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REWIND: International Business News #4

Posted on August 2nd, 2010 | Author: admin

  • Korea Firm Courts Harrah’s for Cambodia Angkor Casino.  Korean development firm, Intercity Group, has invited Harrah’s Entertainment Inc. and MGM Resorts International, two of the world’s largest casino owners, to the site of the new Cambodia Angkor Casino. Intercity’s vice president, James Cho, said he would like to present Harrah’s and MGM with management operations deals. The casino will offer an alternative to the more established centers, such as those in Singapore and Macau. Still, however, the current economic situation may make it difficult for Intercity to find the funds for such a large scale project, which could make Harrah’s and MGM hesitant to strike a deal.
  • Europe to Investigate Anti-Trust Complaints Over IBM Mainframes.  The European Commission has launched an investigation into IBM’s potential abuse of its dominance in the computer mainframe industry. The commission is going to assess whether IBM shut out competition from other mainframe producers or service providers by illegally tying sales of its mainframe operating systems to its mainframe hardware. A second investigation, which the commission has stated it will also set up, will examine whether IBM has delayed the sale of spare parts to block potential rivals from performing mainframe maintenance. With many complaints like these coming from small rival firms, IBM could face potential charges and serious fines.
  • GM, Eclipsed at Home, Soars to Top in China.  While the U.S.’s once prosperous General Motors is slowly declining at home, in China, its sales and profits are rapidly rising. GM entered China a mere 13 years ago and already the country’s sales account for a quarter of GM’s total global sales. Part of GM’s success in China stems from the fact that its products do not carry the skepticism found among American consumers. Chinese consumers take the car for face value, and due to the psychology of the Chinese car market which has arisen from years of scarcity, buyers are not inclined to haggle the price. As the company’s sales plummet at home, GM says it will continue to take advantage of China’s potential and projects to sell 3 million automobiles annually in China by 2015.
  • Pace to Buy U.S. Broadband Company.  U.K.-based Pace PLC, the world’s largest developer of cable and satellite television boxes, is set to buy U.S. broadband technology firm, 2Wire. Pace representatives say this deal will expand its customer reach into the telecom market. Since 2Wire already has established relationships with the top North American telecom providers, namely AT&T, it will make it easier for Pace to address and meet the U.S. operator requirements. The buy will cost Pace around $475 million, but also give them the ability to move into the global telecommunications market.
  • U.K. Girds for New U.S. Fast Food Invasion.  Taco Bell, Chipotle, and Ruby Tuesdays, food chains well-known to just about every American are making the move across the pond into the U.K.  The U.K. food market is an attractive place for U.S. food chains since the “eating-out” culture is so established. Since the food services industry in the U.K. is so dynamic, diners readily welcome diversity and options. More specifically, the U.K. market is lacking in Mexican food options, an advantage for Taco Bell and Chipotle. Though the U.K. food market fell by 1.4% in 2009, it is predicted to grow by 4% this year.  U.S. food chains are looking to contribute to the growth.

Compiled and summarized by Aylin S. Khor