Finance & Economy

Puppies for Sale

A farmer had some puppies he needed to sell. He painted a sign advertising the pups and set about nailing it to a post on the edge of his yard. As he was driving the last nail into the post, he felt a tug on his overalls. He looked down into the eyes of a little boy.

"Mister," he said, "I want to buy one of your puppies."

"Well," said the farmer, as he rubbed the sweat off the back of his neck, "these puppies come from fine parents and cost a good deal of money."

The boy dropped his head for a moment. Then reaching deep into his pocket, he pulled out a handful of change and held it up to the farmer. "I've got thirty-nine cents. Is that enough to take a look?"

"Sure," said the farmer.

And with that he let out a whistle, "Here, Dolly!" he called.

Out from the doghouse and down the ramp ran Dolly followed by four little balls of fur. The little boy pressed his face against the chain link fence. His eyes danced with delight.

As the dogs made their way to the fence, the little boy noticed something else stirring inside the doghouse. Slowly another little ball appeared; this One noticeably smaller. Down the ramp it slid. Then in a somewhat awkward manner the little pup began hobbling toward the others, doing its best to catch up.

"I want that one," the little boy said, pointing to the runt.

The farmer knelt down at the boy's side and said, "Son, you don't want that puppy. He will never be able to run and play with you like these other dogs would."

With that the little boy stepped back from the fence, reached down, and began rolling up one leg of his trousers. In doing so he revealed a steel brace running down both sides of his leg attaching itself to a specially made shoe. Looking back up at the farmer, he said, "You see sir, I don't run too well myself, and he will need someone who understands."

The world is full of people who need someone who understands.

the Post-Industrial economy

In many ways, today`s business environment has changed qualitatively since the late 1980s. The end of the Cold War radically altered the very nature of the world`s politics and economics . In just a few short years, globalization has started a variety of trends with profound consequences: the opening of markets ,true global competition, widespread deregulation of industry , and an abundance of accessible capital. We have experienced both the benefits and risks of a truly global economy, with both Wall Street and Main Street feeling the pains of economic disorder half a world away.

At the same time, we have fully entered the Information Age. Startling breakthroughs in information technology have irreversibly altered the ability to conduct business unconstrained by the traditional limitations of time or space. Today, it`s almost impossible to imagine a world without intranets, e-mail, and portable computers. With stunning speed, the Internet is profoundly changing the way we work, shop, do business, and communicate.

As a consequence, we have truly entered the Post-Industrial economy. We are rapidly shifting from an economy based on manufacturing and commodities to one that places the greatest value on information, services, support, and distribution. That shift, in turn places an unprecedented premium on “knowledge workers,” a new class of wealthy, educated, and mobile people who view themselves as free agents in a seller`s market.

Beyond the realm of information technology, the accelerated pace of technological change in virtually every industry has created entirely new business, wiped out others, and producted a pervasive demand for continuous competitive value. More companies are learning the importance of destructive technologies—innovations that hold the potential to make a product line, or even an entire business segment, virtually outdated.

Another major trend has been the fragmentation of consumer and business markets. There`s a growing appreciation that superficially similar groups of customers may have very different preferences in terms of what to buy and how they want to buy it . Now, new technology makes it easier, faster, and cheaper to identify and serve targeted micro-markets in ways that were physically or prohibitively expensive in the past. Moreover, the trend feeds on itself, a business`s ability to serve sub-markets fuels customers` appetites for more and more specialized offerings.

Question 1: What idea does the author want to convey in the second paragraph?

Question 2: If a business wants to thrive in the Post-Industrial economy, what has it to do ?

Agricultural Science and Technology

American beekeeping operations have been hit hard by what scientists call colony collapse disorder. Almost half of their worker bees have disappeared during the past season. C.C.D. has also been reported in Israel, Europe and South America. Bees fly away from the hive and never return. Sometimes they are found dead; other times they are never found. Many crops and trees depend on pollination by bees to help them grow.

A new report says a virus may be at least partly responsible for the disorder in honey bee colonies in the United States. This virus is called Israeli acute paralysis virus. It was first identified in Israel in two thousand four.

Ian Lipkin at Columbia University in New York and a team reported the new findings in Science magazine. Doctor Lipkin says the virus may not be the only cause. He says it may work with other causes to produce the collapse disorder.

The team found the virus in colonies with the help of a map of honey bee genes that was published last year. They examined thirty colonies affected by the disorder. They found evidence of the virus in twenty-five of them, and in one healthy colony. The next step is further testing of healthy hives.

The researchers suggested that the United States may have imported the disorder in bees from Australia. They say the bees may carry the virus but not be affected.

The idea is that unlike many American bees, the ability of Australian bees to fight disease has not been hurt by the varroa mite. This insect attacks honey bees, which could make the disorder more likely to affect a hive. Australian bee producers reject these suspicions.

And some researchers suspect that bee production in the United States is down mainly because of the weather. Honey bees gather nectar from flowers and trees. The sweet liquid gives them food and material to make honey.

But cold weather this spring in the Midwest reduced the flow of nectar in many flowers. Many bees may have starved. Dry conditions in areas of the country could also be playing a part.

Wayne Esaias is a NASA space agency scientist who keeps bees in his free time. He lives in central Maryland, where he has found that flowers are blooming a month earlier than they did in nineteen seventy. Wayne Esaias is organizing a group of beekeepers to document nectar flow around the country

China's new rich not healthy

The high-living, high-pressure lifestyles of China's wealthy are catching up with their health, according to a recent survey that shows many are paying a high cost for their affluence.

The survey of medical checks of 183 middle-aged company owners showed they were suffering from disproportionate diets and a lack of exercise.

The checks of 123 men and 60 women from Beijing, Shanghai and Guangzhou, showed all had at least one health problem. Each of the entrepreneurs surveyed owns assets worth more than 10 million yuan (1.31 million U.S. dollars).

The survey conducted by Ciming health physical examination company (LTD)., showed 41.5 percent suffered from hyperlipidemia, or excess fats in the bloodstream, 21.8 percent from high blood pressure and 12.5 percent from hyperglycemia, or high blood sugar.

The figure for hyperlipidemia was 20 percentage points above the national average, while those for hyperglycemia and high blood pressure were each ten percent above the national average.

The electrocardiogram tests of 33.8 percent of the entrepreneurs were found to record abnormalities, while 62.8 percent suffered cervical spondylosis, or neck pain due to wear and tear of vertebrae, and 32.2 percent had too much fat in their livers.

Cimin chief executive Dr Han Xiaohong said, "the new rich is not as healthy as an average person.

"High pressure from their work and irregular lifestyles are the main causes," she said.

More than 30 percent of the interviewed said they seldom exercise and 67 percent said they are sacrificing health for money.

After the health checks, 83 percent said that they would rather regain their health than make more money.

Han said that more people were sacrificing their health for the success of their career or making more money at the expense of their health.

The affluent, to some degree, were regarded as successful, but the survey showed they are not so successful in terms of health, Han said.

"The survey was aimed at reminding the public that health is the biggest asset and could not be bought with money," Han said.

The world's largest casinos set up in Macao

MACAO: American billionaire Sheldon Adelson opened what he claims is the world's largest casino floor housed in Asia's largest building yesterday, adding credence to this coastal Chinese city's claim to be a major gambling center.

Adelson and his wife Miriam inaugurated the $2.4 billion Venetian by smashing a bottle of champagne against the front of one of the casino and hotel complex's gondolas at a ribbon-cutting ceremony.

Casinos like the Wynn and Adelson's Sands have already helped this small city in South China surpass the Las Vegas Strip as the world's most lucrative gambling center.

Las Vegas Corp Chairman Adelson aims to take a step further with the 945,000 sq m Venetian.

He hopes the complex will transform Macao from a gambling pit stop for Chinese tourists to a vacation and business convention destination, where visitors can spend a few days shopping, watching shows - and rolling dice.

Macao's casinos are currently scattered across the territory, which comprises a peninsula connected to the mainland and two outlying islands linked by a reclaimed strip called Cotai.

Adelson hopes his Venetian Macao Resort Hotel on Cotai will help launch a massive, concentrated resort area he calls the Cotai Strip, after its Las Vegas counterpart.

Las Vegas Sands claims Venetian - twice the size of the Las Vegas original - is the largest building in Asia and the second largest in the world. Boeing Co claims it has the world's largest building - a plant in the US state of Washington.

The Venetian boasts what it claims to be the world's largest gaming space of 50,000 sq m, housing 3,400 slot machines - with room to expand to 6,000 - and more than 800 gambling tables.

It has 3,000 rooms, a 15,000-seat sports arena, retail space for 350 stores, 108,000 sq m of convention space, fine dining and a Cirque du Soleil-produced show.

Its decor aims to replicate the beauty of Venice - with a Chinese touch. Chinese-style sampans as well as gondolas will sail down canals. The resort also features a replica of Venice's St Mark's Square

Most Expensive Cars To Drive

Good news, Porsche lovers: Though a 911 GT3 will set you back $107,500, its estimated five-year operating costs are just $19,396.

Just?

In relative terms, yes. Even though it had the second-highest sticker price, the 911 GT3 had the lowest operating costs of the luxury cars on our list of the 10 most expensive to run.

In Pictures: Most Expensive Cars To Drive

The rankings didn't bode well for owners of the Mercedes G55, the BMW M6 Coupe and the Audi RS4. Operating costs set their owners back $26,544, $24,578 and $22,619, respectively.

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"Expensive luxury cars tend to be big; they tend to have a lot of power; they have a lot of features," says David Wurster, co-founder and president of Vincentric, a Detroit-based automotive data firm that analyzes vehicle ownership expenses. "In a sense, you get more car for more money. But they're also more expensive to operate."

The Methodology

Vincentric supplied five-year cost estimates for 2007 models. Its researchers looked at expected repair costs and expected scheduled maintenance costs. They also examined estimated fuel costs according to U.S. Environmental Protection Agency mileage ratings assuming 15,000 miles a year, using factory-recommended fuel--that is, regular, premium or diesel--at today's prices and weighted for a realistic mix between city and highway driving.

With premium gasoline in many areas topping $3 a gallon, it's no wonder cars and trucks with big, thirsty V8 engines dominate our list. What helped the 911 is Porsche's fuel-efficient, six-cylinder engine relative to the rest of this group. It gets close to 20 mpg in combined city/highway driving.

The $100,000 BMW M6 Coupe, on the other hand, has a rare V10 engine, which in five years is expected to eat up an estimated $19,229 worth of premium gasoline. This helps it land at No. 2 on the list, despite BMW's fairly comprehensive free scheduled-maintenance program for all models.

Even more expensive is gassing up the Mercedes-Benz G55 AMG sport utility, which unites two terms you don't usually hear together: "high-performance" and "SUV." Keeping the G55 AMG topped with premium gas for five years will cost an estimated $21,169, Vincentric reports.

Pros and Cons

But while luxury cars tend to consume more fuel than, say, lower-priced models, they offset ownership costs in other ways.

James Bell, publisher of IntelliChoice.com, an online car-ranking service, says that depreciation is another major consideration, and an area where luxury vehicles are more likely to prove their value.

"Sometimes the car that has a sticker price that's lower by $5,000 can more than make up for it by losing more than $5,000 in value while you own it," he says. "You may actually be better off buying the car that's $5,000 more, if it retains its value better, which luxury cars tend to do."

China's youth drive online video market

Hu Ge, at his studio in Shanghai, is known for the spoof videos he posted inline. AFP

WHEN Assembly (Jijiehao) came out at the end of December, some fans decided not to watch it at the cinema. Instead, they powered up their computer and viewed it over the Web, for free.

In fact, many Chinese choose to watch or re-watch their favorite TV shows or movies on video-sharing websites. The State Administration of Radio Film and Television said earlier this month that in just two years, more than 300 such websites have appeared in China.

And, according to Nielsen Research, the daily number of video views at Chinese video-sharing website Youku in December reached 100 million. The increase in views is nearing the record mark set by YouTube, the world's leading video-sharing website.

But while most Chinese sites have followed YouTube's lead, they offer significantly different content.

Entertainment on demand

According to a survey conducted by the iResearch Consulting Group, an Internet research company, the most popular videos of 2007 on Chinese websites were entertainment like movies and TV dramas, especially those from Taiwan, Japan and South Korea. These accounted for 75 percent of video content.

In the US, news-related video is most popular, accounting for 62 percent of all video.

This contrast is partly due to China's comparatively young online population, said Li Zhu, CEO of Beijing UUSee Interactive Technology, an Internet television company.

According to iResearch, 38 percent of online video users in China are aged 19-22.

But in the US, according to Jupiter Research, the 18-24 group only make up 16 percent of those who watch online video. People aged 25-44 make up 50 percent of all video users.

"Young people tend to look for fun when they come to the Internet," said Li.

Huang Zhichao, 20, a student at Shantou University appears to agree: "TV programs in China are always boring." So he said he and his friends have been driven to the Web, where they "can find interesting Japanese cartoons and Taiwan entertainment shows".

While Chinese watch their favorite shows and films online, many Americans are sharing personal videos made by themselves, said Mai Tian, CEO of Mayi.com, a site that recommends products to users.

Getting personal

Mai gave the example of a popular TV program called America's Funniest Home Videos. On the show, viewers submit humorous family videos in hopes of winning cash prizes for those voted to be the "funniest".

"Since the 90s, this program has encouraged people to film themselves and share it. Recently, the show has expanded to the Web. You can even find a channel for short family clips on YouTube."

Mai believes Americans' habit of sharing personal videos is partly cultural: "Most [Chinese] do not have the habit of recording our own clips and sharing them online," he said.

"I think it relates to a difference in human ethos: Chinese value the quality of modesty, while Americans [are often more] extroverted," Mai said.

New Olympic products hit stores

Fuwa, Mascot of the Beijing Olympic Games, celebrates its birthday on Saturday as it was unveiled one year ago on November 11, 2005 by the Beijing Organizing Committee for the Games of the XXIX Olympiad (BOCOG).

The mascot has been a favorite for many consumers and BOCOG has just unveiled many kinds of new and creative Olympic licensed products on the occasion of Fuwa's birthday

On the market today, there are eight categories and more than 4,000 varieties of Olympic products, including garments and adornments, pins, toys, handicraft, stationary, silk and porcelain products as well as jewelry. They can be found at over 500 licensed stores in more than 20 municipalities, provinces and autonomous regions.

The Olympic merchandise, serving as a medium close to the public, plays a positive role in widely displaying the image of Olympic brands and disseminating Olympic knowledge. With the Beijing Olympiad approaching, BOCOG plans to gradually open more stores nationwide to sell Olympic products to meet the demand. The number of the stores is expected to reach around 10,000 during the 2008 Olympic Games.

Political reform will be pursued

The nation will continue to push for the reform of its political system but will not copy Western models, a Party spokesman said yesterday.

Li Dongsheng, spokesman for the 17th National Congress of the Communist Party of China (CPC) - which begins today in Beijing - said the meeting will set out a blueprint for reforming political institutions.

"We will continue to forge ahead with political reform in line with the guidelines to be spelt out," he told a press conference on the eve of the five-yearly congress.

Based on the experience of reform and opening-up over the past 29 years, "we have come to a deep understanding that the reform of the political system matters not only for the success of all-round reform but also affects the basic interests of the broad mass of the public," Li said.

However, he stressed that China will reform its political system only on the basis of its national conditions; it will draw from other political systems but by no means will it copy Western political models.

To advance political reform, Li pledged that the country will improve socialist democracy through deepening the reform of administrative and judicial systems, and better supervision over the use of power.

By holding high the banner of "socialism with Chinese characteristics", the congress will map out strategic directions for "deepening reform and opening-up, the socialist modernization drive and the great new undertaking to build the Party", Li said.

According to the agenda, the week-long congress will endorse an amendment to the Party Constitution and elect a new central committee.

The amendment to the constitution, which was approved at the Seventh Plenary Session of the 16th CPC Central Committee on Friday, is to embody the "scientific outlook on development" and other major strategic thoughts advanced since 2002, Li said.

The Party congress will also include in the constitution major theoretical viewpoints and work priorities defined in the political report to be submitted to congress, "so that the amended constitution fully reflects the latest achievements in adapting Marxism to Chinese conditions and meets the new requirements arising from the new situation and tasks for improving the Party's work and strengthening Party building", Li said.

A total of 57 specially invited delegates will attend the congress, enjoying the same rights as the other 2,213 delegates. Among them are retired Party and State leaders including former CPC Central Committee general secretary and president Jiang Zemin, former National People's Congress Standing Committee chairman Li Peng and former premier Zhu Rongji.

Do not count on Chinese consumers

The primary engine of global demand ? the US consumer ? is losing steam. Deep in debt and unnerved by falling real estate values, the

US consumer can no longer be counted on to shoulder the burden of global growth. Not to worry, goes the emerging consensus.

An alternative engine of global demand is the Chinese consumer, whose appetite for mobile phones, computers, televisions and other consumer staples has exploded in the past decade. And it's not just the basics the Chinese are snapping up: China ranks as the third-largest consumer of luxury goods in the world. More Bentleys are sold in Beijing than in any other city in the world.

But investors beware. It's not all fast cars and fancy malls for the average Chinese consumer. The importance of the consumer to economic growth in China has actually diminished. Growth in household consumption has lagged behind the underlying pace of the overall economy for the balance of this decade ? even though household consumption outlays in China almost doubled between 2000 and 2006. Household consumption as a percentage of gross domestic product dropped from 46.4 per cent in 2000 to 36.4 per cent in 2006, leaving the mainland with one of the lowest consumption-to-GDP ratios in Asia. While super-charged levels of capital investment and exports have diminished the role of the Chinese consumer, something more fundamental is at work. The average consumer in China is not a credit card-touting shopper.

Rather, saving continues to trump spending. The average Chinese family squirrels away a quarter of its after-tax income, one of the highest savings rates in the world. Why such a high level of savings? Prudence is one factor. Fear of the unknown is another.

While many investors are well versed in China's stunning economic rise over the past three decades, most have paid too little attention to the wrenching social and economic issues that the nation faces. Millions of households can no longer count on the cradle-to-grave social welfare programmes of the Iron Rice Bowl. Many of these benefits have been scaled back or eliminated in the past decade and Chinese consumers have been saddled with the burden of paying for healthcare, pensions, education and housing.

For instance, just half of China's urban population has basic health insurance, according to the Organisation for Economic Co-operation and Development, while fewer still are covered in the rural areas. All told, medical expenses account for nearly 12 per cent of household spending.

While Chinese consumers have little choice but to save for unexpected medical costs, the same holds true when it comes to retirement and unexpected job losses. Only 17 per cent of the population are covered under any basic government pension scheme, while just 14 per cent of China's workforce was covered by unemployment insurance in 2005. Education represents another significant expense for the typical Chinese family. Per capita expenditure on education ? a national obsession ? accounts for about 8 per cent of total household consumption and that figure is increasing along with escalating expenses related to schooling. For many rural families, school fees can be the equivalent of one year's income.

Add rising housing costs, which have increased as government subsidies on housing have declined, and increased spending on care for China's elderly.

Against this backdrop, while many college graduates in China dream of being the next Bill Gates, many crave or prefer the security of a state job. Being a civil servant means good medical benefits, a retirement pension and discounts on housing and education. The premium on landing a state job speaks volumes about the risk-adverse mindset of the average Chinese household and does not portend a rebalancing of economic growth any time soon in China.

Investors should not bank on the Chinese consumer to save the global economy should the US consumer run out of steam and tip the American economy into recession. The inconvenient truth is that Chinese consumers are not ready to supplant US consumers as the primary engine of global demand.