Thank you, Mr. President

AP-donald-trump-g7-jt-170528_12x5_1600-2Here we go again: The U.S president is attacked on a global scale for his thinking on trade and investments. Mrs. Merkel, chancellor of Germany even announced a “new chapter in U.S. European relations” and stated that “Europe must take our fate into our own hands’’. Similar accusations had been raised in 1980 after the election of President Reagan. He was labelled a B class actor, a cowboy and an inexperienced but lucky vote gainer. The accusers were wrong then and they are wrong now!

President Trump lived up to his convictions during the tense G-7 political summit just as he had already done during and after the U.S. presidential campaign. No surprises there when he reflected on the need for more balanced trade relations and the requirement for all nations to pay a fair contribution for the benefits they obtained from the United States.

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Balance trade by boosting exports through government promotion

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import_tax_0The Trump administration is attempting to lower imports in order to rebalance trade after decades of U.S. neglect toward economic relationships around the world.  Rebalancing should not only be done by applying the stick of import reductions, but also by export promotion.

Exports make a firm’s markets grow and change its home nation’s currency value. When U.S. exports increase, the dollar typically goes up in value.Shrinking exports tend to weaken the dollar. Exports also shape public opinion of globalization and offer the opportunity for economies of scale.Higher production volume often means a lower cost of production.Since high exports also make imports cheaper, a firm may achieve lower costs and higher profits, both at home and abroad, through exports.

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Why You Should Read “As I See It”

Screen Shot 2017-01-25 at 5.55.38 PMThis book presents “the best of 2016” about the core issues of international business, explained and analyzed within 750 words. It is hardly possible to read everything and be informed about what is happening in this world. This compilation of articles and editorials by Professor Czinkota, which were published in news media worldwide, contains thoughtful insight into key dimensions of international business and trade. The vast array of themes—ranging from terrorism to business strategies in developing countries—reflect how international business reaches every corner of our world today. This volume makes much of this complexity more accessible by presenting the topics, its analysis and controversies, and possible new directions in a few pages—just enough for bed time reading so that when you wake up, you will be the smartest person in the room.

Only the first two articles introducing the sections are longer, since they set the stage for everything subsequent. Normally people expect medicine to taste bad. Insofar one might think of this first longer article; however, the article is fun to read and gives a general overview which will make you understand future issues.

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Interview with Zweites Deutsches Fernsehen (ZDF) , in German

Überlebt Volkswagen?

Es wird eng für VW. Seitdem der Abgas-Skandal publiziert wurde, wollen viele den Konzern finanziell bluten sehen. Milliardenklagen, Milliardenstrafen, Milliardenkosten – gigantische Summen.
Volkswagen ist reich, aber Forderungen dieser Größenordnung sind in der Geschichte einzigartig. Wenige Tage nach den ersten Meldungen von manipulierten Abgaswerten sprach der neue VW-Aufsichtsratsvorsitzende Pötsch von einer „existenzbedrohenden Krise“.

http://www.zdf.de/ZDFmediathek/beitrag/video/2722940/ZDF-heute-journal-vom-21.-April-2016#/beitrag/video/2722952/Diesel-Zahltag-in-den-USA