World Trade News

During the past week, the world has witnessed aother companies that have joined the market for
series of events that influenced the varioushybrid cars are Ford and Toyota.Based on its
sectors of the growing global economy. On onerecent report, Ford Motor Co. has dropped down
hand, some events promised more developmentsin its sales by 4% last month. Another company
and expansion not only in the international tradethat has followed the same trend is General
but also in specific countries. On the other hand,Motors. According to GM, its sales also decreased
some occurrences may negatively impact or alterby 2.5%. Meanwhile, the total sales of both
certain aspects of world trade including theToyota and DaimlerChrysler continued to improve
economy of the country specifically involved.Oilthis year. Particularly, the Chrysler Group jumped
Price Rolls Back in the World marketThe entirein its sales by 3% of around 190,367 cars. Some
week is full of good news for oil importersof the most popular automobiles sold by the
worldwide. Since Monday, the oil price decreasedcompany are: Dodge automobiles, Chrysler, and
by $2 per barrel in the world market. Prior toJeep. Chrysler's Mercedes-Benz also improved by
that, the value of oil kept on increasing due to the28%. Toyota reported that its sales within the
disruption of supply in Iraq as well as in Nigeria.U.S alone rose by 2.4% to around 166,940 cars
According to the report by Mohamed El Baradei,last February.Although Ford's sales on Jaguar have
director of International Atomic Energy Agency,decreased last year, the auto maker declared
Iraq has been planning to empower its productionthat it has no plans of selling Jaguar. Ford bought
of nuclear fuel. The news has caused tension andthe famous car brand back in 1989 for around
raised concerns regarding nuclear weapons.1.6B pounds. This year, the car company is
Discussion about the issue is currently ongoing.positive that Jaguar sales is going to recover and
The IAEA will talk about the subject on itsimprove. Ford is also set to release a new car
scheduled meeting on March 6. After which, themodel that would be hitting Europe soon. This is
report will be handed to the U.N security for finalpart of its strategy to keep up with the strong
assessment.The almost $2 decrease of oil price incompetition against other auto giants especially
the world market was caused by a failed terroristthose that come from Asia.As part of its move
attack that took place at the largest oil plant into recover from its losses, General Motors
Saudi. The situation though was immediatelyofficially tasked Jerry York as its newest member
controlled by the Saudi forces that were rousedof the board. York is noted for its remarkable
to full alert because of the tension. The oil supplyachievements at Chrysler and IBM. Although GM
though was not disrupted within the countryhas been receiving negative feedbacks lately,
despite the attack. The value of light crude oilYork is positive that the company is going to
decreased by $1.91 while the price of brent cruderecover. During his January speech, he proposed
oil lowered to $1.61.The opposite situation,five things to the GM management: first, to make
however, is taking place in Nigeria. Just recently,the expectation of revenue and cost more
the oil price rose up to more than $2 per barrel.realistic; second, reduction of product offerings;
The sudden increase was influenced by the newsthird, review the whole company with an unbiased
of the Saudi terrorist attack. Moreover, anotherperspective; fourth, focus on core businesses;
reason was oil supply within the Nigerian regionfifth, set a clear vision for the company.Several
was cut by 13,000 barrels per day due to theComputer Companies Seek for ExpansionIn terms
discovery of a leak. The series of militant threatsof technology, Intel Corp. recently got the official
and attacks within the region also prompted thepermission from Vietnam in order to construct a
increase of the oil price.According to energymicrochip plant within its territory. Earlier, the
analysts, the improvement of the oil price in theleading microchip company, proposed the $605M
world market would have been even better.project, which will be built at Ho Chi Minh city.
However, there are several factors (like theVietnam would surely benefit from the budget
focus of the oil market on short-term inventorysince the project is expected to attract more
data) that prevent more positive results.foreign investors in the country.Meanwhile, Lenovo
Currently, the oil price still remains close to $61computer company has announced its plans to
per barrel as a result of Algeria's plea to OPEC forrelease computers that bear the company's
market stability.Meanwhile, Shell, which is the thirdname. Lenovo computers formerly carried the
leading oil company, has gained a total of $23 Blogo of IBM. The company stated that the move
profit last year. This should be an enough reasonis part of its plans to establish itself in the
to celebrate, but the huge oil company is currentlyworldwide market of computer technology.Just
facing the need to improve and expand its oilrecently, Apple computers invited several analysts
resources. Otherwise, it will run out off supply inand new reporters to its Cupertino base in order
the future. According to reports, Shell was onlyto check out its so-called "new and fun products."
able to replace between 60% - 70% of the gas itSo what's up with the big bang? Rumor has it
used for production last year. In 2004, thethat Apple is intending to expand its technological
percentage was even lower with only 19% orproducts into Hollywood. Apparently, its iTunes
replacement.Shell, however, is making use of itshas been contributing to the promotion of many
large assets in order to meet the stiff marketTV programs. Again, there's a possibility that the
competition. Its oil reserve projects located inlatest rumors could again turn out to be wrong.
Nigeria, Sakhalin Island, and Gulf of Mexico areYet then invitation given by Apple is surely a good
currently underway. The success of thesesign that the company is up of a big bang of a
projects would definitely empower the company'ssurprise for everyone.As part of China's vision to
future possibilities.Regions in the U.S particularlyimprove its local technological industries, Vice
East Coast and Nigeria are also facing issues withPremier Wu Yi vowed last Thursday to
regard to their oil supply. This problem maystrengthen the fight against illegal copying of
eventually result to changes in the price of fuel.softwares, music, and videos. Piracy has been a
This situation is primarily caused by the shift in thegrowing problem in the country for years. Despite
chemical used in the fuel refining process.several attempts to combat it, the problem
Formerly, MTBE (methyl tertiary butyl ether) wascontinues to spread. In fact, piracy in China has
used during the process. The use of MTBE,roused international complaints including the report
nevertheless, led to problems and protestsmade by Washington. Now, the Vice Premier
regarding water pollution and the contamination ofpledged to strengthen the battle against piracy
water supply. As an alternative, fuel companies innot only as a response to these foreign
the U.S particularly in the East Coast and Texascomplaints, but also as part of China's goal to
are utilizing ethanol. The problem though is thatimprove its local technology.More Developments in
ethanol is not abundantly produced within theVarious Sectors to Boost Global TradeJust
country. Moreover, the fuel refining needs arerecently, Morgan Stanley decided to invest around
greater than the amount of reserve available. As$68 M to Mantri Developers Private Ltd. which is a
a solution, the U.S government is currentlyproperty development company based in
importing ethanol from Brazil while it continues toBangalore, India. The decision is part of Morgan
construct more ethanol plants within theStanley's plan of venturing into the global stream
country.The campaign for energy independence inof real estate. At the same time the investment,
the U.S is also receiving negative feedbacks.would also help Mantri in its plans for national
Critics such as Tom Friedman of The New Yorkexpansion. Real estate is currently booming in India
Times commented that the government shoulddue to the increasing demands for housing
focus on other more relevant issues aside from it.projects and office buildings. This economic rise is
The claim that while energy independence may bealso attracting many foreign investors now.In
motivated by noble purposes, it might not be theterms of health, Roche finally got the approval
wisest move now. The government should lookfrom the U.S drug regulatory board to release
for other more practical alternatives. Besides, theRituxan as the newest drug to treat rheumatoid
big budget energy independence demands couldarthritis. The approval of the new medicine does
be allotted to the other sectors of the economynot only promise more profit on the part of
and government.The Various Auto CompaniesRoche, but it gives likewise hope for the patients
Continue to Grow and Expand in the Worldwho have not responded to other standard
market.The discussion regarding oils issues leadstreatments of rheumatoid arthritis.U.S faces
us to another important area, which is the carSeveral Economic ConcernsBased on the latest
industry. Generally, auto companies reportedreport, the trade gap between exports and
notable developments and expansions during thisimports in the U.S has increased during the past
week. Last Wednesday, Nanjing Automobileyear from 18% - 75% of a trillion dollar. This is
acquired the MG Rover plant at Longbridge,due to the fact that American consumers have
England for a 33 year lease from St. Modwencontinued to demand for more imported products
Properties Plc. The leading Chinese auto maker issuch as oil, vehicles, and other goods. According
said to have paid 1.8 M pounds for the 105 acreto analysts, only a 57% increase in exports can
factory. Nanjing surprised the global car industrybridge the gap. It must be noted the U.S. is a
last July 2005 when it bought MG rover forleading exporter in certain goods such as aircrafts.
around 53 M pounds thus outbidding its fellowAlthough the sales of durable goods decreased
Chinese competitor, Shanghai Automotive Corp.during the past year, producing companies such as
The big move is part of the company's vision toBoeing hope to improve in their sales in the
become one of the leading car brands in thesucceeding years.Meanwhile, the huge damage left
world.Honda Motors Co. is also getting moreby hurricane Katrina has also caused the insurance
attention form the international auto market aftercompanies in the U.S to adjust their premiums.
it disclosed its plans to produce a hybrid yet lowThe adjustment is deemed necessary in order to
priced version of its Fit subcompact. The carcover the potential loss that would be caused by
maker intends to release the hybrid design nextfuture catastrophes.There's also good news
year. Honda representatives, nevertheless, clarifiedregarding IT job opportunities based in the U..
that the hybrid technology will be distributed onlyAlthough many American companies are resorting
at a lower scale. This is due to the design's veryinto offshore services now, IT employment
expensive production cost. However, Honda is alsoopportunities continue to grow in the U.S This is
developing smaller battery and motors that woulddue to the fact that there are still certain IT
help reduce the hybrid cost in the future. Thistasks that needs to be based within its
venture is part of Honda's goal to beat theterritory.By Vasily Klimko - leading importers
problem of high-gasoline consumption throughexporters directory.
specially designed automobiles. Aside from Honda,