wilson96   Economy, Politics, and More…

Economies of scale is more important in the business environment in this day and age, mainly because of the Internet. The Internet draws people closer together, and allows everyone to exchange information easily. It is not uncommon to see consumers comparing prices and reading reviews on the Internet before coming to a buying decision. They can compare prices for physical products such as automobiles, hand phones, MP3 players, or they can compare prices for non-physical items such as car insurance, credit card interest rates, and more. But what does such consumer behavior mean for the modern business owner? As prices become transparent on the Internet, it is critical for businesses to maintain competitive prices so as to stay profitable. Either that, or they will have to come up with exclusive products that cannot be easily found elsewhere. But chances are, a wide range of products can be easily found online. For instance, anyone can just visit a trade lead directory and locate partners from different countries that supply similar products. They may then compare prices and select the best possible deal. In fact, this is a common procurement process adopted by many savvy business owners. As mentioned earlier, it is crucial for businesses these days to keep their prices low so as not to lose favor with their customers. To do so, they have to achieve economies of scale. That means buying in volume to bring the prices down. Volume here becomes of vital importance. To own a certain segment of the market, they must sell as much as they can. Hence, the need to consider the global market – for what can be bigger than the global market? In order to acquire customers from other countries, businesses are again turning to the Internet. They can list their business contact information on trade lead business directories, and allow targeted leads to contact them through these websites. Usually, a lead directory will allow the business to list their email contact information and their corporate website URL. Addresses and phone numbers can be listed too, but these are optional. Once listed on a trade directory, other businesses interested to make contact can choose to email the business owner or visit their website directly. They may make contact to ask for quotations, or simply submit a product enquiry. However, note that the listing will expire after a certain period of time. Even though listing a company in a trade directory means paying a small listing fee, this fee is often much cheaper compared to traditional print advertising. Advertising in international trade magazines may cost up to thousands of dollars. Sometimes, the leads acquired from these advertising channels do not even lead to actual sales orders. As you can see, the benefits offered by trade directories are tremendous. You can minimize risk by buying a listing for a small fee, and be able to immediately tap into the global market. When such business networking activities are pursued actively online, business owners have a much higher chance of enjoying greater economies of scale, and thus enjoy more handsome profits.

Sales prospecting in down economies is no different than sales prospecting in up economies. It is still a behaviour, a discipline – doing what we have to do, even when we do not want to do it.
The only difference is that you may have to invest more time in sales prospecting in a down economy.
Sales prospecting can be time consuming in itself, but in a down economy, it is even more time consuming as sales prospects seem to be harder to find.
Therefore, more time invested in sales prospecting is required. If you did ten daily sales prospecting calls before, you may now have to do twenty to get the same results.
However, besides investing time, there is a better way to get the same or better results when it comes to sales prospecting. But first, you have to do your homework.
You need to know what our sales prospects should look like – you need to profile them so that you can take a targeted sales prospecting approach and not a shot gun approach.
It is the shot gun approach that is time consuming and does not get you the sales prospecting results you are looking for.
In a targeted sales strategy you need to define the criteria for three customer levels – A, B, and C.
The 80/20 rule states that 80% of your sales results come from 20% of your customers.
That 20% would be considered as your best customers. They are “A” or absolute customers, because they provide you with 80% of your revenues and without them, you would be out of business.
Answer this question: What criteria best describes you’re A customers? Is it profitability, loyalty, margin, volume, brand, relationship, etc.? Note your answers.
Then you need to proceed with the same question for the next level of sales prospecting – “B” beneficial customers. So, what is the sales criteria for your “B” level of customers ? How are they distinguished from A customers? Note your answers.
You can then proceed with what is the sales criteria for your next level of customers – “C” – convenient customers? How are they distinguished from B customers? Note your answers.
You may find that most of your prospecting activities are probably to “C” or convenient customers, as most sales people invest 80% of their sales prospecting time where they get 20% of the revenues.
So, let’s do the opposite and focus our sales prospecting activities on the A customers.
Once your sales criteria is defined for each level of customer, go to your sales data base and using the sales criteria identify your existing customers as A, B or C.
Separate the A customers and create their profile based on the information on hand. You will find that there is something different about them, compared to the B’s and C’s.
What is that difference? Now map that profile over to the market place for sales prospecting. Who are the A sales prospects out there that are not presently doing business with you?
Do the same with the B customers and identified the sales prospects for you B category in the marketplace. Also, look at your existing B customers who have potential to be come A’s.
Sales prospecting can be fun and most rewarding for sales results when you invest the time and plan your sales prospecting approach.

Recessions Are For Economies, Not Individuals…

by Grant CardoneThe television, the radio and the economist continue to report how much is wrong with the American Economy and then viewers and listeners go into agreement with the reports and make the bad news reported become reality for themselves. I have been through about nine of these so called pullbacks over my life-time and have survived every one of them! Here is some data you need:

World economies are facing a triple threat. Oil reserves will be close to depletion by the year 2050. Damages from climate changes caused by escalating greenhouse gas emissions will become substantial. Rising transportation and food costs will slow economic growth rates. The results will lead to worldwide economic stagnation without hope for escape or reversal.

Future generations will have to pay dearly for the failure of previous national governments to eliminate carbon dioxide emissions and to change world energy supplies. Our dependence on fossil fuels must be terminated completely within the next three to four decades or the world will self-destruct.

Let’s us look at the facts that lead to these frightening conclusions.

Statements about petroleum reserves have been dubious in the past. In 2007, lowest figures are in the range of 1 to 1.3 trillion barrels. A figure as high as 2.3 trillion barrels has been proposed but will not find many supporters, not even in the oil industry.

At the 2006 rate of oil consumption of 31 billion barrels per year, these reserves could last 32 to 74 years. Such figures are often quoted but are much too high because annual oil consumption is continually rising. The growth rate is approximately 2% per year. Projecting steady growth to the year 2050, the actual consumption is going to be 60% higher. This increases the average annual consumption rate between 2006 and 2050 to a very realistic 50 billion barrels per year. Time to depletion is reduced to a time span of 20 years to 46 years. Most likely, neither figure is correct. However, it is reasonable to assume that a figure between 20 years and 46 years will be most likely.

Combusting 1 to 2.3 trillion barrels of oil will add a huge amount of carbon dioxide to the atmosphere. The amount is 0.42 to 1 trillion tons of carbon dioxide. This huge mass will increase the carbon dioxide content in the atmosphere by 55 to 125 ppm. Only a small percentage of this additional mass will be absorbed in the oceans. Most of it will lead to a substantial increase in the atmosphere’s carbon dioxide content.

During the same time, an even larger amount of carbon dioxide will be added to the atmosphere from the accelerating burning of coal and natural gas.

There is a direct connection between carbon dioxide accumulation and global temperature increase. During the last 30 years, this correlation amounted to approximately 2 degree C per 100 ppm carbon dioxide. If we accept this correlation as valid, we are faced with some very ugly numbers. During the next 46 years, we will increase the atmospheric carbon dioxide concentration by at least 200 ppm. In turn, this increase will result in a rise of global temperatures by 4 degree C. This means that by the year 2050, the world will have warmed by 5 degree C! This figure is more realistic than recent IPCC forecasts.

The robust growth of world economies and the exceptionally fast increase in energy consumption in China and India will result in much higher energy consumption and in a much faster growth of greenhouse gases than originally predicted. Two other accelerating factors are the failure of the Kyoto Protocol to perceptibly reduce greenhouse gas emissions and the decision of the USA to delay any countermeasures.

In view of actual, past developments and by accepting a realistic future outlook, we must draw several, inescapable conclusions. The increase of global temperatures on Earth will become faster, transportation of commodities and goods will get extremely costly, and the effects of global warming on climate change will continue to become more numerous and more destructive. This confluence of future developments will lead inescapably to a major threat to all world economies.

Once world economies begin to contract and collapse, national economies cannot marshal any longer the necessary resources that could have saved the world. Installation of effective countermeasures will require a minimum time of thirty years. Once economies contract, there will be no resources and no time left to implement solutions.

The world will have lost the ability to install any of the promising, renewable technologies, which are able to produce electricity and liquid transportation fuels without the emission of any destructive greenhouse gases. The world as we know it will cease to exist.

Recently, a roundtable discussion regarding the future of US economics was carried out by Black Enterprise, a business magazine in the United States. Members of the assembled roundtable committee included financial advisers and strategists from companies like Oppenheimer & Co. and Wealth Management Network. Here’s what the experts have to say. Optimism amidst negative market conditions As we already know by now, the United States economy is suffering from countrywide recession, and there has been a domino effect to dollar-pegged economies around the world.According to Gail Perry-Mason, VP for financial services of Oppenheimer & Company: “In the United States, it’s going to be slow growth. I still think there is growth there. No matter who you are or what you do, there is always some opportunity. You’re going to get opportunity with diversification. Our firm is looking at maybe 8% but more overseas.”Overseas growth is a large determinant in the United States economies, given that most of its production is carried out elsewhere. Inexpensive labor markets abroad offer US companies good opportunities to optimize competitiveness to expand further. Perry-Masons’s view had been supported by David Hinson of the Wealth Management Network, which is based in New York: “I think 2009 is going to be a very good year for investing. I think, though, that we are going to see a lot of volatility in the market. Over the past couple of years, much of the returns have been made in spurts, short periods of time.”Hinson further explains the volatility of the 2009 market: “I think we’re going to see an increase this year in market volatility because the issues that we are facing in the U.S. economy and the global economy are fairly traumatic. But I believe that we will see that stocks will outperform bonds in 2009. I believe that active management will outperform passive management. I believe that international equities and emerging markets will outperform U.S.equities.”Such positive outlooks only serve to bolster the regulation that is being implemented selectively for the largest losers in the near-meltdown in the US. Losers include General Motors, which had met with the US Senate many, many times for the state-sponsored financial aid.Transnational markets Transnational markets are being seen as the last bastions of progress in US economy. The rationale behind this prediction is the fact that most trans-border mergers and transnational expansions are stabilizing on their own, without state regulation. Outsmarting the rest of society is the way to go, according to Jan J. Williams of the AXA Advisors from Atlanta: “The world is a global market now like never before. There is no historical precedent. Never before have we had emerging markets that have stabilized. In previous times, we always had emerging market opportunities, but there was always a lot of risk associated with [them] because of the political situation in those countries and also the lack of an infrastructure to build on.”“Now, you look at emerging markets and they have exceeded us. For example, if you look at India, Pakistan, Indonesia, Malaysia, you look at the industries there [that have been] built with brand new technologies, facilities, and production capacities–all new infrastructure that is far ahead of where we are.”

Can the Markets Rise, When Economies Dive? Monday, March 30, 2009 By dodjit.com

During the course of an economic cycle, interest rate increases are used to restrain rapid inflation or growth during a bullish market, while rate cuts are used during market mayhem (a bearish market), in hope that the declining rates will encourage consumer consumption, returning the economy to a normal and healthy state.

Throughout this cycle 2003-2009, the Fed has used numerous methods apart from its standard rate cuts to propel the economy. The recent one has been quantitative easing, where central banks have participated in the bond market, while injecting money into the financial system. Over a year and a half ago, analysts thought the claim that a market recession reaching the scales of the 1930’s depression is ‘farfetched’. To date those investor’s thoughts are quite different as exploitation of the housing sector has caused a snow-ball affect throughout the world economy, forcing government officials to make coordinate efforts to redeem the world’s economy. Over the last couple of months government interference in the markets has intensified as numerous banks and large caps have been nationalized, to help prevent further loses across the globe. In addition, economic data continues to pour out showing a deteriorating economy, forcing officials to come out with new creative methods.

Despite the negative data and gloomy outlook the markets have recently increased, making investors question as to whether the recent rally is a change in trend or just a simply a bullish rally in a bearish market. While it is too early to determine any change of trend, one must take into consideration the following:1) Interest rates reductions or increases can take up to 9 months to leak through the system, affecting the economy.2) The markets work on expectations; therefore if government officials are aiming for a market turnaround towards the end of this year, the indices will price it in beforehand.3) Once the indices retrace a fair part of their losses, demand will increase on positive sentiment, driving the markets even higher.4) Low interest rates will eventually spark demand across the board as consumers will take advantage of the low rates, especially as rates like these might not last.Last week’s trading session presented mixed signals as the U.S housing sector suddenly showed signs of slight improvement. According to the National Association of Homebuilders, single family homes increased for the first time in seven months, adding an increase of 4.7% to new-home sales. In addition, over the last two weeks of trading the U.S government has addressed the market, stating that it intends to buy back government bonds and the far end of the curve, in an effort to reduce the costs of home purchasing. By taking a look at the homebuilder’s index one can see the recent increase, caused by the improving data and overall market momentum.Will the Market Rally Continue?While there is quite a lot of market moving data coming out this week, including the G20 meeting and unemployment results from the U.S on Friday, one must not steer away from the housing sector (the cause of the current economic situation).Following this week’s U.S manufacturing data, housing figures are expected to be released and could show a further improvement in the sector. In addition unemployment data is expected to show another 656,000 job losses in the month of March. While one might think that the figures are devastating, the markets could react in a completely different way.During the U.S ‘s last recession (2003-2003) the U.S unemployment rate continued to rise and Non-farm Payrolls decreased, while the markets were forming a bottom. The unemployment rate peaked during the middle of 2003, when the U.S indices were far off their lows. With the G20 meeting coming up, an interest rate decision from Europe and employment data coming out, the markets could see some profit taking around current levels, accompanied by an increase in market volatility. Just keep in mind that the markets could surprise, especially when investors are already expecting further bad news. A ‘higher-low’ will give confirmation like in 2003.2002-2003

2007-2009

Germany as an economic hub Germany is one of the most highly developed industrial nations in the world and, after the USA and Japan has the world’s third largest national economy. With a population of 82.3 million Germany is also the largest and most important market in the European Union (EU). In 2007, Germany’s gross domestic product (GDP) totaled EUR 2.42 trillion, which translates into per-capita GDP of EUR 29,455. With an Export volume of EUR 969 billion or one third of GDP in 2007, Germany is the biggest exporter of goods worldwide, and as such is considered to be the “export world champion”, more of a global player than almost any other country and more strongly linked to the global economy than many other countries. Most recently, the German economy has seen a robust upturn, growing 2.5 percent in 2007. The increase in corporate investments was especially pronounced at 8.4 percent. The economic growth, stimulated by factors both inside and outside Germany, sparked a reduction in the number of registered unemployed. Economic policy has improved the overall conditions and companies have sharpened their competitive edge. Thus, ancillary wage costs have been reduced, the labor market made more flexible and red tape slashed. An attractive location for foreign investments Germany is one of the most attractive countries world-wide for International investors. On an international country comparison, Germany does especially well as regards R&D, skill levels and logistics. Moreover, it enjoys a central geographical position, offers strong infrastructure, legal certainty, and the right workforce. The labor force’s high level of qualifications is seen as an important plus point. Around 80 percent of employees have undergone formal training and only 20 percent hold the degree from a higher education institutes or university. The “dual system” for vocational training provides the bedrock here, combining on-the-job and college training, a policy which results in the well-known high standard of education. Technology leader in many sectors Germany is one of the leading nations regarding numerous technologies of the future that have exceptional growth rates. These include bio-technology, nano-technology, IT and the numerous high-tech divisions in individual sectors (aviation and aerospace, electrical engineering, logistics). Companies specializing in environmental technology (wind energy, photovoltaic power and biomass generation) have emerged as front runners. Today, Information and communications technology follows car-making and electronics engineering as the third largest economy’s sector. As per to genetic engineering, Germany is second to the United States worldwide and already has cutting edge in numerous fields of nanotechnology. The key industrial sectors The key industrial sectors are car-making, electronics, mechanical engineering and chemicals. As is the case in all western industrial nations, for several years now German industry has been in the midst of structural transformation. Some traditional industries (steel, textiles) have in partly shrunk considerably in recent years, with target markets now elsewhere and strong pressure from lowwage countries, or, as in the case of the pharmaceuticals industry, through M&As have come under foreign ownership. Successful: Germany in the global economy Given its high level of exports, Germany is interested in open markets. The most important trading partners are France, the USA and Great Britain. In 2006, goods and services worth EUR 85 billion were exported to France, EUR 78 billion to the USA and EUR 65 billion to Great Britain. In addition to trade with the original European Union member states, since the EU’s expansion eastwards (2004 and 2007) there has been a pronounced increase in trade with the east European EU member states. In total, a good ten percent of all exports go to these countries. The importance of trade and economic relations with emerging nations in Asia such as China and India is growing continually. Economic system: Performance and social balance Germany is a Social market economy. This is other strong reason why Germany enjoys a high degree of social harmony, something reflected in the fact that labor disputes are so rare here. On average between 1996 and 2005 the work force went on strike for on just 2.4 days per 1,000 employees and thus less than even Switzerland, which saw 3.1 days of strikes. The social partnership of trade unions and employer associations is enshrined in the institutionalized settlement of conflicts as outlined in the collective labor law. The Basic Law guarantees the social partners independence in negotiating wages, and they accordingly have the right themselves to select the working conditions. All the latest information about Germany economy is available at German Information Centre. So if you are interested in knowing about Germany economy please visit at German Information Centre.

As the title says. In the simplest form, how does the US economy work.
Also, how does our economy effect foreign economies? (How does out financial crash cause other economies to follow suit?)