Podcast Trade

Thank you!!!

Jeffrey Bogaert,
Nico Cossyns,
Julie Deaulmerie,
Nicholas De Potter,
David De Vos,
Simon Verduyn.

Greece rescue deal

Greece will be finishing the terms of a €120 billion rescue loan to restore the country’s debts. Greece has reached an agreement with the IMF and other governments of the euro zone concerning the saving measures the European Union asked for. If the Greek government complies with these terms, they will get in exchange a financial ‘need’ plan from the IMF.

These measurements stirred up some commotions in Greece. Crowds have protested In Athens against the no indulgency measures attached to the loan and the increase in the retirement age from 53 to 67. There will be cuts in the public sector salaries as well. This Wednesday, a more substantial strike will be held in Athens.

Central banks and the European central bank are also working to restore the country’s significant debt.

These days, it’s all about the Greek crisis and whether or not the EU has to help the Greek government. There has been a lot of criticism about Greece influencing the European union’s prosperity. I personally think Greece never should had joined the European Union. They haven’t met the Maastricht criteria and because they are stuck to the euro they can’t devalue while the Greek economy is in a deflation. I think they should be allowed to leave the Euro to lower their debt before things really get out of hand.

Even though the Greek government will receive financial help from the IMF, they had to agree several measurements. These actions or measurements, which will be applied soon, aren’t positive for the Greek population as well. Salaries will be lowered and the retirement age is shortened.

In general, I am convinced that an exit from the euro is the most sustainable solution on the long run. Continuously bailing out Greece will only help them at short notice and eventually effect the European financials.

Source: http://business.timesonline.co.uk/tol/business/article7114070.ece

Trade - the movie ( trailer )

Summary

This film “trade” is a German film and a cooperation between Roland Emmerich and Rosilyn Heller. Roland Emmerich is widely known as a director and producer of films like : Independence Day , Godzilla , The Day After Tomorrow , 10000 BC and 2012.

It all starts when a 13-year-old young girl is kidnapped in Mexico-City by Russian thugs. Together with other girls she’ll be transported into the United States. But her 17-year-old brother tries to save here by setting up a desperate mission. This mission leads him straight into a network of trading human cargo, here he hopes to free his sister with the help of a cop.

Can he really save her or is it just too late ?

Personal opinion

I saw a large part of this movie in my lessons Spanish in my secondary school and for me this was an example how trade is used in a negative way. Although this film isn’t based on a true story, it can be a true story because these sad stories happen all the time, everywhere in the world.

It’s a sad story but it reminds everybody how trade can be used at a negative way and it also opens your eyes and gives you a look how criminal organisations work. In this film this criminal organisation are Russians but because globalisation and of course trade is worldwide spread it could be also different guys.

These organisation trade (little)girls for big money to let them work in the sex industry. If you see that they have already a network of corrupt cops, government workers, ... you need open your eyes and let everyone see that this is a problem that’ll never cure itself.

By Nicholas De Potter

http://www.youtube.com/watch?v=cdeHCL_DO5E&feature=fvst

Casino Capitalism: Can It Be Contained?

“You are all the house, you’re the bookie. Clients are booking their bets with you. I don’t know why we need to dress it up. It’s a bet.” This is what Senator Claire McCaskill proclaimed at the hearings with Goldman Sachs’ senior executives. Casino capitalism came to life after the recent financial crisis; investment bankers are able to go short, as well as long, on the same investment – meaning that the bank can bet against their clients’ investments. Isn’t there fraud or at least misinterpretation involved in these transactions?

With tougher legislation and some serious financial reform, people who are guilty could actually be sent to jail. There is no social value in having large banks – and do not tell yourself that they can guarantee anything because they’re big. It’s been proven that even big banks can fail – look at the comparison of Greece and Lehman Brothers, right now. Europe and the United States are so intertwined with trade and investments that a collapse of the Greek economy would affect not only the EU, but the US as well.

If traders take unacceptable risks and do it from our banks they need to suffer the consequences when their deals go south. More laissez-faire, tougher legislation and a drastic financial reform - that’s what our economy needs right now.

It’s clear by now that the financial crisis was man-made, not just some weird coincidental series of events. It’s the constant gambling and the insationable greed of some Wall Street bankers that made the system what it is today; making those tower-high bonuses at any cost. In what world are we living if even ‘guaranteed capital’ funds aren’t credible anymore (look at Iceland’s Kaupthing Bank). And this is a minor aspect of everything that’s wrong, the real problems occur in the (business) world;

The Federal Reserve constantly keeps injecting the American system with fresh cash (which doesn’t exist in the first place). The States have lost so much financial credibility all around the world and foreigners wonder why they’d still invest in the States when there are better alternatives like China. And these practices will only keep repeating themselves if no decent regulations are put in place. We all know by now that Wall Street does not have to moral fortitude to do it themselves.

There hardly are any forms of sustainable investment left in the States, the banks that used to be the icons for the American system are now but mere shades of their former glory. The people who initially had nothing to do with the crisis were the ones who suffered the consequences (evictions, …) and no longer have faith in the American economy, nor the political systems. The American citizens have lost confidence in Washington, because they did not act when it was needed, and because they are still sitting around – not fixing anything.

Simon Verduyn

http://www.huffingtonpost.com/robert-guttman/casino-capitalism-can-it_b_557128.html

Belgium – International trade

International trade is very important for the Belgian economy. Approximately 70 percent of the nation’s economy is dependent on international trade. Disruptions in global trade such as recessions can cause unwilling problems in Belgium’s economy. Fortunately, Belgium has many trade partners. Thanks to the export diversity, economic problems can have only significant impact on Belgium.

The nation’s main trade partners are in the EU. Also most of Belgium’s imports come from the EU, these provide 71 percent of Belgium’s imported products. The United States is a major trading partner of Belgium. In the opposite way, Belgium is the ninth largest trading partner of the United States. About half of Belgium's imports from the United States are processed and re-exported to other markets.

Imports from EU nations enter Belgium without any tariffs or duties. Goods and products from nations outside of the EU enter Belgium with import duties and a value added tax (VAT). The amount of these taxes depends on the product to an average of 5/6 percent of the total value of the product. Goods from outside the EU face a price disadvantage.

Since Belgium is headquartered as home of the EU, the nation has a unique perspective on world trade and global markets. Therefore Belgium has significant influence on trade.

I know Belgium aims strongly to be an open economy. Because Belgium’s economy is dependent on international trade, it’s very important to anticipate unwilling problems in global trade. I’m not surprised that trade is one of the most important activities in Belgium. With its central position in Europe, Belgium has become the headquarter of the EU. Trade is important when a country needs resources, it can't provide for itself, or because it's cheaper to import than to produce locally. Trading helps other nations to get what they need, while making money by selling what they don’t need. This makes it possible to develop as country. People can get food, clothes and other necessities by trading.

Source : http://www.nationsencyclopedia.com/economies/Europe/Belgium-INTERNATIONAL-TRADE.html

Trade Jargon

This article is about specific trade terms used in international trade forms. It is very important to use the same terms to prevent miscommunications. If the forms aren’t filled in correctly, the customs won’t let it import or export. The international trade forms are divided in 3 parts.
· The first part is the Commercial document (invoice, insurance, weight certificate,…),
· The second part is the Financial document (bill of exchange, letter of credit and a check drawn)
· The thirt part is the Transportation document which is the Bill of Lading (BOL).

In a formal trade we have 4 parties.
· The Exporter also called the shipper or seller
· The Exporter’s bank or the confirming bank
· The Importer who is the buyer
· The Importer’s bank or the Collecting bank.

The more documents, the plainer language should be used. The best way to trade internationally is by only using those four words, in this way miscommunication will be avoided.

These Formal terms should be used to make everything easier. By reading this article, I realized that it is very important. I will certainly use those terms when I have to trade or ship something later. The specific jargon should be globalised, this will make trade a lot easier. Maybe a lot more trades will be made between different countries and this means that the contact and relation between different countries will improve. I think this is a necessary unification. It will also be easier for the customs who don’t understand synonyms from the official terms. I also think there are a lot of miscommunications, and when it is going about million dollar shipments it is very important to take all of this into account. Searching a new article for my new blog wasn’t easy. I wanted to search something else then the articles that I found before (about Vanilla trade, and Cuba Embargo). I thought this could be very interesting for everyone, we aren’t trading for millions yet but a little trade could use this information too.

Julie Deaulmerie

http://internationaltrade.suite101.com/article.cfm/trade_jargon_cheat_sheet

Trade policy

Trade policy is a guideline of rules which falls on every form of trade all over the world. Every nation has his own form of trade policy. The policy exists to create a better international trade. Things like taxes, regulations, tariffs and other forms of trade costs are part of the trade policy. Every nation is free to chose his position in the international trade. The safety aspect in different countries can be a barrier to trade because of the policy, that’s why there exists a trade agreement. This agreement makes it much easier to trade because it’s adapted to the situation. This creates a better contact and a better form of trade.

Opinion:

I think it’s good that there exists a trade policy because otherwise the international trade would be too chaotic. Weaker economic countries could suffer a lot if there weren’t rules on trade. These policies keep a certain balance in the economy of all the nations. I prefer an open trade system in the world, because I think globalization is a very good way to create employment in the world and good relations between the different nations. But countries may chose themselves if they are protectionist or non-protectionist. When countries trade between each other it’s very important to make some agreements. Otherwise there would be a lot of countries who suffer because of their policies, on for example tariffs. I also think it’s necessary to reform these policies on an easy way because the world economy is constantly changing and evolving. A country must have the opportunity to trade on a very honest way.

http://www.wisegeek.com/what-is-trade-policy.htm

Nico Cossyns