In the article titled” Optimism on GCC-Singapore free trade deal despite lower exchange”, they talk about increased partnership between Singapore and Gulf Coast Countries. Against the background of decreasing trade, they have just signed a free trade agreement. This agreement lowers the tariff for goods prepared in Singapore, and give GCC preferential treatment in latter’s industrial sector. In specific terms, Singapore has inspired Abu Dhabi’s economic development, and latter’s national oil company has upgraded its representative office in Singapore. This is an important development as Singapore is positioning itself as gateway to Asia; and UAE is positioning itself as gateway to Middle East. Against this background Singapore is planning to increase its population.
The underlying assumptions in this article are that this is going to be Asia’s century; and free trade agreement is likely to increase the number of jobs, so much so that it in itself will justify Singapore’s need to increase its population.
In the article “Japan’s trade with GCC declined in the first half of 2013” , it talks about decrease in trade between Japan and the Gulf Coast Countries. The main causal factor being the decline in the price and the volume of crude oil import to Japan. Its states that a major contributor to the decline in value has been the fall of Yen, as compared to US dollar. Consequently, Japan’s exports to all the GCC have witnessed a decline, and so have been the imports – barring those from Qatar. This 9.8% decline in Japan’s trade with GCC is in line with is overall decline in trade with the rest of the world by 10.8%.
Although not stated overtly, but the underlying assumption here is that the decline in trade between Japan and GCC countries is not an outcome of their trade relations, but a general decline in Japan’s trade with the world.
In the article titled “India asks Kuwait to support Free Trade Agreement with GCC” India, represented by it three chambers of commerce requested the Kuwaiti delegation to lend its support to India-GCC free trade agreement. The Indian side stressed that Kuwait was India’s second largest source of crude oil; and India welcomed Kuwaiti investment in oil projects in India. The Indian side also stressed that it was on its way to attain high growth in manufacturing sector, and looked upon Kuwait as a long term dependable partner. In addition, Indian entrepreneur were keen to participate in economic developmental activities in Kuwait.
The underlying assumption in the above mentioned paragraph is that underscoring the potential long-term benefits of Indo-Kuwaiti trade relations will seek Kuwait’s buy-in for India GCC free trade agreement.
The article titled “World trade changes could benefit GCC” , states that the development of offshore market in Middle East and the changes in world trading pattern could be of benefit to the region. Elaborating on changes in world trading pattern, the total container shipping volume of East West trade which currently accounts for 40%, is going change in favour of 32% of intra-Asia. It further states that the economy of the GCC countries continues to diversify with region evolving as a major exporter.
The major underlying assumptions is that as GCC evolve as a major industrial base and consequent exporter, the nature of trade is going to shift from East-West to Inter-Asia.
The article titled “Defence ties and trade with Kuwait growing: PM” , talks about the statement by Pakistani PM, Nawaz Shari, that he attaches special importance to relations with Kuwait – especially in terms of trade and defense. The Pakistani PM stressed the need to have greater investment to boost economic partnership; the Kuwaiti PM conveyed the good wishes and reaffirmed the commitment to further strengthen the ties.
The underlying assumption in the article is that diplomatic exchanges create conducive atmosphere for growth of trade between the nations.
In the article titled “To peg or not to peg” , it analyzes the merit of decision of Qatar Central Bank to peg its currency against the US dollar. It benefits when the US dollar is steady, but has to undergo fluctuation along with it, and is unable to adjust the exchange rate as often as US does. This leaves it with three broad options, fixed exchange rate, free capital movement, and an independent monetary policy.
The underlying assumption in the article is that the Qatari authorities have the knowledge and expertise to take a decision in favour of any of the three options. The knowledge and expertise pertains to economics and finance, and also they have the governance structure to give direction to their fiscal policy. The underlying assumption is also that the Qatari political establishment has the political will to de-peg it currency from US dollar.
In the article titled “Can Norwegian Air Shuttle Become the Cheapest Global Airline?” , it talks about the growth of, Norwegian Air Shuttle, a new low-cost Norwegian airline. The CEO of the airlines is emphatic about the prospects of his airlines new routes, in particular to Florida. He is emphatic about more routes in future; as the Nordic people are flying more often to places world over. Also, how his new fuel efficient planes fit into his plans.
The underlying presumption in the above mentioned through is that Nordic people will continue to fly as much and as often all through-out the year. Also, the airlines will be able to provide equally competitive fares on all sectors. Finally, their new aircrafts, the Dreamliner, will be as fuel efficient as claimed.
The article further talks about its plans to add more international destinations. In 2012 the airlines placed the largest order in European history, of 222 jets from Boeing and Airbus, to increase its presence in Europe and challenge the established discount carriers. Their plan is to replicate the business model of Southwest model at international level.
The underlying presumption here is that Southwest’s business model can be applied at international level. Related to it is the presumption that Norwegian Air Shuttle will face the same kind of external environmental threats as Southwest does at national level.
The article further states that this airline will succeed where others have failed, as they have the new fuel efficient Dreamliners. Also they believe that they will be able to tap into emerging middle class of rising economies like India and China. Based on this calculation, it is believed that in the next decade there will be approximately 500 million new airlines passengers. And the airline hopes to attract them with low fares.
There are a lot of assumptions in the above paragraph. Firstly, they are assuming that Dreamlines will bring in as much cost efficiency as the manufacturer claims. They are also assuming that they would be the major European international low-cost carrier to deploy Dreamliners. They are presuming that there would be barriers to entry for other players. They are also assuming their hub and area of operation will be convenient for travellers from emerging economies. They are also basing their assumption on the projected figure of new airlines passengers in decades to come.
The article further states that the airline is facing stiff resistance from US carriers, who are using their political muscle to restrict its entry. Also, it has based its international subsidiary out of Ireland to take advantage of lower wages.
The article, and the airlines in particular is basing its assumptions on the fact that they will not face barriers to entry in their drive go to international. Also, they are of the opinion that the savings they make in terms of lower ages will positively impact their bottom-line.
In the article titled “Walmart splits from Indian retail partner” , the article states that the Walmart stores in India will be splitting from the local partners as they cannot move forward due to strict government regulation. However, Walmart will continue to run its wholesale joint venture in India.
The underlying assumption in the above paragraph is that Walmart will face less resistance from government regulation in wholesale sector than in retail.
In the article titled “Thai PM says rice deal secured with China” , China will allow its domestic companies to buy million tonnes of rice a year from Thailand for an indefinite period. Earlier the Chinese government had agreed to buy the same amount over a period of 5 years. Thailand has been under pressure to sell its stock of rice, which it had piled up to help the farmers. This would be beside the sale from government to government deal.
The underlying presumption in the above passage is that Chinese domestic companies “will” buy all the rice Thailand wants to sell. It is also presuming that in future there will be no rice buying scheme of Thai government to help its farmers. It also leaves open the possibility of sale through government to government deals.
In the article titled “Facebook relaxes rules for teen sharing” , Facebook is allowing teenager to share their post with anybody on internet. Previously they were able to share their posts etc with friends of friends only, and not any further. This will be made possible with the “follow” feature that allows their public posts to appear in people’s feed. Although a small fraction of teens are expected to use this option; it gives them choice to share their posts publicly.
The underlying assumption in the above passage is that sufficient number of teenagers will use that option. Also, their parents will allow them to have a public profile, which may make them vulnerable to cyber-bullying.
In the article titled “Boeing completes 'uneventful' Dreamliner test” , the article talks about Boeing’s Dreamliners test flight after they were grounded after a series of battery related incidents. These battery related incidents, including one in Boston and another in in-flight in Japan, had resulted in 50 Dreamlines being taken out of service. That prompted the US Federal Aviation Administration to step in stipulating that Boeing conducts the test flights under more stringent rules. Boeing stated that the test carried out under such rules provided it with necessary data which will help in solving the problem.
The underlying assumption in the above article is that stricter rules put forward by the US Federal Aviation will help generate more accurate test data. And that data will be credible enough to help Boeing solve the battery problem.
Bibliography
Aljazeera. Boeing completes 'uneventful' Dreamliner test. 10 02 203. Web. 16 01 2014. <http://www.aljazeera.com/business/2013/02/20132107315215105.html>.
—. Facebook relaxes rules for teen sharing. 17 10 2013. Web. 16 01 2014. <http://www.aljazeera.com/news/americas/2013/10/facebook-relaxes-rules-teen-sharing-20131016235159688909.html>.
—. Thai PM says rice deal secured with China. 13 10 2013. Web. 16 01 2014. <http://www.aljazeera.com/news/asia-pacific/2013/10/thai-pm-says-rice-deal-secured-with-china-20131013145918839617.html>.
—. Walmart splits from Indian retail partner. 09 10 2013. Web. 16 01 2014. <http://www.aljazeera.com/business/2013/10/walmart-splits-from-indian-retail-partner-2013109161446326544.html>.
Dawn. Defence ties and trade with Kuwait growing: PM. 12 11 2013. Web. 16 01 2014. <http://www.dawn.com/news/1055789/defence-ties-and-trade-with-kuwait-growing-pm>.
Gulf News. Japan’s trade with GCC declined in the first half of 2013. 25 10 2013. Web. 16 01 2014. <http://gulfnews.com/business/economy/japan-s-trade-with-gcc-declined-in-the-first-half-of-2013-1.1247169>.
Howard, Gary. World trade changes could benefit GCC. 06 11 2013. Web. 16 01 2014. <http://www.seatrade-global.com/news/middle-east-africa/world-trade-changes-could-benefit-gcc.html>.
Khalid, Wasim. India asks Kuwait to support Free Trade Agreement with GCC. 08 11 2013. Web. 16 01 2014. <http://www.kuna.net.kw/ArticleDetails.aspx?id=2343139&language=en>.
Leonard, Devin. Can Norwegian Air Shuttle Become the Cheapest Global Airline? 09 01 2014. Web. 16 01 2014. <http://www.businessweek.com/articles/2014-01-09/can-norwegian-air-shuttle-become-the-cheapest-global-airline#p1>.
Yee, April. Optimism on GCC-Singapore free trade deal despite lower exchange. 02 11 2013. Web. 16 01 2014. <http://www.thenational.ae/business/industry-insights/economics/optimism-on-gcc-singapore-free-trade-deal-despite-lower-exchange>.
Zawya. To peg or not to peg. 30 09 2013. Web. 16 01 2014. <http://www.zawya.com/story/To_peg_or_not_to_peg-ZAWYA20131031101624/>.
