In The News

A Win-Win Partnership

Henry A. Kissinger March 17, 2006
The US and India can only benefit from a new spirit of cooperation and interdependence. But for the emerging partnership to flourish, both nations should understand their differences and common goals, writes Henry A. Kissinger, US secretary of state during the Nixon administration. The US embraces as its responsibility the spread of democracy, whereas India is more pragmatic and focuses on its...

One-Time Highways to Growth Take a Toll on the Japanese Economy

Yasuyo Yamazaki March 16, 2006
Japan's economy faces enormous challenges in the years ahead. It must both continue to compete with other fast-growing economies, like China, while finding a way to support and replace its aging work force. A critical challenge for Japan is how to handle the fast-graying population and the attendant health and retirement costs. By far the most problematic of such issues is the enormous...

Globalization Offered Two Ways: à la Carte and Prix Fixe

Daniel Gross March 15, 2006
US property owners love the high prices paid by foreign investors. But the nation can get prickly about some overseas investors: rejecting a Chinese oil company’s bid for Unocal in summer 2005 and an Arab firm’s proposal to manage operations of six US ports this month. Author Daniel Gross labels this tendency as “selective globalization syndrome.” Politicians attack symbolic deals, like the...

Economic Patriotism and the Mittal Effect on Europe

M.N. Hebbar March 14, 2006
France has rallied to prevent an Indian firm from taking over Arcelor, the largest steelmaker in Europe, suggesting that the continent is not serious about the free flow of capital, goods and services. French politicians claim they are motivated by “economic patriotism,” a synonym for protectionism, and urge investors and the board of directors to fight the purchase, defying their own best...

Is This the End of Globalization?

Heather Stewart March 10, 2006
The anti-globalization message – protecting jobs and traditional industries – has powerful appeal in a fast-changing world. History shows that the most successful economies are those that open themselves to foreign competition, yet economists still struggle to explain how free trade can benefit all players, especially when markets specialize at what they do best. More citizens of wealthy...

Port Deal: Not a Foreign Idea

Laura Meckler March 10, 2006
US citizens have suddenly discovered the global intricacies of port operations throughout the country. While the outrage over the Dubai Ports World investment questioned safety, federal agencies such as US Customs and the US Coast Guard continue to control port security. Since the 1970s, US flag-shipping lines have faced increasing competition from foreign companies, which operate with low-cost...

Arab Firms Reassessing US Holdings

Jim Krane March 10, 2006
Conventional wisdom suggests that Arab nations and investors would scorn US investments after the US Congress objected to a Dubai firm taking over management of six major US ports. There is fear that the rejection of the deal, reflecting anti-Muslim bias, could trigger a short- or long-term backlash. Yet analysts report that the US – representing 50 percent of the world’s economic market –...