For weeks now, there has been excitement over China’s new experimental free trade zone in Shanghai. On September 29^th a 28-square-kilometer Free Trade Zone was opened in China’s largest city.

“The State Council said foreign and private companies would soon be allowed to invest freely in banks, shipping ventures, travel agencies and health and medical insurers that are set up in the experimental zone” – New York Times.

In the past there have been the case of Shenzhen, a designated special economic zone that was a major success, which lead to the opening of China’s economy. The new free trade zone represents China’s move to further internationalize its economy and currency. The government continues to try to create policies that will perpetuate its fast growing economy. In the future Shanghai could surpass Hong Kong as biggest business city in china. For international economies this means there will be a lot more opportunities for foreign investment in China.

If Shanghai is a success, it could lead to the implementation of similar policies in other parts of China. In the long run, it could mean easier flow of money in and out of China, showing that China is really “open for business.”

http://www.nytimes.com/2013/09/30/business/international/experimental-free-trade-zone-opened-in-shanghai.html?_r=02

When Apple released it the iPhone 5C in September, many expected it to be a low cost alternative that Apple could use to break into emerging markets. However, the retail price of the 5c is $549 (off contract) only $100 dollars cheaper than the 5s (US prices). The phone is by no means “cheap” either, as the build quality is up to Apple standards in every way, the only difference being the internals and choice of materials.

Looking more closely, there was something missing at this year’s iPhone announcement; no new iPods. The iPod was once the face of apple but in July this year apple reported that sales of its iPods were down 31% from last year. This number may seem concerning but it also reflects a change in the marketplace for smartphones. Over the past year American and Canadian telecom providers have created family shared plans that make it easier for parents to buy smartphones for their children. These are the same children that Apple targeted with their iPod touch line of products. In fact, smartphone usage among teens (ages 12-17) have increased of the past few years and are expected to climb even more in the future. So perhaps the colourful iPhone 5c wasn’t made for the low cost segment of smartphones, but rather a product targeted at new rising demographic of smartphone users.

http://store.apple.com/us/buy-iphone/iphone5c

http://www.slashgear.com/ipod-sales-down-31-from-last-year-gets-no-mention-from-apple-23291528/

Recently Verizon announced their decision to stay out of Canada, in what would have been a major event for the Canadian telecommunications industry. Currently the Big 3 Canadian telecom providers, Rogers, Bell and Telus occupy 90% of the industry’s market share. The government has been avidly trying to increase completion in the industry as Canadians pay among the world’s highest fees for cell phone service. However, there is a dilemma. Should the government allow foreign companies to invest and expand in Canada, thus compromising the interests of Canadian companies? Does the government even have a right to interfere with businesses.

Well, there are positives and negatives to allowing large foreign companies establish themselves in Canada. Consumers would definitely benefit. The scale and capital Verizon would be able to challenge the market dominance of the Big 3. Consumers would have more choice and prices of cell phone plans would likely drop as a result. Yet, many Canadians are against yet another American corporation entering Canada. In a poll conducted by Nanos research, 70% of respondents said Canadian companies should be favored when the Government was auctioning wireless spectrum. For now, this can only be seen as a victory for the Big 3 in Canada, as consumers will have to continue to pay a premium for service.

http://www.crtc.gc.ca/eng/publications/reports/PolicyMonitoring/2012/cmr5.htm

http://www.engadget.com/2013/09/03/verizon-shelves-canadian-expansion/