Journal entries about news for international business class

The Format of the Journals

1) Journal Entry # (starting with “1”)

2) Date: Source: (BBC or Business Week) Article Title:

3) Brief Summary: (one brief paragraph)

4) Most important point in article (1 sentence)

5) Implication(s) for International Business: (maximum 5 sentences)

Sample Journal

Journal Entry: 1

Date: August 19, 2011 Source: BBC Title: Airline industry struggles

Summary: The global airline industry is having even greater difficulty than in recent years due to surging fuel costs. It appears that U.S.-based airlines are having the most difficulty due to the highly competitive U.S. market and the fact that many U.S. airlines have been struggling to make a profit for some time. Many of the things they have been trying to do to become and/or stay profitable such as cost reductions and logistical efficiencies, or even hedging contracts have not been enough in this time of rapidly rising energy costs.

Key Point: Airline industry is having increased profitability problems due to rising cost of fuel.

Implications for IB: Cost pressures on international air travel and transportation of goods will probably continue to escalate. Business travel overseas will become more expensive for companies. This risk of transportation costs is probably not limited to airlines as sea and rail transportation energy costs are seeing the same kind of inflationary pressure. Global prices of goods and services will probably be impacted as will the profit margins of international firms.