As an entrepreneur, a Franchisor Founder, I’ve done business in so many different regions of our planet I really have come to see the world much differently. I see all sorts of challenges on the horizon when it comes to global trade and international business. I’d like to discuss various real case studies that have caused me concern. You see, when nations trade they generally do not have wars – so we need an even playing field to prevent trade wars, and this will help keep the peace. Let’s talk about a few challenges I’ve seen as of late.
1. In September and October of 2013 – Japanese car makers in China were boycotted after the State-Run Chinese Media made a big deal over the disputed islands – citizen took to the streets and tipped over Japanese cars owned by private citizens, threw Molotov Cocktails into car dealerships. Sales of Japanese cars was nearly zero for months, still few people are buying them – good for GM, Audi, and other foreign auto makers – but the US doesn’t want to put its foot down on China because Wal-Mart is opening 120 new grocery stores there in 2014, GM sold more cars there than in the US in 2013.
2. October 2013 a port paid for and upgraded by the Chinese in Mexico is now delivering products into Mexico and is controlled with armed Chinese soldiers, and many of those products are parts and ingredients for Mexican products which will be sold into the US market – delivered by railway, new railroad line through mountains to enjoy NAFTA preferred trading benefits that China doesn’t have with US.
3. January 2, 2014 – Spanish Company contractors working on widening the Panama Canal angry that they’ve had $1.5 Billion in cost over runs due to changes in stipulations, threatening to quit if not paid by Chinese owned Panama Canal. Meanwhile Maersk and other shipping companies have giant shipping container ships capacity 18 to 20,000 containers coming online now ready to change the entire dynamics of the shipping industry.
4. African Economies, emerging markets right now are growing so fast that they need more oil imports than they are shipping out in crude oil, but they cannot use the crude oil as they don’t have refining capabilities. Richest man in Nigeria, estimated $22 Billion plans on building a state-run refinery in a government partnership since he is personal friends with the President, and Bill Clinton and even Bill Gates where he has ties trying to fight Malaria and hunger in Africa. If they don’t build the refinery, Nigeria won’t have enough oil in-country for their own needs while Nigeria exports all their oil.
Problems such as these do not go away, and it is important to deal with real world solutions and negotiate a fair deal for all concerned, but most of all allow free markets to do what they do best with the least possible intervention. Please consider all this and think on it.