North Carolina Now; Episode from 1999-06-14

It's Monday, June 14th, tonight reaching out to other cultures to develop strong business relationships in North Carolina now. Hello, a pleasant Monday evening to you. I'm Rita Matray. Thanks for joining us as we begin a new week here at North Carolina now. The main focus of our program tonight examines the sophistication with which our state markets itself to bolster economic development. A prime example is underway in Southern Pines where the world's best golfers are gathering for the start of the U.S. Open to be held later in the week at Pinehurst. While most of us view the tournament as a premier sporting event, the state commerce department sees it as an opportunity to showcase our state for future economic development. Other efforts to build business relationships are much more obvious this evening will profile

an exchange program between Thailand and the Keenan Flagler Business School at UNC Chapel Hill. But we start this evening's program exploring the ongoing effort of Appalachian State University to foster business relationships in China. It might seem unusual that a university tucked away in the mountains of Boone would be a leading player in building cultural and business partnerships with China. But in 1996, Appalachian State University signed a university memorandum of understanding with Shanghai's Fudan University. That agreement created various opportunities to conduct faculty and student programs in China. Delegations for Appalachian State have already been to China twice this year and plans are underway for ASU to host a Chinese delegation in the fall. This evening's guest has had a few days to shake off the jet lag following his just concluded trip to China. Recently, more than 60 North Carolina banking business and government leaders attended a historic banking conference held in Shanghai. The conference sponsored by

Appalachian State University was held at Fudan University in China. And joining me now is the Dean of the Walker College of Business at Appalachian State University, Dr. Kenneth Peacock. Dean Peacock, welcome to North Carolina now. Thank you. Nice to be here. We have been focusing on this conference a great deal here on North Carolina now. We had Chancellor Borkowski on a couple of weeks prior to your leaving and there was some concern about the anti-American sentiment in China following the accidental bombing of the Chinese embassy in the Balkans. When you were there on your trip, did you encounter any of that sentiment? No, and whatsoever. In fact, people were very warm, genuine, open about it. They talked about it. We even had a meeting with the mayor of Shanghai and he addressed the issue and he sort of likened it to the weather. He said, sometimes you have good weather, sometimes you have not so good weather. And that's what happens with our political systems. And so he said, but we have to move on for business purposes and for stronger economies. Let's don't focus on those things. Let's look at the opportunities that we have to work together.

People were very caring for us. I actually went to Tiananmen Square on the night of June the 3rd. Some of our delegation went on June the 4th and the Chinese wanted to be, have their pictures made with you, put their arms around you, very, very kind. It's really a political issue, but the people were very, very open with us and wanted to work with us. Tell us the purpose of this banking conference. The purpose of the conference was to get bankers from North Carolina to meet the bankers in Shanghai. Shanghai is a very fast growing community in China. It's the banking center. It's sort of like the New York of America. And Fudan University had invited us to co-sponsor within this program, bringing to China the leading bankers and business persons from North Carolina to build this thing called Guangxi, which is friendship and relationship on which the Chinese based so many of their business decisions. And so we were able to get such leaders as Bud Baker from Markovia, John Allison from BB&T, Rob Morrow represented Bank

of America. He's head of the International Division, Chuck Kotlin, Vice Chairman of First Union, went to Wayne Ducking from First Citizens. We had bankers also from community banks that went as well as business leaders. Mr. Holland himself, CEO of United Dominion, kicked off the conference with his speech about, we need to integrate the financial services in America and in China because businesses in North Carolina want to expand. And we need to have the financial services available to us. So what was the outcome of this conference? Was there more than just a getting to know you type of session? Yeah, it was. There were two days of conferences in which we had the CEOs of North Carolina banks and CEOs of banks in China that made presentations explaining to each other what their business environment is like, what it's like to have a bank. The differences, Maria are just vast between those two nations. And we're looking for ways to build bridges

and bridges. We don't talk about the things that we do not have in common, the differences that we have, the obstacles. We talked about the common goal of battering each other's economy, of working together, being able to have a correspondent relationship between the banks of China and the banks of America. Maybe if it could give us an idea of some of those differences that you're talking about. They don't have as many regulations in China as they need to have. And the bankers from China recognize that their system is not nearly as sound and secure as ours with bank regulations. You'll have situations in which the government gets involved and tells the bank, make this loan. And from a business perspective, here we would never consider making a loan of that nature. You found also cases in which the accounting records are not nearly as well kept in China as they are here. And a business person in making a decision has got to have sound financial data available to them. And you find that if

the bank goes bad, the loan is not good. You don't really have as we have in our country here with the consumer, the shareholders, the market is the one that absorbs that loss. It's a government thing there. So these things we have to work through, there's going to be a lot of change that has to come about in China's system for us to get involved. But they recognize that this is going to happen. So what is the future, this conference is late of foundation, but where do we take it from here? Foundation is an excellent word for it. It was a foundation and very much of a first step relationship. We would like to get some of the bankers from Shanghai to come to North Carolina, perhaps unlike even a little internship type experience. We discussed that with some of the bankers there. And there's a willingness to have them come and perhaps spend two weeks in the bank in North Carolina learning the system, getting to know the CEOs here, seeing what relationships could be established. The leader of course in this that already has a foot in the doors bank of America, but

we have other many strong financial institutions in North Carolina. We want to open the doors for them as well. I would imagine that bridging the cultural differences would be just as important as working through some of the business mechanics of the differences of the two countries. Absolutely. Cultural differences are a great vast, but they can be overcome. All right. Well, Dean Peacock, thank you so much for taking the time to be with us tonight and get yourself some rest. Well, thank you for your interest in our program. We appreciate it very much. Thank you. China is not the only Asian country being courted by North Carolina in the name of Better Business. An Appalachian state is not the only public university in the state with ties to Asia. North Carolina exports billions of dollars in food, textiles, machinery to name a few of the products we sell abroad. But as technology brings the world closer together, well, our young people will be ready for business at the new millennium. Clay McCannery visits the Keenan Institute in Chapel Hill with a one-of-a-kind teaching

tool for our future economic leaders. What do Keenan Etoni, an African-American from New York, and showed AAPA a native of Thailand have in common? Each represents the wave of the future in business education. Their products are the Keenan Flagler Business School at UNC Chapel Hill, where they learn the importance of doing business with international partners, and what better way to learn than to just go and do it. Both spent a summer in Thailand, interning at the Keenan Institute in Bangkok. I learned that most business in Thailand is done based on relationships. And that's similar to how things are done in the U.S. It's all about networks, but to a greater extent in Thailand. In Thailand, and I'm not sure if that's true of the rest of Asia, but in Thailand, the relationship is paramount, and if a business deal goes sour, but the relationship is intact, then that's okay.

Showed AAPA spent her internship getting the word out to Asian students about the Keenan Flagler MBA program. I feel very proud that I can do this for the school itself, like, you know, being one of the Thai people, and I can be one of the people who can do this, doing the bridge like this. So I feel really proud. The center of that bridge is the Institute's Bangkok Office. Here, UNC is a key player in a one-of-a-kind effort to revolutionize American foreign aid. Normally, the U.S. government simply gives money directly to the foreign country. But here in Thailand, that aid goes to the Institute instead, which uses it as seed money for U.S. Thai business partnerships. One example is a global transparking Thailand, modeled after the one in North Carolina, that will ship goods all over the world. They understood that very quickly, because they're learning, they have to learn that global markets is where they're going to be able to expand. And they know already that in many areas, it's not price, it's not quality, it's speed, and reliability of delivery that

will count. Paul Widel is director of the office. He first went to Southeast Asia in the 70s with a Peace Corps and ended up staying to cover news for United Press International. His job now is to drum up business in that part of the world for North Carolina and other states. And he teaches Kenan Flagler's MBA interns how to cut a deal. The rule is simple. When in Thailand, do as the ties do. Ties are bemused that Americans fly in on Monday and want to fly out with signed contracts on Wednesday. And they say, well, we're not going to sign contracts with somebody we don't know. People don't even want to talk business with you until they feel there's some personal understanding. And the Japanese understand that very well. Asia is one of North Carolina's most important trading partners. Only Canada receives more of our exports. And there are more than 150 Asian companies doing business right here in our state.

In fact, North Carolina is the tense leading exporter of all the states, setting more than $18 billion worth of goods abroad. Leading the list of exports is industrial machinery and chemicals, followed by electronics, textiles, food, and tobacco. For instance, North Carolina firms have sold clean up equipment for Bangkok's polluted environment. The Institute also helped a Kansas firm sell dredging equipment for Bangkok's canals. But a financial crisis here in Thailand helps set off the now famous Asian flu of 1997 that left many Southeast Asian economies ailing. The flu spread to U.S. businesses, including those in North Carolina, since cash strapped Asians can't buy as many of our exports. But American consumers win with much cheaper Asian goods available. That sale experts is where opportunities open up for smart U.S. retailers. It's very much a global gain. You not only have to have global information, but you have to have the global skills that once you know that there's a new low cost supplier to go out and find that person and make the deal that will enable you to take advantage of that

low cost source. The Thailand experiment is working so well. UNC School of Public Health is now thinking of training students here. Meanwhile, Kenan graduates work toward their dreams of being a vital part of this global village. Be it for a company, for myself as a consultant, two companies, or as a consultant perhaps to the U.S. government, maybe as an ambassador. I really see that as a key role for our ambassadors abroad to really foster international business development. Shota Pa says don't wait to begin those relationships. International understanding can start right in school. I just, I think it's really important that the people here also understand the different viewpoint of the Asian student, the international student. I think we really need to help each other. So what do these young professionals have in common? They've both learned what may turn

out to be the key to success in the 21st century. Knowing that your next business partner may no longer be on the other side of the streets, but on the other side of the world. Everett's to build and enhance trade relationships with Asian nations are a top priority not only for state officials, but for the federal government as well. Word out of Washington today is that China will most likely retain its normal trading status. Senate Majority Leader Trent Laud says the trade issue is not likely to be tied to allegations that China has stalled nuclear secrets or funneled money to the Democrats in 1996. While still ahead on North Carolina now, using a trip to Carol Wins as a teaching tool. But first, Mitchell Lewis has returned from his well-deserved vacation. Welcome back, Mitch. Thanks, Marita. Good evening, everyone. Topping the news, North Carolina-based RJR tobacco company takes a big step tomorrow. The Winston-Salem-based operation will go on the New York Stock Exchange as a free-standing publicly traded company.

The move comes after officials with parent company RJR Nabisco announced they would break up the food and tobacco units into separate companies. RJ Reynolds tobacco is the world's second leading cigarette maker. Tobacco is also on the minds of North Carolina farmers. The end of federal tobacco quotas may lead to the growth of more tobacco in the state, but with fewer farmers. Price support programs for crops such as tobacco are in jeopardy because of a trend away from government intervention in markets. Experts say if there are no restrictions on the amount of tobacco farmers can grow, leaf prices could fall as much as 25 to 30 percent. If that happens, tarhill farmers who typically have smaller plots would have a hard time competing with growers in the eastern parts of the state. The state has yet to find out if it will have to refund money, it collected in intangibles taxes in 1990. A superior court judge has rejected the state's arguments that it should not have to refund money for that year. North Carolina has already been ordered to repay over $360 million in intangibles tax money received from 1991 to 1994.

A hearing has been scheduled for June 25th to determine if money will also be refunded for 1990 taxes. Dozens of North Carolina cities and towns are reportedly having to charge higher electric rates due to mounting debt related to nuclear power investments. About 50 communities around the state are helping to fund nuclear power plants run by CP&L and Duke Energy. Over 20 years, what was an initial investment of $2.2 billion has nearly tripled to close to $6 billion. The increasing debt load is being blamed for stalled economic investments and delays in a plan to allow residents to choose the power company they wish to service their communities. It's a big night for a Charlotte teenager and playwright, 17-year-old Samantha Geller is having one of her plays performed in New York City. Geller wrote the play for a public school sponsor theater competition in Charlotte, but the drama was banned from presentation because it contained homosexual content. After hearing about Geller's drama, several theater artists and gay and lesbian groups formed to bring the one act play to New York City.

Tonight's performance will star actress Mary Louise Parker. The K-Patterer's Lighthouse is expected to begin its journey to a new home this week. The National Park Service says the first movement of the 128-year-old lighthouse will be made 3rd, State Friday, or Saturday. Last week, crews finished placing rollers under the base of the lighthouse for the move. It will be pulled an average of 70-100 feet a day. The entire 29-hundred-foot journey is expected to take 4-5 weeks. And now for a look at tomorrow's weather, highs in the mountains will be in the upper 60s to mid-semities. The rest of the state will see highs in the lower 80s, cloudy conditions along with a good chance for showers or thunderstorms is in the forecast statewide. In business news, North Carolina's unemployment rate remains low, despite job losses in the textile and apparel industries. According to Wake Forest Economist Gary Schussmith, the state's unemployment rate was 3.1% during the first quarter of 1999. Schussmith expects the unemployment rate in the Tar Heel State to stay between 3 and 3.3% through 2000.

He says although cost-pressures by NAFTA, Asia and Latin America has caused the state to lose nearly 14,000 textile and apparel jobs in the past year, North Carolina still has the lowest unemployment rate in the southeast. A German auto-part supplier has decided not to locate a new $2 million plant in Hickory. Instead, C. Rob Hammerstein and company will build the plant in Alabama. The company selected the Alabama site over sites in Hickory and Akin, South Carolina. 300 jobs are expected to be created by the plant. It will be the first plant in North America for the German company. A gem developed in North Carolina is causing headaches for jewelers around the country. Moisonites are lab-created stones that look identical to diamonds. They were first introduced by Durham-based Cree Research in the mid-1980s. The company found industrial uses for the gem, such as semiconductors, precision blades and screens for laptops and calculators. Now the fake diamonds are making their way into jewelry stores and pawn shops, often fooling experts into thinking they are the real thing and costing them thousands of dollars.

And now for a look at what happened on Wall Street today. Paramount's Carol Wins near Charlotte has been an adventure for thrill seekers and families

since it first opened in 1973. In addition to the ride, shows and movie theme experiences, the park is at times an open-air classroom for visiting students. Reporter Barclay Todd has more. When you think of an adventure theme park, rollercoasters and rides are probably what comes to mind. You'll certainly get plenty of that at Carol Wins, but that's not all. How many different kinds of atoms are there like oxygen? Towards the end of each school year on every Friday in May, the park becomes an open-air science and math classroom for over 35,000 students from North and South Carolina. The park started these education days as a way to help students apply what they've learned in their classes to everyday practical applications.

Education days, it's a great thing when you can combine learning and fun and I think students that come into the park are going to be more successful at learning when they're having fun. Students competing quiz bowl competitions that test their knowledge in algebra, geometry and physics as well as a number of other areas of natural and physical sciences. This day students from Burlington High School are competing in their first battle at the border. Their math teacher, Kim Gray's, is impressed by how well they're doing and thanks the park's education days are a great learning experience. I think it makes the subject areas that you're going over in class be more meaningful to see how some of these things are used in real life situations. The kids also take part in scavenger hunts and competitions to use what they've learned in their physics classes to build the perfect rollercoaster. Students from Jonesville High say they experience as help them to better understand the laws of gravity.

It makes us understand the rollercoaster's run here a whole lot better. Why is that? Because we knew that before I didn't know that once you got to the top it just let you go and you went on your own and that would do. Students also get a better understanding of the various scientific principles by experiencing them firsthand by of course riding the rides. The vortex is one of several rides here at the park. The kids have been spending all day trying to understand scientific theories as a law of gravity and GeForce. I myself are just trying to understand how you can ride these things and not just say. Let's just say I made it. The vortex is one of eight rollercoasters at the park. The newest one is named after the Paramount movie Top Gun. Top Gun has six inversion flips, two underground tunnels and takes you on a ride at 62 miles per hour at 113 feet above ground. In addition to the 50 rides and attractions for all ages, the park also offers jelly shows

entertainment, all for one admission price. During the warmer months, Carolwinds opens its water park, which is also covered in the cost of the admission. There are really two parks in one. We have a theme park, but we also have a 12 acre water park and so it's all for one price. For a theme park like ours, there's really nothing in the two Carolinas. I guess the closest theme park to us would be six flags in Atlanta. As Carolwinds opened in 1973, the park has maintained a good safety record and representatives say they have never had any serious injuries. Whether you want to go for the ride of your life, taking a show or just stroll through the park's neighborhoods, which are named after Paramount movies, Carolwinds promises to have something for all who come to visit. And Carolwinds is located off Interstate 7715 miles south of Charlotte. The park is open from March through October. Before we leave you tonight, a number of North Carolina chapters of the American Red Cross

Report Supplies of Blood are dangerously low. It's important to remember that the American Red Cross depends on volunteers to donate blood. If you would like to be a blood donor, you can call your local chapter of the American Red Cross or call 1-800-GIV-LIFE to find the donation site nearest you. Enjoy your evening everyone. We'll see you back here tomorrow. Good night.