In The News

Globalization: When Cure Is Worse Than Malady

Richard Hornik June 27, 2006
The global economic transition to a post-industrial economy has increased pace since the end of the Cold War, but the dislocations caused by rapid globalization rage on. As a consequence, electorates have become deeply divided between those who benefit and those who do not. Politicians find themselves pandering to narrow constituencies with petty, irrelevant legislation to build coalitions, often...

Managing Globalization: Economies Have a Stake in Where Companies Find Employees

Daniel Altman June 26, 2006
A growing interconnectedness of the global economy means companies will find skilled workers one way or another. The motives for companies to turn to outsourcing or the recruitment of immigrant labor are often similar: a domestic skills shortage, jobs that local workers will not take or the comparatively cheap cost of foreign labor. The forces driving companies’ choices to outsource or recruit...

Coming to Terms With the Forces of Anti-Globalization

Nick Mathiason June 23, 2006
Increasing criticism of capitalism and multinationals, even by British Conservatives, neglects an emerging trend in global commerce. Cited in the May/June issue of “Foreign Affairs” by IBM chairman and chief executive Samuel Palmisano, the “globally integrated enterprise,” or GIE, is a new trend. The GIE no longer invests in outsourcing cheap labor to poor countries while reserving the...

China’s Portuguese Connection

Loro Horta June 22, 2006
Patience is power, suggests a Chinese proverb, and that describes how China pursues diplomacy. The Community of Portuguese Language Countries (CPLP) consists of eight states around the world, encompassing 230 million people – but is rarely regarded as a priority in global politics. Bucking conventional thinking, China diligently pursues diplomacy with the CPLP, foreseeing benefits such as new...

Economic Patriotism

Patricia Wruuck June 21, 2006
Protectionism in government-enforced industrial policy is rooted in domestic allegiances, yet can ultimately hurt local economies, writes Patricia Wruuk of Deutsche Bank Research. Economists agree that the free market is the best way to allocate goods and profits to a population, though some favor a more regulated industrial policy than others to ensure domestic sustainability and avoid the...

The Real Disaster: Inadequate Preparation

Kevin O'Marah June 21, 2006
Businesses are often not prepared for large-scale disasters – and as a result of globalization, a threat to one business has become a threat to all. Large-scale events in the form of terrorism or natural disasters hinder the supply-chain for businesses and the flow of goods to consumers. Despite widespread agreement that supply-chain disruptions can harm a business, few companies have plans in...

Russia’s Surging Steel Industry May Seek Role on a Global Stage

Andrew E. Kramer June 20, 2006
With its abundant supply of cheap labor, energy and iron ore, Russian steel super-giants are game to do cross-border business. The strategy centers on consolidating the Russian steel industry around one or two companies, which, according to Moscow metals analyst Sergei M. Donskoy, will provide more bargaining power with foreign steel makers. Russia’s richest man, Roman A. Abramovich, bought a...