A nonprofit organization that helps protects both consumers and businesses against unfair practices is the Better Business Bureau System (BBB). The BBB is made up of numerous local organizations throughout the United States and Canada. It sets ethical standards and alerts businesses to scams that could harm them as well as providing advice on running a successful and honest business. The BBB protects consumers by providing reports about companies, resolving disputes between consumers and companies, and providing information on how to shop for numerous products and services, how to choose a charity, and how to avoid fraud. The BBB’s website is www.bbb.org.
Sources:
- Encyclopaedia Britannica Online. s.v. “Better Business Bureau.” (accessed May 22, 2007).
- Better Business Bureau. “About The Better Business Bureau System.” Better Business Bureau Web site.
- Better Business Bureau. “Tips/Information.” Better Business Bureau Web site.
Saving
In 2000, when the Internet bank ING Direct opened its virtual doors, American consumers began to set up savings accounts online. Since then, many regular banks have begun offering online banking. Online savings accounts pay customers much higher interest rates than those paid on accounts opened at bank offices—even by the same bank. Online savings accounts frequently pay over 5 percent interest, whereas passbook accounts may pay under 1 percent. Not surprisingly, online savings accounts have become popular with consumers.
Before opening an online account, consumers need to read the conditions banks place on different accounts. Some banks require savers to make a minimum deposit or maintain a minimum balance in order to get the high interest rates. Others limit the number of withdrawals a customer can make. Consumers must also keep in mind that all transactions must be made online, by mail or telephone and that it can take several days for them to receive any money they withdraw. Some online banks issue ATM or debit cards, but the banks that own the ATMs generally charge a fee to users who are not their customers. Other online banks offer paperless checking accounts that give customers somewhat greater access to their money by allowing them to pay bills online. Finally, before opening an online savings account, consumers should make sure the FDIC would insure their money.
Sources:
- Block, Sandra. “Online banks heat up competition with savings rates of 5% or more.” USA TODAY, February 12, 2007.
- “Bricks ‘n’ clicks.” The Economist, February 3, 2007.
- Kingson, Jennifer A. “Going online for Savings.” New York Times, May 5, 2006.
China’s special economic zones
When China’s central government announces its intention to create new special economic zones, many of the country’s regions are quick to apply. Although the central government establishes general policies for the country, SEZs are very independent. SEZs tend to specialize in certain industries. For instance, Suzhou Industrial Park focuses on biotechnology, computer software, and automobile components. For the Guangzhou Development District, car manufacturing is important.
Even so, SEZs compete with each other to attract foreign investors. They not only offer tax incentives, but also will build necessary infrastructure for companies and provide VIP services. To win over investors, SEZ officials will appeal central government regulations to give them a sweeter deal, make sure they get the necessary visas, or provide consulting services.
Sources:
- “Competition turns hot for ‘new special zones.‘” China Economic Net. May 21, 2007. (accessed June 12, 2007).
- Aervitz, Irina. “China’s extra-special zones,” Asia Times Online. September 12, 2006. (accessed June 12, 2007).