SEPTEMBER 1996 Edition
EXPORTERS SOFTWARE
Advice for service companies interested in export markets
is now available on computer disk from the federal government. Take A
World View is a six-disk package that includes descriptions of the
exporting process, help for developing an export plan, a list of common
mistakes and information on networking and developing partnerships. The
software, produced by the Department of Foreign Affairs and International
Trade, costs $49.95 plus tax, and can be ordered by calling 1-819-956-4800.
NAFTA
The North American Development Bank, created under the
NAFTA to improve conditions along the U.S.-Mexico border, has yet to lend any
of the $1.5 billion (U.S.) available. It was designed to respond to criticism
that NAFTA would add new pressures on an already burdened border
infrastructure. Meanwhile, according to the General Accounting Office, lack of
basic water, waste water and sanitation services continue to affect the
well-being of many of the 10 million Mexicans and Americans who live along the
border. A new report suggests that Bank policies could be inhibiting loans to
small communities along the 3,400 kilometre border.
USED CARS
Because of the rising cost of new cars, Canadians are
increasingly turning to the used car market and leasing instead of buying.
About 64 per cent of cars, trucks and minivans acquired during the past year
were used, versus 36 per cent new. The number of people leasing new cars soared
to almost 40 per cent of buyers of 1996 models, from 25 per cent in previous
years. Among buyers of used cars, 77 per cent said the most important reason
for their choice was price. People are also hanging onto their vehicles much
longer.
BEVERAGES
According to the Beverage Marketing Corp., the so-called
"new age" drinks industry, with products like kiwi lime and
grapefruit spring water, has hit its peak and the market is declining while
consumers have moved on to other things. The North American market is worth
$5.5 billion annually. Competition among new entrants into the sector has taken
its toll. As a result, companies are scrambling to fashion new looks for
themselves and find more products and markets.
TOLL-FREE
A new standard adopted by the International
Telecommunications Union will allow businesses to use the same toll-free
long-distance telephone number anywhere in the world starting next year. More
than 100 million toll-free calls are made every day in the U.S. alone and the service
is so popular that Canadian and U.S. phone companies ran out of numbers using
the 800 prefix and had to add 888 numbers this year. Customers who want a
universal number will be allocated an eight-digit number to be used after the
800 prefix instead of the current seven-digit number which will make an
additional 90 million freephone numbers available to carriers, compared with
the nine million now in use. The ITU will manage a single global registry and
the universal numbers will be portable, meaning that businesses can keep the
number even if they change carriers.
PRINT
A survey of U.S. small businesses by the Japanese company
Okidata--which makes printers and fax machines-- found that 91 per cent use
print materials to market themselves. Brochures and flyers are favourite, used
by 54 per cent of respondents, while 33 per cent use direct mail. Most firms,
72 per cent, said they print their own materials and 70 per cent believe
printed materials are "very effective" in their marketing efforts.
RECYCLING
People who want the convenience of disposable containers
but worry about environmental pollution now have an alternative--edible
tableware. A Taiwanese inventor claims to have perfected a range of palatable
bowls, which look like plastic or ceramic tableware. They turn into chemical-
and preservative-free porridge when soaked in water and cooked for several
minutes.
ISRAEL
Canada and Israel have now signed a free trade deal which
will see tariffs eliminated on most products within two years. Trade between
the two countries totalled $450 million last year, up 37 per cent from 1994.
Canadian exports were $237 million, up 49 per cent. Currently, about 67 per
cent of Israel's goods enter Canada duty free but far fewer Canadian goods
enter Israel duty free and some face tariffs of up to 25 per cent. The
agreement does not include dairy, poultry or egg products and provides limited
tariffs on some other agricultural goods. Canada hopes to extend the agreement
to the Palestinian territories.
WORK
Looking at the labour market each month as it fluctuates
marginally leaves the impression it is virtually static. The reality is far
more complex. An analysis of the 1993 labour market shows that for nearly every member of the 16
million-strong work force, it was a year of massive upheaval. 27 per cent, or
4.3 million, experienced a change in job status--lost a job, got a job or moved
in or out of the labour force. Another 1.6 million, representing 10 per cent,
worked the entire year but changed jobs at least once. Among the 8.1 million
who held the same job throughout the year, one in five said they received a
substantial raise of 10 per cent or more while one in ten reported a wage cut
of at least 10 per cent. 3.5 million or 22 per cent were unemployed at least once.
ASIA
According to the OECD, Asia still boasts the world's most
dynamic emerging economies. China will yet again have the fastest growth in
1996 and 1997 with the GDP growing 10.5 per cent in each year. Thailand and
Malaysia are next with economies likely to grow by around 8 per cent this year.
EUROPE
An ad campaign by the Swedish government is urging
fathers to take their allotted one month off work at nearly full pay to spend
time with their young children.
To deter speeding motorists, the Dutch city of Culemborg
plans to introduce sheep onto its roads. Half a dozen sheep will be released
this month and if the plan works, the number of sheep will be increased to over
100.
TELEVISION
In 1995, for the first time in a decade, Canadians
watched more television. On average, Canadians spent 23.2 hours in front of the
small screen, 30 minutes more than in 1994. Statistics Canada say the increase
is mainly a result of the six specialty channels introduced at the start of
1995. When removing the audiences for these channels, the numbers are similar
to previous years. Quebec had the highest provincial viewing average, 26.2
hours a week, while British Columbians watched the least television, at 21.2
hours.
WEALTH CREATION
A leading venture capitalist in California's Silicon
Valley has calculated that the personal computer has caused the highest
creation of wealth in the history of the planet. Between them, just three
companies--Microsoft, Intel and Compaq--have a stock market valuation of $130
billion (U.S.), more than all the film studios in Hollywood.
OPENINGS
Wal-Mart Stores has opened two stores in Shenzhen, marking its official entrance
into China's booming consumer market. Shenzhen is just across the border from
Hong Kong and boasts China's highest per capita income. One is a Supercenter,
open to the public and the other a members-only Sam's Club.
Seattle based Starbucks Corp, has opened its first store
outside North America in the heart of Tokyo's trendy Ginza shopping district.
Japan is the fourth largest coffee consuming country in the world, after the
U.S., Brazil and Germany.
JEWELLERY
Canada's $2 billion jewellery industry is in revolt over
an obscure, 80 year old, federal excise tax saying it is responsible for an
explosion in black market sales since the recession. The 10 per cent luxury
levy, applied since the First World War, is charged on items worth more than
$3.00 and raised $59 million in 1994-95 alone. The taxes are collected by
manufacturers on sales to wholesalers, retailers or directly to the public. A
1993 study estimates that the underground economy now constitutes 30 to 60 per
cent of the jewellery sector, or between $600,000 and $1.2 billion.
MILK
Some B.C. farmers are threatening to dump milk down the
drain that they are not allowed to sell as a protest against Canada's milk
marketing system. British Columbia cannot process enough milk products for its
own population. Quebec holds 48 per cent of the Canadian quota for products
such as cheese and butter while having only 25 per cent of the country's
population. The B.C. quota is less than five per cent, yet the province
consumes nearly 12 per cent of industrial dairy products. Meanwhile, producers
in Quebec receive grants to build new plants to send products to B.C.
PENSIONS
The Fraser Institute has concluded that provincial
administrations across Canada owe $49 billion to their employee pension plans.
In B.C., we owe about $3.5 billion to teachers, judges and other public
employees, compared to $10 billion in Ontario and $21.3 billion in Quebec and
$5 billion in Alberta. Saskatchewan's auditor sounded the alarm in May when he
warned that the province's $3.1 billion unfunded pension liability threatens
more than just retirement security for 133,000 public employees. It also could
affect taxpayers if the shortfall frightens off investors, adding to
ever-rising borrowing costs and deepening provincial debt.
COMPANIES
The world's three biggest companies in 1995 (ranked by
sales) were all Japanese--as were ten of the top 15. With sales of $184 billion
Mitsubishi, a trading company, was top. The fourth biggest was General Motors
with sales of $170 billion. The only non Japanese or U.S. firm in the top 15
was Royal Dutch Shell which had the tenth-highest sales in the world but made the
largest profits of $6.9 billion.
GOLF
A Forbes article states that while golf courses are
popping up everywhere, the golf boom seems to have run its course in the U.S.
The number of golfers peaked at 27.8 million in 1990 and declined to 25 million
last year. Women golfers are down to 5.4 million from 6.5 million in 1990 and
total rounds of golf fell to 490 million from 505 million in 1992. Spending has
also levelled off: sales of equipment was unchanged at $1.37 billion last year.
Among the reasons, golf clubs are being built sturdier and are not replaced as
often.
COMMUNICATIONS
In the late 1970s, the world's first mobile telephone
service started in Tokyo. By 1989 fewer than 250,000 people had one and in 1994
there were still only 2.1 million subscribers. Everything changed last year and
there are now more than 11 million cellular phones being carried around Japan.
The difference was the introduction of a cheap and diminutive competitor, the
Personal Handyphone System. The PHS is a cross between the cordless phone used
around the home and the more sophisticated cellular used in cars, but much more
mobile than the cordless phone and much cheaper than the cellular. The tiny
radio transmitters and receivers that PHS operators fix on top of street lamps,
telegraph poles and telephone kiosks cost only one-50th of a typical cellular
base station. The handset also costs half as much as a cellular phone to make.
INVESTMENTS
Karolina, a chimpanzee in Poland's Cracow zoo, picked
stocks on the Warsaw exchange that earned a 10 per cent return on a three month
investment, beating a stockbroker's selections.
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