C2 • THE SILHOUETTE
THURSDAY, JANUARY 28, 2010
around the globe
Raging bull
United States
Every time I pick up the paper, there is some piece of news reminding everyone how China is slowly taking over the world. More recently, they have been garnering attention because of their red hot economy (no pun intended) and record economic growth. However, this impressive development has been perpetuating the idea among western analysts that China’s economic bubble is going to burst and that they will face the same financial fate as their friends across the Pacific. Let me tell you, this will not be the case. China has managed to successfully administer an efficient way of managing its economy, in the midst of a global recession. This seriously
Motorola Inc. (NYSE:MOT: US) has filed a complaint with the International Trade Commission, accusing Research in Motion Ltd (TSX:RIMM: US), the maker of the Blackberry, of, “unfair trade practices and the infringement of five patents,” which Motorola claims they had developed first. They claim that Blackberry lifted their patents in the areas of Wi-Fi access, application management, user interface, and power management. Motorola also claims that all Blackberry models infringe at least one Motorola patent.
China
As the Chinese economy runs wild with accelerated growth, the Peoples Bank of China is taking steps to cool the rising inflation creeping up on the market. The bank announced that they would be increasing the yield on threemonth bills sold to financial institutions. This would encourage firms to hold their assets. BOC is changing their lending policies amid their unprecedented growth following their stimulus plan.
makes me think that a market run by the state may be best. Now, before you label me a Commie-sympathizer, hear me out. China has managed to sustain its growth through a tightly controlled economy. These controls include a constant devaluing of its currency so that China can stay competitive amongst world markets. This ensures long-term economic growth and prosperity by making their goods cheap for us to buy. Analysts have also extended their fears regarding China’s real estate market and rising wages among factory workers. They speculate that increased wages and affordable housing could inflate a bubble, potentially hurting the
economy. However these concerns are easily dismissed when looking at Chinese culture, which promotes saving instead of spending. Unlike the Americans who notoriously spend their pay checks and live outside of their means. There are always exceptions to the fact though, and there have been instances of rapid increases in property prices in select cities within China. However, this cannot represent the country as a whole. The reason I say that China’s economy will not follow the same fate as western models is mainly because it is not built on a western laissez-faire foundation, thus making China’s economics inherently different than what we have seen in Canada or the United States.
That being said, their economic growth is unprecedented so it is hard to gauge exactly how that will affect the country. This is mainly because of how their political structure is managed and how they mesh communist ideology with capitalism, considered, “communism with Chinese characteristics”. All-in-all, the massive growth witnessed in China is remarkable. No matter which way you spin it, the potential for an enormous middle class within this country is inevitable; maybe even the potential for a middle class as big as the U.S of A. But the stars and stripes will never admit that. • Santino Marinucci
Soft skills
Negotiate like a pro
Germany
At the next financial summit in Canada, officials will discuss what caused the financial crisis. German Chancellor Angela Merkel plans on suggesting that a law surrounding executive payment be brought forward at the G8 that would enforce the top banks in the country to impose self discipline on pay for executives. This would mean that bankers would be able to set their own paycheques, without government interference.
Japan
Japan’s national bank has opted to keep interest rates at the low rate of 0.1 per cent. This follows actions taken by other national financial institutions such as The Bank of Canada and the Federal Reserve. The Japanese fear that if interest rates rise too quickly their economy could dip back into recession. Keeping the rates low should increase spending. The Bank of Canada and the Federal Reserve are currently holding their interest rates at 0.25 per cent.
Greece
Greece had an $11 billion debt sale on Jan. 26 in an attempt to avoid the risk of a credit downgrade. This comes to curb the government’s largely uncontrollable debt problem in an attempt to lower the deficit of 12.7 per cent of GDP. The debt sale is an attempt to improve the country’s cash flow, while minimizing their liabilities.
CHRISTOPHER CHANG / SILHOUETTE STAFF
How to haggle: The one skill that can make or break a deal Santino Marinucci Business Editor
Whether you are working out a high profile deal, haggling for that extra 20 cents at the farmers market, or trying to convince your parents how much more money you need for rent this month, the art of negotiation is vital to everyone’s life. Watching Donald Trump on television may seem like all of the knowledge you need when going into a hard negotiation deal, but there is more to negotiating than intimidation and bad wigs. When you are about to get yourself into a negotiation you must have a clear set of objectives and goals that you want to get out of the other party to achieve success. When negotiating a deal you must always go into it with a set
break point, so essentially whatever the lowest possible price you’re willing to settle for. Establishing this at the beginning of the deal will set a clear goal to the person you are negotiating with and you will have a greater chance of getting what you want. Now onto the fun stuff, what price should you actually start at? Should you be reasonable? The answer is no, be extreme. You never know what you might get if you set your price a little higher or lower when negotiating a deal. You might actually get what you want. This is important because the worst that could happen is that the other person thinks you’re unreasonable, but that does not mean you are out of the deal. If anything they will think you are gutsy. Before you go to negotiate,
Think you’re a business guru? Strut your stuff in the
educate yourself on the item you are trying to get a deal on. Good research is vital to successful negotiating. Let’s say you are trying to get that new iPod touch you have always wanted but don’t want to shell out the $375 dollars for it at the store. Simply start by saying that another store is offering the exact same product for $20 cheaper (this works better with smaller stores). Always bring proof. A printout of the price to show the seller increases your chances because it shows that you are in fact serious. At this point they will either turn you down, or match the price from the other store. Sometimes they will even give you a better price than the other store if they are competitors. The other important thing when working out a deal is to know what you have to offer when entering a
negotiation. Does the price you are offering pose an interest to the person or does it push them away? When you know who needs the other person more, it is easier to negotiate (especially if they need you) and come to an agreement closer to what you were looking for. In this example it would be obvious that the store would have more to lose than you by dropping their price. Especially since their ‘lowest’ price is set at $375. They may be less likely to budge, potentially leaving you out of luck. If worse comes to worst and you cannot get the person down to what you are negotiating for, then just walk away. Knowing your lowest price is the most important step when negotiating. Chances are if you walk away they may call you back and reconsider.
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