In The News

Managing Globalization: Old Tax Breaks Fade in New World

Daniel Altman May 17, 2006
Businesses that open subsidiaries solely to reduce tax liabilities may want to think twice before relocating to China or India. Taxation has become more complicated as more firms go multinational and countries welcome more foreign firms. But governments continue to impose and enforce taxation, reports author Daniel Altman. Tax evasion and underreporting are challenges for China. Both China and...

The Perils of Soft Power

Josef Joffe May 16, 2006
Any nation has an array of options for extending influence throughout the world: One is “hard power,” or military escalation. Another method, touted by a group led by Harvard Professor Joseph S. Nye Jr., is “soft power,” or cultural capital deployed across the globe. But soft power can produce antagonistic reactions. US movies, music and education may be popular in other nations, but world...

China’s Union Push Leaves Wal-Mart With Hard Choice

Mei Fong May 16, 2006
Wal-Mart views China as the next frontier for profits, but the retailer’s non-union policy could prove a stumbling block in the People’s Republic. The All-China Federation of Trade Unions, known as the ACFTU is backed by the Chinese government and pushes for a change in Wal-Mart’s attitude. The Chinese union does not engage in collective bargaining, organizing more events and discussions about...

Does a Growing Worker Shortage Threaten China's Low-Cost Advantage?

May 15, 2006
China’s hold on the title of low-wage manufacturing giant may be in jeopardy. This year, a job program designed to entice migrant farmer-laborers into Chinese cities fell short of expectations, as many workers chose local rural employment. This reflects a general labor shortage in regions of the country and possible fallout from governmental tax and labor policies that encouraged farming. With...

Drought Insurance for the Third World

Beat Balzli May 15, 2006
After a year of natural disasters, the international community may shrug about the possibility of 6 million Kenyans, Ethiopians and Somalis facing drought and possible starvation. In response, the World Food Program and the World Bank have developed a new plan to replace aid: famine insurance. The new model of relief shifts emphasis from donations to arrangements with international financial...

Sudan-Divestment Laws Draw Attacks From Fund Managers, Business Groups

Jane Spencer May 8, 2006
The UN accuses Sudan’s Khartoum government for the deaths of about 200,000 villagers in the Darfur region, and the US labels the atrocities as genocide. But a recent campaign to convince universities and public pension funds to divest any interests in companies with ties to Sudan has upset some business leaders. Pension-fund managers complain that such divestment policies or laws influence far...

Not Out of the Woods Just Yet

Don Melnick May 5, 2006
Forests are an essential part of the earth’s delicate ecosystem. But corporations and governments promote rapid cutting for profits, and more than a billion acres of forestland have been lost since 1970. Forests not only provide fuel and building products, but also protect water supplies and mitigate the effects of global warming by absorbing carbon dioxide. Biology Professor Don Melnick and...