In The News

Putin’s Anti-Globalization Strategy

George Schöpflin July 11, 2006
Russia is active in the global market, but President Vladimir Putin’s governance does not embrace all aspects of globalization. While not resurrecting the Sovietisms of yesterday’s Kremlin, Putin places no faith in the western political mandates of globalization that advocate for the power of the individual consumer over the control of the state. Putin endorses a strong central state, control...

Imbalances Can’t Go on Forever

Ernesto Zedillo July 10, 2006
The current strength of the world economy is not enough to protect against the global financial crisis that could result if imbalances such as the US account deficit go unresolved. Economists supply a range of explanations as to what facilitates US debt. Expectations of higher income and productivity make saving seem less urgent, and the US remains an attractive place for other countries to...

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...

Global Capital on the Run

Robert J. Samuelson June 14, 2006
Around the world, stock markets are in a sharp decline, and analysts are trying to determine if herd mentality is at work or if the trend reveals other risks. At the same time, more investors venture beyond national borders in search of opportunities. Thirty years ago, foreign investing was tightly restricted, with the US as an exception to the rule, although the wealthiest of citizens always...

Going Dutch Has New Meaning in Corporate Takeover Battles

Adam Cohen May 30, 2006
The Netherlands, a country long known for its tolerance and openness to outsiders, has found itself in the center of an EU-wide debate between protectionism and consolidation of industry. Luxembourg steelmaker Arcelor SA recently formed a “stichting” in the Netherlands in an attempt to keep its Canadian unit, Dofasco, out of the hands of Mittal. Dutch law, endorsed by the EU, allows for the...

Managing Globalization: How Diversification Can Act as a Hedge

Daniel Altman May 18, 2006
Bolivia’s steps to resume control of its natural gas industry from foreign multinational companies have not led to a drop in stock prices. Like the investors who protect portfolios with diverse investments, multinational firms rely on globalization and diverse geographic regions to protect their bottom-line profits. Of course, energy firms face limitations when it comes to diversifying based on...

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...