In The News

Beyond Cheap Labor: Lessons for Developing Economies

Diana Farrell December 21, 2004
The specter of China and it's massive fleet of low-cost laborers haunts developing economies worldwide. However, for middle-income countries, focusing on cheap labor is not the answer for sustained economic growth, according to The McKinsey Quarterly. Using Mexico as a basis for discussion, this report offers alternative strategies for successful competition. More effective routes to...

The McKinsey Global Survey of Business Executives, November 2004

December 16, 2004
Executives are significantly less optimistic about the global economy than they were a year ago, according to McKinsey's latest global executive survey. The weak dollar, volatile oil prices, and geopolitical uncertainty have dampened executive confidence around the world, especially in developed Asian countries. While European executives predictably take the dimmest view of George W. Bush...

China Blocks World Meeting on Workers' Rights

Joseph Kahn December 9, 2004
With its low cost environment, especially cheap labor, China has become the world's largest producer of manufactured goods. However, not only NGOs but increasingly foreign governments and business leaders have urged China to do more to protect workers' rights. China only allows government-controlled labor union. Recently Beijing appeared to be listening when Prime Minister Wen Jiabao...

The EU Loses its Rag

December 8, 2004
Ten years ago, trade negotiators set a deadline to end global quotas on textile exports. But with less than a month before the agreed-upon expiration date, the EU is growing increasingly worried about China's likely dominance of the international textile trade. Yet considering the EU's hopes to install its former trade commissioner as head of the World Trade Organization, efforts to...

In Eastern Europe, Skepticism Over the Euro

Mark Landler December 6, 2004
While the euro continues to grow in strength and prominence, the trans-national currency has failed to win the enthusiasm of the European Union's newest members. Countries like Hungary and Poland have hesitated in planning their integration into the "one-size-fits-all" economy of the euro. Critics suggest that adopting the euro now will severely hamper Hungary's fast growing...

The Green Beast Is Out of Control

Miranda Devine December 2, 2004
The clout of environmental groups in influencing the decisions of multinational corporations may be greater than is appropriate. US-based animal rights group People for the Ethical Treatment of Animals (PETA), through widespread "greenmail" campaigning, has managed to change the policies of Abercrombie and Fitch, among other clothing companies, to the detriment of the Australian wool...

Bush Backs US Tariffs on Shrimp

Martin Crutsinger December 2, 2004
In a victory for beleaguered US shrimp producers, the Bush administration yesterday upheld the penalty tariffs imposed on Chinese and Vietnamese shrimp imports. The ruling came in a case brought by the Southern Shrimp Alliance, which says that artificially low prices from foreign importers have almost ruined the US shrimp industry. But foreign shrimp producers say the US needs imports to meet...