Wednesday, April 29, 2009
Monday, April 27, 2009
Friday, April 24, 2009
U.S. Loses a Trade Case Over Japanese Steel Imports
By THE ASSOCIATED PRESS
Published: April 24, 2009
GENEVA (AP) — The World Trade Organization ruled against the United States on Friday in a trade case, saying that it continued to apply illegal import duties on Japanese steel products and ball bearings. The 65-page verdict said that Washington had failed to change how it sets fees for goods it suspects are being sold in the United States at below-market value, despite previous rulings that the United States was violating international trade rules.
If there is no appeal, Japan can ask the global trade body to authorize sanctions against American goods to force compliance. It said last year that the fees were costing Japanese industry $248.5 million each year.
The office of the United States trade representative had no comment. The United States has lost similar disputes with the European Union, Canada and others over how it determines antidumping fees for foreign goods.
Governments investigate dumping when they suspect foreign producers are exporting goods at artificially low prices — usually as a result of subsidies or in an attempt to corner a market. W.T.O. panels have consistently found that the United States overestimates how far below market value imports are, and as a result penalizes them with antidumping duties that are too high.
Published: April 24, 2009
GENEVA (AP) — The World Trade Organization ruled against the United States on Friday in a trade case, saying that it continued to apply illegal import duties on Japanese steel products and ball bearings. The 65-page verdict said that Washington had failed to change how it sets fees for goods it suspects are being sold in the United States at below-market value, despite previous rulings that the United States was violating international trade rules.
If there is no appeal, Japan can ask the global trade body to authorize sanctions against American goods to force compliance. It said last year that the fees were costing Japanese industry $248.5 million each year.
The office of the United States trade representative had no comment. The United States has lost similar disputes with the European Union, Canada and others over how it determines antidumping fees for foreign goods.
Governments investigate dumping when they suspect foreign producers are exporting goods at artificially low prices — usually as a result of subsidies or in an attempt to corner a market. W.T.O. panels have consistently found that the United States overestimates how far below market value imports are, and as a result penalizes them with antidumping duties that are too high.
Thursday, April 23, 2009
Stopping Power - Jack in the Box
Consumers are awash in advertisements. Marketers, zealous in their attempts to persuade potential consumers, have desensitized the vast majority of citizens. We have become, in effect, trained to filter out the massive amount of redundant advertising that we are exposed to. In order for marketing to be effective in this environment, marketing specialists need to be creative. According to Hiam (2007), “Your ads need to have much more stopping power than most to get a significant number of people to remember and think about your product” (p. 229). Young and Rubicam outlined seven principles to aide marketers in creating stopping power. These principles can be helpful in assisting marketing professionals to evaluate the effectiveness of their campaigns.
Jack in the Box (http://www.jackinthebox.com/) (click on ‘Commercials’ for examples) is a popular west coast franchise that frequently has a lot of stopping power advertising campaigns. While their ads tend to be slightly risqué, Jack in the Box advertisements are sure to grab your attention. Amongst the Young and Rubicam principles, these advertisements:
-Surprise the audience
-Communicate expected information
-Violate the rules and personality of the product
Viewers of any Jack in the Box commercial will be surprised and perhaps even startled by the main character, Jack. While Jack is an outlandish character, he communicates the intended message of the marketing team. Consider, for example, the first ad under ‘Commercials’ on the Jack in the Box web site. Jack is seen walking down the street comparing his company to “one of their competitors.” Towards the end of the commercial, Jack is standing with Burger King clearly in the background. At that point, Jack violates the rules and personality expected within the restaurant business by tearing off his sleeves and issuing the challenge: “Do something about it.” This is a very effective ad with plenty of stopping power. For a good laugh check out the next commercial about the jogger coming in for a smoothie. Outstanding stopping power!
References
Hiam, Alexander (2007). Marketing. Hoboken, New Jersey: John Wiley & Sons, Inc.
Jack in the Box (http://www.jackinthebox.com/) (click on ‘Commercials’ for examples) is a popular west coast franchise that frequently has a lot of stopping power advertising campaigns. While their ads tend to be slightly risqué, Jack in the Box advertisements are sure to grab your attention. Amongst the Young and Rubicam principles, these advertisements:
-Surprise the audience
-Communicate expected information
-Violate the rules and personality of the product
Viewers of any Jack in the Box commercial will be surprised and perhaps even startled by the main character, Jack. While Jack is an outlandish character, he communicates the intended message of the marketing team. Consider, for example, the first ad under ‘Commercials’ on the Jack in the Box web site. Jack is seen walking down the street comparing his company to “one of their competitors.” Towards the end of the commercial, Jack is standing with Burger King clearly in the background. At that point, Jack violates the rules and personality expected within the restaurant business by tearing off his sleeves and issuing the challenge: “Do something about it.” This is a very effective ad with plenty of stopping power. For a good laugh check out the next commercial about the jogger coming in for a smoothie. Outstanding stopping power!
References
Hiam, Alexander (2007). Marketing. Hoboken, New Jersey: John Wiley & Sons, Inc.
Wednesday, April 22, 2009
Business Practice: Thoughts on the Rotation of Personnel
The military policy of rotating members is similar in its intent to that of the international business world. Organizations have come to believe that diverse experiences from team members with varied backgrounds will bring more ideas to emerging problems. While there may be some benefits and legitimacy to the practitioners of such policy, I do not believe that it is absolutely necessary to rotate personnel as frequently as the military does. Aside from the enormous expense associated with moving families and personnel great distances, employees tend to operate with an efficiency that would best befit a bell-curve. Ones effectiveness is optimized not at the beginning or end of a tour, but rather in the middle. Shorter rotation periods would seem to have the unintended consequence of abbreviating this optimized efficiency period.
Tuesday, April 21, 2009
Ten principles for a Black Swan-proof world
1. What is fragile should break early while it is still small. Nothing should ever become too big to fail.
2. No socialisation of losses and privatisation of gains. Whatever may need to be bailed out should be nationalised; whatever does not need a bail-out should be free, small and risk-bearing. We have managed to combine the worst of capitalism and socialism.
3. People who were driving a school bus blindfolded (and crashed it) should never be given a new bus. The economics establishment (universities, regulators, central bankers, government officials, various organisations staffed with economists) lost its legitimacy with the failure of the system.
4. Do not let someone making an “incentive” bonus manage a nuclear plant – or your financial risks. Odds are he would cut every corner on safety to show “profits” while claiming to be “conservative”.
5. Counter-balance complexity with simplicity. The complex economy is already a form of leverage: the leverage of efficiency.
6. Do not give children sticks of dynamite, even if they come with a warning.
7. Only Ponzi schemes should depend on confidence. Governments should never need to “restore confidence”. Be robust in the face of them.
8. Do not give an addict more drugs if he has withdrawal pains. Using leverage to cure the problems of too much leverage is denial.
9. Economic life should be definancialised. Citizens should not depend on financial assets or fallible “expert” advice for their retirement.
10. Make an omelette with the broken eggs. We need to rebuild the hull with new (stronger) materials; we will have to remake the system before it does so itself.
Source:Ten principles for a Black Swan-proof world
Nassim Nicholas Taleb
FT, April 7 2009 20:02
http://www.ft.com/cms/s/0/5d5aa24e-23a4-11de-996a-00144feabdc0.html
2. No socialisation of losses and privatisation of gains. Whatever may need to be bailed out should be nationalised; whatever does not need a bail-out should be free, small and risk-bearing. We have managed to combine the worst of capitalism and socialism.
3. People who were driving a school bus blindfolded (and crashed it) should never be given a new bus. The economics establishment (universities, regulators, central bankers, government officials, various organisations staffed with economists) lost its legitimacy with the failure of the system.
4. Do not let someone making an “incentive” bonus manage a nuclear plant – or your financial risks. Odds are he would cut every corner on safety to show “profits” while claiming to be “conservative”.
5. Counter-balance complexity with simplicity. The complex economy is already a form of leverage: the leverage of efficiency.
6. Do not give children sticks of dynamite, even if they come with a warning.
7. Only Ponzi schemes should depend on confidence. Governments should never need to “restore confidence”. Be robust in the face of them.
8. Do not give an addict more drugs if he has withdrawal pains. Using leverage to cure the problems of too much leverage is denial.
9. Economic life should be definancialised. Citizens should not depend on financial assets or fallible “expert” advice for their retirement.
10. Make an omelette with the broken eggs. We need to rebuild the hull with new (stronger) materials; we will have to remake the system before it does so itself.
Source:Ten principles for a Black Swan-proof world
Nassim Nicholas Taleb
FT, April 7 2009 20:02
http://www.ft.com/cms/s/0/5d5aa24e-23a4-11de-996a-00144feabdc0.html
Monday, April 20, 2009
Case Study: Promoting Coke in South Africa
Multinational corporations must work hard to maintain a positive public image. While these organizations stand to greatly benefit from existing technology, capabilities, and economies of scale, they are frequently challenged in their efforts to enter new markets. Consumers are frequently skeptical of change and may harbor some hostility towards large multinational organizations. As Coca Cola has expanded its brand around the world, it has worked hard to be creative in its marketing while maintaining a positive public image. The success of Coke in Africa is a direct result of the company’s ability to embrace and support the unique culture of the many regions around the continent.
Understanding that their image as an American business juggernaut might be met with some resistance, Coca Cola has worked hard to maintain positive publicity in Africa. According to Lascu (2008), “Companies use public relations, supporting their local community and community events to create positive publicity for their brands” (p. 400). In an effort to appeal to the target consumer while enhancing its public image, Coke developed the Coca-Cola Africa Foundation. According to The Coca Cola Company (2008), “The foundation addresses individual and collective needs across issues of health, education and the environment, as well as supporting subject-matter expert development. In short, it is a clear reaffirmation of The Coca-Cola Company's belief in, and long-term commitment to Africa.” By developing this foundation, Coke has demonstrated its commitment to the community and has favorably positioned itself within its target groups. Having positioned itself as a company that cares about the community, Coke has experienced rapid adoption by what might have otherwise been a reluctant market. This success is indicative of the value of maintaining a positive corporate image.
As Coke developed its marketing strategies within Africa, it worked hard to focus on a modular strategy. As a well-known multinational corporation, Coca-Cola had much to gain from utilizing its existing marketing material and strategies. Having identified its target group as young South Africans, Coke leveraged its “Coke Side of Life” campaign to appeal to local tastes. This ability to utilize existing strategies while understanding local trends has proved particularly successful. In addition to utilizing its own marketing teams, Coke has successfully aligned with many partners. In 2002, Coke partnered with Riverside Technologies to create Instant Win cans. According to Instant Win Innovations (2009), “The company currently maintains a long-standing relationship with The Coca-Cola Company, which owns licensing rights to several of our patented “Instant Win!” products.” This marketing campaign further enhanced Coke’s position as a leader in the carbonated beverage industry in Africa.
Coca-Cola, as a rapidly expanding multinational corporation, has worked hard to maintain and enhance its public image. Utilizing public outreach programs, Coke has been largely successful in this endeavor. As corporations move into new and untested markets, it is essential that they consider their public image. Coca-Cola has experienced overwhelming success in Africa due to the combination of this appeal and it consistent and creative marketing campaigns.
References
Lascu, Dana-Nicoleta. 2008. International Marketing (3rd ed.). Mason, OH:
Cengage Learning.
Instant Win Innovations. 2009. About Us. On-line. Available from Internet
http://www.talkingcan.com/About.aspx. accessed 16 April 2009.
The Coca Cola Company. 2008. Regional and Local Foundations. On-line. Available from
Internet http://www.thecoca-colacompany.com/citizenship/foundation_local.html, accessed 16 April 2009.
Understanding that their image as an American business juggernaut might be met with some resistance, Coca Cola has worked hard to maintain positive publicity in Africa. According to Lascu (2008), “Companies use public relations, supporting their local community and community events to create positive publicity for their brands” (p. 400). In an effort to appeal to the target consumer while enhancing its public image, Coke developed the Coca-Cola Africa Foundation. According to The Coca Cola Company (2008), “The foundation addresses individual and collective needs across issues of health, education and the environment, as well as supporting subject-matter expert development. In short, it is a clear reaffirmation of The Coca-Cola Company's belief in, and long-term commitment to Africa.” By developing this foundation, Coke has demonstrated its commitment to the community and has favorably positioned itself within its target groups. Having positioned itself as a company that cares about the community, Coke has experienced rapid adoption by what might have otherwise been a reluctant market. This success is indicative of the value of maintaining a positive corporate image.
As Coke developed its marketing strategies within Africa, it worked hard to focus on a modular strategy. As a well-known multinational corporation, Coca-Cola had much to gain from utilizing its existing marketing material and strategies. Having identified its target group as young South Africans, Coke leveraged its “Coke Side of Life” campaign to appeal to local tastes. This ability to utilize existing strategies while understanding local trends has proved particularly successful. In addition to utilizing its own marketing teams, Coke has successfully aligned with many partners. In 2002, Coke partnered with Riverside Technologies to create Instant Win cans. According to Instant Win Innovations (2009), “The company currently maintains a long-standing relationship with The Coca-Cola Company, which owns licensing rights to several of our patented “Instant Win!” products.” This marketing campaign further enhanced Coke’s position as a leader in the carbonated beverage industry in Africa.
Coca-Cola, as a rapidly expanding multinational corporation, has worked hard to maintain and enhance its public image. Utilizing public outreach programs, Coke has been largely successful in this endeavor. As corporations move into new and untested markets, it is essential that they consider their public image. Coca-Cola has experienced overwhelming success in Africa due to the combination of this appeal and it consistent and creative marketing campaigns.
References
Lascu, Dana-Nicoleta. 2008. International Marketing (3rd ed.). Mason, OH:
Cengage Learning.
Instant Win Innovations. 2009. About Us. On-line. Available from Internet
http://www.talkingcan.com/About.aspx. accessed 16 April 2009.
The Coca Cola Company. 2008. Regional and Local Foundations. On-line. Available from
Internet http://www.thecoca-colacompany.com/citizenship/foundation_local.html, accessed 16 April 2009.
Friday, April 17, 2009
Restricting Entry
Restricting Entry
by Scott Lincicome
Scott Lincicome is an international trade attorney at White & Case, LLP.
This article appeared in the South China Morning Post on April 16, 2009.
The United States trade policy is adrift, seemingly guided by the protectionist winds of an insular Congress, and an administration that seems more focused on enhancing unilateral enforcement mechanisms than affirming a strong commitment to free trade. In a recent speech, US Trade Representative Ron Kirk signalled the administration's desire to enhance domestic legislative tools for use in trade disputes, and plans for asking trading partners to "commit to actions that level the playing field". As a result, America's closest trading partners are worried and angry; our exporters are anxious; and, just two months into the Obama administration, 60 years of US leadership on free trade is in jeopardy.
Since the 1940s, the US has led the charge to remove international barriers to goods, services and investment. The result: a global trade explosion that has enriched American families, spurred innovation, enhanced our security and helped millions escape poverty. Every US president since Herbert Hoover has championed free trade because of its proven benefits.
Since his inauguration, US President Barack Obama has expressed a desire to follow in his predecessors' footsteps. Meeting his Canadian and Mexican counterparts, Mr Obama backed away from his "overheated campaign rhetoric" on the North American Free Trade Agreement (Nafta). His nominees for commerce secretary and US trade representative have been vocal trade advocates, and he has often celebrated open markets and vowed to resist "escalating protectionism".
Unfortunately, Mr Obama's inaction has undermined this pro-trade rhetoric. Mr Kirk's confirmation took a lackadaisical two months, forcing US officials to cancel World Trade Organisation and bilateral trade negotiations. Meanwhile, new Energy Secretary Steven Chu carelessly suggested using tariffs to protect US manufacturers from countries that haven't addressed carbon emissions — only a day after China's top climate change official warned such carbon tariffs could start a trade war. This has all the makings of a captainless ship.
Mr Obama has not countered the protectionist impulses of his Democratic colleagues in Congress. Without White House leadership, Congress has injected anti-trade features into the year's two spending bills: the "stimulus" and the 2009 Omnibus Appropriations Act. Several reports have spotlighted the international angst over the stimulus bill's "Buy American" provision and the US$2.4 billion in retaliatory tariffs that Mexico applies to US exports because of the omnibus bill's ban on Mexican trucks (in direct violation of Nafta). But less reported are the bills' other protectionist gimmicks: the stimulus allows US lumber producers to ignore the federal courts and keep US$92 million in illegally collected Canadian and Mexican lumber duties; the omnibus hits imports of both Chinese chicken and Vietnamese and Chinese textiles, and it enables mandatory country labelling for all imported food.
These measures have been rebuked by many of America's closest trade partners, and Mr Obama has been lectured on protectionism from, among others, Canadian Prime Minister Stephen Harper, European Union Trade Commissioner Catherine Ashton, Brazilian President Luiz Inacio "Lula" da Silva, and Chinese Commerce Minister Chen Deming. The message: on trade, America is an also-ran.
Because of today's rules-based multilateral trading system and the interdependence of global markets, US fecklessness on trade shouldn't lead to devastating protectionism akin to the Smoot-Hawley-induced tariff wars of the 1930s. But it's still a problem. In 2008, global trade contracted for the first time since 1982, and protectionist pressures abound. The WTO's Doha Round is comatose, even though an ambitious deal could inject US$2 trillion into the reeling global economy. Considering the US has steered every major trade initiative in modern history, any chance for significant progress on trade will disappear without strong American leadership — in word and deed.
Despite these problems, all is not lost. Mr Obama, although clumsily, has limited the damage from "Buy American" and pledged to reinstate the Mexican trucking programme, and the other missteps are similarly containable. But if he wants to restore US leadership on trade, Mr Obama must move quickly from defence to offence. He should immediately reaffirm America's unwavering commitment to expanding global trade, not just "resisting protectionism". He should also tell Democratic leaders in Congress that he will not allow protectionist nitpicking to define his trade agenda.
Finally, the president should announce his intent to treat anti-trade provisions in future bills like all other kinds of earmarks — make them public, transparent and extremely limited. These steps will calm the current anxiety over America's wavering trade policy. They will also give the president the breathing room necessary to craft a long-term trade strategy — one that rehabilitates a domestic free-trade consensus and forges a proactive, politically feasible trade policy that will guarantee America's leadership in the global economy for the next decade.
by Scott Lincicome
Scott Lincicome is an international trade attorney at White & Case, LLP.
This article appeared in the South China Morning Post on April 16, 2009.
The United States trade policy is adrift, seemingly guided by the protectionist winds of an insular Congress, and an administration that seems more focused on enhancing unilateral enforcement mechanisms than affirming a strong commitment to free trade. In a recent speech, US Trade Representative Ron Kirk signalled the administration's desire to enhance domestic legislative tools for use in trade disputes, and plans for asking trading partners to "commit to actions that level the playing field". As a result, America's closest trading partners are worried and angry; our exporters are anxious; and, just two months into the Obama administration, 60 years of US leadership on free trade is in jeopardy.
Since the 1940s, the US has led the charge to remove international barriers to goods, services and investment. The result: a global trade explosion that has enriched American families, spurred innovation, enhanced our security and helped millions escape poverty. Every US president since Herbert Hoover has championed free trade because of its proven benefits.
Since his inauguration, US President Barack Obama has expressed a desire to follow in his predecessors' footsteps. Meeting his Canadian and Mexican counterparts, Mr Obama backed away from his "overheated campaign rhetoric" on the North American Free Trade Agreement (Nafta). His nominees for commerce secretary and US trade representative have been vocal trade advocates, and he has often celebrated open markets and vowed to resist "escalating protectionism".
Unfortunately, Mr Obama's inaction has undermined this pro-trade rhetoric. Mr Kirk's confirmation took a lackadaisical two months, forcing US officials to cancel World Trade Organisation and bilateral trade negotiations. Meanwhile, new Energy Secretary Steven Chu carelessly suggested using tariffs to protect US manufacturers from countries that haven't addressed carbon emissions — only a day after China's top climate change official warned such carbon tariffs could start a trade war. This has all the makings of a captainless ship.
Mr Obama has not countered the protectionist impulses of his Democratic colleagues in Congress. Without White House leadership, Congress has injected anti-trade features into the year's two spending bills: the "stimulus" and the 2009 Omnibus Appropriations Act. Several reports have spotlighted the international angst over the stimulus bill's "Buy American" provision and the US$2.4 billion in retaliatory tariffs that Mexico applies to US exports because of the omnibus bill's ban on Mexican trucks (in direct violation of Nafta). But less reported are the bills' other protectionist gimmicks: the stimulus allows US lumber producers to ignore the federal courts and keep US$92 million in illegally collected Canadian and Mexican lumber duties; the omnibus hits imports of both Chinese chicken and Vietnamese and Chinese textiles, and it enables mandatory country labelling for all imported food.
These measures have been rebuked by many of America's closest trade partners, and Mr Obama has been lectured on protectionism from, among others, Canadian Prime Minister Stephen Harper, European Union Trade Commissioner Catherine Ashton, Brazilian President Luiz Inacio "Lula" da Silva, and Chinese Commerce Minister Chen Deming. The message: on trade, America is an also-ran.
Because of today's rules-based multilateral trading system and the interdependence of global markets, US fecklessness on trade shouldn't lead to devastating protectionism akin to the Smoot-Hawley-induced tariff wars of the 1930s. But it's still a problem. In 2008, global trade contracted for the first time since 1982, and protectionist pressures abound. The WTO's Doha Round is comatose, even though an ambitious deal could inject US$2 trillion into the reeling global economy. Considering the US has steered every major trade initiative in modern history, any chance for significant progress on trade will disappear without strong American leadership — in word and deed.
Despite these problems, all is not lost. Mr Obama, although clumsily, has limited the damage from "Buy American" and pledged to reinstate the Mexican trucking programme, and the other missteps are similarly containable. But if he wants to restore US leadership on trade, Mr Obama must move quickly from defence to offence. He should immediately reaffirm America's unwavering commitment to expanding global trade, not just "resisting protectionism". He should also tell Democratic leaders in Congress that he will not allow protectionist nitpicking to define his trade agenda.
Finally, the president should announce his intent to treat anti-trade provisions in future bills like all other kinds of earmarks — make them public, transparent and extremely limited. These steps will calm the current anxiety over America's wavering trade policy. They will also give the president the breathing room necessary to craft a long-term trade strategy — one that rehabilitates a domestic free-trade consensus and forges a proactive, politically feasible trade policy that will guarantee America's leadership in the global economy for the next decade.
Wednesday, April 15, 2009
State Tax Burdens
By
Jeff Cornwall on April 14, 2009 11:04 AM
Each year the Small Business and Entrepreneurship Council puts out its index of tax burden for each state in the US. From their report:
At the state and local levels, taxes have been piling up on small business owners. Many of states and localities continue to increase levies in various ways, including income, property, sales, assorted excise, gross receipts, and death taxes, along with a wide array of fees.
While each and every tax hits business directly or indirectly, different taxes affect economic decision-making in distinct ways. For example, income taxes are the most worrisome, as they impact incentives for working, investing and entrepreneurship. Property taxes affect decisions regarding investments in buildings and housing. And consumption-based taxes can divert and reduce consumer purchases.
You can find an interactive map here.
The top 10 this year includes:
1 South Dakota
2 Nevada
3 Wyoming
4 Washington
5 Texas
6 Florida
7 Alaska
8 Colorado
9 Alabama
10 Ohio
The worst ten states are (OK, DC is not officially a state, but it seems to be headed that way):
42 Massachusetts
43 Vermont
44 Rhode Island
45 Iowa
46 New York
47 California
48 Maine
49 Minnesota
50 New Jersey
51 Dist. of Columbia
Why does this matter? Taxes, regulatory costs and property rights are the top three predictors of entrepreneurial activity within an economy. Look for the bottom states to lag when the recovery begins to get in gear.
http://www.drjeffcornwall.com/2009/04/state-tax-burdens.html
By
Jeff Cornwall on April 14, 2009 11:04 AM
Each year the Small Business and Entrepreneurship Council puts out its index of tax burden for each state in the US. From their report:
At the state and local levels, taxes have been piling up on small business owners. Many of states and localities continue to increase levies in various ways, including income, property, sales, assorted excise, gross receipts, and death taxes, along with a wide array of fees.
While each and every tax hits business directly or indirectly, different taxes affect economic decision-making in distinct ways. For example, income taxes are the most worrisome, as they impact incentives for working, investing and entrepreneurship. Property taxes affect decisions regarding investments in buildings and housing. And consumption-based taxes can divert and reduce consumer purchases.
You can find an interactive map here.
The top 10 this year includes:
1 South Dakota
2 Nevada
3 Wyoming
4 Washington
5 Texas
6 Florida
7 Alaska
8 Colorado
9 Alabama
10 Ohio
The worst ten states are (OK, DC is not officially a state, but it seems to be headed that way):
42 Massachusetts
43 Vermont
44 Rhode Island
45 Iowa
46 New York
47 California
48 Maine
49 Minnesota
50 New Jersey
51 Dist. of Columbia
Why does this matter? Taxes, regulatory costs and property rights are the top three predictors of entrepreneurial activity within an economy. Look for the bottom states to lag when the recovery begins to get in gear.
http://www.drjeffcornwall.com/2009/04/state-tax-burdens.html
Monday, April 13, 2009
Thursday, April 9, 2009
Wednesday, April 8, 2009
Tuesday, April 7, 2009
Monday, April 6, 2009
Case Study: Smart ForTwo: One Car for Narrow European Alleys
Auto manufacturers have long-understood the need to make smaller and more efficient vehicles. While large trucks and SUV’s dominated the market at the turn of the century, the trend toward smaller and more efficient vehicles did not sneak up on anyone. According to a report published in 2001, “automobile manufacturers are under increasing pressure to lessen the adverse environmental impact of their products—pressure that will likely encourage car companies to spend greater resources on the development of smaller, more fuel-efficient vehicles that increasingly meet the wants and needs of their customers” (DeGroat, 20 Dec 2001). Having previously identified such a trend, Mercedes-Benz was experimenting with a new vision for cars going forward: The Smart Car.
As a manufacturer of high-quality automobiles, Mercedes-Benz understood the need to carefully protect their image as a premium car-maker. This reality needed to be combined with the ever-changing marketplace. Understanding the need to begin producing smaller and more efficient cars, the Smart was launched in 1998. At a time when Detroit-based car companies were building bigger and bigger automobiles without regard to fuel economy, the Smart-design offered consumers an affordable, two-seat car. Having originally designed Smart cars for the small and crowed streets of Europe, the company has attempted to enter the U.S. market in recent years. The Smart ForTwo model was launched in Europe in 2007 and was designed to meet the requirements of the United States. This car was designed to meet governmental regulations within the U.S. market, however other aspects of the Smart ForTwo will take some adjustments for American consumers. According to Consumers Reports (April 2009), the SmartForTwo “features a 1.0-liter, three-cylinder engine that can keep up with traffic but is very slow when starting from a stop.” In addition to performance concerns, American consumers have been slow to adjust to a small car design. The challenges of converting consumers to a new design have troubled the European car maker in its attempts to market the Smart ForTwo in the United States. The marketing team at Smart determined to market their car towards trend-setting young people and internet savvy consumers. In an attempt to rebuff perceptions of inferior design and ease consumer apprehension, “the company staged a 50-city road tour so people could drive the car” (Lascu, 2008, p. 284). Having faced many challenges in developing the new concept for a global marketplace, the Smart design has begun to gain noteworthy traction.
Many consumers are hesitant to try new things. Seeking comfort in the familiar, Americans presented a challenge to the executives at the Smart Car Company. Car manufactures must continually assess market conditions to adjust their branding strategy, vehicle designs and concepts. While the Smart ForTwo may meet with wide acceptance in Europe, designers may need to modify the American product to meet consumers’ expectations. “Most Americans want a car with better fuel economy, but only about half say they would be willing to sacrifice size or performance to get it” (Valdes-Dapena, 24 May 2007). This trend may change, but remains a challenge for the Smart ForTwo today.
References
Consumer Reports . April 2009. Best & Worst 2009 Cars. P. 66.
DeGroat. B. 20 Dec 2001. Smaller, more fuel-efficient vehicles may gain buyers in next decade. On-line. Available from Internet
http://www.umich.edu/~newsinfo/Releases/2001/Dec01/r122001c.html, accessed 4 April 2009.
Lascu, Dana-Nicoleta. 2008. International Marketing (3rd ed.). Mason, OH: Cengage Learning.
Valdes-Dapena, P. 24 May 2007. We want better mileage - but power and size, too. On-line. Available from Internet http://money.cnn.com/2007/05/24/autos/cr_mpg_survey/index.htm, accessed 4 April 2009.
As a manufacturer of high-quality automobiles, Mercedes-Benz understood the need to carefully protect their image as a premium car-maker. This reality needed to be combined with the ever-changing marketplace. Understanding the need to begin producing smaller and more efficient cars, the Smart was launched in 1998. At a time when Detroit-based car companies were building bigger and bigger automobiles without regard to fuel economy, the Smart-design offered consumers an affordable, two-seat car. Having originally designed Smart cars for the small and crowed streets of Europe, the company has attempted to enter the U.S. market in recent years. The Smart ForTwo model was launched in Europe in 2007 and was designed to meet the requirements of the United States. This car was designed to meet governmental regulations within the U.S. market, however other aspects of the Smart ForTwo will take some adjustments for American consumers. According to Consumers Reports (April 2009), the SmartForTwo “features a 1.0-liter, three-cylinder engine that can keep up with traffic but is very slow when starting from a stop.” In addition to performance concerns, American consumers have been slow to adjust to a small car design. The challenges of converting consumers to a new design have troubled the European car maker in its attempts to market the Smart ForTwo in the United States. The marketing team at Smart determined to market their car towards trend-setting young people and internet savvy consumers. In an attempt to rebuff perceptions of inferior design and ease consumer apprehension, “the company staged a 50-city road tour so people could drive the car” (Lascu, 2008, p. 284). Having faced many challenges in developing the new concept for a global marketplace, the Smart design has begun to gain noteworthy traction.
Many consumers are hesitant to try new things. Seeking comfort in the familiar, Americans presented a challenge to the executives at the Smart Car Company. Car manufactures must continually assess market conditions to adjust their branding strategy, vehicle designs and concepts. While the Smart ForTwo may meet with wide acceptance in Europe, designers may need to modify the American product to meet consumers’ expectations. “Most Americans want a car with better fuel economy, but only about half say they would be willing to sacrifice size or performance to get it” (Valdes-Dapena, 24 May 2007). This trend may change, but remains a challenge for the Smart ForTwo today.
References
Consumer Reports . April 2009. Best & Worst 2009 Cars. P. 66.
DeGroat. B. 20 Dec 2001. Smaller, more fuel-efficient vehicles may gain buyers in next decade. On-line. Available from Internet
http://www.umich.edu/~newsinfo/Releases/2001/Dec01/r122001c.html, accessed 4 April 2009.
Lascu, Dana-Nicoleta. 2008. International Marketing (3rd ed.). Mason, OH: Cengage Learning.
Valdes-Dapena, P. 24 May 2007. We want better mileage - but power and size, too. On-line. Available from Internet http://money.cnn.com/2007/05/24/autos/cr_mpg_survey/index.htm, accessed 4 April 2009.
Friday, April 3, 2009
The S&P/Case-Shiller Home Price Indices
The S&P/Case-Shiller Home Price Indices measures the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan regions across the United States. These indices use the repeat sales pricing technique to measure housing markets. First developed by Karl Case and Robert Shiller, this methodology collects data on single-family home re-sales, capturing re-sold sale prices to form sale pairs. This index family consists of 20 regional indices and two composite indices as aggregates of the regions.
Thursday, April 2, 2009
Wednesday, April 1, 2009
BP Prudhoe Bay Royalty Trust: Company Report
BP Prudhoe Bay Royalty Trust (the Trust) is a grantor trust. The Trust was formed for the sole purpose of owning and administering the Royalty Interest. The Royalty Interest is a non-operational interest in minerals. The Royalty Interest entitles the Trust to a royalty on 16.42% of the lesser of the first 90,000 barrels of the average actual daily net production of crude oil and condensate per quarter from the working interest of BP Exploration (Alaska) Inc. (BP Alaska), as of February 28, 1989, in the Prudhoe Bay oil field located on the North Slope in Alaska, or the average actual daily net production of crude oil and condensate per quarter from that working interest. The Prudhoe Bay field is one of four contiguous North Slope oil fields that are operated by BP Alaska and are known collectively as the Prudhoe Bay Unit.
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