Biweekly Global Business Newsletter Issue 122, Tuesday, November 26 , 2024

Almost 100% of Gen Zers Surveyed Admitted to Using AI Tools at Work

Increasing energy demands, the world’s largest exporter, USA companies are accelerating commodity purchases ahead of expected January tariffs, what region has the most copper reserves, and which country imports far more copper than it produces. Almost 100% of Gen Z uses A.I. Who are the world’s biggest exporters and where is the world’s wealth? There has been an astounding 34% increase in the cost of opening a new business since 2019. A great new book on the Road to

Entrepreneurship was just published. Jersey Mikes® sells to Blackstone for U$8 billion and YUM China is focused on 20,000 locations in that country.

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The mission of this newsletter is to use trusted global and regional information sources plus our network of 20+ in-country Associates to update our global readers on key global and local trends that can impact the success of their businesses at home and abroad. We subscribe to about 40 international information sources to keep our readers up to date on the world’s business.  Some of the information sources that we provide links to require a paid subscription for our readers to access. 

You will see small ads in each edition for carefully vetted companies that serve international businesses. Please click on the ads or use the QR code to see what each of our carefully chosen advertisers can do to make doing global business easier. Edited and curated by: William (Bill) Edwards, CFE, CEO of Edwards Global Services, Inc. (EGS)

Bedwards@edwardsglobal.com https://www.linkedin.com/in/williamedwards/ +1 949 375 1896

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First, A Few Words of Wisdom From Others For These Times

“A problem well stated is a problem half-solved.”, Charles F. Kettering. Compliments of Beth Adkisson, Vistage Master Chair

“Whenever you find yourself on the side of the majority, it is time to pause and reflect.” – Mark Twain

“If one does not know to which port one is sailing, no wind is favorable.” – Lucius Annaeus Seneca

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Highlights in issue #122:

• Almost 100% of Gen Zers Surveyed Admitted to Using AI Tools at Work

• The World’s 30 Largest Exporters

• The World’s Copper Stronghold

• Emerging energy demands

• India’s economy will soon overtake Japan’s

• Increase In Start-up Costs By Industry

• Brand Global News Section: YUM China, Jersey Mike’s®, KFC® and Taco Bell®

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B2B Payments Platform For Global Businesses

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Interesting Data, Articles and Studies

“The World’s 30 Largest Exporters – As protectionism continues to rise around the world, global trade flows are adapting. Despite facing a wave of tariffs, China’s goods exports show resilience. In 2023, China’s export volumes neared all-time highs as the price of its manufactured exports fell 10%, on average. Overall, the world’s largest exporter delivered $500 billion in goods to America last year, but this could drastically change under the Trump administration. Last year, global exports of goods totaled $23.8 trillion, declining by 5% compared to 2022.  Overall, the dollar value of exports dropped across 20 of the top 30 largest exporters in the world as the number of trade restrictions rose to almost 3,000 worldwide—approximately fivefold levels seen in 2015. Visual Capitalist & the World Trade Organization, November 21, 2024

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“Almost 100% of Gen Zers Surveyed Admitted to Using AI Tools at Work – Here’s Why They Say It Is a ‘Catalyst’ for Their Careers. Despite most of Gen Z thinking that their jobs could be replaced with AI in the next decade, the vast majority are still using AI to help complete office tasks — and they’re open about it. A new survey released on Monday from Google assessed the AI habits of 1,005 full-time U.S.-based knowledge workers aged 22 to 39. Google called the group “young leaders” because they’re currently in leadership positions or aspire to hold one at work. The survey found that 93% of Gen Z respondents from 22 to 27 years old are using two or more AI tools like ChatGPT or Google Gemini AI per week. In comparison, 79% of millennials ages 28 to 39 indicate that they’re doing the same.”, Entrepreneur magazine, November 25, 2024

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“Global Wealth Distribution by Region in 2023 – Wealth distribution varies significantly across the world’s regions, reflecting the economic disparities shaped by differences in development, resource availability, and financial access. The data comes from the UBS Global Wealth Report 2024 and encompasses 56 markets representing an estimated 92.2% of total global wealth. The UBS report’s data does not include a majority of African countries. The majority of adults in the lowest wealth bracket (under $10K) are concentrated in the Asia-Pacific (APAC) region, where nearly 70% of people in this wealth bracket being from the region. On the other end, the highest wealth bracket (over $1M) is dominated by the Americas along with the grouped region of Europe, the Middle East, and Africa (EMEA).  Visual Capitalist and the UBS Global Wealth Report, November 12, 2024

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“The surprising stagnation of Asia’s middle classes – It could shake up everything from profits to politics. In August Indonesia’s statistician-in-chief, appeared in parliament with bad news. The country’s middle class had shrunk. Between 2021 and 2024, 6m Indonesians had fallen into the “aspiring middle class”, an official euphemism for being a stone’s throw away from poverty. The middle-class share of the population had fallen to 17% from 22% before the pandemic. Asked about the grim trend the next day, Joko Widodo, then the president, deflected: ‘This issue exists in almost all countries.’ Between 1991 and 2014, the average annual growth rate in the number of Asian middle-class households was 6%, according to our analysis. In the past decade, it has slowed to 2%. In a few countries, including China, it has shrunk. Exclude India, where the middle class is still growing, and Asia’s middle classes have stagnated. At stake are the futures of 2.7bn people in the middle class, or 72% of the population of developing Asia.”, The Economist, November 21, 20242024

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Simple, secure currency transfers

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Global Supply Chain, Energy, Commodities, Inflation, Taxes & Trade Issues

“Increase In Start-up Costs By Industry – At last week’s fall advisory board meeting of the Titus Center for Franchising at Palm Beach Atlantic University Edith Wiseman, President at FRANdata, presented this slide which shows the increase in cost to start-up a single franchise unit in various industries over the past 5 years. The average single unit start-up cost increased 34% from 2019 until this year. 

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US Trade Deficits By Country – This chart visualizes the estimated US trade deficits with its top 10 trading partners in 2023. China remains the country with the largest trade deficit for the United States, at approximately $382.9 billion. Mexico is the second-largest deficit country, with around $130.5 billion. These are estimated figures based on recent economic reports. The data represents the difference between imports and exports. The data for this chart is extracted from McKinsey & Co., International Monetary Fund (IMF), the World Economic Forum, the Financial Times and the Economist, November 2024 

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“Emerging energy demands – Global energy demand has taken off once again after a dip in 2020. It is projected to grow 11 percent by 2050 if momentum continues at its current pace. Most of the energy demand growth is expected in emerging economies such as the Association of Southeast Asian Nations (ASEAN), India, and the Middle East, senior partner Alessandro Agosta and colleagues note. ASEAN countries in particular are expected to propel this growth, which may reshape global energy trade flows.” McKinsey & Co., November 15, 2024

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Book Review

The premise is simple yet profound: understanding why you want to be an entrepreneur is crucial to navigating the highs and lows of the journey. Each chapter introduces a different voice, offering insights into the contributors’ personal struggles and triumphs. From overcoming financial obstacles to embracing bold, life-changing decisions, the contributors reveal the drastic steps they took to achieve success. Their authenticity makes this book relatable, and their stories are a testament to resilience and the transformative power of self-awareness.

Taylor’s editorial touch ensures the lessons are practical, not just motivational. She provides actionable advice, encouraging readers to connect their business goals with their passions and core values. The book also emphasizes the importance of community, mentorship, and embracing risks—valuable themes for any entrepreneur.

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Keith Gerson and Bill Edwards Join Forces To Offer Trusted Suppliers To The Franchise Community

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Country & Regional Updates

China

“China’s job market braces for record number of fresh graduates next year – Ministry estimates that number of university graduates next year will hit a record 12.22 million. This year, as an estimated 11.79 million graduates flooded the job market, the unemployment rate for 16- to 24-year-olds, excluding students, rose in July and August, when it reached 18.8 per cent, the highest level since the data was revised last year.”, South China Morning Post, November 14, 2024

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“Mondelēz International increases investment in China – Snack giant expands into baking market. As the world’s largest manufacturer of baked goods and chocolate products, Mondelēz International has many well-known brands, including “Oreo”, “Xuanmai”, “Qiduoduo”, “Taiping” and “Toblerone” chocolate, which are well-known to Chinese consumers. With rising raw material prices, inflationary pressure and reduced consumer spending, Mondelēz is facing a new transformation cycle. Mondelēz China President François Frédéric said: “The Chinese market is the strategic growth engine of Mondelēz worldwide. China has a huge middle class, the number of which is still expanding, and the pace of urbanization is accelerating, which is a huge opportunity for every foreign-invested enterprise. This huge investment is the best reflection of this and means that Mondelēz’s development in China has entered a new stage.”, eeo.com.cn, November 19, 2024. Translation and article provided by Paul Jones, Jones & Co., Toronto

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Euro Zone

“Eurozone growth gap to widen with US, as Brussels cuts forecasts – Germany’s economic struggles weigh down region as US continues to outpace Europe. The Eurozone economy is set to fall further behind the US, the European Commission said on Friday, as it downgraded its 2025 growth forecast for the region to 1.3 per cent.  While Germany, France and Italy are all expected to grow less in 2025 than was anticipated by the commission in May, Spain’s projections were upgraded. It is expected to remain the fastest-growing large EU economy for the second consecutive year after a strong 2024.”, The Financial Times, November 15, 2024

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India

“India’s economy will soon overtake Japan’s – Will that cause an “India shock” for the world economy? China overtook Japan in 2010 to become the world’s second largest economy, a title Japan had held for almost 40 years. Will the world see such a rise again? India hopes so. In 2025 it could overtake Japan to become the second-biggest economy in Asia and the fourth largest in the world (behind America, China and Germany). India’s population is already bigger than China’s and its economy is likely to grow significantly faster in the next few years. India’s leaders want its GDP to reach $5trn by 2028 and its exports of goods and services to reach $1trn apiece by 2030.”, The Economist, November 20, 2024

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“Unilever to Double Down on India Under New Strategic Shift – CEO Hein Schumacher said India is the best opportunity for Unilever over the next couple of years and will be the key for all its group businesses. He added that India’s gross domestic product per capita is estimated to grow to about 4,500 euros ($4,713) by 2033, representing an 85% increase in 10 years.”, The Wall Street Journal, November 22, 2024

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Latin America

“The World’s Copper Stronghold – Copper is vital to U.S. national, economic, and energy security. Everything—from clean energy technologies, electronics, and automotives, to power transmission infrastructure, data centers, and defense systems—depends on copper.   However, the United States only mines 5 percent of the world’s copper.  Latin America, which cumulatively mines nearly half (46 percent) of the world’s raw copper—the largest share of any global region—holds significant potential as a sourcing partner. Chile and Peru have the two largest copper reserves globally.   ​​​To meet the Biden administration’s net-zero carbon emissions targets, American annual copper supply will need to double by 2035.  Infrastructure for artificial intelligence and data centers could require a projected additional 2.6 million tons of copper.  By 2030, the International Energy Agency predicts that the total copper production from existing mines and mines under construction will only meet 80 percent of the world’s copper needs.”, Center for Strategic and International Studies, November 13, 2024

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United States

“American Companies Are Stocking Up to Get Ahead of Trump’s China Tariffs – Businesses plan to stockpile, raise prices and accelerate shift to manufacturing elsewhere. American businesses are dusting off a playbook they used during Trump’s first term: stocking up on imported goods before tariffs are enacted. They are also considering how to cope with the levies if and when enacted—whether they will be able to raise prices and whether they will need to find alternatives to their Chinese manufacturers. Already, exports from China surged last month, which some economists think could have been driven at least in part by front-loading amid uncertainty around election results. Outbound shipments from China rose nearly 13% in October from a year earlier, well above consensus expectations and up sharply from 2.4% growth in September. Chinese exports growth should remain strong through the next few months because of front-loading, Wall Street economists said.”, Wall Street Journal, November 29, 2024

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Vietnam

“Under Trump Tariffs, ‘Made In Vietnam’ Will Be The New ‘Made In China’ – For decades, the Southeast Asian nation has opened its doors to major firms like Apple, Samsung and Intel. Now it’s poised to do even bigger business. ‘If previously it was made in China, now it’s going to be made in Vietnam,’ Jason Miller, a professor of supply chain management at Michigan State University, told Forbes. ‘That production is not coming back to America.’ Vietnam has a number of advantages over other regional rivals like India. First, as a single-party authoritarian state, Vietnam can and does set new business-friendly policy quickly. Additionally, the country is geographically well-positioned: it already has three of the world’s top 50 busiest ports, and is next-door to China, making trade and logistics between the two countries easier. Critically, Vietnam also has a free-trade agreement with the European Union – the only other regional country besides Singapore to have one.”, Forbes, November 20, 2024

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Taking Brands Global Successfully For 5 Decades

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Brand & Franchising News

“He Bought a Sub Shop as a Teen. Now He’s Selling Jersey Mike’s for $8 Billion – Peter Cancro started slinging subs at his local shop at 14. Now he’s selling the national chain he built to Blackstone. ‘We’re not a chain. We’re the mom-and-pop shop in every town,’ Cancro said in an interview last year. Cancro declined to comment for this article through a spokeswoman. 

Cancro kept the formula simple: meat and cheese sliced right in front of a customer, fresh dressings and a large amount of food for the money. Another key ingredient: Franchisees are tasked with keeping deep ties in the communities in which they operate. Jersey Mike’s did $3.3 billion in U.S. sales across 2,680 locations last year, its revenue growing 25% from 2022 levels, according to Technomic. Cancro had long contemplated what’s next for his business. During the interview last year, he said he could consider Jersey Mike’s going public but had no specific plans. He was most focused on growth, with a target of reaching 10,000 sub shops in the U.S. one day. 

Blackstone has spent the past three years getting Cancro comfortable with a deal, people familiar with the talks said. Cancro wasn’t going to hand over control to someone who didn’t understand his vision and Jersey Mike’s focus on fresh ingredients and ample portions that customers have grown to love and expect, the people said.”, The Wall Street Journal, November 22, 2024

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“Yum China targets 20 000 stores – accelerated franchising – Yum China, operator of KFC, Pizza Hut, Taco Bell and Lavazza, reported robust third quarter results, aiming to operate 20,000 stores by 2026 and vowing to strengthen franchising efforts. The company said its strategic focus on operational efficiency and innovation has yielded impressive results, with a total store count reaching 15,861, including 11,283 KFC and 3,606 Pizza Hut locations. In the third quarter alone, the company opened 438 new stores, with franchisees contributing 145 new stores, accounting for around a third of the total. Customer loyalty has been a cornerstone for Yum China, with the total membership of KFC and Pizza Hut surpassing 510 million. Member sales now account for about 64 percent of system-wide sales for both brands combined.”, China Daily, November 19, 2024

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“Q&A: offer and sale of franchises in Chile – Franchising is very widespread in Chile and most of the biggest international brands are already in the country due to its franchising development. The main sectors are clothing, food and beverages, convenience stores, drug stores, car rental, dry cleaning, language academies and real estate brokers, etc. In general, Chile has a business-friendly environment, as it has been recognised in various rankings and studies, such as the business environment ranking developed by the Economic Intelligence Unit, which ranks Chile 30th worldwide and as the most prominent country in Latin America. there are no specific regulatory barriers and the relation between franchisor and franchisee will be ruled mainly by what they have freely agreed.”, Porzio Rios Garcia, Lexology, July, 2024

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“Jollibee parent fully acquires Hong Kong’s Michelin-rated Tim Ho Wan dim sum chain – Jollibee Food Corporation buys remaining 8 per cent stake in company for S$20.2 million. Jollibee Food Corporation, which runs fast-food chains across Asia, owned 92 per cent of the dim sum company in January, and the latest deal gives it full ownership. Tim Ho Wan runs about 80 stores in 11 markets including Singapore, Shanghai, Beijing, Melbourne, Tokyo, Macau, South Korea and Manila. The deal comes at a time when Hong Kong’s food and beverage industry faces an uphill battle to retain customers, with many residents crossing the border to mainland China for leisure. Consumption has also slowed on the mainland, with Beijing rolling out a raft of stimulus measures in a bid to electrify the economy.”, South China Morning Post, November 6, 2024

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Our Mission, Information Sources & Who We Are

Our biweekly global business update newsletter focuses on what is happening around the worldthat impacts new trends, health, consumer spending, business investment, the franchise sector, economic development, and travel. We daily monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing business environment. And our GlobalTeam™ on the ground covering 25+ countries provide us with updates about what is actually happening in their specific countries.   We do not get involved in or report on politics!

William “Bill” Edwards: Global Advisor Is Uniquely Qualified to Steer Sr. Executives Successfully Through the Complex Waters of Going Global.  With four decades of successful international business experience spanning virtually every corner of the world and many business sectors, Bill Edwards understands the global business landscape like no other.  He has been a County Master Franchisee in five countries in Asia, Europe, and the Middle East; the Senior VP for a franchisor operating in 15 countries and a full-service consultant since 2001 taking 40+ franchisors global.

To receive this biweekly newsletter in your email every other Tuesday, click here –  https://insider.edwardsglobal.com +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

For a complimentary 30-minute consultation on how to take your business into new countries and make money doing it. For a complimentary call with Bill Edwards click on the QR code or contact Bill at bedwards@edwardsglobal.com and +1 949 375 1896

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