Too often we are so consumed by what is happening in the USA, we miss changes in the global market that impact us here.  An example is the implementation of an 80% export duty that the Russian government has levied on logs leaving the country.  Since they were the largest exporter of logs in the world, this will have an impact on lumber prices globally.  The purpose of the duty is to entice Russians to develop a value added wood industry for export rather than just ship out raw material.  Don't be surprised if in 5 years the best value wood flooring isn't coming from Russia.

Last month, India and a group of Asian countries including China signed a free trade agreement similar to the North American Free Trade Agreement or the European Economic Union.  This agreement was 5 years in the making and provides for duty free trade between countries and dispute resolution mechanisms.

The Olympics were spectacular and I would not want to be the next city to host these games.  While China performed superbly, their shining moment does not cover up some basic problems in their economy and society.  With over 20% of the world's population, they have only 7% of the world's water.  Many of the old government owned businesses have been turned over to entrepreneurs who are ill equipped to manage profitable businesses.  The assets are carried on the state bank's books at full value; loan defaults are not recognized because state businesses are often sold for a dollar a year plus a balloon at the end of 20 years for the remainder of the value.

An global agricultural agreement promoted by the World Trade Organization fell apart last month when the USA and India objected to the way government subsidies to farmers and crops were being treated differently between countries. 

How will all of this affect you?  Ripple affects will impact businesses here in the USA over the next five years.  Whether it is a company in China that can no longer pay their bills, a new wood floor from Russia, higher food and biofuel costs due to the international agricultural market, global changes will impact your business.  Keeping informed now will help prepare for the future.