city changes its name or goes by more then one name.

From "Turin" to "Torino": Olympics Put New Name on the Map

As in this case, lots of differences stem from translation to English.

In other instances, it's political. For example, St. Petersburg (Russia) went to Petrograd (anti-German feeling in WWI), then to Leningrad (after the Russian Revolution), and now back to St. Petersburg.

For these -- 1 homework point for each that you can explain ("This is the old name, this is the new name"). Find one or two more that I didn't, for 1 or 2 more points.

Other examples of "old" and "new" names -- Volgograd, Persia, Myanmar, Zaire, Beijing, East Pakistan.

Defunct names -- countries that no longer exist -- Yugoslavia,
Czechoslovakia

For other examples, look at internet suffixes -- .ch, .de, .za, .es, .kh. And the really really strange internet domain -- .cat (which is not yet actually in use).

Can money buy happiness???

2006-02-02T12:45:00.000-04:00

Your thoughts?

Unhappy? That's rich . . . - Times 2 - Times Online

Technology Update: Western Union Stops Sending Telegrams

2006-02-01T16:22:00.000-04:00

The age of the telegram is over. When I think "telegram", I think old black-and-white tv and movies. Perry Mason sent telegrams, as did Sam Spade. Ah, well, the telegram has gone the way of the rotary dial phone, the manual typewriter, and the Manhattan......

Nostalia aside, I'm surprised that it took this long.

LiveScience.com - Era Ends: Western Union Stops Sending Telegrams

Internet Censorship

2006-01-25T18:47:00.000-04:00

Real quick -- here it is. Note that this also happens in Europe.

Google: China decision painful but right - Yahoo! News

Russia and Ethnic Issues in the Caucasus

2006-01-21T01:58:00.000-04:00

You've no doubt heard of Chechnya -- politically part of Russia, but ethnically separate. And, depending on which side you want to come down on, there are "Chechnyan terrorists" or "fighters for Chechen independence;" for a somewhat more balanced view, see "Russia struggles to keep grip in Caucasus." Me, I figure there's enough blame for all of the parties to have their share, and then some (where's my 10-foot pole when I need it...)

In any case, the Chechens are just one of many disaffected ethnic minorities in the Caucasus region, none of whom appear to have much use for their Russian rulers. There's the Republic of Ingushetia, as well.

Why does this matter? We'll talk about this next week in class. 10 free homework points to anyone who finds and prints and brings to class the CIA's map of the ethnic and religious groups in this region.

More bad news for brand counterfeiters in China

2006-01-10T23:50:00.000-04:00

I'd always said that the problem of brnad counterfeiting in China wasn't going to go away. Bring out the knife and fork, because I need to dine on those words.

Designer brand pirates told to pack their bags

For this spring's Management 420 class....

2006-01-02T13:01:00.000-04:00

As in previous semesters, a meaningful comment here is worth one extra credit point (maximum 1 point, however).

Starbucks wins China trademark fight

2006-01-02T12:59:00.000-04:00

An ongoing discussion in the International Business class has been the problem with China and intellectual property -- specifically, the reluctance of the Chinese government to take meaningful action to crack down on rampant brand counterfeiting, copyright infringment, and the like. Maybe this is a start???

Starbucks wins China trademark fight - Business - International Herald Tribune

Doing well by doing good: The case of Costco

2005-12-02T15:44:00.000-04:00

ABC News: Costco CEO Finds Decency Is Compatible With Profitability

Note, too, that CEO Jim Sinegal's salary of $350,000 is about 12x what the rank-and-file employees earn; the average in the US today is at about 500x that of employees. This doesn't consign him to poverty; Sinegal is also a major stockholder in a very profitable, growing company.

Your thoughts?

Janitors' Drive in Texas Gives Hope to Unions - New York Times

2005-11-28T04:26:00.000-04:00

Read this story from the New York Times, then watch the 60 Minutes segment entitled "Living Large" (3d story down). Am I the only one who sees a major disconnect here?

Your thoughts?

2005 APEC Economic Leaders Meeting in Korea

2005-11-21T15:25:00.000-04:00

At each APEC conference, the last official photograph of the attendees is in the country's national costume.

WalMart and Health Insurance

2005-11-17T14:40:00.000-04:00

For those of you who have been following the controversy over WalMart and health care......

For the rest of you. The controversy here is over WalMart and how their workers are receiving health care. Although WalMart does provide health insurance for its workers, critics claim that WalMart makes coverage unaffordable for rank-and-file employees, forcing their folks to rely on publicly-funded plans such as TennCare. There are anecdodal accounts of WalMart management actually coaching employees on how to go about reciving public benefits. The Maryland legislature passed legislation earlier this year to basically force WalMart to provide affordable coverage or contribute to the state's costs (rather than sticking the state and taxpayers with the cost) , but the act was vetoed by the governor.

Md. Passes Rules on Wal-Mart Insurance

Now, it's a question of whether or not the legislature has the votes to override the veto.

Wal-Mart Girds for Battle on Md. Bill

Stay tuned for further developments....

Your thoughts ???????

Peter F. Drucker: In Memoriam

2005-11-13T00:03:00.000-04:00

Renowned management writer Peter F. Drucker died Saturday at the age of 95.

Management is doing things right; leadership is doing the right
things.
-- Peter Drucker

Peter F. Drucker, a Pioneer in Social and Management Theory, Is Dead at 95

The Drucker Archives

Grey Market Prescriptions -- A Losing Battle

2005-11-10T23:07:00.000-04:00

For the international business folks -- you'll recall this was our #1 example of grey marketing. Also, from a public policy standpoint, does reimporting druigs from Canada really solve anything? In essence, we in the US are unwilling to put pressure on the pharmaceutical companies to lower costs, so we're outsourcing that task to Canada. Basically, it's as though I don't want to yell at a class, so I get someone else to do it for me.

Your thoughts?

Study: U.S. Can't Keep Illegal Meds Out

Time catching up to World War I veterans

2005-11-10T23:03:00.000-04:00

Not relevant to our classes, but interesting.

AP Wire 11/10/2005 Time catching up to World War I veterans

Hong Kong Disney Opening -- Not 100% Smooth

2005-11-10T19:58:00.000-04:00

Although, as the Disney spokesperson points out, any opening will have problems.

USATODAY.com - Miscues mar opening of Hong Kong Disney

September Trade Deficit Numbers -- Not Good

2005-11-10T15:49:00.000-04:00

U.S. September Trade Deficit Widens to Record $66.1 Billion

The various analysts and company spokespersons quoted in this article don't seem to be especially worried; they attribute the "record" deficits to one-time events, such as the Boeing strike and the September hurricanes. Ok, the Boeing strike is settled, and planes are shipping again, but the impact of the hurricanes isn't going to just vanish overnight.

ALso, the administration is trying to put pressure on China to (1) limit clothing exports to the US and (2) allow the yuan to float (a floating yuan will make Chinese exports more expensive in the US, and should reduce our trade deficit with China). Maybe I'm a professional pessimist, but this doesn't exactly cheer me up.

Incidentally, what's driving that $20 billion + traded eficit with China??? According to the US Census Buraeu (who tracks this information), we're buying "primarily toys, games, and sporting goods; TV’s and VCR’s; stereo equipment; and computers."

Your thoughts ?

Some interesting points about Alva Vanderbilt

2005-11-08T01:01:00.000-04:00

Ok. Tonight in Leadership Seminar, we saw a film on the Vanderbilts. You'd think the focus would be on Cornelius ("The Commodore," founder of the family fortune) or William (son of Cornelius, who greatly added to the Vanderbilt wealthj). To me, the interesting one was neither of these two, but William's wife, Alva Erskine Smith Vanderbilt Belmont. There's a bit more to her than we saw -- she was truly dedicated to the women's suffrage movement, and the divorce from Vanderbilt was suspiciously quickly followed by her marriage to Oliver Bemont.

Long Island History: LI's Rebels With a Cause

WTO Hong Kong Meeting: Setting the Bar Low

2005-11-08T00:34:00.000-04:00

Following arecent meeting of the trade / commerce ministers from the US, EU, Brazil, India and Japan, a general consensus was reached -- that the December meetings of the WTO in Hong Kong will likely not result in much in the way of new agreements. The issue of US / EU agricultural subsidies will be on the agenda, but is unlikely to be resolved, while the richer nations will proabably ask for concessions from the lesser developed countries in areas such as access to markets.

Trade ministers dampen down expectations

The question is, though -- is this necessarily a Bad Thing? One's automatic reaction is to say, yes, that we want diplomatic talks (be they military, political or economic) to move towards resolution of conflict.

However. WTO / GATT negotiating rounds have been on a more-or-less continouius basis for over 50 years now, and there's no question but that progress has been made. The trade barriers we saw prior to WWII just aren't there any more.

[We'll leave out here the deeper philosophical issues over whether free trade is a Good Thing].

Ok. So GATT / WTO has moved slowly, yet continued to make progress. But I'd also make the argument that the issues being negotiated are important ones (the US agricultural subsidies have been around since the 1930's; the EU's agricultural subsidies are driven, by part, from famine expereinces in WWI and WWII). If these are important issues, doesn't it make some sense to move slowly, so that whatever solution is ultimately arrived at is one that all parties concerned can live with? The ag subsidies are an important issue. But, are they such an important issue that we need to rush to settle the issue or is it so important that we need to move slowly, so that whatever answer we reach is the best one?

Your thoughts????

Fujimori trying for a comeback?

2005-11-07T16:41:00.000-04:00

Former Preuvian president Alberto Fujimori (1990 - 2000) is trying for a comeback !! He plans to run for president in Peru's 2006 election (although he's been formally banned from political participation until 2010). Current president Alejandro Toledo is not eligible for re-election (though with approval ratings hovering around the single digits, that's a moot point; see Peru: Administration in Crisis and Peru's Toledo Announces Plans to Shuffle Cabinet (Update2)).

Doesn't appear that there's any clear successor, although the former Finance Minister and current Prime Minister Pedro Pablo Kuczynski is rumored to be interested in the job.

Up until now, Fujimori's been conducting his campaign from the safety of Japan (Fujimori is of Japanese descent, holds Japapnese citizenship, and Japan has refused to extradite him to Peru). However, he was arrested today in Chile. It's unclear whether or not the Chileans will send him back to Peru.

BBC NEWS Americas Fujimori arrested on Chile visit

Corruption Perceptions Index 2005 Released

2005-10-18T22:33:00.000-04:00

This is the index from Transparency International, which the folks from the international business class should recall.

And the winners this year.....

Bangladesh is, again, the most corrupt, followed by Chad. The three most honest -- Iceland in first place, with Finland and New Zealand tied for second. The US comes in at #17.

BBC NEWS: South Asia: Bangladesh tops most corrupt list

Transparency International

Economic growth vs. inflation in EU

2005-10-06T12:33:00.000-04:00

Today's news is appropriate. The ECB (European Central Bank) is keeping interest rates steady, despite pressures to cut rates to stimulate the European economy (which is facing the same energy-related problems as the US). From Business Week:

European Central Bank leaves rate steady

The euro is not just maintaing its strength against the dollar, but continuing to gain. Venezuela is shifting its reserves from US gov't securities to dollar-denominated deposits and is looking to increase it's euro holdings; is this Chavez's paranoia or a Good Idea????

Your comments?

Bogus work excuses on the rise: 'God didn't wake me'

2005-10-04T15:45:00.000-04:00

Bogus work excuses on the rise: 'God didn't wake me'

This is a Yahoo news item, so I don't know how long this link will work.

My favorite -- "The voices told me to clean the guns today."

What are yours?

Microsoft, Google, and Sun Microsystems

2005-10-04T15:12:00.000-04:00

News today:

Google, Sun Challenge Microsoft's Office

Note in the 4th paragraph that Office is referred to Microsoft's "cash cow". This is a perfect example; Microsoft, of course, has the vast majority of market share and most people have an office package (so not a lot of market growth).

But the really interesting question is whether or not Sun & Google can displace Microsoft. [Note here that the 2 companies are hoping that their partnership will create synergy -- remember that concept? Some feel, though, that the big winner here will be Google, that "partnership" really isn't in the picture]

Microsoft has a big competitive advantage here. Its office suite is on most everyone's computer, meaning that:

Support and help (college & continuing ed classes, magazine articles, etc.) assume you're using Microsoft Office -- so if you go with a different product, where's the support?
Most companies and schools use MS Office -- if it's on the computer at school, you might as well have the same program at home.
Sharing files -- passing on a document to co-worker for editing, for example, is possible because everyone is on the same platform.

Here's the big if, though. We also said that competitive advantage had to be sustained, as well as created, and that sustainable competitive advantage depens on innovation. Ok. What Google and Sun are talking about is a competing way of distributing software.

Your comments???

Real Quick Comment for Tonight's Class (337)

2005-09-29T09:37:00.000-04:00

Think strategy. Think SWOT.

Employment Discrimination in Sweden

2005-09-21T16:13:00.000-04:00

This was on Yahoo's front page, so I thought it might be a good idea for me to note a few things. First, this case is in Sweden. As the International Business folks have gotten very tired of hearing, culture and laws differ. True, there have been employment discrimination cases in the US where height requirements and other physical requirements have been struck down (as I recall, some were on gender and others I think on ethnicity). However, in the US cases, the finding was that the requirement wasn't something actually needed for the job [Note 1]. From what was reported here, it sound as though the minimum height requirement was a job requirement -- if a US employer could establish that efficiency or safety really did require the minimum heights, the employer would, I think, probably win the suit.

[Note 1]. The interesting case was with firefighters. Traditional selection requirements for that job included the ability to lift, I think, 250 or 300 pounds. When this requirement was challenged, and a job analysis actually performed, what came out was that the ability to lift that amount of weight wasn't essential; what was essential was the ability to carry a lesser amount over a distance. In other words, endurance rather than strength. Women actually do better on endurence than men. That doesn't mean that many women will qualify as firefighters -- it's not office work. But, if you think through it, doesn't it make sense to take the time to find out what the job really requires, and find people who meet those qualifications?

Ukrainian President in deeper hot water

2005-09-20T13:28:00.000-04:00

Seems that the Ukrainian Parliament is Not Happy with Mr. Yushchenko's recent reorganization of his government. I'm guessing [crystal ball on] we'll see Yulia Tymoshenko running things by next year [crystal ball off].

BBC NEWS: Europe: Ukraine PM rebuff deepens crisis

International Business Exam

2005-09-16T17:01:00.000-04:00

Which Scandinavian country doesn't fit with the others?

Who still has Communist governments?

Fortune Global 500

A website with no discernable purpose.....

2005-09-14T00:02:00.000-04:00

But you should visit anyways...

Cats in Sinks

WalMart and their overseas suppliers

2005-09-13T20:21:00.000-04:00

According to this article ("Wal-Mart Accused of Denying Workers' Rights") in The Washington Post,

An American labor rights group filed a class action lawsuit today against Wal-Mart Stores Inc., alleging that suppliers in five foreign countries denied workers a minimum wage, overtime pay and the right to unionize.

The group is suing...

...on behalf of 15 foreign workers, who contend they were subjected to
illegal working conditions, and four California business owners, who argue
Wal-Mart's alleged conduct amounted to unfair business practices.

Should be interesting. Your comments? Both the HR and International folks should be interested in this.

Nowegian Election Results

2005-09-13T11:29:00.000-04:00

As we discussed last night in International, Scandinavian values are a bit different from ours. Specifically, there's a very strong sense that nobody should be in need. The result -- a social safety net that includes free education, health care, etc [this is the article Ashley was referring to]

This is, in part, financed from Norway's oil revenues (they're the world's 3d largest exporter of oil), but you'll find the same philosophy and similar programs in the rest of Scandinavia. As we discussed last night, this is different. Not better, not worse, just different. Remember that this social welfare system is funded by tax revenues, and Norwegian tax rates are very high.

The election.

Centre-Left Bloc Wins Norway Poll

The right-center party, under Prime Minister Kjell Magne Bondevik, lost to the left-center Labor Party, led by Jens Stoltenberg. It wasn't an issue of safety-net vs. no safety-net, just how far the social welfare system should go

In the news coverage, pay attention to the references to "blocs" -- specifically, neither Labor nor the Christian People's Pary can form a government unless they form a coalition with one or more minority parties.

One factor that didn't come into the elections was EU membership; Norwegian voters have rejected membership, and there doesn't seem to be a lot of sentiment for joining. In fact, Norway gets a lot of the benefits of EU membership (more on that in a couple of weeks), withough having to give up control over fishing rights. A 2004 article from The Economist, though, sees the matter somewhat differently:

The Norwegian Option

Your thoughts?

Bush Suspends Pay Act In Areas Hit by Storm

2005-09-12T08:58:00.000-04:00

The Davis-Bacon Act, Federal law since 1931:

"requires all contractors and subcontractors performing work on federal or District of Columbia construction contracts or federally assisted contracts in excess of $2,000 to pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits for corresponding classes of laborers and mechanics employed on similar projects in the area" (Department of Labor)

For Louisiana rates, see this DoL page (scroll down to Orleans County [yes, I know it's not "county," but "parish" -- you tell the Department of Labor]).

However, it is legal to suspend enforcement in a national emergency:

Bush Suspends Pay Act In Areas Hit by Storm

Your thoughts???

More on Disney Hong Kong

2005-09-11T14:58:00.000-04:00

When Disney opened EuroDisney, there were problems stemming from Disney's lack of knowledge of local customs. Seems as though they're running into problems in Hong Kong as well, this time by adapting to local customs. Disney Hong Kong has added shark's fin soup to the menu, a popular Asian delicacy, but environmentalists protested the shark killings. Also, some are concerned that the Disney souvenirs are made using sweatshop labor. As you might expect, the LA Times has an excellent article on Disney's international trials and tribulations:

Translating Anaheim for Asia

Disney is also considering adding a park in Shanghai.......

Ukraine president sacks his cabinet

2005-09-09T10:28:00.000-04:00

Just what we needed -- more depressing news. Incidentally, a lot of the background on this comes from an excellent paper written by one of this spring's graduating MBA students.

Earlier this year, the Ukrainian Orange Revolution gave us hope that not all of the former USSR was doomed to eternal corruption and tyranny (the Baltics excepted). A reform cadidate, Viktor Yushchenko, survived attempted poisoning and one rigged election to become the democratically elected president of Ukraine. (map and information) Yushchenko rose to power in part because he was seen to be highly competent -- his background was in finance and banking, and people believed that he could put the government's financial house in order and begin to eliminate corruption. In addition, Yushchnko was a good-looking, charismatic speaker (his present appearance owes a lot to the dioxin poisoning).

Fast-forward from January to September. The financial and corruption issues haven't really been addressed; according to the BBC, "infighting" among the Yushchenko administration has taken precedence over getting things done. So, yesterday, Yushchenko cleaned house; chief among the cleanees was Yulia Tymoshenko, the prime minister (head of state). Did Yushchenko want to get to work without political conflict among his top advisors? Did he want to dispose of a potential threat to his power? It's worth noting that Tymoshenko has been urged to form an opposition party or bloc. The defeated candidate for president, Viktor Yanukovich, is returing to Kiev and has "hinted he may cooperate with sacked PM Yulia Tymoshenko." Now, if you really want to go in for conspiracy theories, read this article from Pravda......

For complete coverage of this story and some background, see:

Ukraine President Sacks his Cabinet

Orange Revolution in Turmoil

Putin Still Bitter over Orange Revolution

Ukraine: Why The Road West Will Be Rocky

Hong Kong Disney to Open

2005-09-08T14:42:00.000-04:00

Chinese Stars to Attend Disney Opening

Tonight's Exam (337)

2005-09-08T12:39:00.000-04:00

It would be a Good Idea to go back over Mintzberg's management roles; it'll be a short-answer question.

Random thoughts about technolgy and Microsoft

2005-09-07T15:43:00.000-04:00

Seems that the iPhone is now out; Apple and Motorola have developed a phone that will allow you to store and play 100 tunes.

Apple unveils iTunes phone

This I'd never have envisioned, but the entire point about major change is that it's something that we couldn't imagine in advance. Did any of us need a computer of our own before Bill Gates and Microsoft????

Speaking of Microsoft.......they filed another appeal today in the long-running battle between Microsoft and the EU over anti-trust issues. In this case, on of the major issues is whether or not Microsoft will have to open up its source code. We'll be talking bout this tonight in International; for the Principles folks, this is a good example of how any international involvement adds a huge amount of complexity to your external environment.

Microsoft Files Appeal Against EU Ruling

A One-Time Offer

2005-09-06T14:40:00.000-04:00

1 extra credit point (added to final grade) for the first five people to add a comment to any of these posts !!!!!! (ok, it needs to be a semi-meaningful comment....). If you're in more than one class, tell me which class you want the point for.

Of Interest to both HR and International Business

2005-09-06T14:32:00.000-04:00

This article from the New York Times deals with the efforts of workers, many of them immigrants, to organize labor unions in poultry processing plants.

Union Organizers at Poultry Plants in South Find Newly Sympathetic Ears

For the HR class -- as we discussed last week, there is a rationale for a low-cost HR strategy, such as in cases where jobs are low-skill and there's a lot of price pressure on the company (to deliver a low-cost product). What you want to think through is just how far should that strategy be followed? In other words, what are the ethical implications here?

Your thoughts?

China and Oil

2005-08-24T13:23:00.000-04:00

Ok. The last question I asked you Monday night was this -- where is China going to get the oil needed to fuel (so to speak) its economic growth? They don't produce it themselves. There's oil in Iraq, there's oil in North Central Asia. But, there's lots of folks who want this oil -- the US and Europe, for one; India is also in the market.

China and India Vie for Kazakhstan Oil (8/16)
China Ups the Ante in Its Bid for Oil (8/22)
Uncertain Saudi Supplies Hold Key to China (8/23)

So, is everything gloom-and-doom? Not necessarily. One of the world's 5 most populous countries (China, India, Brazil, and the US being the others) has found an alternative.

Homegrown Fuel Supply Helps Brazil Breathe Easy (6/15)

Your thoughts ??????

China and intellectual property

2005-07-11T15:19:00.000-04:00

Hi folks. For the International Business people, there's an interesting story concerning China and software piracy. Basically, the Chinese government is pledging to enforce already-existing rules about intellectual property protection (that is, software piracy). For more on intellectual property, see the WTO TRIPs page (Trade-Related Aspects of Intellectual Property Rights):

WTO - TRIPS

http://news.yahoo.com/s/ap/20050711/ap_on_bi_ge/china_us_trade;_ylt=Ao8SOYOrcqurw3ZfYE4UPnFvaA8F;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl