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Missile Envy

Missile Envy

England ruled global trade for more than 200 years.

The U.S. ruled for about 90 years and still carries a big stick. China, which arguably was to be the next victor, may already be on the way out. And we thought high school went by fast. That’s right, China is no longer the world’s factory. It is being replaced right before our eyes by the ASEAN nations of Thailand, the Philippines, Vietnam, Indonesia, Laos, Cambodia and Myanmar. Case in point: in 2000, Nike produced 40 percent of its shoes sold globally in China versus 13 percent in Vietnam. Today, it’s down to 32 percent in China and up to 41 percent in Vietnam.

It’s said that if you owe someone $1,000, he owns you. But if you owe someone $10,000, you own him. This past election, a lot was made of the fact that China owns so much U.S. debt. So what? Would you rather owe $1 trillion or be owed $1 trillion? Who really owns whom?

Missile Envy

Kim-Jung-UnNorth Korea’s Kim Jong-eun reminds me of a little boy who misbehaves at his own birthday party. He is no more a threat to the stability of Asia than a toy poodle, unless one of his rockets veers off course and hits a civilian area, which is why something needs to be done about this guy. Yes, he can build poorly made rockets that go boom, but that’s about it. Lots of kids can do that. And every time he makes one, he sends out a press release saying that he’s serious this time and “you better send more aid or I’m going to point it at you.” Really? It’s like you want to give the guy a “head noogie” and tell him to grow up. And while he’s at it, he really needs to cut back on the jelly donuts.

Will GDP flatline in 2013?

Unclce-SamDamn the paddles, full speed ahead! As the saying goes, when life gives you lemons, make lemonade. Or in this case, if diminished GDP won’t allow you to increase your pricing, then increase your global market share. That’s why you export … so that your company’s growth is not dependent on what happens in the U.S. economy. Why not aim for the U.S. market to only be 50 percent of your sales? There are very knowledgeable carriers, 3PLs, banks and ports advertising in this issue that are ready to help you grow your exports in 2013. Check out our Global Logistics Planning Guide for C-Level Execs and see how other CEOs are using logistics as a tool to increase their global market share.

Free For All

If Obama is serious about his pledge to double exports, then can a Trans-Atlantic Free Trade Agreement (FTA) be far behind? And what will that mean for your business? The U.S. and the E.U. account for almost half the world’s GDP, and it is estimated that one-third of all global trade is transacted between these two powerhouses. Currently tariffs are pretty reasonable between the U.S. and the E.U., running between 5 percent to 7 percent on average. So it’s not like there would be a huge windfall if a deal were struck. And quite frankly, a 5 percent to 7 percent tariff spread is within the give and take that results from nations imposing their “standards” on one another within the context of a FTA anyway. For example, say the U.S. wants to export its beef duty-free to the E.U., but for political reasons the E.U. wants to give a bit of protection to European beef producers. So the E.U. says that the standards used by U.S. feed yards fall short of E.U. feed yard standards and therefore it feels compelled to charge a “penalty” to U.S. beef exports. And so the game plays out amongst dozens and dozens of products. Still, a FTA between the U.S. and the E.U. could have a positive psychological effect, giving confidence to businesses on both sides of the pond, and that is reason enough to proceed post haste.

Why So Many Foreign Students?

American exporters have come to almost expect to have their products knocked off by Chinese companies, but when you get knocked off by another American company it kind of stings. In our March/April issue, we reported on how Emeco’s classic Navy Chair, manufactured in Pennsylvania and first engineered for the U.S. Navy during WWII, is now being exported to 48 countries and has become sort of the darling for furniture fahion-istas worldwide. But now we learn that Restoration Hardware has knocked off  Emeco’s Navy Chair—even going so far as to call it the “Naval Chair”—and has it prominently displayed in their new fall catalogue. Really? Come on, Restoration Hardware, you’re a better company than that.

Why are U.S. universities importing so many foreign students?What am I missing? Take the University of Southern California, for example. USC has 7,115 international students and loves to brag to anyone who will listen that it

Has USC thrown the Trojan Family under the bus in favor of globalization?

has more foreign students than any other university in the United States.It maintains recruiting offices in several countries, yet turns away hundreds of applications from children of their own alumni—even those willing to pay “full boat” tuition. While most universities want to foster generational ties with their alumni, USC has a restrictive quota, accepting no more than 25 percent legacy applicants each year and, quite frankly, one trustee put the number closer to just 20 percent. Why, you may ask? In the quirky world of academic vanity, universities like USC care more about what their academic peers think about them than what their own alumni think. For whatever reason, the academia elites have decided that it’s vogue right now to have large pools of international students on your campus and deduct elitist points if you don’t. But they are playing a dangerous game. As everyone knows, universities depend largely on the donations of their alumni, and Asian and Indian cultures are not known for writing checks they don’t have to. When you reject the children of your alumni, make no mistake, you are rejecting your own alumni. This is one area of globalization where universities are in over their heads.

On a warm summer evening this past September, we were headed down to the tuna grounds on our 56-foot Huckins sportfisher, Huck Fin. It was a moonless night, the kind that enables you to see galaxies of stars and the perfect opportunity to reflect on matters from soup to nuts, including international fishery laws, or lack thereof. The albacore bite off Southern

Yours truly with son Ryan and the first albacore flag of the season for the Balboa Angling Club taken on September 15, about three months later than normal.

California for years has been a staple. Sure, some years are better then others due to fish migration patterns, water temps, availability of bait, etc. Nonetheless, the fishing has slowed dramatically over the past decade. Interesting to note this is about the time the Chinese fishing fleet reportedly began setting miles of drift nets to capture enormous schools of albacore as they make their circular migration across the Pacific, taking them to container ships converted into fish processing factories in the middle of the Pacific Ocean, far away from any nation’s 200-mile economic zone. This raises a host of questions, including whose fish are these and should they be subject to United Nations Law of the Sea Convention (UNCLOS), which restricts the use of the global ocean commons to that which is “reasonable” and does not infringe on the rights of others? In a word, yes. Is it being done? No. We can hammer China all we want on what the playground rules are, but in the end they have 1.2 billion mouths to feed and just don’t care if it’s your turn for the teeter totter or not.

The DOHA round of trade talks, which will celebrate their 12th anniversary in November, should have been called the DOA talks, as in dead on arrival. With the well-intentioned aim of improving trade for developing nations, they were problematic from the outset, not because of so many competing agendas but because it was agreed upon that it was to be an “all or nothing” round. How short-sighted. If I were teaching Trade Talks 400, it would be the same curriculum as Trade Talks 101. In other words, keep it simple, as in:

Rule #1 Don’t make the success and implementation of an agreement in one area of trade contingent upon the success and implementation of another.

Rule #2 See rule number 1.

Look, we’ve said all along that the solution for free trade is more free trading blocs. If certain countries don’t want to join a particular block, or aren’t invited, let them join an “independent bloc.” Then, let those five-to-eight mega-blocs negotiate trade policy with each other, one issue at a time. It’s much easier to get five entities to agree than it is to get 200 countries to agree. Anything else and you might as well just be playing Fantasy Football.

Zambia: Say it with a Smile

Africa Consists of 54 Countries. One of its Gems is Safe and Friendly Zambia.

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Africa is wonderful. Africa is dangerous. Africa is safe. Africa is the next Asia. Africa is increasingly controlled by the Chinese. Africa is wild with opportunity. Can it really be all these things? Well, yes and no. Keep in mind that Africa consists of an astounding 54 countries, each one unique from the next. But definitely, one of its gems is Zambia.

Say it again….Zambia. You can’t say the word without smiling, and with good reason. Zambia is one of the friendliest and safest countries in all of Africa in which to travel or do business. It is also one of the most politically stable. Zambians just seem to get along with each other. Perhaps one reason for this is that Zambia has declared itself to be a Christian nation and genuinely tries to walk the talk. There is an ever-increasing Muslim population in Zambia, but thus far the two religions have been able to peacefully coexist in this land-locked nation that shares a border with eight other countries.

If you’re traveling on business in Zambia, you will most likely be staying in the nation’s capital, Lusaka, which has a population of 1.7 million. How would one describe Lusaka? If you’ve been to Mexico, I would tell you that it’s not as cosmopolitan as Mexico City, but it’s a step up from Tijuana. There are really only a handful of hotels you would want to consider, which are the Intercontinental, the Taj Pamadzi and the Southern Sun Ridgeway. Expedia has them listed as five-stars, but I think I would give each a solid four.

Like most of Africa, there has been very little new construction in Zambia since the British pulled out in the 1960s. As a result, basic infrastructure like sidewalks are in disrepair and most buildings could use a landscaping makeover. Still, the city is clean if not a bit dowdy due to its obsolescence.

Another of Zambia’s larger cities is Ndola, home to Northrise University, which is building a new campus just a few minutes from downtown. Northrise is bright spot in this bustling city and has developed a solid reputation for well-educated and responsible graduates trained in Western business culture. In Ndola, the choices for hotels fall off dramatically from Lusaka. There is the Savoy, which bears little resemblance to its namesake in London. The rooms are clean and that’s about all you can really say for it. Let’s just say it’s ripe for a major makeover, and whoever steps up to make the investment should do quite well as it has a great location.

Here are some quick facts about doing business in Zambia:

  • Don’t show up to an appointment in jeans. Wear nice slacks and clean, pressed shirts. Bring along a suit if you have a formal dinner to attend.
  • Foreigners are expected to be on time for appointments, but if you ask someone to meet you, he or she could be up to an hour or two late.
  • Zambians don’t like to say no, so if you ask them a direct question, their “no” may come across as a maybe, even though it is a “no” in reality.
  • Zambians will generally use indirect eye contact, especially between a man and woman in a business situation.
  • Decisions come from the top down. Bargaining on deal points is the norm, and the first offered price is likely to be twice what they really expect to get.

(Read More: An American Business Traveler’s Advice on Where to Stay, What to See and How to Act When Doing Business in Jolly Ol’ London)

Lions And Tigers And Butlers, Oh My!

If you’re going to travel all the way to Zambia, by all means take an extra day and fly to Livingstone to take in the incredible, mile-wide Victoria Falls. You quickly run out of adjectives trying to describe it. And while you are there, treat yourself to an overnight stay at the Royal Livingstone Hotel. Never mind the price, just do it. This hotel is one of the nicest in all of Africa, complete with a butler assigned to your room. Afternoon tea on the outdoor veranda—which literally sits at the top of Victoria Falls—is an experience you will always remember, as you watch elephants and hippos cross the river above the great falls.

Global trade world international business logistics shipping cargo
Victoria Falls

If you’re feeling adventurous, book the one day white water raft trip down the mighty Zambezi River that puts in just below the falls. This is an e-coupon ride complete with class 3+ rapids and stunning scenery. I found the outfitter quite good, which means we didn’t flip—a good thing considering there was the occasional alligator on the side of the river banks. Actually, the river lulls you into a false sense of safety and I even found myself taking a quick dip over the side of the raft to cool off in the calm parts, which of course is where the alligators are most likely to strike. But hey, as they say, TIS….This is Africa.

As the evening rolls along, you will want to relax in the Royal Livingstone Hotel’s exquisite ivory bar with its handsome dark woods and fine furnishing, and perhaps light up a cigar while you contemplate the fact that you are overlooking one of the seven natural wonders of the world and feeling, well, quite marvelous.

In The Jungle, The Mighty Jungle

If you’re going to Zambia—and it can easily turn into 24 hours of travel time to get there—by all means take a few extra days for some awe-inspiring side trips. Here are three that I recommend.

Lion Camp: This five-star resort is what you’ve always imagined “roughing it” on safari would be. We arrived in the evening in the back of an open-air jeep that bounced along in the dark down a dusty dirt road in the South Luangwa National Park. We were two hours into the ride and still not at our destination when the driver came to a sudden stop, cut the engine and turned around to whisper, “Don’t move. Be very, very still.” Next he turned the jeep spotlight on a male lion who was lounging along the roadside not six feet from where I sat. And mind you, there was no roof and no doors on this jeep. Suddenly, the lion turned his head, looked right into my eyes and gave out an MGM lion roar that seemed to say, “Hey bub….if I wanted to I could take my paw and detach your face from your skull in a split second.”

global trade international business logistics world shipping cargo ocean carrierI didn’t dare to so much as blink, but I was suddenly aware of what felt like a vicious bite on my left arm and for a moment wondered if I had been attacked by another lion. Then I slowly realized that it was my wife’s fingernails digging into my forearm. Needless to say, it was an exciting encounter with the king of the jungle. We arrived at Lion Camp shortly thereafter and were greeted by two Zambians in khakis who met the jeep with steaming hot towels served from a silver tray. I knew at a moment I was going to like this resort, which consisted of about a dozen tent cabins, each constructed about 10 feet off the ground and interconnected by an elevated, wood boardwalk.

The cabins themselves offered beautiful wood floors, with heavy canvas roof and sides, each with your own private balcony with chaise lounges and private bath complete with tub. The bedding was imperial, with luxurious Egyptian cotton sheets, white down comforters and extra goose-down pillows. The staff even has a hot water bottle inserted into the bed as it can get pretty chilly at night.

Mornings come early, with a soft knock on the door signaling its time to get up and have a light breakfast before going on safari. The common area of Lion Camp is spectacular, with beautiful polished wood furnishings and all open air. You have your choice each morning of a walking safari or open jeep safari. Each morning safari was a visual delight of playful monkeys, beautiful zebra, peaceful giraffes and noisy hippos that sound more like motorcycles than mammals. Occasionally, we would come across an elephant, and if you were lucky he might give you a mock charge for a little added adrenalin rush.

After the morning safari, brunch is served and consists of just about anything you can possibly imagine or want, all very gourmet and followed by a mid-day nap poolside or back on your private balcony, where you can watch herds of zebras grazing across the plain. Dinners were by candlelight, complete with hurricane lanterns, fine china, silver and white-linen tableclothes. And in the evenings, you do safari all over again and see a host of nocturnal animals, including scores of lions, all under the immense African sky sparkling with thousands of stars and constellations. The Southern Cross can only be seen from the southern hemisphere of Africa.

Yes, if you go to Zambia, you must experience Lion Camp. It’s much more than you ever imagined it could be and will stay with you for the rest of your life. Visit them at www.lioncamp.com.

 

Is America Picking Up A Bad Chinese Habit?

[By Drew Lawler]

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Congratulations. Your family’s share of the national debt is now $127,906 and growing.

 

Lucky for the members of Congress that Article 3 of the Constitution allows for Congress itself to define acts of treason, otherwise they collectively may be guilty of “that which undermines the government or our national security.” I am talking about our national debt. Think about it. The objective of terrorists is to create such a massive panic as to strangle our nation’s economy. If terrorists can kill innocent Americans, that’s fine with them, but what they really hate is our economy and so they try to use acts of terrorism as a means to destroy it. But with the executive and legislative branches spending a trillion dollars more than we take in each year, aren’t we doing the terrorist’s job for them? And if so, why isn’t that treasonous?

Can you name the U.S. Trade Representative? I didn’t think so. The problem with all of our Trade Reps hasn’t been the reps themselves but rather that they are temporary political appointees. The Trade Rep is our nation’s chief trade negotiator, but compared to the “lifers” they are up against in China or Japan, the moment they’re appointed by the current president it’s as if they are already a lame duck. But it’s an easy fix. Just make the Trade Rep a long term appointment like the Fed Chairman position, someone whose years of service transcends presidential terms of office. Trade negotiations are complex, difficult and slow to enact, sometimes taking a decade or more. Having continuity in this important position would strengthen our hand.

It used to be when E.F. Hutton spoke, people listened, or so went the ad slogan. But these days, when HSBC speaks, they have my attention. The global banking giant recently released its trade forecast. Among the highlights are the following, with my comments in italics:

• Global trade and U.S. trade to grow by 98 percent and 95 percent respectively over the next 15 years….We would all prefer to see it double in 10 years, but a double in 15 years is better than a poke in the eye.…we’ll take it!

• Emerging market trade to outpace developed world, leading to a rebalancing of trade flows…. The whole world loves an underdog.

• Reflecting the current uncertainty, the near term forecast is the weakest with growth of 3.7 percent to 2016, before accelerating to 5.9 percent to 2021. What the forecast does show is that the underlying forces driving global trade remain very much intact, led by emerging market countries….Three cheers for the BRICS!

• Those countries continue to outpace the developed world in terms of trade growth with Poland, India and the Czech Republic expected to lead export growth at around 5.5 percent while Brazil and India lead import growth at over 7 percent. The emerging markets countries are forecast to see the biggest gains in trade, with Latin America up by 6 percent and Asia by 5.4 percent to 2016. China, despite its increasing size, is still forecast to see strong growth in both imports and exports of 5.1 percent and 4.7 percent to 2016….To paraphrase Lee Corso, “not so fast my friend”.…it would not surprise me to see China’s blended growth more like 7 percent to 2016. I’m keeping my China Growth Fund.

• Annual growth rate of U.S. exports to China are forecasted to outpace U.S. imports from China during next five years.…You gotta love it.

• China and Germany are set to leapfrog the United States to become the world’s largest importers by 2026.…More power to them.

Gee, Wally, I thought you brought the tent.

What is it with the media’s continued pronouncement that the American economy is in the doldrums? Really? Compared to what? Is the negative news a ploy to sell more subscriptions? I don’t get it. Sure, unemployment remains too high, but the reality is that corporate America is flush with cash and U.S. exports are on the move. Agreed, things are not as robust as they were in ’05, ’06 and ’07, nor should they be. Those were peak bubble years and not the norm. The norm is more like when you and I were kids back in the 1960s and the family would maybe go out for a meal once a week and a vacation meant a camping trip, not a trip to Hawaii or the Bahamas. It may not be good news for The Royal Hawaiian but it’s great news if you’re Coleman.

Whoa Nellie! The Greeks will need more than a Trojan horse
to get them out of this mess.

One of the ironies in the whole Greek drama is that at just under 11 million, its population is less than that of Ohio. Not to diminish Ohio, but could Ohio’s economy create a worldwide confidence crises? Of course not. And Greece’s GDP is only a shade over $300 billion vs. $484 billion for Ohio. All this crisis really underscores is the need for the EC to remain a free trade bloc but ditch the euro. You can be sure that Odysseus is not coming and Angela Merkel is no Penelope.

France is easily swept away by romantic notions. Ever since they let Joan of Arc—at the tender age of just 17—lead them into two historic battles against England, the country has operated at times as if in a fairy tale. Now zz has proposed a 75 percent personal tax on income over $1 million euros. Mr. Hollande wants to see more growth, businesses prosper and lower unemployment. So how will levying a 75 percent tax rate accomplish that? Even more disturbing is how the majority of the French voters would buy into such a crazy notion. Let’s hope Mr. Hollande’s opus falls flat.

 

Welcome To Our Green Issue!

Whether you believe in global warming or not, there is no denying the rhetorical impact it has had on the green/sustainability movement sweeping across corporate America.
Consumers—especially younger ones—are increasingly sourcing products that offer sustainable initiatives. This in turn requires the entire supply chain, from retailers to carriers to ports to manufacturers to address how they weigh in on the subject. Some companies are genuine in their quest to be greener. Others find it a convenient way to reduce cost, while still others find it effective for growing market share. There are even new terms—like “reverse logistics”—which offer a new dimension to recycling. Whether motivated by customer demand or corporate conscience, the greening of America is a good thing, especially the convergence of green and profit which clearly becomes a win, win.

We call it piracy. China calls it business as usual. Who’s right?
The curious thing about global trade is the inevitable clashing of business cultures. In China, as in other parts of the world, it’s fair game to copy. That’s their culture. Americans honor patents, or at least, we are suppose to. Why? Because our culture dictates that we do. Call it our sense of fairness that’s indoctrinated at early age. Observe a kindergarten class at recess and count how many times five-year olds will say to each other “that’s not fair.” As China’s Assistant Commerce Minister Chong Quan puts it, “China and the US have different cultural and historic traditions.” China will continue to walk all over U.S. intellectual property because that’s how they do business. But when Chinese entrepreneurs truly begin to innovate, it will be interesting to see if they cry foul.

Just like a drug addict has to bottom out before he can begin the healing process, so will our dependence on the U.S. government spending one trillion dollars more than it brings in.
Think about it. For years now we’ve been artificially pumping a trillion dollars per year into our economy and yet it still can only just slug along. Why? Because it is a destructive behavior. Like the drug addict, we will stay sick until we can go “cold turkey” in the form of a balanced budget amendment. We may shake and convulse for a time when we do pass a balanced budget amendment, but we will surely die if we don’t.

Noticed the price of rib eye steak lately? All things cattle are at an all time high.
And we have China’s—and Russia’s—growing middle class to thank for it. How so? America’s ranchers are exporting heifers to Russia and China while they quietly build their own cattle empires. Some ranchers think this is dumb and that by doing so, America’s ranchers are contributing to future annualized decreases in beef exports. After all, once they have their own herds, why import American beef? For China and Russia, importing their own heifers makes so much sense, it makes one wonder why they didn’t do it long ago? And by the way, heifer exports to China is another reason why the Chinese have imported 1.74 million metrics of corn in the first quarter of 2012 alone, matching their total corn imports for all of 2011. Corn of course is used by feed yards to give beef its flavor and marbling. So expect the cost of U.S. beef to continue to climb in grocery stores as American feedlots pay more to source a diminishing supply of U.S. corn.

Do you remember 22 years ago, the trade buzz was all about Europe, Europe, Europe?
Now of course it’s all about China, China, China. It’s a distortion really. Case in point: Caterpillar said last week that an unexpected slowdown in Chinese demand for construction equipment would force it to export 2,300 excavators to other developing countries this year for the first time since 2005. Hello! How many excavators did you think they need over there? Truth be known, U.S. industrials have gotten a bit lazy over the past decade counting on China to absorb everything they threw at them. Well guess what? It’s time to make a few new hires and send your sales team stumping for business in South America and Africa.

Is the Euro zone too big to fail? We’ll find out.
With hindsight being 20/20, can anyone say that creating the Euro was a good idea? Now, if you limit the discussion to the merits of European free trade zone, then sure, that made sense. But to tie the European nations to a common currency? Dumb idea. I didn’t like it then and I like it even less now. When the hedge funds begin to bet against the Euro, as they have been doing, it becomes a death watch. Best to get rid of the Euro now before Germany decides they have had enough. Sovereign nations should maintain their own currencies and be held accountable for their own self-inflicted debt crises.

A YANK IN LONDON

AN AMERICAN BUSINESS TRAVELER’S ADVICE ON WHERE TO STAY, WHAT TO SEE AND HOW TO ACT WHEN DOING BUSINESS IN JOLLY OL’ LONDON.

I’ve been asked to leave some of the best hotels. The first occasion was in my college days when an upperclassman in our group, having had too many rum drinks, decided to go for a swim—fully dressed in coat and tie—in the indoor fountain of the Tonga Room at San Francisco’s tony Fairmont Hotel. That was during the USC–Stanford football weekender back in 1977. Anybody looking like a fraternity kid was 86ed from the place. I think I was 19.

I tested the Fairmont’s pronouncement a few years ago when I walked into the Tonga Room for the first time in 34 years. I looked around, nodded at the maître d’… and nobody asked me to leave. As an aside, we have the U.S. Navy to thank for the term 86ed. A great number of ships were mothballed at the end of WWII, and as supply clerks began clearing out warehouses of spare parts for those ships, anything not needed was designated by the uniform spare part number “AT-6” and discarded in the dumpster. If you say it fast enough, you’ll see how the term 86ed came into existence.

More recently I was asked to leave the London Ritz Carlton, although for a much less dramatic reason. I was wearing jeans in its venerable lobby. I get that. I probably could have gotten away with the jeans had I been wearing a pair of Cole Haans instead of tennis shoes. But I like the fact that they have a dress code. My bad.

The fact is, no city reveres its hotels more than London. And per district, no city has more hotels either. It was the greatest business capital in the world and for many reasons can still make this claim. Anyone doing business globally will sooner or later spend a few nights in London. Here’s a quick rundown of our picks:

FOR SHEER OPULENCE

The Mandarin Oriental. Surely the Mandarin London is even more of, well, everything, than its flagship and sister property, the Mandarin Oriental Hong Kong. Its great location next to Hyde Park, the Victoria and Albert Museum make it a “must stay” at some point in your career. The service is legendary—as in a butler on every floor just in case you need your toast warmed. Its Mandarin Bar is where old money meets euro jetsetters, and it’s definitely a scene.

FOR AULD LANG SYNE

The Savoy. It’s just been remodeled, and if you bring your signifcant other along on your trip he or she will love the afternoon tea. First opened in 1889, there is lots of history here. Fred Astaire has danced on its roof, and John Wayne stayed there along with Marilyn Monroe when filming The Prince and the Showgirl back in the 1950’s. The Savoy is back and looking grander than ever. Great location right on the Thames and still a favorite with London’s elite.

FOR GOOD VALUE AND FUN LOCATION

The Pelham. As with many London hotels, the rooms can be on the small side. This hotel has two types: “way too small” and “decent-sized.” Be sure to ask for a “decent-sized” room and you will enjoy this quaint neighborhood hotel. Just a few minutes’ walk around the corner is the Mango Tree, which for gourmet cuisine and ambience is the best Thai restaurant in the world. Trust me on this with your most important client.

If you want to kill a few hours in between meetings, here are three “can’t-miss” experiences.

THE VICTORIA AND ALBERT MUSEUM

Forget the London Museum, it’s too much of too much. The V&A is where you want to go to. Here you’ll find a lot more British and royal artifacts that entertain rather than overwhelm. The British Galleries are devoted to British art and design from 1500 to 1900. If it’s London history you’re after, this is the right place. You can spend a few hours or a few days, but either will be time well invested.

WINSTON CHURCHILL WAR ROOMS

This bunker-like labyrinth of offices is exactly as it was on the last day of the war, when it was shut down and perfectly preserved. It’s like walking into time capsule. From its secret location under the Treasury Department, Churchill directed his wartime operations, especially during those dark days when the Luftwaffe was bombing the city. If you are a WWII buff, this is simply a must-see. It’s all very eerie, right down to Winnie telling you this will be Britain “finest hour.” To take it all in, plan on spending 90 minutes. Although, if all you have is 30 minutes, by all means go.

TOWER OF LONDON

We’ve all heard about it, but until you immerse yourself into it you just don’t know what you are missing. This is the quintessential piece of London history. I have to say, I admire Queen Elizabeth but her ancestors were some odd ducks. For example, one poor teenage girl–lady Jane Grey (who really didn’t even want the throne)–was crowned and then beheaded in the Tower just 13 days later, because it was decided that Henry VIII’s toddler son should have been crowned. Oops. If you want to see what the 530 carat diamond The Star of Africa looks like, the Tower’s Jewel Room is not to be believed.

PUTTING YOUR BEST FLEET FORWARD

Each airline saves their best planes and service for their international flights. Call it putting your best fleet forward. I flew American Airlines business class from LAX to London and was not disappointed.

For starters their fully reclining chairs made a quite comfortable bed. There was ample room between myself and the next seat, so creating one’s own “bedroom space” for the red eye is a real possibility. Another thing I liked about the flight was the selection of new and classic movies. Finally an airline that gets it! People enjoy some of Hollywood’s old classic black and whites. Give me a Humphrey Bogart movie at 30,000 feet and I’m happy as a clam. The headphones were also very comfortable. They didn’t pinch my ears or want to fall off my head every time I moved.

Meals were actually very good and served in restaurant fashion with nicely printed menus. The service was everything you would expect from flight attendants who were true pros and had earned the right to represent American Airlines on their signature international flights. And you have to love all the little extras, like the warm nuts, hot fudge sundaes, premium wines and champagnes, hot towels, etc. etc. All in all it was a very enjoyable flight. I got a solid eight hours of sleep and arrived well-rested, well-fed and pampered. Thumbs up to American.

BUSINESS TIPS FOR OLD CHAPS AND YOUNG TURKS

The British are still rather, well, British and hence may come off as a bit formal. The older generation still prefer to network with the old boy club. Younger executives don’t need long-standing relationships before doing business. Rank is respected and businesspeople prefer to deal with people at their level. The website Kwintessetial adds this tip: “If at all possible, include an elder statesman on your team as he/she will present the aura of authority that is necessary to good business relationships in many companies.”

Most British are masters of understatement. If anything, they have a tendency to temper statements with a ‘perhaps’ or ‘it could be’. When communicating with people they see as equal to themselves in rank or class, the British are direct, but modest. Think of Monty’s exchanges with Patton.

Don’t make exaggerated claims. Presentation materials need to appear professional. Be prepared to back everything up with facts and figures.

The senior person in the room will do most of the talking. In general, meetings will be a tad formal.

Punctuality is important. It is especially important in business situations. Arrive on time or a minute before.

Business attire is conservative.

• Men should wear a conservative business suit with a conservative cut.

• Women should wear either a conservative dress or business suit.

Unlike in Asia, don’t stare at the fellow’s business card. They should be exchanged but put away with only a quick glance.

 

WHY NOT MORE LUXURY FOR LESS?

Negotiating rates at the Grande Dames hotels

HONG KONG”S PENINSULA:
AN URBAN TIME MACHINE
The extraordinary people-watching alone is worth the price of admission

When it comes to a hotel room, I still like to know I’m getting a good deal. That’s why I’ll budget no more than five minutes to check a few online sites like Priceline or Expedia to compare prices.

I have my limits when it comes to negotiating, one of which is that I like staying in venerable 4- or 5-star hotels—such cathedrals to travel as the Waldorf in NYC or the Peninsula on the Kowloon side. It’s not just their ballroom-like lobbies suffused with golden light and indoor landscapes that appear transported from a French king’s garden or a verdant rainforest, but also because of their serenity: many of these hotels were built in the 1920s and ’30s when craftsmanship mattered, so their public spaces and guest rooms tend to be very quiet. The interior walls are solid, constructed as they were with real plaster that tends to make the vault-like rooms almost completely soundproof. Add to their serenity, then—their quiet and beauty—the very fact of the hotels’ history, and staying at these grand hotels is like time travel.

So I seek them out. Knowing that the upkeep on these hotels is tremendous, I like to give the current owners my business as a way of saying thanks for preserving a significant part of their city’s history.

All that aside—my affection for quality workmanship, quiet, beauty and history—I certainly don’t want to overpay.

Hence, my use of the travel websites—sprawling, complex, detailed . . . time-consuming. A good travel website can suck you in and, before you know it, you’ve spent 20 or 30 minutes clicking through the paraphernalia. Enough, already. I have found that these two sites, Priceline and Expedia, are best, and I can get in and out in a few minutes. But just for drill—and to exercise my negotiating skills—if I’m staying for more than two nights I may call the hotel directly and ask to speak to the manager on duty. Note: I always ask for the front-desk managers; they usually have more leeway to cut a deal than the reservations person.

The conversation usually goes something like this:

“I’m coming to your city for two nights sometime during the week of such and such [never let them know you are locked into firm dates, even if you are], and I’m thinking of staying at your hotel. But I need a really good rate. What’s the best that you can offer me?”

Never take the first offer; they’ll almost always hedge. Once they tell me what they can do, I return to the techniques I sharpened on the streets of Tijuana: if they offer $375 per night (when the rack rate is $590 for example), I will usually say:

“Well, I’ll tell you what: If you can make it $275, I’ll increase my stay to three nights and give you my credit card number and book it now.”

To that they will either say okay, or that they can go as low as $325 or some such number to which I will usually capitulate in the interest of time. But if I can save $150 a night for three nights, that’s $450 for perhaps just 10 minutes of my time. That translates into a pretty good hourly rate. And, of course, if the online offer through one of the websites happens to be lower than what I am able to negotiate, I politely thank them all the same and say that I’ll just book it online.

What can I say? Along with great hotels in the world’s great cities, I still enjoy the sport of negotiating.

Quiet is King

RITZ-CARLTON BATTERY PARK: QUIET ROOMS FOR NYC
But the show stopper is complimentary buffet for concierge-floor guests.

Venerable hotels notwithstanding, what trumps everything for me when choosing a hotel is how quiet it is. That’s why I like the Ritz-Carlton Battery Park. It’s at the foot of Manhattan and easy walking distance to Wall Street. I stayed there this past fall for three nights and never heard even one siren—imagine that in New York City. Plus, many rooms offer a completely unobstructed view of the majestic Statue of Liberty. I love doing business in Manhattan—thrive on its energy—but at the end of walking, cab rides, and always-interesting subways, I appreciate the tranquility I discover on my return to a harbor-view room overlooking a huge expanse of water and knowing I’m at the Ritz.

When you book yourself a room at the Ritz, be sure to opt for their concierge floor which offers all-inclusive complimentary breakfast, snacks and a light supper with fine wines and beverages. It’s not just a great deal: It’s a great convenience. I found the casual food buffet appealing to the eye and delicious, with such offerings as crab claws; fresh sushi; gourmet pastas and cheeses; individually cut helpings of rack of lamb and fresh berries. And the fare changes daily. Breakfast offered lox and bagels, cereals, egg dishes, more fresh berries and croissants plus really, really good coffee and cappuccinos made fresh by the cup from their high-tech yet incredibly simple-to-operate brewer. The breakfast is a great way to begin the day—or, depending on your appetite for the city’s justly famous entertainments—a great way to end it.

Contact the Ritz Carlton at Battery Park at 212.344.0800.

What’s your favorite hotel to stay at in NYC and why? Email me at dlawler@www.globaltrademag.com and we’ll run a sampling of your suggestions in our next issue.