In The News

Globalization a Mixed Bag: Patten

Amit Baruah November 5, 2007
Globalization does not help every individual or country, but it is by no means a conspiracy by the rich against the poor, said Chris Patten, chancellor of Oxford University and former British governor of Hong Kong, during a lecture in India. Evidence suggests that trade and economic growth have ended poverty for millions of people. World labor markets, especially for skilled workers, are highly...

Trade Deal Sparks Fight Over Socks

Ian Swanson November 1, 2007
The US Congress and Department of Commerce are considering raising tariffs on sock imports from Honduras. Passage of the Central American Free Trade Agreement in 2005 decreased protections between the US and several Latin American states, and some analysts suggest that factories based in the US will close and move jobs to Honduras, with its low production costs. A Canadian company is taking...

Globalization With Arab Characteristics

Marcus Noland October 17, 2007
A young workforce can be a great economic asset. Yet Arab states, with booming populations, desperately need to increase employment opportunities for young adults. Foreign investment has stagnated, limited to oil and tourism as firms remain wary of weak intellectual property rights and uncertain political transitions. Meanwhile, state-dominated economies have failed to achieve linkages to outside...

US Lets in More Immigrants for Farms

Nicole Gaouette October 9, 2007
Despite earlier promises about strict enforcement of immigration laws, the US Department of Homeland Security and the US Department of Labor are reportedly easing policies to welcome more immigrant workers ready to harvest tomatoes, fruit and other crops before they rot. The US refuses to release details, but farmers clamor for more workers, claiming that citizens have no interest in joining the...

Outsourcing Is Too Wild to Fit Economic Theory

Andy Mukherjee October 9, 2007
Firms that consult and perform outsourcing work make use of all available space, time and labor. Global outsourcing is highly unpredictable and firms can perform projects from many locations, explains Andy Mukherjee for Bloomberg.com. Mukherjee provides an example: When Satyam Computer Services did one project for John Deere in Illinois, the firm rented nearby space, assigning 10 engineers to...

Let’s Have a Real Debate on Globalization

Matthew J. Slaughter September 28, 2007
Many workers in the US fear that the United Automobile Workers’ strike against General Motors signals that the domestic auto industry is “losing” at globalization. The strike has ended, but some workers urge the federal government to scale back US involvement in international trade, most notably with emerging markets like China. Economist Matthew Slaughter counters that globalization has netted...

Children Trafficked From Asia to UK to Work in Cannabis Factories

Nina Lakhani September 27, 2007
In 2004, Britain declassified cannabis, decreasing the penalties for growing or possessing the controlled substance. As fear of punishment faded, demand grew and so did the appeal of producing the drug for greater profits. Organized crime rushed to fill the gap between supply and demand, and with record levels of production, Vietnamese gangs rely on children to tend plants. So declassification...