Shift Taking Place Globally
in the service industry by poor countries around the world has immense
implications. It will lift hundreds of thousands of people out of poverty,
cut costs for companies that ride the phenomenon, and cut profits of
companies that don't. Driving the change is communication--powerful
fiber optics that link the world.
Services (from call
centers to offshore software coding and maintenance) will dwarf previous
waves of globalization because services account for 60% to 70% of global
gross domestic product.
This growing service
trade boom will create significant wealth in the Third World, making
the world a richer and safer place in the days ahead. Safer, because
stable economies provide meaningful work for those who might otherwise
turn to terrorism in their frustration...as reported last week in CIA
Director George Tenet's statements.
Transactions Played Huge Role In Telecom Industry
Of Aggregate Swaps Traded Among The Telecoms
major telecom pioneers used barter repeatedly in the building of their
networks. Called capacity swaps, it was a normal part of doing business.
In fact, a lot of companies deliberately put more fiber and ducts in
than they needed when they were building, because they knew they could
use it in swaps.
And it's happening
globally. Sweden's Telia traded capacity for equipment with Lucent last
year. Global Crossing and Qwest traded fiber with one another--GX trading
pieces of network in Asia and South America in exchange for North American
The problem wasn't
the bartering of excess capacity, but rather in the way in which it
is accounted for by the company. In short, the acquired "swap"
in the bartered exchange (for the one given up) should be booked as
an operating expense, not a capital expense.
When done properly,
it becomes an exchange of assets, and under such an exchange. A company
can't book any extra revenue except to the extent that the value of
the asset it sells is greater than the value of the asset it buys.
- Kosmont Co.,
a Los Angeles real estate consulting firm, has published a new cost-of-doing-business
survey. One statistic we found most interesting was the cost to do
business in Washington (DC)... which levies the highest taxes and
fees on businesses among 20 selected major U.S. cities.
The report showed
that in the District of Columbia a general office with $10 million
in annual revenue would pay $698,000 in business taxes, compared
to San Diego which imposes one of the lowest tax rates at $625!
What an incredible difference, eh!
and businesstravel.com have advertising available on their web sites,
payable at $300 per month on ITEX.
of Ibart was honored by Cigar Smoker Magazine at the 4th
Annual Big Man Dinner at Mike Ditka's restaurant in Chicago. According
to the press release received, the award is reserved for Chicago's
most successful and innovative entrepreneurial business leader.
Sweis is the founder of Ibart along with others: Dean Hnilica, Dan
Grisko, Chris Nudo, Harold Rice, and Kelly Collins.
Now, more than
ever, promoting barter will pay off. Trade exchange owners looking
for a proven way to motivate their client base and stimulate
more trading activity can obtain a copy of the 16-year-old, proven,
informational marketing tool: The Competitive Edge newsletter.
Edge is designed to be mailed to clients and prospects because research
among the exchange owners shows that only a third of their members
receive e-mail. Now available in PDF (Acrobat) format.
for a sample copy and details. (Be sure to include your complete
mailing address and phone number in your e-mail.)
has been named to replace Steeve Croteau on BarterNet Corporation's
Board of Directors.
Five of the
country's major hotel chains are working together to launch a new
venture--Hotel Distribution System. The company was formed by Hilton
Hotels, Hyatt, Marriott International, Six Continents Hotels, and
Starwood Hotels & Resorts Worldwide...along with Pegasus Solutions
which will provide the technology making the rooms available on
several web sites.
In case you've
wondered, the total loss in the dot-com bubble is put at $4 trillion,
according to The Wall Street Journal.
The Enron problem
resulted from trying to manipulate its balance sheet, employing
a security devised by Goldman Sachs, that, depending on who is looking,
can be treated as either debt or equity.* These securities called
Monthly Income Preferred Shares (MIPS) were not unique to Enron.
billion of these MIPS, whose existence is solely to circumvent the
unequal deductibility of interest and dividends, are currently outstanding
among corporate America.
reported to the IRS, MIPS would be referred to as debt and Enron
could deduct an interest expense. But for rating agencies and shareholders,
MIPS were referred to as equity.)
Federation of Independent Business, a lobbying group located in
the District of Columbia, says its members are adding inventory...a
crucial sign that an economic recovery could be gaining steam.