Showing posts with label education. Show all posts
Showing posts with label education. Show all posts
Thursday, 14 November 2013
Exercise Eager Lion Kicks Off in Aqaba, Jordan
Exercise Eager Lion Kicks Off in Aqaba, Jordan
AQABA, Jordan – Senior staff noncommissioned officers from U.S. Marine Corps Forces Central Command (Forward) and senior noncommissioned officers from the Royal Jordanian Armed Forces take a tour of Royal Jordanian Naval Base, Aqaba, Jordan, June 12 during Exercise Eager Lion 2013. Exercise Eager Lion is a recurring annual exercise designed to strengthen tactical proficiency in critical mission areas, support long-term relationships, and enhance regional security and stability by responding to modern-day security scenarios
Tuesday, 10 April 2012
De-Mystifying Financial Education
Ismo Heikkila, CFP
National Director,
Financial Education & Employer Services
T.E. WEALTH
26 Wellington Street East | Suite 710
Toronto | Ontario | M5E 1S2
Direct: 416 640 8572
T: 416.366.1451 | Fax: 416.368.9801
Website: http://www.tewealth.com/
listen mp3
http://www.radio-shalom.ca/mp3/Programs/1042/1441.mp3
Radio Shalom – Feb. 29, 2012 – Ismo Heikkila
The age old saying, "Ignorance is bliss", may apply to many things in life. However, when it comes to your finances, ignorance can be absolutely devastating. Even the government is calling the startling low rate of financial literacy among Canadians an epidemic that can have catastrophic consequences for the nation's economic future. There are many issues vying for our attention these days , Complex matters like healthcare, Old Age pension ,social security,rising taxes and the European debt crisis — that inspire endless opinions but have no easy solutions. One issue that we should all agree on without any debate: the need for financial education in schools and in the workforce. As a country we are failing in financial literacy.
It is reported that over 50% of all Baby Boomers are financially ill-prepared for retirement and there are many canadian Families left destitute because of inadequate life insurance on primary income earners.
Most of these people didn't plan to fail; the problem is that they simply failed to plan adequately. While 30 years ago it may have been enough to just save religiously, the economy and the financial markets have since become much more complex, volatile and uncertain. And, when you consider all of the moving parts of a family's personal financial situation, each effected differently by various economic currents, you can no longer just set it and forget when it comes to your finances.
The majority of North Americans do not plan for predictable events such as retirement or children’s education. Most importantly, people do not make provisions for unexpected events and emergencies, leaving themselves and the economy exposed to shocks. To understand financial capability, it is important to look not only at assets but also at debt and debt management, as an increasingly large portion of the population carry debt. In managing debt, North Americans engage in behaviors that can generate large expenses, such as sizable interest payments and fees. In a survey done in America in 2011 , on the average, people where able to correctly answer just three of five questions about fundamental financial concepts, according to a FINRA capability study , and yes less than 25 percent of students graduating from University say they are prepared to deal with the financial challenges that await them in the real world, imagine the other 75%, lets not go there thats another show entirely.
If we want to succeed financialy in the real world , First, financial education starts at the home. But parents are often uncomfortable talking to their kids about money, in part because many of them lack confidence in their own financial situation. For many parents, it’s easier to talk to their kids about sex, drugs, and alcohol then financial education .Secondly , schools and corporations need to start making financial education a top priority and the true fact it seems individuals who have more financial knowledge, have a greater likelihood of planning for retirement, according to a new National Bureau of Economic Research study.
So If I were to be 100% honest, probably the most valuable skill I learned in college was how to talk to girls (certainly a vital skill for happiness and success, but not what I was there to learn).
The economics classes? Nope, mostly academic mumbo-jumbo that is entirely useless to all but a handful of policy makers. The computer science classes? Hmm, maybe about 10% of that I’ve used, but it’s nothing I couldn’t have picked up with a couple good books, which I routinely do now. The history, English, philosophy, and physics? Aside from giving me a general understanding of the world and making me sound smart at cocktail parties, I can’t think of anything in there that I really use on a day to day basis. So who is to blame? “It’s hard to point a finger,” . But it’s certainly true that this economy in the past 10 years has made it very difficult for people to make decisions. We’ve shifted the responsibility to individuals and they don’t have the capability to make those kind of financial decisions Today live from the world business headquarters of radio shalom in Montreal Our guest speaker to talk about the importance and long term impact of Finacial education is Mr Ismo Heikkila a Financial Planner, and is now the National Director for Financial Education & Employer Services for T.E.WEALTH in Toronto and in Quebec is T.E.MIRADOR.
OUR TOPIC TODAY IS DE-MYSTIFYING FINANCIAL EDUCATION
http://www.tewealth.com/experts/samuel-ezerzer-b-sc/
My name is Samuel Ezerzer, your host to the Money & Business show on Radio Shalom, CJRS 1650 AM. Thank you for tuning in live with our Business studios headquarters in Montreal, the financial capital and the home to the greatest hockey team, the Montreal Canadians. We have another great show for you today and as always, you can call if you have any questions, comments, or criticisms on today's topic. Please call us direct at 514 738 4100 ext 200 or email me at moneyandbusinessshow@gmail.com if you have any inquiries. You can also visit our website at http://www.radio-shalom.ca/ – all our shows are archived there . I work as Consultant for T.E MIRADOR or TE WEALTH , TE MIRADOR has been providing Corporate Executives , CEO 'S , families ,employers and employee with independent wealth management and Financial education services since 1972. You can visit our website for my contact information at http://www.temirador.com/
De-Mystifying Financial Education
BIO
Ismo Heikkila Born in Finland, raised in Rochester, New York, majored in English and Literature,
Started management consulting career in Finland , continued in Training and Development back in Rochester,
Ismo was in the insurance business working with small businesses –Left insurance field and joined a start up personal financial planning firm providing personal financial planning counseling to senior management at Eastman Kodak, Xerox, Bausch & Lomb – the financial planning industry wave had started and Ismo was the President of the planning division – the firm was sold a few years later to a major Savings & Loan institution and he started an investment management firm with a partner managing equity portfolios for high net worth clients – a career and lifestyle decision brought Ismo and his family to move to Toronto in 1990 where he was a consultant at an executive compensation firm- he was then recruited by an international human resources and benefits/actuarial firm to launch a personal financial education practice in Canada and the US. where he was a senior consultant and practice leader for 10 years.
He joined T.E. Wealth in 2004 and is a Certified Financial Planner, and is now the National Director for Financial Education & Employer Services. His clientele is comprised of both Canadian corporate clients and First Nations communities.
MAURICE COUSINEAU
Mr Ismo Heikkila, is a Certified Financial Planner for T.E. Wealth , and is now the National Director for Financial Education & Employer Services. His clientele is comprised of both Canadian corporate clients and First Nations communities.todays topic De-Mystifying Financial Education.
SMALL TALK
welcome to the Money and Business show Ismo
Aside for the financial planning aspect , I see that you took a personel interest in literature?
I’ve been fortunate that a major theme in my life has been “assisting others achieve their goals “…playing sports throughout high school and university allowed me to recognize how important interpersonal skills were in working with team mates….my choice to pursue a literature major was fortuitous in that I have always read a lot of varied literature which continually offers insight into the human condition – keeping in mind that my career has essentially been as a “financial social worker”. Service to others has also manifested in being on the Boards of The March of Dimes, The Rotary Club of Toronto, The Toronto Finnish Credit Union, The Finnish Lutheran Church Council, and currently with the Canadian Friends of Finland. Personal spiritual development continues to occupy much of my thoughts on this journey we call “life “
INTERVIEW QUESTIONS
Today’s topic is titled “De-Mystifying Financial Education” – how would you describe financial education and why does there seem to be some mystery around it? Is the mystery about information compared to education is that what it is?
Answer – let’s begin with a basic view of adult learning which will provide a base for today’s discussion – simply put, I find adult learning has at least these 5 components. Awareness – Understanding – Emotional Engagement – Intent – Action….to illustrate, let me use as an example the individual who has an opportunity to make a financial contribution here in Canada to what is known as a Registered Retirement Savings Plan aka an RRSP…they’re aware that they exist as a retirement savings vehicle; they understand the features and benefits of how it works: unless they are emotionally engaged and willing to take action, nothing happens – and the reason emotional engagement is complicated is that anxiety increases because they don’t know if it’s worth the rewards or risks of doing or not doing; which means in order to get to intent and commitment they need skills, tools, and motivation; so that when they do make a decision-take action- they are comfortable with that decision….which by the way, today is the last day to make that contribution and receive a tax deduction benefit on last year’s income tax return!
2. Financial Literacy is an obvious skill that is needed in making financial decisions, –what does financial literacy really mean today?
Answer – Back in 1995 the first IALS study was released. IALS is the International Adult Literacy Survey and they have released subsequent studies during the past 15 years…essentially the study identified literacy not as the basic ability to read and write, but as domains of behavior by categories – Prose, Documents, Quantitative…and recent studies now include a 4th element - Problem Solving. They ranked competency into 5 levels, 5 being the highest. As an example, a Level 4 Quantitative question asked the participant to calculate how much money there would be if $100 earned 6% interest annually for 10 years, and the participant had a years and % chart to access the information…80% of adults ages 16-64 got the question wrong! So consider the average person trying to decipher their investment statement or retirement projections from a variety of scenarios.
You mean ….
Next bus stop?
3.So why is so important that companies offer financial education programs to their employees?
Answer – There are essentially 2 primary reasons, one being good governance – this means that when an employer has a fiduciary responsibility regarding an employee benefits program, such as a pension plan, then there’s a governance and an implicit regulatory compliance aspect to providing employees with information and education about the features and benefits of the plan and the risks and rewards along with other criteria for making decisions when there are options available….and two, a company culture includes a philosophical position in determining how much of a role and obligation they have in providing financial education resources to the employees.4.A company wants to know THE BOTTOM LINE , what corporations want to know if it will be worth it for them to have to pay for the financial education of there employees; and Is there a way to measure or quantify the value of a financial education program for a coprporation to actually say ok lets invest in our employees so they can be more productive and less stress?
Answer – there are a number of ways depending upon the learning objectives. For example, let’s look at employee productivity…Tom Garmann at Virginia Tech has done studies where every $1 invested in an employee personal financial education program returns $3 - $4 dollars in increased productivity. Essentially it comes down to lessening the personal financial distractions and stress from reducing mis-management of one’s financial affairs and putting them in order and having less confusion and more control.
In addition, an employer may be spending an additional 25-30% on top of salary for benefits – if the employees do not understand and utilize the benefits appropriately they do not value them accordingly – therefore increasing employee appreciation and using benefit programs as an enhancement to total compensation improves new hire attraction and increases the retention rate of current employees.
5.Surely there is a difference in the financial planning needs of a young new hire compared to someone with many years of service approaching retirement – so how does an employer address that?
Answer – One approach that is commonly applied is Life Cycle planning, that is, early career, mid career, late career, and at retirement – and while all phases require a review of the basic principles, each subsequent stage delves deeper into specific areas including addressing more complexity. The most fascinating and fun stage of counseling is at the point of retirement where the discussion includes the disengagement from work and a replacement of needs satisfaction in retirement, i.e. what are you retiring from and retiring to.
6. Let’s move the conversation away from the employer sponsored financial education programs into the more individual realm of personal financial planning;
What do you see as the most important elements of someone successfully managing their personal finances and please identify the issues and challenges that people are typically facing?
Studies show that people who have a written plan are more successful in achieving their financial goals. The typical challenge is that most do not actually have an accurate assessment of their current financial situation, i.e. personal financial statements meaning a Net Worth Statement of the current value of their assets and liabilities, and a Cash Flow or Income Statement with the sources of income and a detailed listing of all expenses – down to the morning coffee purchase!
7. Really – that detailed?
Answer – well, if you really don’t know where that $60 you pulled out of the wall a couple days ago actually went, then how would you know if you have or how much you have every month of after tax cash flow after all expenses? A business knows how much profit it makes every month, so should everyone - and that’s because surplus cash flow ends up either as an asset in the bank , or pays down debt - meaning building net worth. The greater the net worth the greater the income that it generates and the longer period of time it will last on an inflation adjusted basis.If there is no surplus, that there’s a shortfall, and since the money had to come from someplace -either from a bank withdrawal or an increase in debt, then running a deficit for the long term ends in financial disaster.
8.That seems reasonable as a concept – why are people having difficulty with the concept of planning and if they dont plan properly it ends in disaster?
So what’s going through the cheque book is actually a reflection of that person’s or family’s value system. Values are hard to develop, keep, or change – since people don’t throw money away, they’ve made a cognizant decision to spend a certain way. In order for financial behavior modification to occur one needs to know what and why the current behavior exists, so what new rewards can be gained or unpleasant losses be avoided by changing the financial behavior.
9.That’s really interesting, can you share an example of how such a change actually took place?
Answer – of course, I had a University professor, age 66, come in for a retirement plan …we both knew during the initial consultation that his financial situation was very tight and prospects looked dim for a comfortable retirement.
The financial analysis using a retirement projection modeling calculator showed that he would run out of his personal financial assets within 4-5 years and would still be in debt with an annual cash flow shortfall of about $28,000 a year even after a good university pension and government benefits. The financial solution was that he needed to teach 3 more years, his wife would have to go from part-time to full time employment, the girls would not get the expensive weddings, and some real belt tightening was needed.
I received an email from him many months later telling me what his situation was and he said he was on track and thanked me for my help – of course I appreciated that but he and his family made the changes happen and he closed his message by saying that the best thing was that there was no longer any tension at home about money – everyone discussed the situation and agreed to share information about the family finances- no more “undiscussables”.
10.That’s a nice happy ending story Ismo , yet how does someone go about finding and
selecting a financial advisor?
Answer - I wrote an article many years ago titled “Abdicate, Delegate, or Go It Alone? “ What I meant was that a person shouldn’t Abdicate their financial decision making to someone else because “ I don’t like or understand money; I hate numbers; I have no interest in it” and “you seem like a good person who knows what they’re doing so here- you handle my finances”.
I also think Going It Alone is not for everyone…talking daily with an investment broker, learning and keeping up with the Income Tax Act and other regulation changes, drafting their own estate plan, etc. even Warren Buffet makes mistakes ( a well known billionaire investor / philanthropist)…and very time consuming.
So Delegate was the way to go for most people, where you hire a financial advisor who supports, administrates, and coordinates your financial plan with other advisors and acts as the Vice President of Finance and Administration and you are the CEO, Partner, or Managing Director who then has options and alternatives to analyze and make decisions with a group of people.
And if I was to write the article today I would add one more component called “The Wisdom of Crowds – or Not”
11.We have time for one more question so tell us about the Wisdom of Crowds ?–
Answer - I came across the idea from James Surowiecki’s book The Wisdom of Crowds…essentially the premise is that individuals can no longer independently learn all they need to know. In a globally connected world, there is tremendous value in using technology to collaboratively connect and learn with others. He proposes that that the wisdom of crowds comes not from the consensus decision of the group, but from the aggregation of the ideas/thoughts/decisions of each individual in the group. I certainly believe in that premise, yet I also have a healthy skepticism about who’s actually in the crowd where I’m getting information. Technology has raced ahead in the financial services industry over the past 30 years, yet I’m convinced that human behavior and specifically financial behavior has not progressed nearly as rapidly and is unlikely to do so.FOLLOW UP QUESTIONS
Ismo, can you recommend any resources relating to our topic today that our listeners might find useful?
Answer – of course Sam, if anyone is interested in Adult Literacy, the website http://www.nald.ca/ which is the National Adult Literacy Database – this is maintained by the Canadian government and is exceptional.
As for financial planning websites, the US financial services industry is more advanced as they also have many non-profit financial planning organizations that support the general public, so simply typing in personal financial planning or employee financial education will generate a number of sites from the US and Canada.
And what about finding a personal financial planner ?
Answer – In Canada, there would be a couple organizations, the main one being the Financial Planners Standards Council http://www.fpsc.ca/ and the sister organization in Quebec http://www.iqpf.org/
I recommend that besides having professional credentials and licenses, ensure that the counselor communicates well and understands you and your value system and they should have a few years of scar tissue handling people’s finances. J
Fee Only planners have no biases and are objective, yet there are good professionals who are also compensated by product commissions which is fine as long as all fees and commissions and costs are fully disclosed, and they meet all your other criteria.
Sam – it’s truly been a pleasure – thank you for having me here today and I wish your listeners a successful financial future!
notes
Financial Literacy Begins with You
Understanding the financial world begins right at home with your own personal financial situation. Most of the people who fail out of ignorance probably did not have clearly defined financial goals. Without a vision for the future, there's little to motivate a person to learn and achieve. Establishing goals and then mapping out a plan to achieve them will force you to learn about your options and understand the possible obstacles. Many people have found it useful to have a qualified financial advisor guide them through this very important process.
Most people are unaware of many of the financial realities they face. For instance, while most people may realize that we are all living longer these days, they don't really know what that means in terms of their financial needs. A 35 year old male today, could expect to live until age 87. That translates into as many as 25 years in retirement on income sources that he must create.
Ignorance is Costly
The road to financial success is full of roadblocks, the biggest of which is poor budgeting habits. A shocking number of people don't budget, and, as a result most of them are swimming in debt, have little or no savings, and are just a pay cheque away from financial disaster. While this can be attributed to laziness, or lack of discipline, the fact is that most people don't understand the true cost of debt and the time value of money. If a young couple could budget to save just $500 a month for 35 years with an average return of 5%, they would accumulate nearly $600,000. When you have control of your finances, and have your priorities straight, saving $500 each month isn't very difficult.
Time is a very valuable, but diminishing resource that should not be wasted. The more quickly you can put your money to work for you, the longer it will have the magic of compounding interest working for it.
samuel ezerzer
Tuesday, 7 February 2012
Eight Great Lies and Misconceptions about China
Tom Galey
Radio Shalom CJRS1650AM ,
Money and Business Show /Samuel Ezerzer
Wednesday the February the 8th live at 4pm-5pm
http://www.radio-shalom.ca/EN/showemission.php?ID=1042
listen to the show
http://www.radio-shalom.ca/EN/player.php?URI=/../mp3/Programs/1042/1431.mp3
My mother still thinks that people in China still ride around on bicycles wearing those green army suits and green hats with the red star in the middle. While there are still a lot of bicycles, especially in Beijing and Shanghai – now they wear there silk suites to work and not many people are wearing those green outfits anymore.
China’s growth curve has gone through the roof in recent years and for the past 15-20 years China has typically averaged 10% GDP growth, and it has maintained that growth even as a multi-trillion dollar economy . The 10% growth in an economy already worth trillions is an astounding achievement, but it can also lead to severe economic troubles, such as an inflated house prices and soaring food prices. Well from the looks of it , China has incurred both of these troubles , a real estate buble and food prices that are out of control . As a growing middle class emerges, demand for beef has far outstripped supply growth, and beef is typically making record highs every month. Additionally, the usage of real estate as collateral for local government loans, amongst other factors, has led to soaring housing prices.
Does China have a significant housing bubble on its handsbecause growth in the real estate sector is important in all modern economies. Construction of homes and commercial office space is a huge driver for demand in the steel, cement, and construction sectors, and is an important part of demand in the commodities market. Construction requires the use of iron (in steel), copper, and fuel. The local chinese government depends solely on rising land and real estate prices, since almost all of their collateral is in their properties. The famously investment driven Chinese also depend heavily on rising home prices to attain better rates of return than are possible in other markets.A slowdown in the real estate market has appeared recently; prices in nine major Chinese cities fell 4.9% in April from a year earlier. Real estate prices in major cities had been on an absolute tear for the past several years, as a growing Chinese middle class desires to migrate from the countryside into major cities.
And in the United States and Europe, the manufacturing industry was created due to technology innovation. For example, railways came into existence because of the invention of the steam engine and automobiles were created because of technology breakthroughs in automobile engines. In China, the manufacturing industry is being created in response to global demand. Chinese manufacturers take orders from Western companies that have designed products for their home markets.
They have no involvement with product development, innovation, market research, and even packaging. Chinese manufacturers have no experience in bringing their own products to overseas markets.While the rest of the world fears China’s manufacturing power, China is trying to move away from its "sweatshop" manufacturing and become a service-oriented economy. However, China may find itself locked into place, at least for now, due to the hundreds of millions of rural migrants that need jobs. Perhaps the most important thing to note is that the Chinese governemnt is desperate to keep GDP growing at a pace above at least 7% for the next several years.
Today live from colorado is Tom Galey professor of business and economics an expert in china and founder of the firm three china to talk about the Eight Great Lies and Misconceptions about China,
My name is Samuel Ezerzer, your host to the Money & Business show on Radio Shalom, CJRS 1650 AM. Thank you for tuning in live on the Money & Business show, with our studio and headquarters in Montreal, the financial capital and the home to the greatest hockey team, the Montreal Canadians. We have another great show for you today and as always, you can call if you have any questions, comments, or criticisms on today's topic. Please call us direct at 514 738 4100 ext 200 or email me at moneyandbusinessshow@gmail.com if you have any inquiries. You can also visit our website at www.radio-shalom.ca – all our shows are archived there.I work as Financial Consultant for T.E MIRADOR or TE WEALTH. TE MIRADOR has been providing Corporate Executives , CEO 'S , families ,employers and employee with independent wealth management and Financial education services since 1972. You can visit our website for my contact information at www.temirador.com,
Bio Tom Galey
Tom Galey has been working with Asia in product development for over 25 years. He has made between 200 and 300 new products in Greater China, and has exported and sourced thousands more. Known as The Import Pro ™ Tom teaches and consults on a wide range of topics in international trade with Asia and the West. He started his career early in the Telescope industry developing scientific equipment for a Ball Aerospace engineer. In the 80's he moved to Taipei to study Mandarin Chinese and develop new products. He ran the buying office for a large Canadian chain store, producing hundreds of goods manufactured throughout Asia.
In the 1990's, Mr. Galey worked in the US territory of Guam with Esso Eastern Singapore, Exxon as a marketing executive. He later joined Budweiser Micronesia and managed the overseas production of Budweiser branded promotional products. As director of Marketing in the Pacific Rim, he pioneered factory-direct Asian purchasing for overseas divisions. Anheuser-Busch used these newly developed policies and changed corporate purchasing procedures.
The consulting firm of "Three Chinas" was established in 2005 to assist in the development of new and complex products in Asia. Further development included guided trips to China and Asia to learn hands-on skills in product development in Asia. He instructs seminars on doing business with China and the Pacific Rim.
Now a professor of business and economics in Colorado, Tom continues to consult on market entry into Greater China as well as advisor to trade ventures with Asia.
Tom graduated from the University of Colorado with a degree in Economics and has an MBA with an emphasis in Global Management from the University of Phoenix. He remains fluent in Mandarin Chinese and speaks enough Taiwanese go get into trouble!
"Eight Great Lies and Misconceptions about China."
1. Q: Some of the presidential candidates have said that the US has suffered losses from economic and trade cooperation with China, and others claim that high unemployment in the US is caused by an undervalued yuan?Why is everyone down on China these days ?what are they doing that is so wrong ...? blaming China will not help the US solve its problemsA: First reason is politics, both Dems and Repubs will gain votes by criticizing China... (there are many topics which can be referenced... which is the basis of the rest of the misconceptions)(A Morgan Stanley report showed that 4 to 8 million jobs in the US are closely tied to Sino-US trade, and in the past 10 years US consumers have saved at least $600 billion by buying commodities made in China. According to a report released in November by the US-China Business Council, 88 percent of US companies have made more or equal profits in China compared with those made in other countries. )
http://english.people.com.cn/90883/7711407.html
2. Q; Capital and technology from the US have played a positive role in China's reform and opening up , are the The two economies so closely interconnected that neither one can leave the other?The US is the biggest source of China's foreign investment. Statistics show that by the end of November, the US had more than 60,000 investment projects in China with an input totaling $67.4 billion.
3. Republican candidate Mitt Romney has pledged to designate China as a currency manipulator and pursue litigation against its "unfair trade practices" will Such practices will "only push the two countries to a 'trade war', which harms China but brings no profit to the US either"?
2. Q: From what I understand The Chinese market is actually two distinct markets for every product, there is a ‘foreign/local’ market, characterized by higher technology and higher price, and a second purely ‘local’ market, which is characterized by lower technology and lower price. All I hear is how bad the products are manufactured from china. Can I make an assumption that China manufacturing has made huge progress in that last few years?(Many luxury cars are made here. And I see some successful Chinese brands getting distributed in high-end department stores and boutiques, at the price point of most imported products.)A: You get what you pay for... China can produce high, medium, or low quality. What is in demand? ... low price. Americans demand low price, nothing else... if the quality suffers, the price is still low... that's ok.
There are juvenile labourers employed in the workshops and factories. According to a recent People's Daily Report the use of children is maximum in the following industries:
Toy manufacturing
Production
Textiles
Construction
Food production
Light mechanical work
Child labour in China is hardly a new phenomenon. For years, despite official regulations banning the employment of minors (defined by Chinese law as those under sixteen years of age), teenagers and even pre-adolescents from poorer regions of China have been drawn to the rapidly developing southern and coastal areas looking for work. For this army of juvenile labourers, employment is readily available in the workshops and factories (and to a lesser extent related industries, such as food service) that are at the heart of China's economic boom. A recent People's Daily Report cites an investigation undertaken by the government agency in charge of monitoring labour conditions in Shandong province's Jinan City. According to the report, the use of juvenile labour is most prevalent in the following industries: Toy production, textiles, construction, food production, and light mechanical work. Concerning the latter, the report concludes that child labour is particularly in demand because children have smaller hands and eyesight undamaged by years of labour, making them more desirable than adults for certain kinds of work.
More often than not, parents of juvenile workers have little choice but to send their children off to work; as school fees increase beyond the means of most rural families, educational opportunities for rural children grow increasingly dim. Further, the earnings of children, however meager, represent a substantial portion of much-needed income to poor families. Parents of juvenile labourers rarely have a clear idea of the adverse working conditions and physical risks inherent in industrial work. Moreover, the juvenile workers learn themselves are often reluctant to complain, knowing well the critical nature of their financial contributions to the family.
5. Q: Little by little China is forming military links in Africa and in the Indian Ocean in order, experts say, to protect Beijing's economic interests in the region ,China has beefed up their military presence, they have a new aircraft carrier, they are venturing into space... are they going to take over over thee world or protecting there economic interests in the region? A: What is the motivation to "take over"? You have to ask an obvious question: WHY? Why would they want to piss off the USA? and ... Can they take over? ... most definitely NOT... they are about a trillion bucks short of that for one.
In the past three weeks Beijing has committed to supporting Ugandan forces operating in Somalia and to helping the Seychelles fight piracy. "It is very clear that the Chinese leaders recognize that military force will play a bigger role to safeguard China's overseas interests," Jonathan Holslag, of the Brussels Institute of Chinese Contemporary Studies told AFP. "There is a willingness, and even a consensus, in China, that this process will take place." The Indian Ocean is strategic, Holslag said, noting that 85 percent of China's oil imports and 60 percent of its exports are routed via the Gulf of Aden. Beijing does not so far have any military base in the region: its military presence consists of three vessels in the Gulf of Aden to fight Somali pirates. But the deployment of those ships in 2009, the first of its kind for the Chinese navy, was already highly symbolic. For the moment, cooperation between China and the islands of the Indian Ocean is still limited to "low profile military-to-military exchanges, but it is getting broader and more structured," Holslag told AFP. "The mere fact that China has a multi-year naval presence in the Gulf of Aden has great symbolic and diplomatic significance," said Frans-Paul van der Putten, senior research fellow at the Netherlands Institute of International Relations Clingendael.
6. Q: China is able to produce goods that Americans want at a low cost. Despite the loss in jobs, this is unlikely to change. That's because most people would rather pay as little as possible for computers, electronics and clothing -- even if it means other Americans lose their jobs. the U.S.trade deficit with china was $272 billion . Why Is There a U.S. Trade Deficit with China? Do The Americans have to sell more products to balance its trade deficit?A: Not really, first we have already made HUGE increases in how much product China buys from the US now... to shut that down, it could ruin the US economy. If we limit China imports, they limit US imports (everyone does, the US taught everyone how to do that one).
The U.S. has a trade deficit with China despite the fact that its exports to that country were the highest in history. In 2011, the U.S. exported $94 billion in goods, an all-time record. (Exports in 2010 were only $92 billion.) However, imports from China also set a record -- $367 billion, more than the $364 billion imported in 2010. The U.S. imports consumer electronics, clothing and machinery from China. A lot of the imports are from U.S. based companies that send raw materials to China for cheap assembly. When they are shipped back to the U.S., they are called imports even though they are profiting American-owned companies. (Source: U.S. Census, U.S. Trade in Good With China)
OK how about we increase the tariff's, increase import taxes?A: That's not going to help, it will make product more expensive. If the desire is to hurt the average consumer, then slap higher tariffs on China goods. What will happen with certainty, is the retailer or seller will add that price onto the price the consumer pays. Oh yeah, anyone selling to China will have a tax added to their US product... that will limit sales and profitability for the N. American firm.
a.So where are they all going? Brazil maybe? Indonesia?
b.While jobs in manufacturing are certainly declining, is America producing more than it ever has. In other words, your producing more goods , using fewer people?
American manufacturing output continues to rise. Yes, really, even as manufacturing employment falls, manufacturing output is still going upin the united states (ISM Manufacturing Composite Index) , I have data showing China lost 16 million manufacturing jobs, a decline of 15 percent, between 1995 and 2002, according to a study of manufacturing jobs in the 20 largest economies by Joe Carson, director of economic research at Alliance Capital Management. In that same time, U.S. factory employment shrank by 2 million, or 11 percent.Yes, that really is correct, China is losing manufacturing jobs. And at a rate faster than U.S. theis.http://www.forbes.com/sites/timworstall/2012/02/03/that-giant-sucking-sound-of-manufacturing-jobs-going-to-china/
No, what’s actually happening is that the jobs are disappearing altogether, entirely going up in smoke: It seems that China’s advantage as a low-cost producer hasn’t halted the insatiable drive worldwide to replace even dirt- cheap labor with productivity-enhancing equipment.This really is happening all over the world:Some 22 million manufacturing jobs were lost globally between 1995 and 2002 as industrial output soared 30 percent, Carson says. It seems that devilish productivity is wreaking havoc with jobs both at home and abroad.
10
A: We need China as much as China needs North America. We fire them (mr Trump) and they fire us! Do we want that? You can argue all day long about who is more important to whom... irrelevant argument I say because we both need each other.
11. Q; With increased pressure from the West and the World Trade Organization, China has instituted a number of reforms to its patent system. Much like the United States Patent and Trademark Office, but The Chinese continue to knock off our branded product, why does this keep going? Is it possible to protect your Intellectual Property Rights (IPR) when doing business in China?
; Q: So we just fire them as Donald Trump would say right?
A: Because we demand it... American's buy it all, and don't seem to try to stop it on the streets of New York... Fake Rolex watches are for sale right now in Montreal, you can go buy one in five minutes of arrival. What's wrong with this picture? It's as if it is legal... I wonder, is it? ... if you can buy a fake Gucci bag ... well, everywhere, is it legal? The people buying support the industry, not the makers... if there were no buyers, who would be so stupid to make it... if it's hardly illegal, wouldn't everyone want in!?!
12. China is more dependent on international commerce than almost any other nation, so trade friction -- or even declining global demand -- will hurt it more than others. Will China will not be able to export its way to prosperity like it did during the Asian financial crisis in the late 1990s. The country real estate, for instance, could it be the biggest victim of the eurozone crisis.? Real estate
Just like the US, speculation on real estate in China is facing a bursting bubble... prices are sky high and people may be losing money. What further complicates things is that the government initially, in the Maoist days of communism, owned all the land... so they dole it out as required. It's not a perfectly competitive market because of this government involvement. My advice to Americans interested in this area is to ... be Chinese...
13.why do the chines love buying gold ?Gold,
Historically, the Chinese have valued gold quite highly. It means more than money in Chinese culture, it is a symbol of wealth of course but of power and authority... Gold is owned by kings in the past, and now individual citizens can feel like royalty by owning gold. Also, Chinese save differently from North American and European cultures. We in the West trust banks to hold our savings... Chinese and developing Asian cultures have experienced bank failure and have lost money... That being said, maybe the West can learn from some prudent savings.
China has a great deal of gold, if we change currency standards this could play in... The Chinese Yuan is moving towards an internationally traded currency, look for changes in Gold.
(Note: we can talk about human rights, but that's like an entire hour of discussion, and quite controversial. It's a bit beyond business at this point, and i venture into politics enough... hopefully political business issues.)
The answer, the solution might be to accept the situation we have allowed the economy to go... to accept the fact that China is a good partner ... and they are here to stay. They are not the evil void we are seeking. Some think we need an enemy, that's a stupid argument coming from fear and a lack of knowledge.
notes
Posted: Thursday, March 30, 2006
by Tom Galey
3 Chinas
Is it possible to protect your Intellectual Property Rights (IPR) when doing business in China? A lot of people ask me this, and it is a great question and a very interesting topic. Things have changed dramatically in just the past few years in this area, most especially in China.
What launched this change has to do with China’s entry into the World Trade Organization. Just a few years ago the US and WTO watchmen applied enough pressure on the Chinese government to get serious about cleaning up copyright violations. In order for China to join the WTO club they had to show a serious commitment to curbing violations in intellectual property rights.
The result was new laws and a new legal perspective in China. US Customs and Border Protection (CBP) recently released statistics indicating that seizures are down 33% from last year. Apparel topped the list of infringing products followed by handbags. The list continues cigarettes, footwear and consumer electronics. Computer hardware was down to only a 5% share of IPR-related seizures.
Counterfeiting is big business and most brands do not suffer significant damage. Copycats are knocking off branded items, these brands are big names. Big brands have the attorneys on the ground in Asia keeping an eye out for their brands. Companies that take a proactive role usually don’t have a problem.
Violators can expect to do jail time for breaking the law. Criminals who profit from copying are now realizing that the laws are for real. Fines for violators are over $60,000 USD.
So if you have a product that is really unique and you don’t want it copied, apply for a patent. The right kind of patent will protect you on a global scale. Under the Madrid System, a US application for patent has protection globally. If your item is so unique you should file a patent in China for further protection. The thrust of China’s new laws is that they work both ways, the laws are written in harmony for protection on both sides.
Today overseas factories are not taking any chances. Besides, there is plenty of business to go around. They are busy making money.
Political as well as commerce opportunities have brought the two nations together in a partnership like nowhere other time in history. Success comes down to working with trusted partners with years of experience in dealing with these issues.
Tom Galey,
China Sourcing Consultant
Boulder, Colorado
http://www.3Chinas.com
People often compare China’s urbanization to Western industrialization in the 19th century. In both cases, a large population moved from the country to the city. Society advanced from agricultural to industrial via manufacturing on a massive scale.
------------------------------------------------------------
Myth of China’s Manufacturing Prowess
However, there is a key misconception about China’s manufacturing prowess.
In the United States and Europe, the manufacturing industry was created due to technology innovation. For example, railways came into existence because of the invention of the steam engine and automobiles were created because of technology breakthroughs in automobile engines.
In China, the manufacturing industry is being created in response to global demand. Chinese manufacturers take orders from Western companies that have designed products for their home markets. They have no involvement with product development, innovation, market research, and even packaging. Chinese manufacturers have no experience in bringing their own products to overseas markets.
Unlike the manufacturing industry in the West that gave birth to a middle class of both white-collar and blue-collar workers, manufacturers in China mostly absorb surplus labor from rural areas with few skills. Those rural migrant workers live in dormitories, earn about $100 to $200 a month, and hardly fit into the category of the middle class. (To be clear, there is a burgeoning middle class in China. Most of them are in urban private businesses, state-owned enterprises, and multinationals).
James Fallows, national correspondent for the Atlantic, visited many factories in China. He saw people working on the assembly lines and was convinced those tasks would only be performed by machines in the United States.
Yes, China is making efforts to drive its economy up the value chain. The 11th Five-year Plan (2006 – 2010) called for "scientific development." A key initiative is an increase in the R&D-to-GDP ratio from about 1.3 percent in 2005 to 2.5 percent by 2020. However, how much of the funding is actually used for research and development and how well the research is being transferred into manufacturing are both highly questionable.
Given the unpredictability of the regulatory environment, many Chinese manufacturers tend to focus on short term gain. They compete on volume and price, and only enjoy wafer-thin profit margins. This has kept Chinese manufacturers from investing in research and development or training employees.
Recently, some Chinese manufacturers experienced a shortage of low-waged workers. On the other hand,
While the rest of the world fears China’s manufacturing power, China is trying to move away from its "sweatshop" manufacturing and become a service-oriented economy. However, China may find itself locked into place, at least for now, due to the hundreds of millions of rural migrants that need jobs.
Contrary to the conventional view, manufacturing in the U. S. has been growing in the past two decades despite the decline in manufacturing jobs. The latest
In addition, most jobs the United States lost to China are low-skilled jobs. By outsourcing those low-skilled jobs to China, Americans have actually become more competitive in high-skilled jobs such as management, innovation, and marketing. The low-skilled jobs also serve China well as Chinese rural migrants have opportunities to move up in life and gain some skills.
http://www.tewealth.com/experts/samuel-ezerzer-b-sc/
samuel ezerzer
Radio Shalom CJRS1650AM ,
Money and Business Show /Samuel Ezerzer
Wednesday the February the 8th live at 4pm-5pm
http://www.radio-shalom.ca/EN/showemission.php?ID=1042
listen to the show
http://www.radio-shalom.ca/EN/player.php?URI=/../mp3/Programs/1042/1431.mp3
My mother still thinks that people in China still ride around on bicycles wearing those green army suits and green hats with the red star in the middle. While there are still a lot of bicycles, especially in Beijing and Shanghai – now they wear there silk suites to work and not many people are wearing those green outfits anymore.
China’s growth curve has gone through the roof in recent years and for the past 15-20 years China has typically averaged 10% GDP growth, and it has maintained that growth even as a multi-trillion dollar economy . The 10% growth in an economy already worth trillions is an astounding achievement, but it can also lead to severe economic troubles, such as an inflated house prices and soaring food prices. Well from the looks of it , China has incurred both of these troubles , a real estate buble and food prices that are out of control . As a growing middle class emerges, demand for beef has far outstripped supply growth, and beef is typically making record highs every month. Additionally, the usage of real estate as collateral for local government loans, amongst other factors, has led to soaring housing prices.
Does China have a significant housing bubble on its handsbecause growth in the real estate sector is important in all modern economies. Construction of homes and commercial office space is a huge driver for demand in the steel, cement, and construction sectors, and is an important part of demand in the commodities market. Construction requires the use of iron (in steel), copper, and fuel. The local chinese government depends solely on rising land and real estate prices, since almost all of their collateral is in their properties. The famously investment driven Chinese also depend heavily on rising home prices to attain better rates of return than are possible in other markets.A slowdown in the real estate market has appeared recently; prices in nine major Chinese cities fell 4.9% in April from a year earlier. Real estate prices in major cities had been on an absolute tear for the past several years, as a growing Chinese middle class desires to migrate from the countryside into major cities.
And in the United States and Europe, the manufacturing industry was created due to technology innovation. For example, railways came into existence because of the invention of the steam engine and automobiles were created because of technology breakthroughs in automobile engines. In China, the manufacturing industry is being created in response to global demand. Chinese manufacturers take orders from Western companies that have designed products for their home markets.
They have no involvement with product development, innovation, market research, and even packaging. Chinese manufacturers have no experience in bringing their own products to overseas markets.While the rest of the world fears China’s manufacturing power, China is trying to move away from its "sweatshop" manufacturing and become a service-oriented economy. However, China may find itself locked into place, at least for now, due to the hundreds of millions of rural migrants that need jobs. Perhaps the most important thing to note is that the Chinese governemnt is desperate to keep GDP growing at a pace above at least 7% for the next several years.
Today live from colorado is Tom Galey professor of business and economics an expert in china and founder of the firm three china to talk about the Eight Great Lies and Misconceptions about China,
My name is Samuel Ezerzer, your host to the Money & Business show on Radio Shalom, CJRS 1650 AM. Thank you for tuning in live on the Money & Business show, with our studio and headquarters in Montreal, the financial capital and the home to the greatest hockey team, the Montreal Canadians. We have another great show for you today and as always, you can call if you have any questions, comments, or criticisms on today's topic. Please call us direct at 514 738 4100 ext 200 or email me at moneyandbusinessshow@gmail.com if you have any inquiries. You can also visit our website at www.radio-shalom.ca – all our shows are archived there.I work as Financial Consultant for T.E MIRADOR or TE WEALTH. TE MIRADOR has been providing Corporate Executives , CEO 'S , families ,employers and employee with independent wealth management and Financial education services since 1972. You can visit our website for my contact information at www.temirador.com,
Bio Tom Galey
Tom Galey has been working with Asia in product development for over 25 years. He has made between 200 and 300 new products in Greater China, and has exported and sourced thousands more. Known as The Import Pro ™ Tom teaches and consults on a wide range of topics in international trade with Asia and the West. He started his career early in the Telescope industry developing scientific equipment for a Ball Aerospace engineer. In the 80's he moved to Taipei to study Mandarin Chinese and develop new products. He ran the buying office for a large Canadian chain store, producing hundreds of goods manufactured throughout Asia.
In the 1990's, Mr. Galey worked in the US territory of Guam with Esso Eastern Singapore, Exxon as a marketing executive. He later joined Budweiser Micronesia and managed the overseas production of Budweiser branded promotional products. As director of Marketing in the Pacific Rim, he pioneered factory-direct Asian purchasing for overseas divisions. Anheuser-Busch used these newly developed policies and changed corporate purchasing procedures.
The consulting firm of "Three Chinas" was established in 2005 to assist in the development of new and complex products in Asia. Further development included guided trips to China and Asia to learn hands-on skills in product development in Asia. He instructs seminars on doing business with China and the Pacific Rim.
Now a professor of business and economics in Colorado, Tom continues to consult on market entry into Greater China as well as advisor to trade ventures with Asia.
Tom graduated from the University of Colorado with a degree in Economics and has an MBA with an emphasis in Global Management from the University of Phoenix. He remains fluent in Mandarin Chinese and speaks enough Taiwanese go get into trouble!
"Eight Great Lies and Misconceptions about China."
1. Q: Some of the presidential candidates have said that the US has suffered losses from economic and trade cooperation with China, and others claim that high unemployment in the US is caused by an undervalued yuan?Why is everyone down on China these days ?what are they doing that is so wrong ...? blaming China will not help the US solve its problemsA: First reason is politics, both Dems and Repubs will gain votes by criticizing China... (there are many topics which can be referenced... which is the basis of the rest of the misconceptions)(A Morgan Stanley report showed that 4 to 8 million jobs in the US are closely tied to Sino-US trade, and in the past 10 years US consumers have saved at least $600 billion by buying commodities made in China. According to a report released in November by the US-China Business Council, 88 percent of US companies have made more or equal profits in China compared with those made in other countries. )
http://english.people.com.cn/90883/7711407.html
2. Q; Capital and technology from the US have played a positive role in China's reform and opening up , are the The two economies so closely interconnected that neither one can leave the other?The US is the biggest source of China's foreign investment. Statistics show that by the end of November, the US had more than 60,000 investment projects in China with an input totaling $67.4 billion.
3. Republican candidate Mitt Romney has pledged to designate China as a currency manipulator and pursue litigation against its "unfair trade practices" will Such practices will "only push the two countries to a 'trade war', which harms China but brings no profit to the US either"?
2. Q: From what I understand The Chinese market is actually two distinct markets for every product, there is a ‘foreign/local’ market, characterized by higher technology and higher price, and a second purely ‘local’ market, which is characterized by lower technology and lower price. All I hear is how bad the products are manufactured from china. Can I make an assumption that China manufacturing has made huge progress in that last few years?(Many luxury cars are made here. And I see some successful Chinese brands getting distributed in high-end department stores and boutiques, at the price point of most imported products.)A: You get what you pay for... China can produce high, medium, or low quality. What is in demand? ... low price. Americans demand low price, nothing else... if the quality suffers, the price is still low... that's ok.
4. Q: China accounts for the third largest number where child labour is concerned , child labour in China has been there for centuries. This is so despite that there have been strict official regulations that ban employment of minors. And according to the laws of China, a minor is an individual below the age of sixteen-years do they still have children working 18 hour days under horrible conditions? and As China's Economy Grows, So does China's Child Labour Problem?A: There are more than enough people (adults) to fill the production jobs, in fact the migrant worker population (of 300 million = to the entire US population!) has improved the overall quality of life by many times. I was there in the '80s and 90s, life was rough... farmers made $50 US per month. So the 300 million farmers moved to the factory and more than doubled their salary. Would you like a 2X in your salary? Does anyone want to double their salary? Sounds ok to me.
There are juvenile labourers employed in the workshops and factories. According to a recent People's Daily Report the use of children is maximum in the following industries:
Toy manufacturing
Production
Textiles
Construction
Food production
Light mechanical work
Child labour in China is hardly a new phenomenon. For years, despite official regulations banning the employment of minors (defined by Chinese law as those under sixteen years of age), teenagers and even pre-adolescents from poorer regions of China have been drawn to the rapidly developing southern and coastal areas looking for work. For this army of juvenile labourers, employment is readily available in the workshops and factories (and to a lesser extent related industries, such as food service) that are at the heart of China's economic boom. A recent People's Daily Report cites an investigation undertaken by the government agency in charge of monitoring labour conditions in Shandong province's Jinan City. According to the report, the use of juvenile labour is most prevalent in the following industries: Toy production, textiles, construction, food production, and light mechanical work. Concerning the latter, the report concludes that child labour is particularly in demand because children have smaller hands and eyesight undamaged by years of labour, making them more desirable than adults for certain kinds of work.
More often than not, parents of juvenile workers have little choice but to send their children off to work; as school fees increase beyond the means of most rural families, educational opportunities for rural children grow increasingly dim. Further, the earnings of children, however meager, represent a substantial portion of much-needed income to poor families. Parents of juvenile labourers rarely have a clear idea of the adverse working conditions and physical risks inherent in industrial work. Moreover, the juvenile workers learn themselves are often reluctant to complain, knowing well the critical nature of their financial contributions to the family.
5. Q: Little by little China is forming military links in Africa and in the Indian Ocean in order, experts say, to protect Beijing's economic interests in the region ,China has beefed up their military presence, they have a new aircraft carrier, they are venturing into space... are they going to take over over thee world or protecting there economic interests in the region? A: What is the motivation to "take over"? You have to ask an obvious question: WHY? Why would they want to piss off the USA? and ... Can they take over? ... most definitely NOT... they are about a trillion bucks short of that for one.
In the past three weeks Beijing has committed to supporting Ugandan forces operating in Somalia and to helping the Seychelles fight piracy. "It is very clear that the Chinese leaders recognize that military force will play a bigger role to safeguard China's overseas interests," Jonathan Holslag, of the Brussels Institute of Chinese Contemporary Studies told AFP. "There is a willingness, and even a consensus, in China, that this process will take place." The Indian Ocean is strategic, Holslag said, noting that 85 percent of China's oil imports and 60 percent of its exports are routed via the Gulf of Aden. Beijing does not so far have any military base in the region: its military presence consists of three vessels in the Gulf of Aden to fight Somali pirates. But the deployment of those ships in 2009, the first of its kind for the Chinese navy, was already highly symbolic. For the moment, cooperation between China and the islands of the Indian Ocean is still limited to "low profile military-to-military exchanges, but it is getting broader and more structured," Holslag told AFP. "The mere fact that China has a multi-year naval presence in the Gulf of Aden has great symbolic and diplomatic significance," said Frans-Paul van der Putten, senior research fellow at the Netherlands Institute of International Relations Clingendael.
6. Q: China is able to produce goods that Americans want at a low cost. Despite the loss in jobs, this is unlikely to change. That's because most people would rather pay as little as possible for computers, electronics and clothing -- even if it means other Americans lose their jobs. the U.S.trade deficit with china was $272 billion . Why Is There a U.S. Trade Deficit with China? Do The Americans have to sell more products to balance its trade deficit?A: Not really, first we have already made HUGE increases in how much product China buys from the US now... to shut that down, it could ruin the US economy. If we limit China imports, they limit US imports (everyone does, the US taught everyone how to do that one).
The U.S. has a trade deficit with China despite the fact that its exports to that country were the highest in history. In 2011, the U.S. exported $94 billion in goods, an all-time record. (Exports in 2010 were only $92 billion.) However, imports from China also set a record -- $367 billion, more than the $364 billion imported in 2010. The U.S. imports consumer electronics, clothing and machinery from China. A lot of the imports are from U.S. based companies that send raw materials to China for cheap assembly. When they are shipped back to the U.S., they are called imports even though they are profiting American-owned companies. (Source: U.S. Census, U.S. Trade in Good With China)
OK how about we increase the tariff's, increase import taxes?A: That's not going to help, it will make product more expensive. If the desire is to hurt the average consumer, then slap higher tariffs on China goods. What will happen with certainty, is the retailer or seller will add that price onto the price the consumer pays. Oh yeah, anyone selling to China will have a tax added to their US product... that will limit sales and profitability for the N. American firm.
7. Q;Most economists agree that China's competitive pricing is a result of two factors so How does China keep prices so low?
9: Q American manufacturing output continues to rise. Yes, really, even as manufacturing employment falls, manufacturing output is still going upin the united states (ISM Manufacturing Composite Index) , I have data showing China lost 16 million manufacturing jobs, a decline of 15 percent, between 1995 and 2002, according to a study of manufacturing jobs in the 20 largest economies by Joe Carson, director of economic research at Alliance Capital Management. In that same time, U.S. factory employment shrank by 2 million, or 11 percent.Yes, that really is correct, China is losing manufacturing jobs. And at a rate faster than the US is. a.So where are they all going? Brazil maybe? Indonesia?
b.While jobs in manufacturing are certainly declining, is America producing more than it ever has. In other words, your producing more goods , using fewer people?
b.While jobs in manufacturing are certainly declining, is America producing more than it ever has. In other words, your producing more goods , using fewer people?
a.So where are they all going? Brazil maybe? Indonesia?
b.While jobs in manufacturing are certainly declining, is America producing more than it ever has. In other words, your producing more goods , using fewer people?
No, what’s actually happening is that the jobs are disappearing altogether, entirely going up in smoke: It seems that China’s advantage as a low-cost producer hasn’t halted the insatiable drive worldwide to replace even dirt- cheap labor with productivity-enhancing equipment.This really is happening all over the world:Some 22 million manufacturing jobs were lost globally between 1995 and 2002 as industrial output soared 30 percent, Carson says. It seems that devilish productivity is wreaking havoc with jobs both at home and abroad.
10
A: We need China as much as China needs North America. We fire them (mr Trump) and they fire us! Do we want that? You can argue all day long about who is more important to whom... irrelevant argument I say because we both need each other.11. Q; With increased pressure from the West and the World Trade Organization, China has instituted a number of reforms to its patent system. Much like the United States Patent and Trademark Office, but The Chinese continue to knock off our branded product, why does this keep going? Is it possible to protect your Intellectual Property Rights (IPR) when doing business in China?
; Q: So we just fire them as Donald Trump would say right?
A: Because we demand it... American's buy it all, and don't seem to try to stop it on the streets of New York... Fake Rolex watches are for sale right now in Montreal, you can go buy one in five minutes of arrival. What's wrong with this picture? It's as if it is legal... I wonder, is it? ... if you can buy a fake Gucci bag ... well, everywhere, is it legal? The people buying support the industry, not the makers... if there were no buyers, who would be so stupid to make it... if it's hardly illegal, wouldn't everyone want in!?!
12. China is more dependent on international commerce than almost any other nation, so trade friction -- or even declining global demand -- will hurt it more than others. Will China will not be able to export its way to prosperity like it did during the Asian financial crisis in the late 1990s. The country real estate, for instance, could it be the biggest victim of the eurozone crisis.? Real estate
Just like the US, speculation on real estate in China is facing a bursting bubble... prices are sky high and people may be losing money. What further complicates things is that the government initially, in the Maoist days of communism, owned all the land... so they dole it out as required. It's not a perfectly competitive market because of this government involvement. My advice to Americans interested in this area is to ... be Chinese...
13.why do the chines love buying gold ?Gold,
Historically, the Chinese have valued gold quite highly. It means more than money in Chinese culture, it is a symbol of wealth of course but of power and authority... Gold is owned by kings in the past, and now individual citizens can feel like royalty by owning gold. Also, Chinese save differently from North American and European cultures. We in the West trust banks to hold our savings... Chinese and developing Asian cultures have experienced bank failure and have lost money... That being said, maybe the West can learn from some prudent savings.
China has a great deal of gold, if we change currency standards this could play in... The Chinese Yuan is moving towards an internationally traded currency, look for changes in Gold.
(Note: we can talk about human rights, but that's like an entire hour of discussion, and quite controversial. It's a bit beyond business at this point, and i venture into politics enough... hopefully political business issues.)
The answer, the solution might be to accept the situation we have allowed the economy to go... to accept the fact that China is a good partner ... and they are here to stay. They are not the evil void we are seeking. Some think we need an enemy, that's a stupid argument coming from fear and a lack of knowledge.
notes
Posted: Thursday, March 30, 2006
by Tom Galey
3 Chinas
Is it possible to protect your Intellectual Property Rights (IPR) when doing business in China? A lot of people ask me this, and it is a great question and a very interesting topic. Things have changed dramatically in just the past few years in this area, most especially in China.
What launched this change has to do with China’s entry into the World Trade Organization. Just a few years ago the US and WTO watchmen applied enough pressure on the Chinese government to get serious about cleaning up copyright violations. In order for China to join the WTO club they had to show a serious commitment to curbing violations in intellectual property rights.
The result was new laws and a new legal perspective in China. US Customs and Border Protection (CBP) recently released statistics indicating that seizures are down 33% from last year. Apparel topped the list of infringing products followed by handbags. The list continues cigarettes, footwear and consumer electronics. Computer hardware was down to only a 5% share of IPR-related seizures.
Counterfeiting is big business and most brands do not suffer significant damage. Copycats are knocking off branded items, these brands are big names. Big brands have the attorneys on the ground in Asia keeping an eye out for their brands. Companies that take a proactive role usually don’t have a problem.
Violators can expect to do jail time for breaking the law. Criminals who profit from copying are now realizing that the laws are for real. Fines for violators are over $60,000 USD.
So if you have a product that is really unique and you don’t want it copied, apply for a patent. The right kind of patent will protect you on a global scale. Under the Madrid System, a US application for patent has protection globally. If your item is so unique you should file a patent in China for further protection. The thrust of China’s new laws is that they work both ways, the laws are written in harmony for protection on both sides.
Today overseas factories are not taking any chances. Besides, there is plenty of business to go around. They are busy making money.
Political as well as commerce opportunities have brought the two nations together in a partnership like nowhere other time in history. Success comes down to working with trusted partners with years of experience in dealing with these issues.
Tom Galey,
China Sourcing Consultant
Boulder, Colorado
http://www.3Chinas.com
People often compare China’s urbanization to Western industrialization in the 19th century. In both cases, a large population moved from the country to the city. Society advanced from agricultural to industrial via manufacturing on a massive scale.
------------------------------------------------------------
Myth of China’s Manufacturing Prowess
However, there is a key misconception about China’s manufacturing prowess.
In the United States and Europe, the manufacturing industry was created due to technology innovation. For example, railways came into existence because of the invention of the steam engine and automobiles were created because of technology breakthroughs in automobile engines.
In China, the manufacturing industry is being created in response to global demand. Chinese manufacturers take orders from Western companies that have designed products for their home markets. They have no involvement with product development, innovation, market research, and even packaging. Chinese manufacturers have no experience in bringing their own products to overseas markets.
Unlike the manufacturing industry in the West that gave birth to a middle class of both white-collar and blue-collar workers, manufacturers in China mostly absorb surplus labor from rural areas with few skills. Those rural migrant workers live in dormitories, earn about $100 to $200 a month, and hardly fit into the category of the middle class. (To be clear, there is a burgeoning middle class in China. Most of them are in urban private businesses, state-owned enterprises, and multinationals).
James Fallows, national correspondent for the Atlantic, visited many factories in China. He saw people working on the assembly lines and was convinced those tasks would only be performed by machines in the United States.
Yes, China is making efforts to drive its economy up the value chain. The 11th Five-year Plan (2006 – 2010) called for "scientific development." A key initiative is an increase in the R&D-to-GDP ratio from about 1.3 percent in 2005 to 2.5 percent by 2020. However, how much of the funding is actually used for research and development and how well the research is being transferred into manufacturing are both highly questionable.
Given the unpredictability of the regulatory environment, many Chinese manufacturers tend to focus on short term gain. They compete on volume and price, and only enjoy wafer-thin profit margins. This has kept Chinese manufacturers from investing in research and development or training employees.
Recently, some Chinese manufacturers experienced a shortage of low-waged workers. On the other hand,
While the rest of the world fears China’s manufacturing power, China is trying to move away from its "sweatshop" manufacturing and become a service-oriented economy. However, China may find itself locked into place, at least for now, due to the hundreds of millions of rural migrants that need jobs.
Contrary to the conventional view, manufacturing in the U. S. has been growing in the past two decades despite the decline in manufacturing jobs. The latest
In addition, most jobs the United States lost to China are low-skilled jobs. By outsourcing those low-skilled jobs to China, Americans have actually become more competitive in high-skilled jobs such as management, innovation, and marketing. The low-skilled jobs also serve China well as Chinese rural migrants have opportunities to move up in life and gain some skills.
http://www.tewealth.com/experts/samuel-ezerzer-b-sc/
samuel ezerzer
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