October 1999 Edition
MEXICO
According to U.S. Department of Commerce statistics, Mexico consolidated its position as the second-largest U.S. trading partner during the first half of 1999 when U.S.-Mexico trade reached almost $91 billion, a 7 percent increase compared to the same period in 1998, and almost a 125 percent increase with respect to the first semester of 1993, before NAFTA was enacted. From January to June 1999, Mexico bought almost 12 percent of total U.S. exports. Mexican products accounted for almost 11 percent of total U.S. imports. NAFTA has been the driving force of trade growth between the United States and Mexico since the Agreement's implementation in 1994.
IMF
The International Monetary Fund (IMF) is launching Country Pages on its website (http://www.imf.org) to provide easier access to economic and financial information on its 182 member countries and other economies. Country-specific information, including Press Releases, Letters of Intent and IMF disbursements and country repayments, will be readily accessible through the new website service. The IMF is proposing to add links to official websites of central banks and finance ministries to aid public access to country economic and financial information."
MALAYSIA
Malaysia has 58 financial institutions--about 52 too many according to the finance minister. Now the government is ordering them to merge into six "super banks"--big enough to withstand the expected onslaught of foreign competitors in 2003, when financial markets are due to be liberalized. Critics say the plan--which may sideline some of Malaysia's more capable and innovative bankers--is flawed.
VIDEOS
Canadians rented more than $1 billion (U.S.) worth of videos in 1998, part of a North American total of $8.1 billion, an increase of 10 per cent over 1997. Video generates more than 52 per cent of studio revenue. Only 21 per cent of revenue is made in domestic theatrical release. 90 per cent of VCR owners rent videos regularly, with at least 25 per cent renting once a week. But digital video discs (DVD's) represent the newest growth area generating more than $300 million in sales last year. Four million households in the U.S. and 400,000 in Canada are expected to have DVD players by the end of this year.
LEADERSHIP
In a survey taken at 52 large U.S. companies, three quarters of them said that they were having problems finding qualified leaders. Respondents found qualities such as innovation, communication, vision and strategic decision-making lacking among people in leadership roles. The managers themselves said they lacked strength in many skills needed for leadership positions.
TAXES
Barbados has unveiled a major reconstruction of its tax system. Plans have been announced to cut energy taxes, create a million dollar safety net for farmers and impose WTO-approved tariffs on goods ranging from sausages to cotton T-shirts. This is aimed at preparing the country for the proposed Free Trade Area of the Americas, which Latin American and Caribbean countries want to inaugurate in 2005. Tariffs on imported lamb and beef will rise to 40 percent and tariffs on soybean oil, sausages, preserved meats, uncooked pasta, powdered laundry detergents and textiles will rise beginning April 2000.
FLYING
Growing discontent in the crowded skies has caused complaints about airline service to more than double in the U.S. More than 5,000 complaints were lodged against the major carriers in the first six months of this year compared to 2,467 last year. According to the U.S Department of Transportation, the increasing air travel dissatisfaction is because of flight delays caused by unusually severe weather and air traffic jams, cramped and overbooked airplanes and hours spent in airport lines. However, airline profits have soared with planes that take off with an average of 70 per cent of seats filled by a flying public that has increased by 25 per cent in the last five years.
DEATHS
The Organization for Economic Co-operation and Development reports that in 1998, more than 124,000 people lost their lives on roads in its 29 member countries. It estimates that the annual economic loss from road deaths and injuries is around $450 billion, or 2 per cent of gross domestic product in OECD countries. Portugal has the worst record for road deaths while Sweden and Britain have the best records.
PARTY LINES
As recently as 1978 Canada had nearly 500,000 mostly rural homes with two-party lines, that is lines that allow two or more homes to share a single phone line, each subscriber listening for a coded ring indicating who's being sought. There were 250,000 on four-party lines and 453,000 households with lines shared by more than four parties. That was 16 per cent of all residential lines. In 1998, there were about 125,000 residences on party lines, about one per cent of all lines.
PERFORMANCE
Nissan's plant in Sunderland, in the north of England, maintained its position as the most productive European car plant, producing 105 vehicles per employee in 1998, up from 98 in the previous year. The world's leading car plants in Japan produce around 160 vehicles per employee but America's best, that of Honda in Merrysville, Kentucky, produced 88.
SERVICES
Canada's exports of services rose 9% to reach a high of $45.9 billion in 1998, covering travel, transportation, commercial services to the business community and a smaller group of government services. These sales helped bring Canada's deficit in services trade to $7.0 billion, its lowest level since 1988. This deficit - the difference between the services Canada exports and the payments it makes to foreign suppliers - has shown a significant drop since 1993. The 9% rise in service exports for 1998 was greater than the 3% increase in service imports, which reached $52.9 billion.
PRINTING
Encyclopedia Britannica, which dates back to the late 18th century, has announced that it has stopped printing books because the CD-ROM version of its reference works sells far better. The company, founded in 1768, now sells a minimal number of books, compared with 150,000 CD-ROMs every year.
TANDEM
The U.S. has petitioned Japan to repeal its prohibition on motorcycle tandem riding (motorcycles carrying passengers) on highways, a move that would enable an estimated 30 per cent more U.S. motorcycles to be sold in Japan. In 1998, Japan purchased more than $109 million worth of U.S. motorcycles and parts, making it the largest American export market for such goods. The petition is a response to Japan's National Police Agency's (NPA) concerns regarding the safety of tandem riding. A U.S. study concludes that tandem riding on motorways is much safer than on side streets.
ADVERTISING
Getting the message to Canadians by advertisers through all media grew more than 8 per cent to a record $9.5 billion in 1998. TV led the way with expenditure of $2.3 billion with specialty TV channels having the biggest jump, rising 31 per cent to $241 million.
VIRUSES
Last year, the International Computer Security Association estimated there were 15,000 to 20,000 computer viruses in circulation, with 1,000 emerging every month. Only a very small number ever make it into wide circulation or "into the wild" in the industry vernacular.
E-TAXES
The U.S. Chamber of Commerce cautioned against imposing new taxes on the rapidly growing business of Internet sales before resolving major questions surrounding current Internet policies and regulatory issues. The Chamber says that any discussion of e-commerce taxes is premature, if not foolhardy, until rules of the road for Internet businesses and transactions are developed.
MONOPOLY
An estimated 500 million people around the world have played Monopoly. The game is published in 26 languages and licensed in 80 countries; it is banned in North Korea, China and Cuba. A CD-ROM version allows people to play over the Internet.
TEXAS
A 1997 study identifying America's most threatened farming regions showed that Texas is losing more of its best farmland to development than any other state. The study found that Texas developed more than 1.4 million acres of land between 1982 and 1992, more than a third of which was highly productive agricultural land.
SUBSIDIES
The U.S. is joining an international farm lobby that includes Canada in an effort to dismantle some agricultural subsidies at forthcoming world trade talks. The group is protesting against the $362 billion (U.S.) spent by developed nations on export subsidies and aid, blaming them for the sharp drop in commodity prices and the suffering of their insolvent farmers. The EU spends $142 billion a year on aid to farmers.
PRODUCTION
India, not the U.S., is the number one movie producer in the world. Annually India averages more than 800 films compared to just over 500 in the U.S.
FRAUD
China has discovered that over 117 billion yuan ($14 billion U.S.) of state funds were misused in the first half of this year. Auditors found three billion yuan meant for water conservancy had been diverted to other projects and government agencies overseeing the railways, postal and telecommunications sectors misappropriated one billion yuan from pension funds.
SPEED
An experiment in England to cut speeding by flashing drivers' licence plate numbers up on large roadside screens has been so successful that it is to be used nationally. Project Specs uses two roadside cameras 500 meters apart. Drivers going too fast are "named and shamed" on a giant colour screen.
ABORIGINAL SITE
Industry Canada hopes a new web site will encourage more aboriginal entrepreneurs to do business on the Internet. The Aboriginal Business Canada branch recently launched www.abc.gc.ca/abi/home.htm which includes a road map of the information highway, names of local service providers and points out other resources for aboriginal companies. The site also provides profiles of aboriginal companies that are active in the world of electronic business.
TEAMWORK
Scientists at Florida State have found a way to get weather forecasting computers to work together like a team. Researchers combined forecasts produced by computers from around the world into what they call a "superensemble" that produces results that are better than the sum of its parts. For example, in a forecast of hurricane winds over the U.S. three days into the future, computer errors ranged from 31.3 mph to 32-4 mph. It fell to 21.5 mph with the superensemble.
TEA
When tea was first introduced in the American colonies, many people, in their ignorance, served the tea leaves with sugar or syrup after throwing away the water in which they had been boiled.
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