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World’s biggest trade deal? Here’s what you should know

(BUSINESS NEWS) In the wake of COVID-19 and its economic effects, China has spearheaded an enormous trade deal. But what are the implications for us?

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Overhead of shipyard from trade deal being loaded with goods.

After 8 years and much wrangling, China and 14 other countries have signed the world’s largest trade deal: The Regional Comprehensive Economic Partnership (RCEP). The deal will create an Asia-Pacific free-trade bloc bigger than the European Union and the US-Mexico-Canada Agreement.

During Sunday’s virtual event from Hanoi, Chinese Premier Li Keqiang called it “a ray of light and hope amid the clouds” of the economically devastating pandemic. Others call it a coup for China that makes the country an even bigger dog in the region.

Here’s what you should know.

Who’s in it?

Fifteen countries: Australia, Brunei, Cambodia, China, Indonesia, Japan, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, South Korea, Thailand, and Vietnam. India pulled out because of concerns about cheap Chinese goods entering the country.

Just how big is it?

RCEP covers a lot of money and a lot of people. Some numbers:

  • It covers nearly 30% of the world’s population (2.2 billion people).
  • The combined GDP of members is $26 trillion.
  • About 28% of global trade flowed through member countries in 2019.
  • The Brookings Institution projects it to add $209 billion a year to world incomes and $500 billion to world trade by 2030.

What’s in it?

Provisions address tariffs, import-export regulations, intellectual property, and more. Unlike the E.U., there are no environmental protections or provisions for labor rights.

What’s the goal?

The main aims are boosting trade by lowering tariffs while healing the devastating economic ills caused by the pandemic.

It also means cutting red tape by letting companies export products within the bloc under a standard set of regulations, another cost cutter.

The deal “will play an important role in building the region’s resilience through inclusive and sustainable post-pandemic economic recovery process,” members said in a joint statement.

What about the impact on the U.S.?

The United States is not included. President Donald Trump, who has often sparred with China, pulled the U.S. out of the Trans-Pacific Partnership in 2017, making U.S. involvement a non-starter.

However, U.S-based multinational companies that have subsidiaries in or a supply chain involving member countries could reap lower costs.

It’s a big deal, but is it a Big Deal?

Maybe. Maybe not. Some analysts see it as “so unambitious as to be largely symbolic,” says The Economist. But others call it “an important building block in a new world order, in which China calls the shots all over Asia.”

What’s next?

Nine nations must ratify it before it kicks in, which could be tricky, says BBC.com. China isn’t exactly the most popular country in the region.

As for the U.S., it’s possible RCEP will spur the U.S. to join the TPP’s successor, the even longer-named Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). But China isn’t exactly popular with American voters, either, so it remains to be seen whether the Biden administration will see it as a priority.

Lisa Wyatt Roe is an Austin writer and editor whose work has been featured on CNN.com/Travel, in Texas Parks & Wildlife Magazine and in the book “Seduced by Sound: Austin; 100 Musicians on Why They Make Music.” Travel and live music feed her soul. Volunteering with refugees feeds her sense of purpose. And making friends laugh feeds her deep (yet possibly sad) need to get all the laughing emojis on Facebook.

Business News

Are Gen Z more fickle in their shopping, or do brands just need to keep up?

(BUSINESS NEWS) As the world keep changing, brands and businesses have to change along with it. Some say Gen Z is fickle, but others say it is the nature of change.

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Gen Z woman shopping outside on a laptop.

We all know that if you stop adapting to the world around you, you’re going to be left behind. A recently published article decided to point out that the “fickle” Gen Z generation are liable to leave a poor digitally run site and never return. Now of course we’ve got some statistics here… They did do some kind of due diligence.

This generation, whose life has been online from almost day one, puts high stakes on their experiences online. It is how they interact with the world. It’s keyed into their self-worth and their livelihoods, for some. You want to sell online, get your shit together.

They have little to no tolerance for anything untoward. 80% of Gen Zers reported that they are willing to try new brands since the pandemic. Brand loyalty, based on in-person interaction, is almost a thing of the past. When brands are moved from around the world at the touch of your fingertips there’s nothing to stop you. If a company screws up an order, or doesn’t get back to you? Why should you stick with them? When it comes to these issues, 38% of Gen Zers say they only give a brand 1 second chance to fix things. Three-quarters of the surveyed responded saying that they’ll gladly find another retailer if the store is just out of stock.

This study goes even further though and discusses not just those interactions but also the platforms themselves. If a website isn’t easy to navigate, why should I use it? Why should I spend my time when I can flit to another and get exactly what I need instead of getting frustrated? There isn’t a single company in the world that shouldn’t take their webpage development seriously. It’s the new face of their company and brand. How they show that face is what will determine if they are a Rembrandt or a toddlers noodle art.

The new age of online shopping has been blasted into the atmosphere by the pandemic. Online shopping has boosted far and above expected numbers for obvious reasons. When the majority of your populace is told to stay home. What else are they going to do? Brands that have been around for decades have gone out of business because they didn’t change to an online format either. Keep moving forward.

Now as a side note here, as someone who falls only just outside the Gen Z zone the articles description of fickle is pompous. The stories I’ve heard of baby boomers getting waiters fired, or boycotting stores because of a certain shopkeeper are just as fickle and pointed. Nothing has changed in the people, just how they interact with the world. Trying to single out a single generation based on how the world has changed is a shallow view of the world.

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Business News

Chasing Clubhouse success? How the audio chat room trend affects products

(BUSINESS NEWS) It is inevitable that when a new successful trend comes along, other companies will try to make lightning strike twice. Will the audio chat room catch on?

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Smiling woman seated in dark room illuminated by lamp and phone light, participating in audio chat room.

Businesses are always about the hot new thing. People are the always looking for the easiest dollar with the least amount of effort these days. It tends to lead to products that are shoddy and horribly maintained with the least amount of flexibility in pleasing their customers. However, you also have to look at the customer base for this as well. You follow where the money is because that’s where its being spent. It’s like a merry-go-round, constantly chasing the next thing. And the latest of these is the audio chat room.

During the pandemic the entire world saw an eruption of social audio investments. Silicon Valley has gone crazy with this new endeavor. On the 18th of April this year, Clubhouse said it closed on some new funding, which was valued at $4 billion for a live audio app. This thing is still in beta without a single penny of revenue!

The list of other companies who have pursued new audio suites (either through purchase or creation) include:

  • Facebook
  • Spotify
  • Twitter
  • Discord
  • Apple

This whole new audio fad is still in its infancy. These social media and tech giants are all jumping headlong into it with who knows how much forethought. A number of them have their own issues to deal with, but they’ve put things aside to try and grab these audio chat room coattails that are running by. It’s a mix of feelings about the situation honestly. They are trying to survive and keep their customers.

If a competitor creates this new capability and they stay stagnant then they lose customers. If they do this however without dealing with their current issues then they could also lose people. It’s an interesting catch 22 for people out there. Which group do you fall in? Are you antsy for a new toy or are you waiting for one of these lovely sites to fix a problem? It’s another day in capitalism.

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Business News

This web platform for cannabis is blowing up online distribution

(BUSINESS NEWS) Dutchie, a website platform for cannabis companies, just octupled in value. Here’s what that means for the online growth of cannabis distribution.

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A small jar of cannabis on a desk with notebooks, sold online in a nicely made jar.

The cannabis industry has, for the most part, blossomed in the past few years, managing to hit only a few major snags along the way. One of those snags is the issue of payment processing, an issue compounded by predominantly cash-only transactions. Dutchie, a Bend, Oregon company, has helped mitigate that issue—and it just raised a ton of money.

Technically, Dutchie is a jack-of-all-trades service that creates and hosts websites for dispensaries, tracks product, processes orders, keeps stock of revenue, and so much more. While it was valued at around $200 million as recently as summer of 2020, a round of series C funding currently puts the company at around $1.7 billion—approximately 8 times its worth a mere 8 months ago.

There are a few reasons behind Dutchie’s newfound momentum. For starters, the pandemic made cannabis products a lot more accessible—and desirable—in states in which the sale of cannabis is legal. The ensuing surge of customers and demand certainly didn’t hurt the platform, especially given that Dutchie is largely responsible for keeping things on track during some of the more chaotic months for dispensaries.

Several states in which the sale of cannabis was illegal also voted to legalize recreational use, giving Dutchie even more stomping ground than they had prior to the lockdown.

Dutchie also recently took on 2 separate companies and their associated employees, effectively doubling their current staff. The companies are Greenbits—a resource planning group—and Leaflogix, which is a point-of-sale platform. With these two additions to their compendium, Dutchie can operate as even more of an all-in-one suite, which absolutely contributes to its value as a company.

Ross Lipson, who is Dutchie’s co-founder and current CEO, is fairly dismissive of investment opportunities for the public at the moment, saying he instead prefers to stay “focused with what’s on our plate” for the time being. However, he also appears open to the possibility of going public via an acquisition company.

“We look at how this decision brings value to the dispensary and the customer,” says Lipson. “If it brings value, we’d embark on that decision.”

For now, Dutchie remains the ipso facto king of cannabis distribution and sales—and they don’t show any plans to slow down any time soon.

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