Global Parnerships; U.S. Poverty Rate; National Debt

One business area in which there are a great many global partnership is information technology. These partnerships serve both specific national markets and other global companies that must communicate across borders. Industry giant Microsoft works with hundreds of partners around the globe that develop new products based on its technologies. Some partners improve existing Microsoft products; others develop new uses for them. Sometimes companies in two different countries provide goods and services for use in completely different nations.

For example, Cable and Wireless International is a British company that provides telecommunications services to many countries in Latin America, Africa, Asia, and the South Pacific. Its infrastructure is being provided by Sonus Networks, a Massachusetts-based company. Other companies form partnerships to broaden their markets. California-based CollabNet, for example, is a specialized software developer. It works with partners in Brazil, Argentina, China, Canada, Japan, and the United Kingdom that distribute its products.

Sources:

• “CollabNet ® Increases Worldwide Reach by Expanding Partner Network; Arvos International, Business Vission, Coda OnDemand and CNC Consulting Among Many New CollabNet Partners in Latin America, Asia, Europe, and North America.” Business Wire, June 13, 2006.
• “Cable and Wireless International selects Sonus Networks for end-to-end IP-voice network; World’s leading international communications company deploys Sonus IMS-ready solution to transform its PSTN network; Sonus and Cable & Wireless International partner to build one of the world’s largest IP-voice networks.” M2 Presswire, September 19, 2006.
• “Davidson-Richards wins Microsoft RMS 2006 International Partner of the Year award; Selected from over 500 Microsoft partners worldwide Confirms Davidson-Richards’ position as the leading provider of Microsoft RMS-based retail solutions in the UK and Europe; Judges praise Davidson-Richards for its range of software enhancements for RMS.” M2 Presswire, August 2, 2006.
• “UK Company lands prestigious accolade at International Microsoft awards ceremony; TBS honoured as Partner of the Year for Software solutions at 2006 Microsoft Worldwide Partner Programme Awards.” M2 Presswire, August 3, 2006.

Monopolies

Until the late 1990s, the De Beers cartel was able to control the world’s supply of uncut diamonds. The end of the decade, however, brought about political and economic conditions around the world that made it impossible for the company to continue doing so. In 1998, its earnings dropped 40 percent.

In recent years, De Beers has faced other challenges. American and European regulators have pressured the company to allow competition. De Beers no longer buys up the diamonds of other producers and is selling some of its mines. As a result, smaller producers have been able to enter the market. In addition, democratic African governments also want more of the sorting, cutting, and polishing work—and more of the profits—to stay at home. To remain profitable, the company has changed its way of doing business. De Beers now partners with various African governments, such as Botswana and Namibia, and has opened a chain of jewelry stores. Since 90 percent of industrial diamonds being sold today are synthetic, the company has now begun to advertise to consumers, who continue to prefer the real thing. De Beers is still powerful, however. It sells about 45 percent of all uncut diamonds.

Sources:

• “Changing Facets.” The Economist, February 22, 2007
• De Beers. “Introduction and Profile.” De Beers Web site. http://www.debeersgroup.com/debeersweb/About+De+Beers/De+Beers+Structure/
  INTRODUCTION+AND+PROFILE.htm.

National debt

The U.S. government calls the debt owned by private persons and corporations, local and state governments, and foreign governments the “public debt.” Trust fund debt is technically called “intragovernmental holdings.” Many economists and others argue that continued deficit spending will unfairly leave future generation with the burden to pay the debt and unable to make a good life for themselves. Others worry that the large proportion of the foreign debt that is owed to foreign investors could compromise national security. To find out the exact amount of the national debt and how it changes from day to day, go to the Treasury Department Web site.

Sources:

• “Frequently Asked Questions About the Public Debt: Ownership of the Debt.” U.S. Department of the Treasury. (accessed June 12, 2007).
• “The Debt to the Penny and Who Holds It.” Treasury Direct. (accessed June 12, 2007).
• “Relevant Numbers on Federal Debt: July 6, 2006.” The Concord Coalition. (accessed June 12, 2007).