Archive for February 25, 2011

International Cost of Living Comparison – Global Trends

admin / February 25, 2011 / No comments

The ongoing impact of the credit crisis, slowing global economies, falling house prices, global stock market and exchange rate volatility, together with the US dollar strengthening against most currencies are all factors contributing to a major change in the global cost of living rankings.

The International Cost of Living Comparison comprises indexes for each of 276 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups).

The latest international cost of living ranking, together with the overall cost of living index is as follows: 

Rank      Location (Overall Cost of Living Index New York=100)

1               Japan, Tokyo (126.03)

2               Norway, Oslo (123.74)

3               Denmark, Copenhagen (121.11)

4               Switzerland, Geneva (119.59)

5               Brazil, Brasilia (118.53)

6               United Kingdom, London (118.23)

7               Greenland, Nuuk (117.14)

8               Switzerland, Zurich (116.18)

9               Hungary, Budapest (114.36)

10             Russia, Moscow (113.41)

11             Nigeria, Lagos (112.69)

12             Ireland, Dublin (112.65)

13             New Caledonia, Noumea (112.43)

14             France, Paris (112.38)

15             Chad, N’Djamena (111.3)

16             Italy, Milan (111.19)

17             Cameroon, Douala (111.06)

18             Liechtenstein, Vaduz (110.89)

19             San Marino, San Marino (110.78)

20             Monaco, Monaco (109.83)

21             Czech Republic, Prague (109.81)

22             Austria, Vienna (109.68)

23             Slovakia, Bratislava (109.31)

24             Isle of Man, Douglas (108.97)

25             Poland, Warsaw (107.63)

26             Bermuda, Hamilton (107.53)

27             Italy, Rome (107.29)

28             Finland, Helsinki (107.07)

29             Australia, Sydney (106.52)

30             USA, San Francisco Calif (104.53)

31             Cote D’Ivoire, Abidjan (104.4)

32             Venezuela, Caracas (104.02)

33             China, Hong Kong (103.43)

34             United Arab Emirates, Dubai (103.36)

35             Croatia, Zagreb (103.29)

36             Angola, Luanda (103.27)

37             Belgium, Brussels (103.19)

38             Netherlands, Amsterdam (102.33)

39             Jersey, Saint Helier (102.24)

40             Papua New Guinea, Port Moresby (102.22)

41             Korea Republic of, Seoul (101.94)

42             Iceland, Reykjavík (101.66)

43             Ukraine, Kiev (101.2)

44             Guernsey, St Peter Port (100.68)

45             Qatar, Doha (100.64)

46             Central African Republic, Bangui (100.58)

47             Spain, Madrid (100.26)

48             USA, San Jose Calif (100.13)

49             Falkland Islands, Stanley (100)

50             USA, New York NY (100)

51             Sweden, Stockholm (99.76)

52             USA, Boston Mass (99.63)

53             Cameroon, Yaounde (98.84)

54             Mali, Bamako (98.74)

55             Benin, Cotonou (98.6)

56             Germany, Berlin (98.18)

57             Micronesia, Palikir (97.98)

58             Gabon, Libreville (97.77)

59             Canada, Toronto (97.39)

60             Germany, Bonn (96.38)

61             Vatican City, Vatican City (96.23)

62             Australia, Melbourne (95.88)

63             Australia, Canberra (95.88)

64             Estonia, Tallinn (95.08)

65             Turkey, Ankara (94.87)

66             Singapore, Singapore (94.6)

67             Guinea-Bissau, Bissau (94.24)

68             USA, Los Angeles Calif (93.93)

69             Palau, Melekeok (93.85)

70             Luxembourg, Luxembourg (93.77)

71             Canada, Vancouver (93.48)

72             Portugal, Lisbon (92.84)

73             Australia, Perth (92.82)

74             Germany, Frankfurt (92.81)

75             Azerbaijan, Baku (92.76)

76             Gibraltar, Gibraltar (92.33)

77             Comores, Moroni (92.04)

78             USA, Washington DC (91.8)

79             USA, Philadelphia Pa (91.49)

80             Nauru, Yaren (91.16)

81             Kazakhstan, Almaty (90.99)

82             Bahrain, Manama (90.82)

83             USA, San Diego Calif (90.7)

84             Bahamas, Nassau (90.63)

85             Togo, Lome (90.11)

86             Taiwan, Taipei (90.07)

87             Haiti, Port-au-Prince (90)

88             Senegal, Dakar (89.57)

89             Saint Helena, Jamestown (89.26)

90             USA, Baltimore Md (89.25)

91             United Kingdom, Glasgow (88.88)

92             Djibouti, Djibouti (88.45)

93             Niger, Niamey (88.38)

94             Zambia, Lusaka (88.36)

95             USA, Seattle Wash (88.3)

96             Andorra, Andorra la Vella (88.13)

97             Vietnam, Hanoi (88.03)

98             Tonga, Nuku’Alofa (87.34)

99             Gambia, Banjul (87.23)

100           United Arab Emirates, Abu Dhabi (87.16)

101           Cayman Islands, George Town (86.81)

102           Sudan, Khartoum (86.64)

103           Greece, Athens (86.59)

104           Barbados, Bridgetown (86.5)

105           USA, Portland Ore (86.1)

106           Sierra Leone, Freetown (85.92)

107           Equatorial Guinea, Malabo (85.89)

108           USA, Chicago Ill (85.73)

109           Romania, Bucharest (85.55)

110           USA, Miami Fla (85.54)

111           Marshall Islands, Majuro (85.41)

112           Cyprus, Nicosia (85.26)

113           Malta, Velletta (84.99)

114           Moldova, Chisinau (84.89)

115           Ghana, Accra (84.89)

116           United Kingdom, Birmingham (84.76)

117           Canada, Montreal (84.37)

118           Algeria, Algiers (84.01)

119           Israel, Jerusalem (83.82)

120           Australia, Brisbane (83.29)

121           Burkina Faso, Ouagadougou (82.92)

122           Lebanon, Beirut (82.74)

123           Jordan, Amman (82.41)

124           Guinea, Conakry (82.16)

125           Jamaica, Kingston (82.11)

126           Philippines, Manila (82.07)

127           Georgia Republic of, Tbilisi (82.03)

128           Congo Democratic Rep, Kinshasa (81.84)

129           Seychelles, Victoria (81.78)

130           Indonesia, Jakarta (81.76)

131           USA, Las Vegas Nev (81.75)

132           Lithuania, Vilnius (81.67)

133           Vanuatu, Port Vila (81.35)

134           Grenada, Saint George’s (81.23)

135           Trinidad and Tobago, Port-of-Spain (81.13)

136           Mozambique, Maputo (80.82)

137           New Zealand, Auckland (80.71)

138           Samoa, Apia (80.64)

139           Congo, Brazzaville (80.14)

140           Armenia, Yerevan (80.13)

141           Albania, Tirana (80.1)

142           Martinique, Fort-de-France (80.09)

143           Latvia, Riga (79.92)

144           Thailand, Bangkok (79.86)

145           Sao Tome and Principe, Sao Tome (79.79)

146           USA, Denver Colo (79.74)

147           China, Beijing (79.73)

148           Fiji, Suva (78.99)

149           Slovenia, Ljubljana (78.85)

150           Canada, Ottawa (78.82)

151           Tuvalu, Funafuti (78.78)

152           Myanmar, Yangon (78.51)

153           Puerto Rico, San Juan (78.49)

154           Kenya, Nairobi (78.4)

155           USA, Phoenix Ariz (78.26)

156           Mauritius, Port Louis (78.25)

157           Madagascar, Antananarivo (78.24)

158           USA, Tampa Fla (78.22)

159           Serbia, Belgrade (78.13)

160           Kiribati, South Tarawa (78.06)

161           Guam, Hagatna (77.8)

162           Brunei, Bandar Seri Begawan (77.72)

163           Uruguay, Montevideo (77.41)

164           Colombia, Bogota (77.23)

165           USA, Atlanta GA (76.99)

166           Morocco, Rabat (76.93)

167           USA, Milwaukee Wis (76.77)

168           Paraguay, Asuncion (76.49)

169           Mexico, Mexico City (76.13)

170           USA, Columbus Ohio (76.06)

171           India, Mumbai (76.04)

172           Tanzania, Dar es Salaam (76)

173           Solomon Islands, Honiara (75.93)

174           USA, Cleveland Ohio (75.84)

175           USA, Detroit Mich (75.74)

176           Liberia, Monrovia (75.63)

177           USA, Austin Tex (75.57)

178           USA, Dallas Tex (75.47)

179           USA, Jacksonville Fla (75.47)

180           Australia, Adelaide (75.39)

181           Kuwait, Kuwait City (75.22)

182           Bulgaria, Sofia (75.14)

183           Saudi Arabia, Riyadh (75.08)

184           USA, Pittsburgh Penn (74.54)

185           Timor-Leste, Dili (74.29)

186           Iran, Tehran (74.24)

187           USA, Indianapolis Ind (74.13)

188           USA, Fort Worth Tex (73.64)

189           Somalia, Mogadishu (73.49)

190           Maldives, Male (73.48)

191           USA, Charlotte NC (73.47)

192           USA, Houston Tex (73.36)

193           Chile, Santiago (73.01)

194           Mauritania, Nouakchott (72.99)

195           Botswana, Gaberone (72.86)

196           Cape Verde, Praia (72.81)

197           USA, El Paso Tex (72.61)

198           Uganda, Kampala (72.25)

199           Afghanistan, Kabul (72.13)

200           Antigua and Barbuda, Saint John’s (72.04)

201           USA, St Louis MO (71.93)

202           Malaysia, Kuala Lumpur (71.82)

203           Peru, Lima (71.7)

204           Korea Democratic Republic of, Pyongyang (71.62)

205           Kosovo, Pristina (71.55)

206           India, New Delhi (71.4)

207           Belarus, Minsk (71.28)

208           Malawi, Lilongwe (71.24)

209           Saint Kitts and Nevis, Basseterre (71.07)

210           USA, Memphis Tenn (71.02)

211           India, Chennai (70.76)

212           Kyrgyzstan, Bishkek (70.29)

213           Burundi, Bujumbura (70.07)

214           Macedonia, Skopje (70.02)

215           USA, San Antonio Tex (70.02)

216           Guatemala, Guatemala City (69.74)

217           Honduras, Tegucigalpa (69.57)

218           Saint Vincent and the Grenadines, Kingstown (69.5)

219           Canada, Calgary (69.46)

220           India, Calcutta (69.31)

221           India, Hyderabad (68.85)

222           Dominica, Roseau (68.79)

223           Rwanda, Kigali (68.75)

224           Panama, Panama City (68.58)

225           Guyana, Georgetown (68.58)

226           China, Shanghai (68.48)

227           Syria, Damascus (67.99)

228           Montenegro, Podgorica (67.75)

229           Laos, Vientiane (67.43)

230           Ethiopia, Addis Ababa (66.87)

231           Cuba, Havana (66.61)

232           Belize, Belmopan (66.33)

233           Nicaragua, Managua (65.89)

234           Nepal, Kathmandu (65.67)

235           Dominican Republic, Santo Domingo (64.93)

236           Tunisia, Tunis (64.87)

237           Suriname, Paramaribo (64.75)

238           India, Bangalore (64.56)

239           South Africa, Johannesburg (64.51)

240           Costa Rica, San Jose (64.47)

241           Egypt, Cairo (64.18)

242           El Salvador, San Salvador (63.34)

243           Swaziland, Mbabane (63.11)

244           Mongolia, Ulaanbaatar (62.85)

245           South Africa, Pretoria (62.71)

246           Oman, Muscat (61.61)

247           Saint Lucia, Castries (61.2)

248           Pakistan, Lahore (59.48)

249           Tajikistan, Dushanbe (59.25)

250           South Africa, Cape Town (58.99)

251           Namibia, Windhoek (58.89)

252           Sri Lanka, Colombo (58.51)

253           Pakistan, Islamabad (58.33)

254           Iraq, Baghdad (58.25)

255           Pakistan, Karachi (57.72)

256           Lesotho, Maseru (57.49)

257           Argentina, Buenos Aires (57.46)

258           Bangladesh, Dhaka (57.03)

259           Bhutan, Thimphu (56.78)

260           Bolivia, La Paz (56.66)

261           China, Macao (56.41)

262           South Africa, Durban (56.07)

263           Bosnia and Herzegovina, Sarajevo (54.35)

264           Ecuador, Quito (53.83)

265           Uzbekistan, Tashkent (53.03)

266           Libya, Tripoli (52.74)

267           China, Shenzhen (51.65)

268           Eritrea, Asmara (50.72)

269           China, Dalian (50.54)

270           China, Wuhan (49.93)

271           China, Guangzhou (47.28)

272           Cambodia, Phnom Penh (45.65)

273           Yemen, Sanaa (45.6)

274           Turkmenistan, Ashgabat (38.77)

275           China, Tianjin (29.5)

276           Zimbabwe, Harare (17.12)

Category: global business / Tags: ,

Global Trade Business – Risks and Challenges

admin / February 8, 2011 / No comments

Global trade businesses have to take care of challenges and risks at various parts. Some risks are same as the risk and challenges faced by a local business but others are unique to the international business scenario. Even the challenges that are related by definition vary in nature. For instance both forms of businesses have to countenance economic challenges, but a global trade business will be facing several issues linked to international financial markets that don’t concern local businesses as much. They are more of a challenge in nature than risks and most of them can be taken care of through appropriate preparation. Keep reading to identify with these challenges better.

Global Trade – Challenge, Scheduling and Approach:

The very first challenge for a global enterprise is to formulate an international approach and then execute it. The administrators and those at decision-making positions often find it hard to alter their thought pattern, which is not good to work in international paradigm. There are numerous worldwide businesses but only a few of them have really accepted a good international approach. Though the situation is improving with more and more professionals and trained graduates taking on the management positions. Nevertheless, global business management needs additional ordinary management, foreseeing and control talents.

Foreign Politics:

Political expertise is a must for everyone but it becomes all so vital when working at global stage. If some plans were appropriate for your trade, a change in ruling government can bring strong changes in those plans. Political disarray will bring down the financial system and that can affect your business. To avoid safeguard business from such unhelpful bangs, you need to make sound political decisions.

Economic and Financial Challenges:

It begins from organizing the resources to initiate global trade and consist of everything like variation in exchange rate, international financial crisis (or some financial crises in the host nation), change in oil rates, international price rises or tariff barriers imposed by the host ruling party, also the export related rules of your own government.

Natural Catastrophe, Environment and War or Terrorism:

Various multinational businesses have to countenance severe opposition by some environment friendly organizations. Citizens are more worried about water and air pollution these days as it is becoming a severe danger to their health. Some natural calamity such as earthquake and floods or some kind of civil war breaking out in the host nation is also in the catalog of potential challenges. A fresh challenge that a global trade business has to bear these days in some specific nation is the danger of bombing, violence or terror campaigns.

Category: global business / Tags: ,

Incoterms 2010 ICC rules for the use of domestic and international trade terms

admin / February 8, 2011 / No comments

1. Use of INCOTERMS

Companies are increasingly applying INCOTERMS in those transactions that entail goods delivery. INCOTERMS are terms that are well established and worldwide accepted, yet it is always advisable, for those companies, to execute an agreement whereby, besides the application of the INCOTERM, there are other aspects within the transactions that need regulating which the INCOTERM cannot cover. Moreover, such other aspects, in many cases, are directly related to the INCOTERM per se.

It is also important to take into account that the INCOTERMS are not law and therefore new versions shall not overrule previous ones. That is why it is so important that the INCOTERM is written clearly and referring to the version that it applies. The correct formula would be: INCOTERM-delivery place-ICC-version. Regarding the delivery place, the new version 2010 suggests to clearly specify the exact place where the goods are to be delivered in order to know where risk and responsibilities are transferred. Eg: EXW 42, Padwell Road, London SW6 7LZ UK ICC 2010

2. New Classification

The ICC has decided to classify INCOTERMS in two groups, depending on modes of transport: the first group would be comprised by INCOTERMS that apply for more than one mode of transport (EXW, FCA, CPT, CIP, DAT, DAP, DDP) and the second group would be comprised by INCOTERMS that apply only for sea or inland watergate transport (FAS, FOB, CFR, CIF). Therefore, the old classification by groups of letters (E, C, F, D) shall no longer exist.

As an outstanding novelty 4 INCOTERMS (DAF, DES, DEQ y DDU) haven been eliminated and 2 new INCOTERMS (DAT and DAP) have been brought in. Therefore the new version will be comprised by the following INCOTERMS: EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAT, DAP y DDP.

3. Pragmatic approach

The ICC being aware of the technology progress within the business world has tried to facilitate the possibility that the parties may “use any electronic record or procedure if agreed between the parties or customary”.

Other relevant novelties are: on one hand, the regulation of the allocation of costs between seller and buyer, which is mainly based on trying to avoid that the costs of terminal handling charges (THC) are borne twice and, on the other hand, the preoccupation for the safety of the goods while transporting them, establishing therefore reciprocated obligations for both parties.

 

4.        Choosing the appropriate INCOTERM

In order to choose the appropriate INCOTERM, we should take into consideration some circumstances that in principle may seem irrelevant, but in reality they may entail costs that may have not been budgeted in advance, for example:

With FOB the obligation of delivery shall not be complied with once the goods have passed the ship’s rail but once the goods have been placed on board. The risk in stowing is borne by the buyer although stowing costs are included within the costs of loading which are borne by the seller; With CFR unloading will be borne by the buyer except otherwise agreed by the parties; With CIF the moment where the risk is passed on to the buyer will take place when the goods are delivered on board the ship; With CPT unloading shall be borne by the buyer except it has to be borne by the seller pursuant the agreement of transport; EXW is not advisable for a seller, nor DAP for a buyer, when payment has been set through documentary credit; Certain countries do not allow VAT taxes payment by a party other than the local importer, therefore in the event that the parties agree a DDP this shall be  “VAT excluded”; In those cases where the seller is obliged to hire an insurance to cover the risk during transportation, the seller shall hire such insurance under the name of the buyer not under its own name, otherwise, the INCOTERM’s nature would be diminished.

5. Two new incorporations

Finally, a brief summary about the new two INCOTERMS, DAT and DAP, that the ICC has incorporated to this new version 2010:

DAT (Delivered at Terminal) will replace, for sea transportation, the old DES and DEQ. With the INCOTERM DAT the seller bears the costs of transport and the risks until the goods are left unloaded at the terminal that the parties had agreed upon. “Terminal includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal.”

DAP (Delivered at Place), however, will replace the old DAF, DES and DDU. With the INCOTERM DAP the seller shall bear all transport costs and the risk up to delivery which will take place “when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination”.

Category: international trade / Tags: ,
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