"Falling Exports in Japan Hit Hard"

Although the economy in the United States has suffered significantly, other countries are suffering as well. For example, Japan, which has the world's second-largest economy, has suffered a downfall in their exports by a record 49% in February (the 5th consecutive month). The country's overall trade surplus was down 91%!





The article in NY times was about the small exporters in Japan being effected by the plummiting economy. The small Japanese company, Porite, outside Tokyo, makes vital parts of the the Nintendo Wii and the iPhone. Although these gadgets are in high demand, the company's shipments have been down about 40% from last year. Exporters like Toyota or Sony will not experience much loss, the small exporters in Japan are mostly affected by the economy, much like the small businesses are affected in the United States.



Unfortunately, this is the worst fall in the Japanese industry in 20 years. Their industrial production fell 10.2% in Jan. But Japan's government, like our government, has committed to buying back bank loans to small and mid-sized companies to avoid a credit crisis.



So for everyone who was considering leaving the United States and moving over seas to another country...think again. The economy isn't any better and like many of our parents' have said..."the grass isn't always greener on the other side...so stick with what you know." That's my philosophy.






Sources:
NY Times Article: "Japan's Small Exporters Are Hit Hardest"

By: Hiroko Tabuchi

Published: March 25, 2009

http://www.nytimes.com/2009/03/26/business/worldbusiness/26exports.html?_r=2&ref=smallbusiness

Small Businesses Deserve A First Aid Kit too!

I don't know about you, but for everyone who's aspiring to become an entrepreneur, I don't know if I can risk trusting our economy. Small businesses have suffered greatly due to the economy and its financial instability. So when I read this article about Obama coming to the aid of small businesses, I was a bit elated.

President Obama's administration will buy up to $15 billion of securities that are linked to small-business loans. This gesture will in turn, increase economic growth within the economy and encourage lenders to give loans to "mom-and-pop" businesses. This will increase loan guarantees for small businesses up to 90% of the loan value.

The Obama administration believes that the country's "economic recovery will be driven in large part by America's small businesses" and rightly so, considering that about 70% of jobs have been created by these businesses over the past 10 years.

This plan is supposed to take effect by the end of March.

Sources:

"Obama Acts to Aid Small Businesses"

By: Helene Cooper

Published: March 16, 2009

http://www.nytimes.com/2009/03/17/business/smallbusiness/17sbiz.html?ref=smallbusiness

Spring into an Economic Downfall

As we all know that economy is suffering greatly. Although clothing is a necessity, fashion isn't. Therefore, many department store are feeling the affect of the recession. "For Spring Clothes, A Lost Season?", a fashion article in the NY Times, discusses the adverse affects of the economy on upscale department stores during the Spring season.

In this article the department stores are compared to museums. Handbags, hats, and accessories are "untouched, like artifacts in a museum." Upscale department stores such as Bergdorf Goodman and Saks Fifth Avenue have been "library-silent" and their "mannequins stood in for shoppers". February sales for Neiman Marcus, Saks Fifth Avenue, and Nordstrom were at an all-time low and were some of the worst in the industry.

So why do retailers expect us to purchase blazers, designer jeans, and cashmere sweaters for full retail prices ranging from $800 to $2000? Now consumers have begun to show retailer that they're smarter than many people think. They're thinking about what they purchase and their more willing to wait for those Fendi shoes to go on slae, rather than purchasing them on impulse.

As a result of dramatic losses among stores, analysts predict that the merchandise will be put on sale sooner than usual. New merchandise usually stays full price for about 8 to 10 weeks before they are marked down, but analysts say that they will be reduced in about 4 to 5 weeks instead.

Sources:

"For Spring Clothes, A Lost Season?"

Article By: Stephanie Rosenbloom

Published: March 11, 2009

http://www.nytimes.com/2009/03/12/fashion/12lost.html?pagewanted=1&_r=1&ref=fashion&adxnnlx=1237350022-TKXyxEA17tv%20I/dli%20yw3Q