In The News

Come One, Come All

Edward Glaeser July 12, 2007
Globalization has contributed to a decline in manufacturing cities like Detroit, forcing firms to confront foreign competitors. Other cities, like New York, reap benefits from globalization, argues Harvard professor Edward Glaeser. New York City thrives on producing ideas, and globalization spurs innovation. Innovation emerges in communities where people thrive on education, exchanging ideas and...

Debtor Nation

Jonathan Shaw July 6, 2007
Americans continue to buy only because they easily borrow from abroad. For now, the cost of borrowing is low, as countries buy low-interest US Treasury bills and bonds. Why foreign lenders send the US money in exchange for low interest rates is a “profound question,” suggests Professor Lawrence Summers. He and other Harvard professors analyze the sustainability of such lending, borrowing and...

EU Globalization Fund Questioned

George Parker July 5, 2007
The EU created a fund to assist those who have lost jobs due to global competition. But the fund has received a mere two requests for aid, prompting speculation about whether global competition really harms European jobs, reports The Financial Times. France was the most enthusiastic supporter of the fund and so far is the only country that has applied for funding. France wants money to retrain...

The Life of the Chinese Gold Farmer

Julian Dibbell July 4, 2007
World of Warcraft, produced by Blizzard Entertainment, is one of the most profitable massively-multiplayer-online (MMO) games in history. Players collect currency to buy weapons and other gear to fight monsters, by looting or selling items to other players. At a normal playing rate, the process of collecting currency, known as “the grind,” takes about four months to complete. However, Chinese...

A Lesson That Thomas Could Teach

David Leonhardt June 29, 2007
For the past two decades, US firms have relied on an outsourcing strategy: They move manufacturing operations overseas where they can employ workers for low wages, distancing themselves from production and condoning secrecy about factory practices. But this strategy has repercussions: After learning that Thomas the Tank Engine toys, manufactured in China, have lead paint, businesses tried to...

In a World on the Move, a Tiny Land Strains to Cope

Jason DeParle June 28, 2007
In Cape Verde, the number of people who have migrated approaches the number of people who have stayed behind, and everyone has a close relative in either Europe or North America. So many Cape Verdeans, such as Antonia Delgado, receive money from those abroad. She raises her granddaughter’s son, who rarely sees his mother because she works in Portugal. Despite stricter immigration policies, many...

Expert View: Outsourcing Is Out – It's a Political Cold Potato

Chris Walker June 28, 2007
Companies began outsourcing tasks, including payroll processing, in the 1960s. As the information-technology sector grew, so did the number of outsourced jobs. Today, all types of jobs, from low-level data entry to the transfer of intellectual property, are outsourced from high-wage to low-wage areas. Experts estimate that in India, call centers employ more than a million people, which some...