Tuesday, April 28, 2009

International Trade and Violence- The Nightmare.

“Canada is very concerned about reports of LTTE (Liberation Tigers of Tamil Eelam) in Sri Lanka, suicide bombings. Canada calls on the LTTE to allow civilians to leave territory it controls and to allow the safe and free movement of civilians under its control." The Government of Canada continues to demand that the LTTE lay down its arms. Canada listed the LTTE as a terrorist organization under the Criminal Code in 2006.
http://w01.international.gc.ca/MinPub/publication.aspx?publication_id=387096&lang=eng&docnum=110

Describe how violence in Sri Lanka affects trade in Canadian for small business owners, and cite current examples with how stocks rose and fell accordingly. ie: shares on Wall Street.

12 comments:

  1. Vince 1: You couldn't be more wrong...EVERYTHING--even a whisper affects the market. A Hint, nudge, seriously, ANYTHING that reacts violently affects the market. Be sure you come away from this absolutely KNOWING this factoid......Jeez Vince, first South Park quotes and now this....you're killin' me.

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  2. This violence between the LTTE (Liberation Tigers of Tamil EElam) and the Sri Lanka government is just awful. Why would this organization kill their own people for civil peace? The LTTE thinks that civil peace will come if they keep killing their own civilians and use suicide bombing when needed. Why don't they just work something out that will help out the people in the nation and the nation's government. This violence in Sri Lanka affects trade in Canada for small business owners because Canada gets a lot of its imports from Sri Lanka and with violence going on there, they won't imports their products until there is peace in the nation. Canada is going to ask for products and Sri Lanka is going to be like we would love to but maybe in a month because they are in a civil war with the LTTE which is way more serious then trading products. Now this affects trade in Canada because they are not getting the imports that they need from Sri Lanka. Violence affects every market because once violence occurs everyone goes away from the stock market and they focus on violence and they try to stop it. From beginning of 2007 to end of 2007, Canada lost 11 million trade imports from Sri Lanka because of the violence going in Sri Lanka. This is a dramatic change and it affects trade for business owners because they are not getting the products that they need from their helping nation. That is an example of how violence affects trade in any country. When 9/11 hit our nation, we lost a lot of trade imports form other countries because we had to fix our national security rather than worrying about our stock market and that eventually backfired at us because now we are in a recession and an economic crisis. Violence affects everything especially the economy and the trading business.

    "Canada’s greatest concern now is the safety of civilians still trapped in the conflict zone, however it remains very difficult to determine how many civilians remain there. We have been calling on both parties to the conflict to respect their obligations under international humanitarian law to ensure the safety of civilians, which includes clearly distinguishing civilians from combatants and ensuring civilians are not attacked. Canada holds the Government of Sri Lanka to a higher standard for its actions and obligations than it would a terrorist organization. I have instructed our high commissioner in Colombo, Angela Bogdan, to continue Canada’s engagement with the Government of Sri Lanka on the need for assistance to IDPs. Our high commissioner will continue her engagement at the highest levels". - Statement by Minister Cannon on Sri Lanka Situation

    Canada is deeply concerned with the situation because they don't want violence in Sri Lanka because they want their nation to be peace and for Sri Lanka to send important imports to Canada that they can use for trading with other nations and business owners will have their products.

    I got the statistical information from the graph source.


    Sources:

    http://www.asiapacific.ca/en/publications/statistical-reports/canadas-merchandise-trade-with-sri-lanka"

    http://w01.international.gc.ca/MinPub/publication.aspx?publication_id=387096&lang=eng&docnum=110

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  3. The violence in Sri Lanka affects trade in Canada because the small business owners are looking for trading their products with Sri Lanka. The war that is going on between the LTTE (Liberation Tigers of Tamil EElam) and the Sri Lanka government is just hurting the country's economy and welfare. They are also many innocent civilians caught in this war. This is not the right answer for the LTTE to oppose the government. They are sending suicide bombs as well as being unruly to civilians. The Canadian government can not stand to watch while this happens and are deeply determined to help stop this war. They have already classified the LLTE as a terrorist organization wants them to lay down their arms. This war not only hurts their own economy. This war also ruins the economy of the countries they trade with. From beginning of 2007 to end of 2007, Canada lost 11 million trade imports from Sri Lanka because of the violence going in Sri Lanka. This is a dramatic change and it affects trade for business owners because they are not getting the products that they need from their helping nation. The Canadian government is deeply concerned for its citizens before anything and is offering any assistance to stop this war.

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  4. The violence in Sri Lanka affects Canadian small business owners because they have imported products from Sri Lanka. With the violence in Sri Lanka, they would be unable to import their products. This war is destorying the countries economy. Since Canada imports from Sri Lanka, they have stepped in to help end the war. Canada cares deeply about the civilians, many of whom are trapped by the LTTE. Canada is also losing money with everyday the conflict continues, because they are dependant the the imports of Sri Lanka.

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  5. Violence in Sri Lanka affects trade in Canadian for small business owners because "Canada and Sri Lanka have strong bilateral relations based upon shared participation in the Commonwealth, and development assistance through the Colombo Plan, in addition to the presence of a vibrant community of Canadians of Sri Lankan origin." If anything major like this happens in Sri Lanka, the effects are felt in Sri Lanka and any countries they have associations with, like Canada. In addition, Canada is concerned with the protection of the civilians trapped in the conflict zone. The Canadian Minister of Foreign Affairs, Mr. Lawrence Cannon, released a statement regarding this and meeting with leaders around the world to figure out how to deal with this growing problem. A recent example of stocks being influenced by violence is even in 2000 "Worries about fighting, terrorism drive up oil prices and earnings concerns".

    http://w01.international.gc.ca/MinPub/publication.aspx?publication_id=387096&lang=eng&docnum=110#tphp
    http://money.cnn.com/2000/10/13/markets/stockswatch/
    http://geo.international.gc.ca/cip-pic/geo/sri-lanka-bb-en.aspx

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  6. The violence between the LITE and Sri Lanka government is really hurting small business trading because it is going to become more difficult for small business owners to import goods from Sri Lanka. They imports things like woven clothing, rubber, coffee, among other things. If small business' can't get some of these things a lot of them will fail.
    http://www.asiapacific.ca/en/publications/statistical-reports/canadas-merchandise-trade-with-sri-lanka

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  7. Canada does trade with Sri Lanka, so every time that there is any type of violence, Canada has to pay more in order to receive the items being exported. The attacks that have been occurring in Sri Lanka make it impossible for Canada to get the items being exported to them, nothing is allowed to get in or out of the country. Just like in Iraq, when there are attacks going on; the people attacking do not like invasions of their territories, so as soon as an unknown infiltrator enters the war zone, the send fire. Canada will not stand for this; they are holding off all imports and exports to Sri Lanka, because of the LTTE. Since Sri Lanka is not able to export items to Canada; money that could have been produced is now gone.

    "I would like to provide an update on the current situation in Sri Lanka and the conflict between the Government of Sri Lanka and the Liberation Tigers of Tamil Eelam. Canada is deeply concerned about the recent military operations in the northeast corner of the country and reported increases in civilian casualties."

    “On April 11, I issued a statement expressing concern about the safety of civilians trapped in the conflict zone. I called on both parties to implement a pause to ensure full, safe and unhindered access for humanitarian workers to those in need. The Government of Sri Lanka, unilaterally, put in place such a pause on April 13 and 14. However, the LTTE prevented many civilians from leaving the conflict zone.."

    Just a few days ago, Sri Lanka's government decided to, "remove price controls on several essential food items effective yesterday midnight." With the price of food being the way it is, the economy is in danger of falling, the country makes little money from the agriculture and with the price being lowered, it only makes the situation worse.

    "The Consumer Affairs Ministry said they would remove the price controls on sugar and all kinds of dhal that were imposed to prevent price increases during Sinhala and Hindu New Year season. However the market reports in Sri Lanka pointed out that the retail prices of sugar anddhal would increase once the price controls are removed."

    Their gas prices have also gone up, from 191 rupees to 1,500 rupees which is a tremendous increase, this makes it almost impossible for people to buy gas. This in turn lowers the money that can be made from: transportation, airlines, and farming(gas for the any kind of farm equipment that they use). "Import costs for February and March 2009 have reflected an increase compared to the preceding two months resulting in a price increase." This not only causes the price of gas to increase in Sri Lanka, but prices in Canada and all over the world increase.

    http://www.lankabusinessonline.com/fullstory.php?nid=1314445257
    http://www.colombopage.com/archive_09/May134456RA.html
    http://w01.international.gc.ca/MinPub/publication.aspx?publication_id=387096&lang=eng&docnum=110#tphp

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  8. I agree with Max, the fighting between LTTE and Sri Lanka is hurting small businesses because they cannot receive their imported items from Sri Lanka. The U.S reported that Sri Lankan military and the terrorist's keep firing at each other even in the no fire zone wounding and killing many civilians. Canada's greatest concern is the lives of the civilian's still in there. Canada has been calling both parties to not harm the civilians. As for the small businesses, they will fail if they cannot get their imports. Canada needs Sri Lanka's imports or else the small businesses will fail.

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  9. “Canada’s greatest concern now is the safety of civilians still trapped in the conflict zone, however it remains very difficult to determine how many civilians remain there. We have been calling on both parties to the conflict to respect their obligations under international humanitarian law to ensure the safety of civilians, which includes clearly distinguishing civilians from combatants and ensuring civilians are not attacked. Canada holds the Government of Sri Lanka to a higher standard for its actions and obligations than it would a terrorist organization."

    The violence between the LTTE (Liberation Tigers of Tamil EElam) and the Sri Lanka government is bad for Canadian business owners and any other country who does trade with them. It is putting civilians in danger and it is harder to export things out of the country. Sri Lanka is more concerned with the violence going on than trade which has made stocks fall in the stock market. They need to end this civil war to get the economy back up and running the way it was before.

    source:http://w01.international.gc.ca/MinPub/publication.aspx?publication_id=387096&lang=eng&docnum=110

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  10. As stated, "Canada is deeply concerned about the recent military operations in the northeast corner of the country and reported increases in civilian casualties", as Canada should, because they are trading with Sri Lanka, and in this global market every factor is taken into consideration. When civilian casualties occur it effects the market negatively, and therefore reflects badly on Canada. In the global world we are in living, factors effect other factors, therefore if a country trades with a 'bad' country, other countries may end links with the trading country. What you and how you conduct yourself in the trading world reflects your relationship with everyone else in the global markets. If there is even a present 'conflict zone' its obviously going to reflect negatively on the market, because conflict makes stocks go down, because people/investors don't want to be involved with 'problem' countries. To Canada, "the LTTE as a terrorist organization", and Sri Lanka houses the LITE, and therefore are not a country to be dealt with.Canada seems to be more focused upon the fact of humanitarian concerns, where civilians are involved. They want civilians to get out, and avoid all areas of conflict, and move to a safer environment regulated by the government.

    http://w01.international.gc.ca/MinPub/publication.aspx?publication_id=387096&lang=eng&docnum=110

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  11. These bombings from LTTE is ridiculous. They are hurting Canadian business owners because they look for the goods that are imported from Sri Lanka. "As of today, the Government of Sri Lanka states that over 100,000 people have crossed over into government territory. However, credible reports indicate that ongoing fighting has killed or wounded hundreds of civilians, who have only minimal access to medical care." The worst part is the civilians are just trying to survive and get out of the crossfires. Canada's main concern is the people, and that they make it out of this alive. Canada's economy is going to falter because of their imports and exports. Most of their dealings are between them and Sri Lanka, which doesn't make sense either because they are losing an awful lot too. Canada and small business owners are losing money every day and won't get better until Sri Lanka stops with the violence.

    source:
    http://w0.international.gc.ca/MinPub/publication.aspx?publication_id=387096&lang=eng&docnum=110

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  12. Since Canada trades with Sri Lanka, violence has a big role in the struggle. It's hard to trad with someone who's getting pounded on. This is a reason why Canada is slowly losing money instead of gaining.
    “Canada is very concerned about reports of LTTE suicide bombings. Canada calls on the LTTE to allow civilians to leave territory it controls and to allow the safe and free movement of civilians under its control. The Government of Canada continues to demand that the LTTE lay down its arms. Canada listed the LTTE as a terrorist organization under the Criminal Code in 2006.

    “Since the Sri Lankan military reportedly broke through LTTE defensive earthworks, many civilians have escaped the conflict area. As of today, the Government of Sri Lanka states that over 100,000 people have crossed over into government territory. However, credible reports indicate that ongoing fighting has killed or wounded hundreds of civilians, who have only minimal access to medical care. The U.S. State Department reports continued firing from both sides into the No-Fire Zone."

    http://w01.international.gc.ca/MinPub/publication.aspx?publication_id=387096&lang=eng&docnum=110

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