Weekly Wrapup: Improvise, adapt, overcome.
In this week’s wrapup, we will talk about how we’re currently operating in a wartime economy, how the RBI is trying to salvage the situation in India, the new tax law for foreign e-commerce companies, how European Union companies are getting around U.S. sanctions on Iran, and the global warehousing problems
Economic parallels for Covid-19 pandemic
On Monday, we compared the economic effects of coronavirus with that of World War 2. As with war, certain members of the population (here healthcare workers) are fighting bravely on the front lines, there is widespread panic and misinformation, most of the country’s resources are directed towards annihilation of the common enemy, companies are tasked with producing alternate goods and people are hoarding essential commodities.
So if this is war, what would recovery look like? Find out here.
The Dark Knight has arrived
On Tuesday, we discussed all the unconventional policies that RBI has unleashed to mitigate the coronavirus damage. With India’s economy in disarray, the Reserve Bank of India has decided to open the floodgates. They have put into motion a 4 step plan to fight the slump, and it’s beautiful.
Find out about this and more here.
Foreign e-commerce companies must pay
On Wednesday, we spoke about the new tax on foreign e-commerce companies. With the advent of remote trade, companies no longer need to have physical offices in a country in order to sell goods and services there. But this kind of setup comes with its own set of challenges. You see, operating out of foreign countries gives companies the perfect opportunity to evade taxes.
And the Indian Government refuses to put up with this any longer. Find out what they are doing about it here.
The Great Trade Sneak Attack
On Thursday, we spoke about the ingenious new system that’s allowing companies to bypass the U.S. trade restrictions on Iran. Ever since Donald Trump decided to walk out of the Iranian nuclear deal, the U.S. has been imposing crippling sanctions on Iran, and many countries in Europe are seething.
So in order To keep trade activities open, Germany, France and UK have set up a system that lets them trade with Iran without making cross-border transactions. It’s called INSTEX and it’s quite clever.
Find out how this works here.
Is the world running out of storage space?
On Friday, we talked about why the world’s storage space is slowly running out. The global pandemic has severely depressed demand for commodities, and the situation is now so bad that traders can neither sell nor store certain products.
So if you want to find out just how bad the situation really is, click this story right here.
Well, that’s it from us today. Have a happy and safe weekend.:)
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