In The News

Li & Fung Warns of End of Cheap China Goods

Rahul Jacob March 28, 2011
The era of low prices – thanks to low-cost labor in China – is over, warns Li & Fung, a Hong Kong product sourcing firm, as reported by the Financial Times. China laborers overall enjoyed a raise of about 20 percent this year, reports Rahul Jacob. Retailers must now decide how much of the extra costs they can pass on to consumers and how much can be taken away from profits. Even as...

Confluence of Horrors, Global Impact Makes Japan's Tragedy a Transcendent Event in History

Joji Sakurai March 21, 2011
As humans learn from the experience of others and make accommodations, the tsunami and nuclear accident could transform many future endeavors, explains Joji Sakurai in an essay for the Canadian Press. Japan, an advanced economy, has been the second most generous foreign aid donor in the world and now welcomes financial and technological assistance from around the globe. The internet and...

Heat Damages Colombia Coffee, Raising Prices

Elisabeth Rosenthal March 10, 2011
Is global warming now making your cup of coffee more expensive? Rising temperatures, heavy rains and fungus are certainly reducing coffee yields throughout Latin America, reports Elisabeth Rosenthal for the New York Times. The reduced yields coincide with attempts in Colombia to establish brand certification based on flavor and origin. Some commodity analysts suggest that the nation has hit a “...

Degrees and Dollars

Paul Krugman March 8, 2011
The message is bleak: Education does not automatically lead to jobs, suggests Paul Krugman, New York Times columnist. To maximize profits, corporate executives steadily relocate factories to nations with low-cost workers or try fast-improving technology for tasks performed by well-paid, educated workers. Advanced technology and fast-growing productivity continue to reduce jobs, the economist...

India Needs a Sputnik Moment

David J. Karl March 4, 2011
Competition is a great motivating force for individuals and nations. In the global battle to innovate, the preferred weapon of choice is education. Warning his nation that India and China produce more engineers and scientists, US President Barack Obama calls for a Sputnik moment, harkening back to the 1950s when the Soviet satellite launch spurred new investments in education and technology. But...

The Experience Economy

David Brooks February 24, 2011
Consumers snap up the latest in electronic devices and regularly use sites like Facebook or Twitter. But such new inventions contribute a fraction of direct jobs produced by the automobile industry, notes David Brooks in his column for the New York Times. Brooks quotes Tyler Cowen’s e-book, “The Great Stagnation,” in suggesting that the US had a history of strong economic growth because of easy “...

Brazil Takes a Second Look at China Ties

Sean Goforth February 23, 2011
Growing trade between Brazil and China is driven by China’s demand for Brazilian raw materials. China is Brazil’s biggest trade partner. Brazil may enjoy a large trade surplus, but the government increasingly recognizes that the relationship is imbalanced and not benefiting Brazilian ambitions. Exporting raw materials and importing manufactured goods challenges the Brazilian industrial sector,...