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Globalizing everywhere

Apple will open two research facilities in China

Apple announced it will open a second research facility in China next year at the manufacturing hub of Shenzhen, a month after it stated it will open its first research and development center in Beijing. Both centers will allow the company to collaborate more strongly with local partners to support and develop talent in the country. Apple plans to spend $45 million in its Beijing center which will be staffed by 500 employees. Analysts have said that the center will help the company understand the Chinese market and maintain good relations with the Chinese government.

Key Takeaway: 

Apple will open two new research and development centers in Bejing and Shenzhen, China, which will allow it to work more closely with manufacturing partners and local universities.

Publication: 
Publication Date: 
October 12, 2016

High skilled foreign workers drive growth in STEM occupations

A new paper from the National Bureau of Economic Research finds that the number of foreign workers in the science, technology, engineering and mathematics (STEM) sectors with university degrees has been increasing since 1993. Furthermore, same report shows that foreign employees with advanced degrees such as doctorates and masters are higher than those with bachelor's degrees. This debunks the notion that foreign workers are taking over American jobs because they are cheaper. Rather, it's the well skilled foreign employees that are staffing more STEM jobs and getting paid more than their native counterparts since the expansion of the H1-B visa program in the 1990s. The growth in highly skilled immigrants in STEM occupations has contributed to America's rise in the global technology sector. Government policy that aims to reduce the number of immigrants in the US could hamper the country's major economic centers, according to a Pacific Standard report.

Key Takeaway: 

A new report from NBER found that a greater portion of STEM jobs are staffed by foreign workers, an indicator of the significance and contribution of high skilled immigrants to the advancement of the technology sector in the US.

Transforming Business Models: 
Publication: 
Publication Date: 
September 21, 2016

Survey: 34% of US-EU firms plan to adopt Privacy Shield

Just 34% of US and EU firms plan to adopt the Privacy Shield framework that will replace the Safe Harbor agreement in governing transatlantic data transfers, according to a survey by the International Association of Privacy Professionals (IAPP). Forty two percent of US firms are considering implementing Privacy Shield while for EU companies the rate is lower at 31%. The number of Privacy Shield certified companies in the US are 40 but that may increase over time. More companies in the US and EU rely on standard contractual clauses. The new Privacy Shield agreement was approved in August and the terms will be reviewed again within a year. According to the Brookings Institution, digital services between the two regions amounted to $248 billion in 2015.

Key Takeaway: 

Based on a survey, 42% of US and 31% of EU firms plan to implement the new Privacy Shield framework that sets the rules concerning data transfers between the two regions, potentially affecting the $248 billion digital services market between the US and EU.

Market Disruptions: 
Publication: 
Publication Date: 
August 31, 2016

EU: Apple to pay $14 billion in back taxes to Ireland

The European Commission ruled that Apple should pay the Irish government €13 billion ($14.5 billion) in back taxes for the period covering 2003 to 2014 plus interest. The Commission started investigating in 2014 the Irish government on whether or not it gave the company favorable tax rates in return for jobs. According to the investigation, Apple paid taxes as low as 1% in 2003 and 0.005% in 2014 on its European profits, compared to Ireland's tax rate of 12.5% and 35% in the US. The EU said this is illegal under state aid rules. Both the Irish government and Apple had denied the accusation and said they would appeal the ruling.

Key Takeaway: 

The European Commission ruled Apple owes the Irish government $14 billion in back taxes; the ruling may affect other US companies with operations in Europe as well as Ireland's ability to attract investment from foreign enterprises.

Publication: 
Publication Date: 
August 29, 2016

Most developed countries saw incomes drop or flatten in 2005-14

A new report by the McKinsey Global Institute found that between 2005 and 2014, before and after the global financial crisis, 65-70% of households in advanced economies saw their real incomes drop or remain flat. That compares to the past 70 years where all household incomes in these same countries grew and 98% of homes saw their real incomes increase between 1993 and 2005. Countries where more than half of households had flat or declining incomes in the 2005-14 period were Italy, US, UK, the Netherlands and France. Meanwhile disposable incomes were not so affected in the US and Sweden as in other advanced economies. Factors that led to significant declines in income are attributed to the financial crisis as well as demographic trends such as aging, shrinking household sizes, and the falling share of wages to GDP. The report brings a new perspective into the growing income inequality among developed nations and why the recent generation is less well off than their predecessors.

Key Takeaway: 

A study of household incomes in developed countries discovered that 65-70% of them were affected by declining or flat incomes between 2005 and 2014, this compared to majority of households that saw their incomes rise in the previous periods.

Publication Date: 
July 31, 2016

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