FEATURE ARTICLE: FOCUS ON PALESTINE Prepared by Megan Smolenyak
FEATURE ARTICLE: Focus On Palestine Record-Breaking Sugar Crop Expected in Brazil British Telecom and MCI Create World's First Transatlantic Telephone Company Americans Expect and Receive Better Banking Service than German Customers China's Home Appliance Industry Targets Growth US Ban on Liquor Industry TV and Radio Ads Ends Take the Marketing Insights POLL check back for more news this month! .....check back for more news this month!	PALESTINE -- Palestine also known as "West Bank and Gaza" is one of the least understood markets in the world, yet it represents an effective gateway for doing business in the Middle East. In spite of surface appearances to the contrary, it is possible to do business there and there are convincing reasons for doing so. Businesspeople with a desire to source from or sell to the Middle East may be surprised to learn about the opportunities that Palestine offers. This month, PANGAEA.NET features a summary of this report on doing business in Palestine. Table of Contents Full Summary Article Sections: Introduction Business Advantages Best Industry Prospects Consumer and Market Profile Market Threats Additional Information Resources ORDER Full Report
FEATURE ARTICLES May 1995 June 1995 July 1995 August 1995 September 1995 October 1995 November 1995 Vietnam - special edition December 1995 January 1996 February 1996 March 1996 April 1996 May 1996 June 1996 July 1996 August 1996 September 1996 October 1996 December 1996/ January 1997 February 1997 March 1997 April 1997 May 1997 June 1997 July 1997 August 1997 September 1997 October 1997 November 1997 December 1997 January 1998 February 1998 March 1998 April 1998 May 1998 June 1998 July 1998 August 1998 September 1998 October 1998 November 1998 December 1998 January 1999 February 1999 March 1999 April 1999 May 1999 June 1999 July/August 1999
	RECORD-BREAKING SUGAR CROP EXPECTED IN BRAZIL BRAZIL -- With expectations of a record-breaking sugar crop, Brazil's Finance Minister released the final 1.04 million tonnes of sugar which had been frozen since May, when the sugar export quota had been set at 5.2 million tonnes. Last year, exports reached 5.8 million tonnes and the expectation is that more sugar could be released as the crop progresses this year. Estimates for the 1996-1997 crop are coming in at 270-276 million tonnes. Despite being the biggest source of world sugar, Brazil's heavy domestic use of this commodity usually forces them to import sugar around the Easter holiday. This is the first year that they may be able to satisfy demand and export even larger amounts. Other than the typical uses of sugar, Brazil uses it to produce more than 4 billion gallons of ethanol each year. For information on Brazil's Economic and Political Scene, see Country Updates. Related article on Cuba's sugar production is also available. Source: Cynthia Gilbert, Commodities Broker at S.R. Meyers & Assoc.
BRITISH TELECOM AND MCI CREATE WORLD'S FIRST TRANSATLANTIC TELEPHONE COMPANY	AMERICANS EXPECT AND RECEIVE BETTER BANKING SERVICE THAN GERMAN CUSTOMERS
USA and UK -- The US$22 billion acquisition of MCI by British Telecom (BT) announced November 3rd, forms the world's first trans-Atlantic telephone company. This is also the largest foreign takeover ever of a US corporation. The effects of this merger, which will operate under the company name of Concert, are expected to be felt throughout the world -- affecting local competition in the USA and international calling rates in Europe. Concert is also planning to increase their presence throughout Asia through alliances with companies in S. Korea, Japan and India. BT already had a 20% stake in MCI as of 1994. This merger presents formidable competition to the US' largest telephone company, AT&T, and presents opportunities for Concert to compete for multinational businesses and dominance throughout Europe when the European Union officially opens their state-controlled telephone monopolies to competition on January 1, 1998. The capital infusion for MCI also presents opportunities for MCI to compete head-on in the US market's US$100 billion residential local telephone service, which is just now opening to competition with the local RBOCs (Regional Bell Operating Companies). This merger is expected to open up the global communications industry, accelerate privatization and global competition, and reduce end-user rates for international calls. (Source: YOUR LINK HERE)	Germany and USA -- According to a recent study conducted jointly by California State University and Fachhochschule Hamburg (Polytechnic University) marketing professors, as part of their fifth German-American Marketing Workshop, findings reveal that American banking customers expect and feel that they receive better banking services than the German respondents. However, in both countries, respondents' expectations were higher than the services received. More specifically, Americans had higher expecations than German customers about innovative services (i.e. banking by phone) and technical support. German customers were significantly more likely to expect competence concerning investment services from their banks; Americans didn't think this was as important because they tend to get investment advice from other sources. The two top rated attributes that Americans felt were important for excellent banking service were: trust and friendliness. The German respondents rated competent investment advice and timely execution of services as the two most important attributes. Despite the differences noted, findings indicate that there was a good deal of similarity between the two customer groups in that both groups rated the same four of five expectations at the top. And both groups agreed that bank size, information by mail and social responsibility were of very little importance. (Source: YOUR LINK HERE)
CHINA'S HOME APPLIANCE INDUSTRY TARGETS GROWTH	US BAN ON LIQUOR INDUSTRY TV AND RADIO ADS ENDS
PR China -- According to WTDB's China Economic Daily News, China's home electrical appliances industry is expected to grow at an annual rate of 15%, with sales reaching 100 billion yuan by the Year 2000. Industry sales in 1995 were 50 billion yuan, up 40% since 1990. Production and consumer acquisition projections to the Year 2000 for selected products are available on the attached CHART. (Source: YOUR LINK HERE)	USA -- On November 7th, the Distilled Spirits Council of the United States (DISCUS) ended the 50-year voluntary ban on television and radio advertising broadcasting for the liquor industry. Liquor products such as vodka, gin, tequila, scotch/whisky have been banned from advertising on radio since 1936 and on television since 1948. However, television and radio ads for the wine and beer industry are allowed, with some restrictions (i.e. cannot show someone actually drinking the product in a commercial). By defying the restrictions earlier this year, the 2nd largest distilled spirits company in the US, Seagram, initiated this reversal -- following the industry's nearly two decades of sharply declining consumption (down 29% since 1980). Seagram ran ads on local stations around the country. Despite the new ruling by DISCUS, the four leading national broadcast networks -- ABC, NBC, CBS and FOX -- have their own policies against running alcoholic beverages commercials and said they had no plans to change them. Moreover, the reversal is not without restrictions (i.e. cannot use cartoon characters that appeal to children in liquor commercials). While the alcoholic beverages industry as a whole has experienced general consumption declines for distilled spirits and wine since 1980, the beer industry has demonstrated modest growth of 4.4%. Marketers of beer and wine spent US$682.4 million on television and radio advertising in 1995. The liquor/distilled spirits industry spent US$227.6 million last year to advertise in print and outdoor media. (Source: YOUR LINK HERE)
.....check back for more news this month!

For more information about any of these topics in any foreign market, or if you would like an in-depth market study, contact PANGAEA, International Consultants. With an extensive network of marketing consultants, attorneys, logistics experts and more around the world, PANGAEA is uniquely qualified to offer hands-on, local marketing and management consulting services.

(c) 1996 PANGAEACommunications. All rights reserved. Materials found on this website are not for resale. No part of this file may be printed, copied, distributed or disseminated in part or in whole without the express prior written permission of PANGAEACommunications

Reprints/copies of this issue are available for US$10.00 per copy.

Updated 11/8/96
visitors