Visitors from Iceland

This week, we have very special visitors from Iceland here at the Georgetown McDonough School of Business. The group is headed by Dr. Svala Guðmundsdóttir, associate professor at the University of Iceland, and is formed by other faculty members from the University of Iceland, business executives and government officials. 

The idea of their visit is to promote good discussions, share new insights and have constructive dialogue about main current topics in business.  

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Five lectures are planned for the group, including my presentation about International Trade and Policy. Other subjects covered are Corrupt Practices Act by Prof. Thomas Cooke; Entrepreneurship by Prof. Alyssa Lovegrove; International Marketing by Prof. Charles Skuba; and Global Management by Prof. Jozsef Szamosfalvi.

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Pecan farmers pushing for fewer trade barriers

From wymt.com.

WASHINGTON (Gray DC) — The pecan farming business is booming. The industry is rapidly adding jobs in Georgia and billions of dollars to the economy in the South, but now this sector faces a stumbling block.

Pecan farmers are looking to send more of their product overseas. The Indian market looks promising, but U.S. farmers face high export costs. Now a bipartisan group of lawmakers is fighting to lower those rates.

Georgia pecan farmer Jeb Barrow has seen the pecan farming business change. He’s been a grower since 1974, and just in the past several years, he’s seen it go from a domestic market to an international one.

Now about a third of U.S. crops are shipped to China.

“That’s kind of a good news-bad news situation,” said Barrow.

“Anybody that reads the paper or looks at the news understands that some geopolitical event could occur tomorrow that could have that effect, so that’s kind of a sword Damocles if you will hanging over the industry’s head,” explained Barrow.

Ultimately, Barrow says it wouldn’t be wise for farmers to just rely on Chinese buyers. So, their interest turns to India, which has an exploding population and a diet rich in nuts.

“We have high hopes that the Indian market can – if we can get the tariff issue addressed – the Indian market can be developed and in time others as well, so everybody’s optimistic,” said Barrow.

The sticking point? U.S. tree nut farmers sending pistachios or almonds face, on average, a 10 percent tariff to ship products to India. That tariff, essentially a tax, is 36 percent for pecans.

“I think this is a huge opportunity for Georgia and the southeast. A lot of people down there have committed to pecans as a product for the future, and I think they’re right,” said Sen. David Perdue (R-GA).

Georgia Senator David Perdue and eight of his colleagues recently signed a letter to the U.S. trade representative, urging officials to negotiate lower tariffs.

“We know to grow our economy, we need open and free markets around the world. That’s what this is all about,” said Perdue.

Trade expert and Georgetown Professor Michael Czinkota says talks with India could mean a little give and take, but ultimately, both countries would benefit from streamlining trade barriers.

“From an altruistic perspective, we want their own people to do well. Because if they do well, then they buy more of our products and our relationships are likely to be better, so this whole idea of reducing the tariff on nuts is a good thing,” said Czinkota.

There are 15 pecan-producing states in the U.S., so if officials can help farmers crack into the Indian market, the impact could be tremendous.

Young Tigers Speak Out on Trade

This Fall, I am teaching a Georgetown University Seminar on International Trade – The Insiders, populated by our First Year Students. The insiders we talk with and about are politicians, Policy Analysts, lobbyists, Ambassadors, former cabinet members, and many other highly interesting people who have a lot to share with the students.

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During the lectures, we always try to expand our understanding, knowledge and dialogue about key trade issues. Recently, we discussed the “Blood Diamonds”, which are said to make life difficult as well as bring pleasure to those who own it. However, they should be rejected by recipients, since the money obtained from diamond trade may be used for revolutions, exploitations, and other types of harm to mankind.

Since money is fungible, it occurs to me that it is only a matter of time for us to find other goods to be “facilitators of evil”. Of course, the main question is: what products or services will be the Next Nefarious “Blood Products” around the world?

Here are the top 16 issues which, after substantial thought and discussion, emerged from the minds of the young tigers who are participating on the seminar:

  • Gasoline: Oil wars continue to increase;
  • Palm oil: Palm trees are being cut down at an alarming rate, causing negative effects on the environment;
  • Actions and transactions over the internet: Blockchain technology may mislead;
  • Computer parts: Scattered rebel groups will use technology in their favor;
  • Advanced technology use: Putting in danger human rights and leveraging child labor;
  • Coffee: Coffee makers exploit land, labor, and economic systems;
  • Smartphones: We are more and more dependent on technology;
  • Pharmacology: Aggregated demand will increase market share and profit margins unacceptably;
  • Dairy: Veganism has already grown by 500% in the U.S.;
  • FIFA World Cup: Migrant workers with long shifts may lead to dissatisfied processes;
  • Robots/Artificial Intelligence: They will eventually do everything better than humans;
  • Cryptocurrencies vs current currencies: Easier for criminals and terrorists to conduct exchanges;
  • Oil: Impending energy shortage by 2030 will lead to the usage of oil as a new form of currency;
  • Biofuels (fuel-producing algae): Fossil fuels are highly valuable but their reserves are in decline;
  • Antiquities and artifacts: Terrorist groups like the Islamic State begin to claim physical property and presence for themselves;
  • Endangered species: Harming the natural world and exploiting species.

I always say that is wise to listen to these young minds, they will be in command soon. And according to them, these are the issues of the day. Remember, forewarned is forearmed.

Georgetown First Year Seminar

I am delighted to have Ing. Jaroslava Pokorna Jermanová, who is the governor of the Central Bohemia Region of Czech Republic to our seminar. It’s such an honor to listen to her insights and the students all learned a lot from yesterday’s session.

WechatIMG143unnamed WechatIMG142Brief Work profile:

      • November 2016 elected by the governor of the Central Bohemia Region from October 2016 the representative of the Central Bohemia Region for the YO 2011 movement
      • 2014 until now the representative of Benešov and from 2016 the city councilor
      • November 2013 until now the deputy chairman of the Chamber of Deputies
      • October 2013 until now Member of the Parliament of the Czech Republic
      • 2007-2008 employee of ROP Central Bohemia
      • 2004-2008 representative of the Central Bohemian Region for ODS
      • 2002-2006 Mayor Krhanic in Benesov

Over the years, she has been employed by several private companies including a family enterprise to produce furniture, and before 2014 she was an advertising and marketing executive. She also founded the Women’s Academy, which aims to attract more women into politics.

Georgetown First Year Seminar – Ideas and More

Yesterday we had an amazing session with our editorialists. Each student took about 5 mins to discuss their fantastic ideas with experts and listened to their suggestions.
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Thank you all for the help and your great thoughts! Looking forward to seeing the students’ products!

Professor Michael Czinkota (czinkotm@georgetown.edu) teaches international marketing at Georgetown University’s McDonough School of Business in Washington D.C. and the University of Kent at Canterbury, U.K. His key book (with Ilkka Ronkainen) is International Marketing, 10th ed., CENGAGE