In The News

Grassley, Others Rip Bush Official's Pro-Outsourcing Remark

Margaret K. Collins February 12, 2004
The Bush administration's chief economist came under fire this week for testifying that the movement of American jobs overseas will benefit the economy. Lawmakers from states affected by the outsourcing trend were quick to criticize President Bush for the "insensitive" remarks of economic advisor Gregory Mankiw, which came at a time when many Americans are worried about losing...

The Underbelly of Globalisation

Tony Woodley February 7, 2004
17 men and 2 women from China died off Morecambe Bay in northwest England when they were out picking cockles (bivalve mollusks found in wet sand). "This is not a migration issue. It is an exploitation issue." says Tony Woodley, general secretary of the UK's Transport and General Workers' Union. He criticizes both the "reckless employers" who benefit most from hiring...

Globalisation: The Forgotten Strategy

Pankaj Ghemawat January 21, 2004
Multinational corporations have employed different global corporate strategies in their efforts to adapt to the growing mobility of capital resources. Originally, the approach was to use economies of scale to compete in foreign countries with large domestic markets. Large firms can use their size to average fixed costs over many more products, bringing overall costs down compared to their smaller...

Will Washington Return to Supporting Freer Trade?

Susan Ariel Aaronson January 20, 2004
Has the US led the world in promoting a pro-free trade agenda? Looking at the rhetoric emanating from Washington in the early days of the Bush administration, one may think so, says globalization scholar Susan Ariel Aaronson. But looking at Washington's actions over the past two years, we must reach a different conclusion, she argues. US intransigence on decreasing subsidies to its...

Impatient Jobs

Seema Sirohi January 20, 2004
The IT industry has started to chime in on the outsourcing debate. A group of the top eight American IT companies recently commissioned a report in favor of outsourcing, arguing that countries which yield to protectionism end up stifling their own industries and innovation. The report also slams the US educational system for not producing enough qualified graduates in math and engineering. Soon...

Sugar, Textiles Sour on CAFTA Deal

Jane Bussey December 19, 2003
US trade negotiators had no sooner finished closing a deal with four Central American countries when US textile and sugar industry representatives began crying foul. The Central American Free Trade Agreement would result in sugar industry job losses in the US, say its critics, and permit Chinese, Mexican, and Canadian textiles assembled in Central America to enjoy favorable import rules when...

Deflating Bush's China balloon

William Pesek Jr. December 17, 2003
The Bush Administration is pressuring China to float its currency, the yuan, instead of pegging it to the US dollar. Administration officials argue that the yuan is currently undervalued and is thus hurting the US economy. This week, Alan Greenspan, the US Federal Reserve chairman, said that a rise in the relative value of the yuan would have little effect on US employment, as companies would...