trade

★ Evolving India Is Attractive To Saudi Arabia’s $500+ Billion Dollar Funds

News Analysis: Indian Higher Investment Returns, than in America or Europe, make the Financially Astute Saudis take notice and then act expeditiously. The 1.2+ Billion Residents of India make for many opportunities for growth of Projects. 270+ Million of its Citizens are 24 Years of Age or Younger; an enormous market with a lengthy future.

India has Bauxite, Chromite,  Coal (the World’s Fourth Largest Reserves), Diamonds, Gas, Iron Ore, Manganese, Petroleum, Rare Earths, and Titanite; it is a Horn of Plenty.

A developing Market Economy pushed India’s Gross Domestic Product to $4.7+ Trillion Dollars last year. 

Percentage-Wise, Manufacturing is set to grow phenomenally. Currently it consists of: Cement Production, Chemicals, Food Processing, Machinery, Mining, Petroleum Production, Pharmaceuticals, Software (Bangalore), Steel, and Transportation Equipment.

The Country Exports are: Apparel, Chemicals, Iron, Petroleum Products, Precious Stones, and Vehicles; these to: United Arab Emirates, United States, China, Singapore, and Hong Kong. 

It Imported 6.7+% of its Expenditures (primarily Petroleum) from Saudi Arabia.

Now that India has signed a Strategic Agreement with Saudi Arabia, both Countries can accelerate the development of a Very Productive Trade Relationship; one that is very much to their Mutual Benefit.

Entrepreneurs and Investors should pay attention to the Prescient Saudis, for their keen Commercial Insight has been respected by Seasoned International Businessmen for Decades.  The Wise Saudis, while noted for their Petroleum Astuteness, should also be paid attention to, as to Where and When they make Strategic Investments; one can learn from the Masters.

Investors copying the Saudis’ Investments in India is not ‘Economic Plagiarism’ but acts of showing Proper Respect of Wise International Businessmen.

Reality.

Reference: http://tinyurl.com/ov5x2ff

★ China’s Yuan Does NOT Make People Yawn

Premium News Analysis:  China’s Yuan Does NOT Make People Yawn since it Excites Them by providing an Additional Trading Choice, for One Reason.  The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has its Second Most Utilized Currency as the Yuan. Since the Yuan has beaten out the Euro for its current position, it bodes very well for an even Greater Market Share.

People want to deal with “Winners”.

A Second Reason for the Yuan’s Growing Popularity is that the Issuing Country does not have $17 Trillion+ in Debt as does the Leading Currency Country. The Dollar, some would suggest, can only be de-based by Continued printing of Prodigious Amounts of Currency; with “Little to back it up” Now or in the Future. It’s Manufacturing Base has declined over recent years due, in part, to effects of Treaties signed. Manufacturing/Technology has moved overseas . It now has “Less demand for Goods To Sell in the World. Fewer sales produce less Federal Taxable Revenue for balancing the budget. Why join that “Card Game”?

Rationale behind a Third Argument for the Yuan is that it Trades readily in the Purchase and/or Sale of Goods and/or Services  to/from  the Business Behemoth, China. Dealing in the Yuan as the Mutually Agreed upon Currency in a transaction can mean even larger purchases and sales as a result. Blocks of Yuan Currency in Central Banks (which more Countries are depositing), in the Trading Countries of businesses,  help facilitate this process.

A Psychological Reason, fourth, for the Yuan’s growth may be the Increased Popularity of China’s “Dollar Diplomacy”. The “Bayonet Diplomacy” used by some World Powers is Abhorred by People of the World. Why Trade using a “Bully’s” Currency or the businesses in that Country; Especially when it Spies on ALL Electronic (Currency) Transactions in the World? Perhaps, Countries want to give the “Bully” something, not of its own, to look at: The Yuan. Reality.

Reference: http://www.bloomberg.com/news/2013-12-03/yuan-passes-euro-to-be-second-most-used-trade-finance-currency.html

Mariel, Cuba, Readies Its Deep Draft Harbor for Greater Commerce

News Analysis: Mariel, Cuba, readies its Deep Draft Harbor for arrival of larger ships. It  is merely 35 kilometers [22 miles] west of  Havana’s International Airport. As such, Global Customers will find it convenient to engage in discussions, in Mariel, with the Cubans.

The Archaic U.S. Embargo should be immediately trashed as a Worthless Anachronism of past Myopic “Cold War” Thinking. Beyond hurting the Cuban People, it created an “Ogre Image” of America. Such maintained “Juvenile” Behavior by the United States has harmed, and is presently harming,  relations with other countries in both Central and South America [and elsewhere as well].

The Administration in Washington, D.C. should realize that International Trade leads to increased wealth for Countries. America needs jobs NOW for its citizens as well as more inflow of funds from increased commerce. Negative rhetoric creates no jobs; Willing trade, amongst nations, does.

There is no “Insignificant Country” when it comes to importance of Global Commerce. A Large Beach is made from many Small Grains of Sand.

Reference: http://tinyurl.com/kwoq43n

Russian Cooperation and Trade with Greece are Increasing

News Analysis:  The very strategic location of Greece, as well as a cultural and religious affinity between the two countries, make for a win-win situation for both. Since Greece is the first European country when coming from the Levant or Northeast Africa, its location is laudable.

The vessel shipment of hydrocarbons or bulk commodities through the Mediterranean Sea to the Atlantic Ocean or through the Suez Canal is quite enticing. Since Greece has historically treated its neighbors with respect, good relations abound. The aforementioned is of great importance to Greece’s long-time friend, Russia.

Reference: http://www.itar-tass.com/en/c32/931490.html

The Epistemology of Evolving Mega-Business Relationships Amongst Countries

Today, there are economic forces at work which are forcing governments  to re-think their past business relationships amongst other countries so that they prosper in tomorrow’s markets.

For example. the potential for economic gain due to newly discovered economic quantities of natural gas and oil, located from Cyprus to the Levant, brings Israel closer to its Mediterranean neighbor Cyprus. With the potential to drill for and recover oil and gas and have it processed on a to-be-built refinery of Cyprus, adds value to the asset side of the ledger of both countries. This economic relationship did not exist in the year 2,000.

The expansion of the relationship between Russia and China in oil and gas recovery in Siberia also allows both countries to prosper. The added-value to Russia, by recovering earthbound assets and turning them in to products for sale, is gigantic. Here, the good will historically embraced by both Giants is further enhanced with economic cooperation.

Another example of a future enhancement to manufacturing production will be the meteorite enhanced super-strong diamonds of Siberia. Machine tool makers in Germany and Sweden will surely want to add value to their aerospace grade cutting tools by acquiring these diamonds to add to their fabrications. The tools will then easily slice through Titanium and other alloys use in aircraft production. As this relationship further develops, Germany, Sweden, and Russia benefit.

In Canada, oil shale is being produced which, when proper transportation can be secured, will aid China and Canada in their mutual growth.

Advanced in horticulture, by European laboratories, will allow Chilean roses to be shipped to America in even fresher form than they are presently. This assists American/Chilean relationships as well as European governments.

Mining of rare earths in Mountain Pass, California, due to increased investment by entrepreneurs, will help electronics manufacturers in Brazil and Malaysia to be more profitable. This helps the governments of the three countries to have good dialogue. Commercial prosperity can triumph over political guffaws.

The governments which allow for their citizens to engage in international commerce today,  will benefit superbly in tomorrow’s reality of increased profitability through a higher Gross Product.