Talking Business with Aaron Heslehurst 18 07 2018 BBC World News

Summary

This episode of *Talking Business* covers a range of global issues impacting the corporate world. Key stories include Google’s €5 billion fine by the European Union for abusing its Android dominance, the impact of US trade tariffs on Washington State’s economy, and Marriott's decision to eliminate plastic straws across its hotels. The program also discusses the role of personality traits like conscientiousness and risk-taking in leadership potential, and how these traits predict business success. Market updates reveal positive trends, driven by strong economic signals from the US Federal Reserve, providing a dynamic overview of today's global business landscape.

Takeaways

• 😀 Google has been fined over $5 billion by the European Union for abusing its dominance in mobile internet search, with concerns about limiting choice for users.
• 😀 Google argues that Android creates more choice, but the EU contends its pre-installation practices force users into using Google services.
• 😀 The effectiveness of fines is debated, with some experts arguing that enforcement and remedies are more important than the size of the fines.
• 😀 Washington State, heavily reliant on international trade, faces challenges due to President Trump's trade policies, including tariffs that could hurt its export-driven economy.
• 😀 Washington's economy, bolstered by aerospace and tech industries, is impacted by retaliatory tariffs that affect $1.8 billion in state exports.
• 😀 China's trade slowdown could further impact Washington's seaports, potentially leading to job losses in industries reliant on imports and exports.
• 😀 Marriott Hotels is joining the movement to reduce plastic waste by eliminating plastic straws and drink stirrers from its global network of over 6,000 hotels.
• 😀 AstraZeneca is stockpiling more drugs in preparation for a potential No Deal Brexit, having already invested over $50 million to mitigate risks.
• 😀 A new study on workplace success highlights personality traits such as conscientiousness, emotional adjustment, and risk approach as key predictors of high performance.
• 😀 The Myers-Briggs personality test is widely used but lacks scientific backing for predicting performance, while newer models based on conscientiousness and other traits show better results.
• 😀 High-performing leaders and CEOs often possess a rare combination of personality traits, with fewer than 1% of people meeting the optimal criteria for all six key traits.

Q & A

What was the main issue in Google's $5 billion fine by the European Union?

The European Union fined Google over $5 billion for abusing its dominant position in the mobile internet search market. The fine stems from Google's practice of forcing smartphone makers to pre-install Google apps like Chrome and Google Search, thereby limiting competition in the mobile search sector. Google has stated that it will appeal the fine.

Why does the EU believe Google's practices are harmful to innovation?

The EU argues that Google's dominance in mobile internet searches stifles innovation. By manipulating search results to prioritize its own services (like travel search, comparison shopping, and local search), Google is allegedly suppressing more relevant and innovative competitors, thereby hindering the development of alternative search engines.

What are some of the key challenges in enforcing competition laws against Google?

One of the key challenges is ensuring that Google complies with the EU's ruling and puts in place effective remedies to address the anti-competitive behavior. Despite the fine, Google's track record shows that it has continued to ignore previous EU decisions, which complicates enforcement efforts.

How is Washington State responding to the impact of President Trump's trade tariffs?

Washington State, home to global companies like Boeing, Microsoft, and Amazon, is actively mitigating the impact of President Trump's trade tariffs by strengthening international trade relationships. The state relies heavily on exports, and recent tariffs have created concerns about retaliatory measures from trade partners, especially China.

What role do Washington State's seaports play in its economy?

Washington State's seaports, particularly in Seattle and Tacoma, are crucial to its economy. They serve as the third-largest gateway to North America for international goods, and many of these goods are shipped through these ports, highlighting the state's dependence on global trade.

What is the significance of the psychological traits discussed for workplace success?

The psychological traits discussed, including conscientiousness, adjustment, and risk approach, are critical for workplace success. These traits predict not only performance but also leadership potential. For example, conscientious individuals are organized and self-motivated, which helps them perform well and ascend to leadership positions.

Why are certain personality traits considered rare among high-performing leaders?

High-performing leaders often exhibit a rare combination of traits such as conscientiousness, high adjustment, and risk-taking. These traits are less common in the general population, and fewer than 1% of people possess all six of the optimal leadership traits identified in the research.

What makes the Myers-Briggs personality test less effective compared to other models?

The Myers-Briggs test is less effective because it lacks predictive power for performance and potential. It was developed many years ago, and its scientific basis is weak, meaning it doesn't provide reliable insights into workplace behavior or leadership potential, unlike more research-backed models.

How are leaders identified using psychological assessments in workplaces?

Leaders are identified through psychological assessments that measure traits like conscientiousness, risk approach, and adjustment. These traits are consistent and can predict leadership success. Research shows that senior leaders typically score higher in these areas, making them more likely to succeed in leadership roles.

What are the potential global effects of Washington State's reliance on international trade?

Washington State’s economy is highly vulnerable to changes in international trade policies. As the state’s economy is closely tied to global trade, particularly exports, retaliatory tariffs or changes in trade relations, such as reduced exports to China, could lead to job losses and economic disruption.