G-20 summit looks to boost sluggish global economic recovery

STORY HIGHLIGHTS

• The G-20 summit comes in the wake of parliamentary elections in Greece
• Obama will meet with Russian President Vladimir Putin and Chinese President Hu Jintao
• Concrete commitments coming out of the summit are unlikely
• But the Obama administration is hopeful that leaders will have a united voice calling for growth

Los Cabos, Mexico (CNN) -- Leaders from the world's largest industrialized and emerging economies kick off the G-20 summit in Mexico on Monday with the aim of boosting a sluggish global economic recovery.

Officially the summit will largely focus on one of the primary causes of the recovery's lethargy, a persistent weakness in the 17 countries that use the euro as their national currency.

A main topic will be Sunday's elections in debt-ridden Greece, where the center-right New Democracy party won the most votes and was asked to try to form a coalition government.

The vote was widely seen as a Greek referendum on staying in the euro, and the narrow victory for New Democracy over Syriza -- a leftist party that opposes conditions that accompany an international bailout for the country -- brought initial ease to world markets roiled by the prospect of a possible European currency collapse. Read the rest here

TRADE WAR: How 12 Major Economies Have Closed Up Since The Crisis

The last couple of decades have seen the world's economy open up, with formerly closed economies like China and India joining global trade with gusto.

The recent downturn however has caused some regression, with countries desperate to stimulate their economies via trade, occasionally at the expense of their partners. 

The Global Trade Alert, an effort by the Centre for Economic Policy Research (CEPR) to track protectionist efforts that started in 2009, found that 400 new measures have been enacted in the past 6 months.

Some measures are taken in response to perceived unfair laws on the other side, especially in the face of the eternally incomplete Doha Round of trade negotiations. At its worst protectionism not only distorts global trade, it can be a source of graft and corruption. Here's our summary of some of the worrying trends throughout the world.

Click Here For 12 Economies That Increased Protectionist Measures Since The Crisis >

Read more: http://www.businessinsider.com/global-protectionism-2012-6?op=1#ixzz1y9zicqLo

The global company’s challenge

Great article from McKinsey Quarterly:

As the economic spotlight shifts to developing markets, global companies need new ways to manage their strategies, people, costs, and risks.

JUNE 2012 • Martin Dewhurst, Jonathan Harris, and Suzanne Heywood

Source: Organization Practice

Managing global organizations has been a business challenge for centuries. But the nature of the task is changing with the accelerating shift of economic activity from Europe and North America to markets in Africa, Asia, and Latin America. 

McKinsey Global Institute research suggests that 400 midsize emerging-market cities, many unfamiliar in the West, will generate nearly 40 percent of global growth over the next 15 years. The International Monetary Fund confirms that the ten fastest-growing economies during the years ahead will all be in emerging markets. 

Against this backdrop, continuing advances in information and communications technology have made possible new forms of international coordination within global companies and potential new ways for them to flourish in these fast-growing markets. 

Read the rest here

Brazil's Odebrecht sues Florida over Cuba, Syria law

MIAMI (Reuters) - The U.S. subsidiary of Brazilian construction giant Odebrecht has filed a lawsuit challenging a recently signed Florida law barring local governments from hiring companies that do business in Cuba or Syria.

The lawsuit, filed on Monday in Miami federal court, claims the measure is "unconstitutional and unenforceable" and argues that the federal government, not states, has the authority to enact laws involving foreign affairs. 

Read the rest here

Test Driving BMW's First Concept Store in Paris

 

Outside BMW's first concept store, in Paris. 

 

From AdAge Global

If BMW carries through with its plan to revolutionize the car-shopping experience, 10 years from now many of its dealerships won't remotely resemble the kind U.S. consumers are used to seeing along the sides of highways.

Last week, the carmaker unveiled its first "concept store," meant to serve as the model for BMW retail locations for years to come. It chose to launch it in Paris, and since I happened to be in town, I decided to go check it out. Despite some good directions, however, it was a tad difficult to find: Unlike many dealerships in the U.S., this one wasn't bedecked with big colorful flags, giant signs or the otherwise loud calls for attention that people often associate with venues selling cars. 

Read the rest here