#49 - Over 400 businesses exit Russia
Tesla rolls out first cars from Giga Berlin
Welcome to another edition of Business News for Kids. Don’t miss the War Time NFTs launched by Ukraine and a new war time mental model.
Busy business this week 💼
Ever since the Russian invasion of Ukraine, businesses have been leaving Russia. As of now, over 400 companies have withdrawn from Russia, including Burger King, Subway and M&S. Some are finding it tough to exit given franchise arrangements. McDonalds 🍔 too will temporarily close all stores in the country, losing an estimated $50 million per month. Checkout the list of companies leaving here. Discuss with a mom, dad or a big person why companies are leaving.
Life goes on through the rest of Europe as Tesla rolled out its first cars from Giga Berlin 🚙. Tesla started to build their German Gigafactory in 2019, and finished it in 2021. Production at the factory was delayed at first because of environmental issues. It will have a capacity of 500,000 cars annually, larger than all of Volkswagen’s global EV sales.
All the way in India, Byju’s, a global Indian educational tech (EdTech) company, was announced as one of the Official Sponsor of Fifa World Cup ⚽️ 2022 in Qatar. They will be able to use Fifa World Cup logo, badge etc to build unique promotions. As part of the deal, Byju’s will also give give educational content to young fans. FIFA earns anywhere between $1-2 billion through sponsorships. Read this interesting Investopedia article on how FIFA makes money.
In California land.. Apple might want you to “subscribe” to your next iPhone. Instead of buying a new iPhone every year, you can lease it from Apple, like a car, paying a certain amount each year. You would be able to get the iPhone 13 Pro Max, which is worth £1,049, for say £10.49 😊 (highly unlikely unless they come up with like a 8-10 year repayment plan!), by accepting to pay a monthly lease for as long as you have the phone.
While in New York, Uber has agreed to list all New York City taxis 🚕 on their app, meaning that you would be able to call a yellow city cab with the Uber app. Driver shortages and increasing food delivery demands led to the move. Uber made bookings worth $13.4 billion in 2021’s last quarter.
Wait, what is..
Franchise: A franchise is an authorised reseller of your products and/or services. Geek out here.
Quarter or Q1, Q2, Q3, Q4 (Q = Quarter): A ‘quarter’ like every other quarter is 1/4th but of a Financial Year. Businesses report their performance by each Quarter of the year, divided into 4 sets of 3 months each. For e.g. January, February, March is Q1 for Robinhood, Q3 for Microsoft, but Q4 in India & the UK 🥴.
Inspiring business people to know 🙏
In the current tough times, we have decided to continue the ongoing inspiring people in honour of the citizens of Ukraine. #StandWithUkraine #LestWeForget
And check out Ukraine’s NFT Museum of War. Shortly you will be able to purchase NFTs that will depict key moments of the war, with 100% of all money raised from purchases going to the Ukraine Ministry of Digital Transformation.
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BNFK distills the latest, most interesting, Business News 📰 .. to an emoji filled, ultra informative, and fun Newsletter for Kids. Delivered every Sunday. Previous editions here. Forwarding this? Ask them to hit 👇 & subscribe for FREE.
Stocks, stonks and.. ⚡️
NFT creator co Yacht Club, creators of NFTs like Bored Ape Yatch Club 🦍 have raised a monstrous seed round of $450 million at a $4 billion valuation 🚀. FYI.. floor price to purchase a Bored Ape NFT is a cool $300,000+ 😅.
Mental models.. whaaaat! 🤯
My dad insisted we put this section in here, even though I protested saying its going to be a while before kids need to apply mental models. Mental models are nothing but ways of thinking, you can use as a framework, to take decisions or solve problems. Who knows, they might just be useful!
Two Front War - As the name suggests "two front" war means having to fight the war in two different places. Say you're attacking a country from just the North, it might be easy for them to defend that one front. But say you asked a neighbouring country for help and they attacked from the South the country at War would have to split their resources and send them now to "two" fronts.
For e.g. along with Russia attacking Ukraine from the East they also got Belarus to attack them from the West. But remember Ukraine chose to fight a Guerrilla War instead of sending their armies to two fronts.
In business you could think of a softer use of "two fronts" as multichannel marketing 😅 - make your customer see your ads on "two fronts" - digital and television for example 😊!More models on Military & War from Farnam Street here.
Tech, products, toys ++ 🤖
Would you ever believe that Transformers have come to save Earth? Meet Aquanaut, an underwater transformer robot. 🚤 👇
Pro Tip: The magic of learning is in curiosity. Don’t shy away from clicking those hyperlinked texts to read and learn more. We mostly hyperlink to text we have read ourselves to make sure it is safe, but please be aware that comments and ads shown on these pages are beyond our control. We recommend using a kids friendly browser to view the links. Please read all Disclaimers.
Take care. See you next week. Pray for Ukraine and for Russian citizens. 🙏