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In-The-News
September Edition
Turkey
“Erdogan Is Sworn In as President of Turkey “
Two weeks ago Turkey elected its first directly elected president. Beyond the political and cultural significance, this also has a huge impact
on Turkey’s economy. Tayyip Erogdan, the recently elected president
of Turkey, is known for his ability to bring foreign investment. During
the 2008 financial crisis, Turkey experienced the best five years of
growth it has ever experienced due to Erogdan’s friendly foreign investment policies. Looking forward, he has stated that he will continue
to implement such policies in order to further benefit the Turkish people.
http://www.nytimes.com/2014/08/29/world/europe/erdogan-is-sworn-in-as-presidentof-turkey.html
“Turks spend half of their salaries on food, housing”
Turks spend almost half of their salaries on food and housing. If you
add transportation to the mix, Turkish households spend approximately 62% of their salaries on food, housing, and transportation. To make
matters worse, a recent drought, that has lasted almost a year, has significantly reduced water levels and increased food prices. Another
negative ramification of this drought has been the increase in the inflation rate, which as of August 2014 was calculated to be 9.54%. Analysts
are predicting a substantial rise in unemployment in the upcoming
months as a result of the current situation.
Volume 2, Edition 1
Turkey Facts

- The Republic of Turkey is the largest
national economy in Central and Eastern Europe. Turkey's economy is a
complex mix of modern industry and
commerce along with a traditional agriculture sector that still accounts for
about 30% of employment.
- Today, Turkey occupies one of the
most strategic locations in the world.
Turkey controls access to the Black
Sea. Russia’s only warm water ports
lie on the Black Sea. Furthermore, as
the only member of NATO in direct
proximity to Russia, Iran, Syria and
Iraq, Turkey’s strategic importance
cannot be underestimated.
Did you know?
- The Turkish national sport is called
yagli gures (oil wrestling) – so called
because wrestlers grease themselves
with olive oil to make it difficult for an
http://www.todayszaman.com/business_turks-spend-half-their-salaries-on-
opponent to grasp them.
food-housing_357936.html
- Turks write the date in an unusual
way: they include the day of the week
in the middle of the date. They usually
write the day first, then the month,
then the day of the week, and finally
the year. For example, December 3,
2014 is written … 3.12.Thursday.15.
(Periods are used instead of commas.)
Key events:
August 10 – Presidential Election
October 4 - Sacrifice Feast
October 29 – Republic Day
Tayyip Erdogan was sworn in as the country’s first directly elected president.
China
Brazil
“China manufacturing growth slows and house
“Brazil goes into a Recession after Two Quarter
prices fall”
Slide”
In August, the purchasing managers index (PMI) for
China fell from 51.7 to 51.1, showing a slow in manufacturing growth. The growth of manufacturing activity is one of the key measures used to watch the health
of the Chinese economy and some are worried that the
recent fall in housing prices throughout China is slowing manufacturing growth.
During the first quarter of 2014, Brazil, saw a drop in their
GDP of .2%. After the recently concluded second quarter,
Brazil’s GDP dropped further by .6%. Since “two consecutive quarters of contraction,” define a recession, Brazil is
now under the label of an economic recession. Some blame
the drop in car exports to Argentina, while others blame the
hosting the World Cup. The forecast is that there will be no
http://www.telegraph.co.uk/finance/economics/11067256/Chinamanufacturing-growth-slows-and-house-prices-fall.html
“Chinese authorities targeting foreign firms”
growth in Brazil’s GDP for the year of 2014.
http://riotimesonline.com/brazil-news/rio-business/brazil-goes-intorecession-after-two-quarter-slide/
Chinese authorities have been targeting executives of
multinational firms when they visit China for allegedly
violating Chinese antitrust laws. They performing impromptu inspections of their hard drives without due
process. Chinese officials argue that they are just in
their actions due to the fact that “Everyone is equal
under the law”.
http://www.economist.com/news/business/21613348-chinasantitrust-crackdown-turns-ugly-foreign-carmakers-forefrontunequal
Chile
“Energy in Chile: Winds of change”
The cost of energy is a major issue in Chile. Chile's
copper mines consume 39% of the country's electricity. Mines have to get by on a mix of Bolivian gas,
coal-fired power and diesel, which is expensive. The
mining community is taking the situation into their
own hands and using renewables to get their costs
down. Chile has plenty of wind; therefore they built
Mantega, Brazil’s finance minister, assures that Brazil is not in a
recession despite recent figures, stressing that as unemployment is
not rising, the slump is just temporary, photo by Agencia Brasil.
“Brazil's Market Gains as Politics Shift”
Investors have an increased interest in Brazil as President Dilma Rousseff falls
in the polls. What seemed as a definite re-election for a second term has now
turned as poll numbers have been falling for Rousseff against the Socialist
Party Candidate Marina Silva. Investors look positively at Ms. Silva positioning on loosening state control over key sectors of the economy
http://online.wsj.com/articles/brazils-market-gains-as-politics-shift1410280287
the biggest wind farm in the country north of Santia-
Argentina
go. These wind farms will provide 20% of the mines
“Government Defends Plan to Increase Exports to
electricity.
Russia”
http://www.economist.com/blogs/americasview/2014/09/energychile?zid=305&ah=417bd5664dc76da5d98af4f7a640fd8
In response to sanctions placed upon it, Russia has announced a sanction against the United States, European Union, Canada, Australia, and Norway. The sanctions enacted
by Russia include sanctions on meat, fish, dairy, fruit and
vegetables. This places Argentina in a position to increase its
food exports to Russia.
http://www.buenosairesherald.com/article/169313/gov%E2%80%99tdefends-plan-to-increase-exports-to-russia
Japan
“Is Japan's Economy Headed for Collapse?”
Despite overwhelming skepticism in the West, Japan states its
economy is not broken. Although Japan is facing a host of economic issues (aging population, high public debt, low GDP
growth), Prime Minister Shinzo Abe has developed a three part
program to change Japan's economic outlook. His program includes fiscal stimulus, quantitative easing and structural changes
for corporations and the labor market. short, Japan's economic
prospects are brighter with Prime Minister Abe's plan but the
west must be patient for the results.
http://nationalinterest.org/feature/japans-economy-headed-collapse11217?page=2
“Japan’s Ajinomoto to Buy Texas Frozen-Food Producer”
Ajinomoto Co., known for seasonings and cooking oil, an-
South Korea
“East Asia nearing Free Trade Agreement”
South Korea, China, and Japan have concluded their
fifth round of Free Trade Agreement talks. The three
sides have bridged differences over goods and service trade, as well as differences over investments.
No timetable for the signing has been announced but
all three countries are promoting an agreement. Once
signed, the Free Trade Agreement would cover a
combined region of 1.5 billion people.
http://www.wantchinatimes.com/news-subclasscnt.aspx?id=20140907000007&cid=1201
“South Korea May Catch Japan's Economic
Cold”
nounced Wednesday they will purchase US frozen-food giant,
Recently, South Korea’s economy has been slowly
Windsor Quality Holdings L.P. of Houston for $800 million.
drifting towards deflation and a low-growth rate.
When the acquisition is finalized, Ajinomoto will hold the high-
This has also happened to their neighbor Japan, in
est share of the North American ethnic frozen-food market at
which both of the countries consumers have been
36%.
leaning towards the saving side, rather than the
http://online.wsj.com/articles/ajinomoto-buys-texas-frozen-food-company1410325728?KEYWORDS=japan
spending side. Even companies are hoarding money
as they face lower demand rates from households.
The Bank of South Korea has made an attempt to
Indonesia
“Indonesia stock market hits record high”
The Indonesian stock market hit a record high because investors believe that new president Joko Widodo will cut the fuel
subsidy bill. Investors are excited with Widodo’s background
as a businessman and governor but worry that he will face a
“race against time” to satisfy market expectations for economic
http://www.ft.com/cms/s/0/3123c120-3734-11e4-847200144feabdc0.html#axzz3CjfTi3TH
“Mitsubishi may invest 1 billion USD in Indonesia's
auto industry”
Between 2006 and 2014, Mitsubishi has invested $7 billion in
Indonesia, and is looking to invest another billion this year. Not
only are they investing in Indonesia’s automobile industry, but
they also invest in Indonesian based companies like DonggiSenoro liquefied natural gas and Strand Minerals Pte. Ltd.
http://www.thejakartapost.com/news/2014/09/10/mitsubishi-may-invest-us1billion-auto-business.html
turn this around by lowering interest rates from 2.5
to 2.25. The federal government also has plans for
taxing corporation’s profits that don’t go towards
investments, wage incensements, or dividend payments
http://www.businessweek.com/articles/2014-09-04/south-koreamay-catch-japans-economic-cold
Philippines
"Philippines will excel in the era of Globalization "
The president of the Philippines spoke about how the
nation will excel amid the increasing competition
brought about by globalization. He expects more competition to push businesses in the Philippines to do better as a whole. Philippine economy grew by 7.2% just
last year making the nation one of the best performing
economies in Asia.
http://business.inquirer.net/178425/ph-like-gilas-will-excel-amidglobalization-aquino
Saudi Arabia X
Russia
“TOC wants more Saudi female athletes “
“Russian Minister Says Oil Sector Already Dented
Olympic Committee (IOC) recently met to discuss Saudi
by Sanctions”
Arabia’s failure to include any female athletes on their
The United States and European Union have imposed sanc-
199 roster for the Asian games. Women athletes are
tions on Moscow. These sanctions limit Russia’s ability to
viewed as not “sufficiently competitive” in Saudi Arabia,
gain funding for foreign technology, which would help
while all other competing countries have increased fe-
with the exploration and recovery of shale oil in the Ba-
male representatives at the games. However, with their
zhenov Formation in western Siberia. Although physically
current decision for the Asian Games, and no female
extracting the oil is still at least 5 years away, Russia’s ina-
competitors at the Youth Olympics last month, their
bility to acquire the proper technology could further slow-
pledge to send women athletes to Rio de Janeiro does
down the process.
not look too promising.
http://www.themoscowtimes.com/business/article/russian-
http://www.aljazeera.com/sport/olympics/2014/09/ioc-wants-more-
minister-says-oil-sector-already-dented-by-sanctions/506761.html
saudi-female-athletes-20149913410759380.html
India
New Saudi Arabian Olympic Chief and the International
“Kingdom puts its focus on future development
of human resources“
“India Willing to go ahead with Free Trade Pact
Saudi Arabia is making the necessary shift from a society
with EU”
fixated on oil wealth to human resources. Saudi Arabian
On September 10th, India declared its willingness to
continue efforts with the European Union to compromise on terms for a free trade agreement. Commerce
Secretary Rajeev Kher also stated that India is looking
into expanding into new markets, such as Latin America, Africa, South Asia, and West Asia, in order to intensify their preferential trade status.
officials realize oil wealth is finite and as such, an imme-
http://economictimes.indiatimes.com/news/economy/policy/indiawilling-to-go-ahead-with-free-trade-pact-with-eu-nirmalasitharaman/articleshow/42189680.cms
http://www.arabnews.com/saudi-arabia/news/625981
diate restructuring of their time and energy is essential
to ensure their wealth in the upcoming years. Saudi
Arabia’s 2014 national budget is centered around inventing in human resources concentrating on education,
health and housing.
“Success in advertising via mobile phones in In-
South Africa
dia is near.”
“South Africa current account deficit widens as strikes
In India, new research shows that mobile advertising is
hit exports”
becoming more of a possibility unlike. Facebook is
Workers strikes in the platinum, metals, and engineering sec-
running a “missed call” ad campaign. They are har-
tors of the South African economy have worsened South Afri-
nessing the power of using missed calls (because they
ca’s current account deficit. This caused the rand, the currency
don’t rack up data fees for users) to display and redi-
of South Africa, to depreciate in value to its lowest level in near-
rect to advertisements with information like sport
ly sixth months. South African reserve banks are now consider-
scores or offers.
ing raising interest rates in an attempt to pull more capital out
http://www.wired.com/2014/09/why-facebook-is-totallyrethinking-online-ads-in-africa-and-india/
Geneseo International Business Club
Editors: Brigid Lonergan & Leah Swarthout
Contact: [email protected]
of the economy and make the rand stronger. This move would
most likely help importers in the economy but would hurt exporters who are already struggling with a shaky economy and
falling commodity prices.
http://af.reuters.com/article/investingNews/idAFKBN0H418V20140909