Improving Economic Activity Through Tariff Reductions

Trade is at the root of economic development. The easy movement of products and services across borders helps create an interconnected world where opportunities for international goods and companies abound. A paper by Dzerniek-Hanouze & Doherty (2013) discussed the significant advantages that can be found by opening trade routes at a national and regional level to ensure that products and services move smoothly to their destinations. 

All trade is based on selling products from one entity to the next. According to Black’s Law Dictionary Trade is ,”The act or business of exchanging commodities by barter; or the business of buying and selling for money; traffic; barter.” A value laden product must transfer hands from one person to the next while a reciprocal value laden item (i.e. money) is exchanged in return. 

Before revenue can be earned through the selling of products these products must be available and present for purchase. This means that the product is available on store shelves, online, or in the locality for customers to purchase. The buyer and seller must be connected together in some way through virtual or physical means to exchange information, items, or financial value. 

The same process must occur when products and services are built. Available items are used to construct higher level products to earn more on the market. Unnecessary tariffs, restrictions, and levies between suppliers and creators directly reduce the possibilities of further growth and development. This means fewer products are shipped out and less revenue gained. 

The supply chain is the vine that is used to move products and services. When tariffs by importing countries are high it impacts the cost and quantity of those products being moved. As costs increase the likelihood that they will be purchased by locals is reduced; it is a customer equity choice. Tariffs are a direct attempt to damage the supply chain mechanisms. 

Improving the flow of products and services is important in speeding up the economy. For example, improving upon inspections, security technology, communications, and transport can also improve upon the costs of moving these products. Lower costs can often result in improved revenue for companies that rely on imported supplies. 

The concept of economic hubs doesn’t make it exclusively into the paper but the author does indicate that reduced borders increase the spillover effects in management, technological know-how, and access to new technologies that move beyond the goods themselves. The production of products and services enhances the skill and abilities of multiple sectors within the economy. 

The authors offered some interesting statistics. For example, the World Economic Forum, The World Bank and Bain & Co. in 2012 indicated that reducing trade barriers could increase global gross domestic product by $2.6 trillion or 5%.  Ebay also indicated in a study that removing virtual barriers improved small business growth by 60-80%. The end result of their analysis is that if countries moved half-way to best practice there would be a 4.7% GDP increase, a moderate reduction of restrictions would improve GDP 2.6%, and a removal of tariffs would result in a .7% increase in GDP. 

Drzeniek-Hanouz, M. & Doherty, S. (2013). Trade facilitation, international supply chains and SME competitiveness. International Trade Forum, 4

Will Technology and the Sharing Economy Adjust the Market?

The sharing economy is upon us as a direct result of the Internet and its ability to move information around the globe quickly. The lean years since the Great Recession has further fueled an entrepreneurial spirit that tries to hedge income and opportunities through micro-businesses. Large companies are adjusting their structures to reduce costs and improve upon operational functioning. Will the sharing economic and Information Age adjust the way we think, interact, and conduct business?

Things don’t often change quickly and it takes time for people to understand and develop methods of realizing goals.  The sharing economy encourages people to interact with each other by using technology on an economic, ecological, and sociological level (Dubois, 2014). They connect together and share resources to create opportunities.  On a micro level this collaboration builds new possibilities.

Companies are finding benefit in working with other companies and stakeholders to generate higher levels of efficient and effective operations. Excess capacity can be sold during the slow times or purchased during the growth periods without enduring large outlays of capital expenditures. This creates flexible economic growth that better fills in the gaps between the larger economic pieces.

Building a stronger economy requires the connecting of people through collaborative and cooperative participation (Schultz, 2013). Information transference and understanding of the environment encourages effective economic decisions to create better market adjustments. Helping individuals connect to the system, voice their opinions, share information, further their skills, and find opportunities to create growth momentum. Consider four likely adjustments:

New Business Structures: The way in which people view business and new technology is changing the way business and work is conducted. For example, a company called Loconomics is owned by the employees who are employed there (Said, 2014). Virtual companies are sprouting, traditional companies are become flatter, and concepts like crowdsourcing are becoming a powerful business development tool. 

Renting Excess Capacity: Company’s naturally have slack in their capacity or may need additional production abilities at certain times of the year but do not have enough of a need to expand or build new facilities.  For example a company called Floow2 is developing an online site to encourage sharing of excess capacity such as vans and rental equipment in similar geographic locations (Schiller, 2014). Small businesses are lowering costs and improving capacity for growth without as much long term risks.

An Entrepreneurial Class: Using new technology makes a higher level of sharing possible. The transformation in the way people think about selling, buying, and sharing is transforming the way in which entrepreneurial activity occurs (Said, 2014). A person can hold a job and work part-time on a business without major disruption in their lives. Hedged skills and abilities can be used to foster the economic engine and encourage market adjustment.

Pressure on Governmental Structure: There are inherent risks associated new technology and ways of thinking about economic participation. As new business structures and models form they will naturally put pressure on government to adapt. There will be years of negotiation, legal and social interaction that will occur before a happy medium is found. We can think of the ride-share program and the need to define the business while ensuring safety (Weidner, 2014). A proper balance will need to be found to protect stakeholders and the public while still encouraging the testing of new ideas.

The sharing economy is a collaborative one. As people find information, market position, and share resources they are better able to adjust to market realities and see emerging trends. Sharing is not something that is beneficial for only people but also helps companies to buy, sell, and lease capacity to adjust with the market without expensive outlays that create sticky markets. More finite pieces help to create smoother economic transitions and market efficiencies within the capitalistic perspective.

Duboise, et. al. (2014). Connected consumption: a sharing economy takes hold. Rotman Management. 

Schultz, R. (2013). Adjacent opportunities: the collaboration economy. Emergence: Complexity & Organization, 15 (4). 

Said, C. (May 24^th, 2014). Cooperatives give new meaning to sharing economy. SF Southgate. Retrieved May 28^th, 2014 from http://www.sfgate.com/business/article/Cooperatives-give-new-meaning-to-sharing-economy-5502879.php?cmpid=hp-hc-jobs

Schiller, B. (May 27, 2014). The Sharing Economy Isn't Just For Consumers: Now Small Businesses Are Getting In On The Game. Fast Co Exist. Retrieved May 28^th, 2014 from http://www.fastcoexist.com/3030860/the-sharing-economy-isnt-just-for-consumers-now-small-businesses-are-getting-in-on-the-game

Weidner, D. (May 23^rd, 2014). The unique risks of ‘sharing economy’ companies. Market Watch. Retrieved May 28^th, 2014 from http://www.marketwatch.com/story/the-unique-risks-of-sharing-economy-companies-2014-05-23

Webinar: Recruiting And Retaining International Students: Designing Support Services To Meet Their Needs

Date: Wednesday, May 28, 3:00-4:30 (Eastern)
Type: Online webinar

Post-secondary institutions facing enrollment shortages often recruit international, English Language Learners (ELL) and English as A Second Language (ESL) students to bolster their rolls. Yet do these organizations really understand the needs, desires, and nuances affecting international student programs? Some post-secondary institutions neglect to do their research on developing quality education and services for these specialized populations resulting in attrition, the very problem that attracting these students is intended to solve. Often, this attrition results from a lack of planning, poor status of the program, insufficient understanding of the student population, and/or inadequate support services.

This webinar will question participants' assumptions about international students and English Language Learners (ELLs) and explain commonalities and differences among students in these populations. The presenter will feature effective academic strategies for faculty and staff, and highlight research designed to advise program administrators on successful strategies for program building and support at the student services level.

Objectives: 

- Challenge their assumptions about international students and English Language Learners (ELLs)
- Differentiate commonalities and differences in ELL demographics
- Examine factors that affect ELLs' learning and cultural adjustment
- Build empathy for the challenges that ELLs sometimes overcome
- Analyze common methods institutions use to measure ELL language proficiency
- Explore strategies for enhancing instructor and staff classroom and group dynamics for ELLs, as well as reading and vocabulary comprehension
- Explore comprehensible input and use this understanding to communicate effectively with ELLs
- Investigate general functions of successful international student services offices
- Critique the status of traditional international/ELL programs
- Examine trends in ELL programs
- Identify useful academic support services for ELLs/ international students
- Explore ways to enhance the social development of international students/ELLs

Website: http://www.innovativeeducators.org/product_p/2146.htm

Hillcrest Farmer's Market Brings Flocks of Followers

Purchase Picture Dr. Murad Abel

The ancient medical philosopher by the name of Hippocrates stated, “Let food be thy medicine and medicine be thy food” What we put in our mouth has a natural impact on our overall health. Hillcrest Farmer Market is a trend setter in setting the pace local bazaars that seem to be making their way into the downtowns of many major cities. They offer a wide range of vegetables, fruit, food, seafood, flowers, and homemade products made by local artisans and small farmers who seek to strengthen their home based businesses.

One of the best features of this market is that it is fun to simply just peruse the offerings even if you don’t immediately busy something. One can spend more than an hour eating, browsing and crowd watching. The smell of grilled food permeates the air with small white blooms of smoke that rise as beacons to taste bud delight. Sauce dripping hamburgers, freshly charred lamb meat and sweet pies are some of the tantalizing treats that will make their way across your nose.

If you are more interested in the fruits and vegetables plenty of farmers make their way to the market from the city’s outskirts to display their harvest. Some of the best deals in the city can be found on this street right out in the open for you to pick over. At times you will find the prices less than half the local supermarket as farmers seek to unload the rest of their items. You can’t get fresher than dirt to mouth existence of local farmer market products.

Freshly cut flowers are almost always on the shopping list. Hillcrest Farmer’s Market offers choice flowers from local greenhouses that have been babied from nursery to market graduation. Recently cut and well manicured they attract their own crowd of enthusiasts. Buyers put them on their kitchen table to brighten and room and freshen the atmosphere. Few things beat the natural décor of Mother Nature’s handiwork.

One of the main attractions is the natural and small manufacturing groceries offered by vendors. Want to cook something for the grill? Buy grass fed chicken or pick up some natural beef. Perhaps you need some smoked cheese or organic eggs. The market focuses on organic and naturally produced offerings without all the preservatives and pesticides.

Hillcrests Farmer Market’s website offers a lot more information that may be helpful for you to find the products and vendors that frequent the market. Enjoy some of the pictures.

Open every Sunday 9-2 p.m.

Lincoln Street and Normal Avenue
3960 Normal Street (Hillcrest DMV Parking Lot)
San Diego, CA 92103

http://hillcrestfarmersmarket.com/