The jobs report, aka Nonfarm Payroll report, was released this morning. The headline gains of 151,000 new jobs and the lowering of the unemployment rate to 4.9% received mixed reviews since it was lower than the consensus 188,000. Digging deeper into the report we see good signs for both importers and exporters.
Faster, faster faster! The cry of all customers these days it seems. Speed is a huge advantage in almost every market today. Learn how to make your shipping better by decreasing waste and increase speed through these three important steps.
On January 20th we had the pleasure to attend the event “The rise of e-commerce in Brazil” organized by the Brazilian American Chamber of Commerce, in New York.
Japan has followed Europe by introducing negative interest rates to excess bank reserves. Negative rates means that the bank has to pay the central bank to hold their money. This helps US importers but hurt US exporters that deal in yen. The foreign exchange market immediately dropped the value of the yen versus the dollar.
It turns out that most of the "too big to fail" banks are owned by the same large investors. And guess what? Those investors hate it when those same banks compete and bring down prices. Don't take out word for it: researchers from the University of Michigan have released a paper outlining the effect. For those that want the abridged version, check out The Economist article here.
You make great stuff and want to export it to your adoring customers. unfortunately that requires navigating the maze of challenges, options, and complications that come with shipping. Never fear though! Following these steps will help give you a leg up and dramatically improve your shipping processes.
The real world dangers of dealing in dollars:
In a recent case study, we discovered a company who dealt with a Canadian supplier. This supplier was willing to deal in dollars, so that became the norm. The US company never suspected they were being charged more for the importing their product, so they thought they were better off taking this easier option.
So you have just struck a deal with a Brazilian partner. Way to go! Brazil is an amazing country, known for its excellent food, beverages, shoes and the quality of all commodities. Plus, with the Brazilian Real devaluation, all those great products are now even cheaper!
Since 1986 The Economist has been comparing the price of Big Macs around the globe to show the relative value of currencies. If you were to convert the price of a Big Mac in Russia into dollars, the difference would show you if a currency is under / over valued.
The dollar has appreciated against all currencies by about 20%. If you are a nonprofit / social enterprise operating abroad, dollars have never purchased more impact. Use this price advantage as an opportunity to raise funds.