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Category: Business & Finance

What is the Brexit Agreement Including?

European leaders signed a British Brexit agreement on Sunday, which set out the conditions for the UK to leave the EU and tried to outline the future relationship between the two sides. The agreement is divided into two parts: a 585-page exit agreement, which is legally binding on both parties; and a 36-page non-binding principle statement that sets out the framework for future trade, economic and security relations. Both of these must be approved by the European and British Parliaments.

The legally binding document reads:

The UK will pay about $50 billion to fulfill its commitment to the EU budget. The UK will guarantee that approximately 3 million EU citizens living in the UK have broad legal rights and the EU will guarantee reciprocal rights to approximately 1.3 million British citizens residing in EU member states.

The agreement stipulates that the UK will have a 21-month transition period after leaving the European Union in March next year. The UK and the EU hope to negotiate future trade and security agreements during this period. From 2021, the UK will no longer be bound by the EU’s free-flowing rules, and EU citizens will not be able to work in the UK as they have in the past.

Irish border issue:

The core of the agreement is to find a workaround to avoid a re-emergence of hard borders between British territory Northern Ireland and the European Union member states of Ireland. If the UK and the EU cannot finalize the trade agreement by December 2020, the parties can extend the transition period to December 2022.

Another option is that the United Kingdom and the European Union will establish a joint customs area so that there is no need for border inspection between Northern Ireland and the Republic of Ireland. This arrangement actually avoids the UK’s trade agreements with non-EU economies such as the US or China. The UK also needs to comply with a number of EU national aid, environmental, labor and social standards.

Only if the EU determines that the UK’s withdrawal from this tariff arrangement will not lead to the re-emergence between Northern Ireland and the Republic of Ireland, the UK can withdraw from this tariff arrangement, which may require a new trade agreement between the two parties, or through technological innovation to achieve no border inspection.

Non-legally binding framework statement:

The two sides also reached an agreement on a 36-page future relationship framework statement that clarifies certain matters. The document calls for the establishment of broad economic ties between the two parties, but excludes the possibility that British manufacturing companies can enter the EU’s single market with zero barriers. The document also calls for the establishment of close and security partnerships between the two parties. However, from the establishment of a flexible economic and trade relationship that allows British companies to successfully sell products in the EU market, to sign a much looser FTA with limited tariff rates but limited market access, a series of possibilities that exist in the future trade relations between the two sides, this document is not clearly stated.

Whether these possibilities can be implemented will depend on whether the UK is willing to continue to comply with EU regulations and guidelines, which is strongly opposed by many Brexit supporters.

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The Guests of Honor that Attend the First CIIE(IV)

Vietnam – Promoting a more optimized bilateral trade structure

At present, the trade and investment momentum between China and Vietnam is improving, the trade imbalance is gradually improving, and the trade structure is more optimized. Vietnam is expected to take advantage of the first China International Import Expo to increase exports of its superior products to China. According to the Economic and Commercial Office of the Chinese Embassy in Vietnam, during the Expo, Vietnam set up a 256-square-meter national exhibition booth, a 209-square-meter agricultural area and a 36-square-meter service trade area. As the host country, Vietnam will fully demonstrate its economic and social development achievements at this Expo.

In recent years, thanks to the joint efforts of high-level and relevant departments of China and Vietnam, specialty products such as coffee, dragon fruit and rambutan originating in Vietnam have appeared more and more in the Chinese market. Vietnam has also brought a number of advantageous products to participate in the promotion, and more Vietnamese products are expected to appear in the list of Chinese consumers in the future. The 22 Vietnamese companies that participated in the exhibition include the leading enterprises in Vietnam such as Zhongyuan Group and Vietnam Dairy Co., Ltd., and their products such as G7 coffee and various dairy products have already been very popular in China.

During the Expo, Vietnam plans to jointly organize the ”China-Vietnam Economic and Trade Matchmaking Meeting” with the Chinese side, and invites 25 Vietnamese entrepreneurs to work with Chinese companies to promote cooperation in agricultural products, aquatic products and consumer goods. Wu Bofu, director of the Vietnam Trade Promotion Bureau, believes that the company will encourage Vietnamese companies to actively expand the Chinese and international markets to further promote the stable development of Vietnam-China trade. Vietnamese exhibitors have said that they will make full use of the opportunities of the Expo to enter the Chinese market and look forward to seeing more of their own products in the Chinese market.

The exhibits in Vietnam are still mainly agricultural products and processed foods. In recent years, with the continuous deepening of China-Vietnam economic and trade as well as Vietnam’s own economic development, Sino-Vietnamese trade has become more balanced, and Vietnam’s trade structure with China is also changing. At present, Vietnam’s exports to China are gradually shifting from low value-added products such as traditional agricultural and sideline products, primary manufactured products and mineral resources to high value-added products such as electronic products and various spare parts.

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Financial System(II)

Basic Function

Financing function

The financial function of the financial system has two meanings – mobilize savings and provide liquidity. Financial markets and banking intermediaries can effectively mobilize the savings resources of the whole society or improve the allocation of financial resources. This allows the effective technology of initial investment to be quickly transformed into productivity. While promoting more efficient use of investment opportunities, financial intermediaries can also provide relatively high returns to social savers. The main advantage of financial intermediation mobilization savings is that it can diversify the risk of individual investment projects; secondly, it can provide investors with relatively high returns (relative to physical assets such as durable consumer goods). The mobilization of savings in the financial system can provide a function of aggregation for decentralized social resources, thereby exerting the scale effect of resources.

Stock elaboration function

Divide large-scale investment projects that cannot be divided so that small and medium investors can participate in the investment of these large projects. Through the stock elaboration function, the financial system realizes the monitoring of the manager and the control of the company. In the modern market economy, the company organization has undergone profound changes, that is the high degree of equity decentralization and the professionalization of the company’s operations. The biggest difficulty in such organizational arrangements is the existence of asymmetric information, making it difficult for investors to effectively monitor capital use. The function of the financial system is to provide a new mechanism for the strict supervision of the company, so that the interests of internal investors can be protected.

Resource configuration function

Raising sufficient resources for investment is a necessary condition for economic surging. But investment efficiency, the allocation efficiency of resources is equally important for growth. The allocation of investment has its own difficulties, namely, the productivity risk. The information of the project return is incomplete, and the actual ability of the operator is unknown. These inherent difficulties require us to establish a financial intermediary. In a modern and uncertain society, it is difficult for individual investors to evaluate companies, managers, and market conditions. The advantage of the financial system is that it provides intermediary services for investors and provides a mechanism for sharing risks with investors, making the allocation of social capital more efficient. Investment services provided by intermediary financial institutions can be expressed in the following aspects: firstly, diversification of risks; secondly, liquidity risk management; thirdly, project evaluation.

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Business Negotiation Strategies

All sales people in the workplace should master some negotiation strategies firmly and take the time to study these skills in order to get twice the result with half the effort. The following are some of the negotiation strategies and techniques. Hope you can learn from them.

What is called the mutant ever victorious, we need to be fully prepared for every chance. The most important step for a successful negotiation is the fully prepared. The knowing of your goods, the market price, the situation of supply and demand, your company and the other side. The lowest price that you can accept and your negotiating goal should be prepared in advance, and write the important point on the paper to remind ourselves.

Avoid breaking up your relationship during the negotiation. They won’t fully break their negotiation who have some sales experiences, no agreement is better than barely at least, they will leave some space for the opposite side so that transaction in the next time.

Negotiation in your own company office to the largest extent, in addition to psychological advantages you can get, you can also get the necessary support from other colleagues, departments or supervisors, while saving time and corresponding travel expenses.

Only negotiate with the people who have power to make a decision. You may meet the account executive, the chief executive, manager or assistant, the power they have is different, we should avoid negotiating with the people who have no decision-making power, for fear that wasting our time, in the meanwhile we can avoid reveal our information before the negotiation.

The people who have experiences will know what the opponent needs, so strive to satisfy them by the aspect of some insignificant matter in order to gradually lead them to meet our needs. But please remember that don’t let the opponent know our needs before the negotiation, lest they utilize this weakness to tell the buyer make concessions.

Take the initiative but avoid letting the opponent know our company’s position: the attack is the best defense. We should try our best to prepare the questions in advance and ask them by a natural way to let them expose their position as much as possible, chase after the victory, give the opponent enough pressure, if they feel difficult to parry, naturally they must make some concessions.

Last but not the least, as long as you can face all the difficult by cool and composure, I believe you will definitely be successful.

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