In The News

Amid Tension with US, China Faces Protectionist Surge at Home

Kathy Chen April 11, 2006
The US and Europe are not alone with citizens demanding protection of jobs, industry and a way of life. Protectionism is emerging in China, too, with various interest groups expressing wariness about increased foreign buy-outs of Chinese companies. US investments in China have increased dramatically since 1980, when only 23 firms represented $120 million in investment, whereas in 2005, 49,000...

In France, an Economic Bullet Goes Unbitten

Floyd Norris April 11, 2006
Most European politicians recognize the grim truth – that economic reform is necessary for global competition and that youth cannot expect the many benefits now enjoyed by elders. Generous retirement and other social benefits correlate with high unemployment among youth. Corporate executives have suggested that politicians must make the difficult decisions that lead to economic reform, likely...

Has Globalization Gone too Far?

Nagesh Kumar April 11, 2006
Developed nations express growing resistance to foreign takeovers of national enterprises – from Mittal Steel’s bid for Archelor based in Luxembourg to Dubai Ports World plan to take over terminal operations of six US ports. The resistance contradicts WTO proposals from the West that would have allowed foreign investors to establish or acquire any business entity in any country. Developing...

China Curbs Magazines from Foreign Publishers

Geoffrey A. Fowler April 10, 2006
All kinds of international firms look eagerly to booming China as the world’s largest market, particularly its growing urban class. Competition requires not only preparing a product, but also knowing Chinese regulations. China has long taken steps to control what its citizens can buy – and publishers have discovered that the government will limit lifestyle magazines for Chinese shopping lists....

Xenophobia’s Threat to Prosperity

Charles Prince April 5, 2006
In the wake of the abortive acquisition of terminal operations at US ports by Dubai Ports World, Congress is considering more than thirty proposals to tighten the rules governing foreign investment in the US. Some of these proposals, writes Charles Prince, CEO of Citigroup, Inc., would spell disaster for the US economy – choking off the foreign investment that now fuels American economic growth...

IT Mergers Have Feds Flailing Against Tech Globalization

J. Nicholas Hoover April 4, 2006
The US Department of Defense aims to scrutinize any foreign entity that wants to buy US information-technology (IT) firms. Before Canada-based Nortel Networks purchased government-contractor PEC Solutions, it had to set up a separate subsidiary and allow the Defense Department to monitor e-mails. Election-year politics in the US could lead to more intense scrutiny. In particular, the government...

Does Globalization Help or Hurt the World’s Poor?

Pranab Bardhan March 31, 2006
As debates over economic globalization rage, one writer ponders whether “expansion of foreign trade and investment” influences the world’s poor. Author Pranab Bardhan notes that the answer is neither a simple yes or no. By certain measures, the level of extreme poverty has lessened worldwide, but that doesn’t necessarily correlate with globalization and could be the result of some domestic...