In The News

Globalization and Politics

Nayan Chanda September 17, 2008
Faced with a battered American economy and a five-year high unemployment rate, US presidential candidates tend to slip into anti-trade mode. Piling blame on foreigners is convenient and attracts votes. But the US has misidentified the source of its economic woes, suggests Nayan Chanda in his column for Businessworld. Outsourcing is just one side of the coin of globalization; on the flip side,...

Is Mexico the New China?

Rafael Rivero, Sara Miller Llana September 17, 2008
With uncertainty in oil prices and rising labor costs in Asia, Mexico is luring manufacturing jobs away from China. US companies seek manufacturers close to US markets, an attempt to curb transport costs. Chinese workers also demand protections and higher wages. An emphasis on public and worker education also attracts jobs: Mexico has emphasized worker education, which complements value-added...

Township for Foreign Workers Could House Up to 20,000 Under One Roof

Imelda Saad September 12, 2008
Singapore banks on its stable, multicultural society to attract investors and businesses. Investment in infrastructure construction has required foreign workers who bring new cultures and habits, some considered unacceptable by local Singaporeans. Hence, dormitory operators have proposed building huge “townships” for up to 20,000 foreign workers in one location, a concept that flourishes...

China's Outsourcing Appeal Dimming

Ariana Eunjung Cha September 11, 2008
US manufacturers, who watch budgets and make products for consumers outside China, are less eager to outsource manufacturing operations work. “Soaring energy costs, the falling dollar and inflation are cutting into what U.S. manufacturers call the ‘China price’ – the 40 to 50 percent cost advantage once offered by Chinese producers,” reports Ariana Eunjung Cha for the Washington Post. Cha...

Shipping Costs Start to Crimp Globalization

Larry Rohter August 4, 2008
Manufacturers increasingly sought a competitive edge by subcontracting out work for all manner of parts, from batteries to textiles, to countries with the lowest wages. But that strategy was viable only with low energy costs. Companies trying to keep costs low will move more operations closer to markets to reduce fuel costs, especially for bulky or perishable items like food. “Globe-spanning...

Wave Goodbye to the Invisible Hand

Steven Pearlstein August 4, 2008
An economic era centered around globalization could be fading away, argues columnist Steven Pearlstein for the Washington Post. Developing nations will continue benefiting from trade agreements, albeit without the frenetic fast growth, while developed nations will see fewer cost savings based on low wages in far-off lands. “It is not the protectionists of the AFL-CIO or CNN who are primarily to...

What If the Candidates Pandered to Economists?

N. Gregory Mankiw July 21, 2008
Economists make up a tiny portion of the voting bloc and politicians rarely pander to them, perhaps because economists rarely speak with a single voice regarding any issue. However, economists do reach consensus on a few issues. For example, most economists support free trade, and argue that laws preventing free trade are nothing more than laws protecting special-interest groups from competition...