FOREIGN DIRECT INVESTORS PREFER STABLE MARKETS
LONDON, UK -- The current Foreign Direct Investment Confidence ratings
released by A.T. Kearney this month, reveal that corporations are becoming
more cautious with new investments abroad. Nevertheless, USA(1), Brazil(2),
China(3), UK(4), Germany(5), Mexico(8), Poland, France, Spain and India remain among
the top 10 preferred markets for investment, with growing confidence in South Korea
(South Korea has moved from 2lst to 16th place), Thailand (maintaining the 15th
position) and Japan (which moved from 23rd to 19th place).
Stable markets are what investors are looking for now -- more today than six
months ago. The five factors investors consider most important when looking at
markets abroad for direct investment are: market size, political stability, GDP
growth, regulatory environment and profit repatriation.
The country that seems to have lost the most ground among investors according to
this study is Russia.
While market preference differs from industry to industry, the markets that
remained high across all industries were: the USA and Brazil.
Reader's Comments
(Source: YOUR LINK HERE)
DRASTIC AD BUDGET CUTS PLANNED FOR RUSSIA
MOSCOW, Russia -- 1999 will be a solemn year for the advertising industry,
among others industries in Russia. Advertising budgets for 1999 are projected to be cut in
half, compared to those from this year (1998). As a result, there has been significant downsizing
in Russian agencies.
For example, McCann-Erickson reduced staff in its Moscow office by 30%,
but decreased payroll by 50%.
In these obviously turbulent political and economic
times, there is little to buy in Russia, hence, little reason to advertise.
According to J. Walter Thompson's President of Europe/Middle East/Africa
(whose primary Russian clients include Ford Motor Company, Kraft Jacob Suchard
and the Kellogg Company), 90% of the advertising planned 4th Quarter 1998 has
been cut.
Multinational marketers are slowing down local production and hoping to
wait out the crisis, but future foreign investment is showing significant signs of
slowing down in Russia and other emerging markets.
(Source: YOUR LINK HERE)
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EURO INTEREST RATE CUT BOOSTS CONFIDENCE
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CENTRAL AMERICA NEGOTIATING FREE-TRADE PACTS FOR 1999
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FRANKFURT, Germany -- On January 1, 1999, 11 European countries are
launching the euro, the single European currency: Austria, Belgium,
Ireland, Italy, Finland, France, Germany, Luxembourg, the Netherlands, Spain
and Portugal. In an effort to boost confidence, they mutually agreed to cut
interest rates to a common 3% across the board (with the exception of Italy,
whose rate is now at 3.5%, but will reach 3% by Jan. 1). This was an important
move towards economic union as interest rates continue to be a political issue,
particularly in Germany and France where lower rates will help boost growth and
cut unemployment.
(Source: YOUR LINK HERE)
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CENTRAL AMERICA -- Central American countries plan to sign a free-trade agreement with Chile next
year to take advantage of reduced and/or duty-free access to Canada and the
Mercosur bloc, of which Chile is an associate
member. Caricom,
The Caribbean community, is also discussing a
free-trade agreement with Central America. Such agreements benefit
these markets with lower labor costs as well as cheaper access for
trade, than going through the US.
Reader's Comments
(Source: YOUR LINK HERE)
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INFORMATION & COMMUNICATIONS INDUSTRY BOOMS IN GERMANY
GERMANY -- Interest in interactive communications is growing. Computer
skills are in high demand in Germany. In fact, about 25% of all new jobs
throughout the country are in the information & communications industry.
This is likely to be just the beginning of a growing trend with internet
use and online services booming in the coming years.
Today more than 1/3
of western German companies use the internet; only 1/6 of eastern companies.
The potential is enormous.
German companies are expected to invest more than
US$2.2 billion this year in internet and e-commerce applications. And they
are hiring qualified programmers at record numbers to prepare for the new
millennium (Year 2000 Bug) and the adoption of the euro. As the business focus
on technology is being realized, the demand for qualified programmers and industry
specialists is on the rise.
(Source: YOUR LINK HERE)
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Keep up-to-date on general global business news and trends as they occur --
updated 24-hours per day, 7 days a week. PANGAEA.NET
members have further access to country- and industry- specific news everyday.
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LAST MINUTE TRAVEL BARGAINS -- Special Discounted
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