In The News

Oil-Rich Russia Makes Ruble Convertible

Nick Paton Walsh July 5, 2006
Capitalizing on its growing status as a global energy supplier, Russia is making the ruble fully convertible in an attempt to renew its currency’s international status. The move will decrease the government’s control over the value of the ruble, opening the door for foreign investment in the currency. Riding dual waves of oil money and optimism, Russia is paying off its Soviet-era debts to the...

India Becoming a Crucial Cog in the Machine at IBM

Saritha Rai July 3, 2006
IBM is unmatched in taking advantage of the technology talent-pool in India and providing global services on a grand scale. While US and European workers have faced repeated layoffs over the past several years, the number of IBM’s Indian employees grows at a staggering rate. IBM’s growth in India also stems from multiple acquisitions of Indian companies. The company’s research labs focus on...

Arcelor Deal With Mittal Creates New Steel Giant

Heather Timmons June 28, 2006
Despite vigorous protest, a global steel giant emerges, now that the controversial merger between India’s Mittal Steel and Luxembourg-based Arcelor is signed and sealed. Arcelor executives and even European government officials rejected the original Mittal offer with stinging insults that revealed the anxieties behind Europe’s protectionist trend. Difficult negotiations followed, leading to a bid...

Amid Competition, India Cools To Expansion by Chinese Firms

Peter Wonacott June 27, 2006
China and India have the world’s most rapidly expanding economies, and any trade partnerships between the two serve as powerful counterweights to the other’s ties with the US. Some in India, however, are wary of Chinese incursion into strategic industries. India’s Foreign Investment Promotion Board has passed on issuing trading licenses to some Chinese firms, and officials in Beijing have been...

US Competes With China for Vietnam’s Allegiance

Jane Perlez June 22, 2006
It has taken Vietnam a mere 15 years to develop from a low-income country to one that is middle-income. As a result, Vietnam has emerged as a regional economic power in Asia, its growth only trailing that of China. The US and China are both eager to counter the other’s influence in Vietnam – increasing imports of goods, industry and culture to the nation. China last fought with Vietnam in 1979...

The Real Disaster: Inadequate Preparation

Kevin O'Marah June 21, 2006
Businesses are often not prepared for large-scale disasters – and as a result of globalization, a threat to one business has become a threat to all. Large-scale events in the form of terrorism or natural disasters hinder the supply-chain for businesses and the flow of goods to consumers. Despite widespread agreement that supply-chain disruptions can harm a business, few companies have plans in...

Why Dollar Hegemony Is Unhealthy

Thomas I. Palley June 20, 2006
The US dollar holds value for more countries than any other world currency and comprises about two thirds of world’s official foreign-exchange holdings. This dependence allows the US to run large trade deficits in purchasing a cornucopia of goods – from Porsches to t-shirts – by distributing paper IOUs in place of actual dollars. Because of a global faith in the voracious appetite of the US...