In The News

Globalization Needs a Reality Check

Lyal White May 23, 2006
Globalization offers no guarantees – and does not necessarily lead to diversity, innovation and competition. Sometimes, large players present multiple brands, using globalization to mask ownership and monopolies. Consolidation of markets into global monoliths can encourage a standardization that inhibits innovation. Economic globalization does influence politics, because countries seeking...

For Outsourcing, Bulgaria Is “In”

Juliette Terzieff May 19, 2006
Bulgaria – with an education system ranking fifth in the world and students ranking 11th in mathematics – has the highest number of IT professionals per capita in the world. As a result, multinational firms look to Eastern Europe for relocation and labor. Other advantages of Eastern Europe include a developed infrastructure, economic and political stability as well as a central location to Africa...

Iraq Black Hole: The $2 Trillion War

Craig Lambert May 18, 2006
Before the US invaded Iraq, the Pentagon and the US Office of Management and Budget estimated that the war could cost up to $60 billion and that Iraqi oil revenues would cover the costs. The Congressional Budget Office now estimates the war will cost $500 million. However, Harvard and Columbia professors have teamed up to prepare a true cost-benefit analysis based on government sources – and...

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...

The Demise of the NPT: New Players in the Proliferation Game

Chua Hearn Yuit May 16, 2006
To keep their economies rolling, nations race to secure more energy, including that fueled by nuclear sources. Countries like Myanmar, Indonesia and Vietnam have announced ambitions to secure nuclear power with help from countries like China, Russia, South Korea and India. As a result, a growing number of players edge toward nuclear weapons capability. India did not sign the Nuclear...

Beyond Macro Reforms

Luis Alberto Moreno May 11, 2006
Economies throughout Latin America and the Caribbean are flourishing, enjoying steady growth rates along with inflation and fiscal deficits under control. Still, Latin American countries have low incomes and a low share of world trade, struggling to compete with Asian competitors in India, China, Japan and Korea. Luis Alberto Moreno, banking executive and former economic official for Colombia,...