Here I am blogging about chapters 5 and 6 of our text book. The subject of chapter 5 is about trading internationally and chapter 6 covers investing abroad. James Hagerty wrote in today’s Wall Street Journal in an article Dollar’s Swoon Opens Doors how opportunities are being presented for company’s abroad from the “slumping U.S. Dollar” and the “sputtering” economy. He continues in the article saying how the weak dollar is helping Consol Energy, Inc., a Pittsburgh-based coal and natural-gas producer compete with countries such as South Africa and Australia in China. Consol opened new offices in Asia and Switzerland through a partnership with a trading firm. The article continues giving other examples of how the U.S. Dollar is affecting businesses worldwide both positively and negatively. One company has begun participating in trade shows in Asia and Europe in an effort to develop its business of industrial and marine equipment. One tool and die owner was quoted as saying that with the challenges the U.S. dollar is facing, that it gives a price advantage and that branching out globally rather than rely solely on North America for sales. Interestingly the text discusses the ethical dilemma of Delphi Corporation and the high cost of doing business in the United States while today’s Wall Street Journal is full of stories of businesses investing in global businesses for their futures.
