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China Gears Up To Compete. . .
And That's Good For The Barter Marketplace

Once China joins the World Trade Organization (WTO), probably this year, Chinese firms will not only be expected to abide by global trade rules, but they'll also get new opportunities abroad.

Plus other countries will be forced to remove discriminatory barriers against Chinese goods. China now sends 28% of its world exports to one country--the United States.

As China's market opens, the prices of imported components and raw materials should drop, further lowering the production costs for many companies. We'll also see China's efforts to transform its firms from today's subcontractor status to that of establishing their own brand names.

Last year they ran up a $77 billion trade surplus. As more products flood into the U.S., once China joins the WTO, we can expect a percentage of these products will be--directly or indirectly--moved into the barter marketplace, furthering the burgeoning growth of the commercial barter industry.

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Increasing Protectionism Ahead, Not Globalization

Peter Drucker, 90-year-old sage and author of over 30 business books, pontificated on a variety of subjects in the recent issue of Red Herring magazine.

Of particular interest to our readers were his comments regarding where the world's business community is headed. He says it's NOT in the direction of globalization.

Rather, he sees various geographical areas becoming highly protected, subsidized regions. North America, for example, would become more protected, mirroring the European Economic Community in agriculture and (increasingly) in manufacturing. And, according to Drucker, if an East Asian economic area develops and emerges, China will dominate it...not Japan.

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Starwood Hotels & Resorts Embraces "Points"
Hotelier Sees The Value Of Barter And Building A Network

A new trading system is being introduced by Starwood Hotels & Resorts Worldwide, as the company plans to let owners of its time-share units trade them for stays in Starwood's hotels, as well as for plane tickets and other merchandise.

When customers buy a week in a Sheraton, Westin, or other Starwood operated time-share, they will receive a substantial number of "points," which can be traded for hotel stays or anything else available through the new program. (Customers will also be able to trade future weeks in their time-share for additional points.)

The move shows that hoteliers see the value of developing customer relationships, and controlling the travel habits of these customers, through a vast network of tradable assets.

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Here And There. . .