In The News

Li & Fung Warns of End of Cheap China Goods

Rahul Jacob March 28, 2011
The era of low prices – thanks to low-cost labor in China – is over, warns Li & Fung, a Hong Kong product sourcing firm, as reported by the Financial Times. China laborers overall enjoyed a raise of about 20 percent this year, reports Rahul Jacob. Retailers must now decide how much of the extra costs they can pass on to consumers and how much can be taken away from profits. Even as...

Westward Ho: Asians March Into Africa – Part II

Loro Horta March 18, 2011
In terms of natural resources, Africa is one of the richest continents, luring explorers, colonists and investors since the 15th century. Emerging economies, foreign-aid agencies, energy and mining corporations continue that quest today. This two-part YaleGlobal series examines the implications of these engagements for sustainability and sovereignty of the African nations. Mozambique, though not...

Last Defense at Troubled Reactors: 50 Japanese Workers

Keith Bradsher, Hiroko Tabuchi March 16, 2011
In a disaster, society often depends on a few courageous individuals who risk their lives to stabilize equipment and minimize damage. The earthquake and tsunami in Japan battered the Fukushima Daiichi Nuclear Power Station, adding new dangers to operations that had already carried ample risks. Most staff was evacuated, but a small crew volunteered to stay behind, working with flashlights and last...

A Wing and a Prayer: Outsourcing at Boeing

Kyle Peterson March 11, 2011
In making its new 787 Dreamliner, Boeing outsourced work to a global network of more than 50 partners, a marked contrast to the traditional practice of manufacturing planes at its base near Seattle, Washington. The plane is nearly three years behind schedule, beset by technical and supply problems and billions of dollars in cost over-runs. Boeing workers complain that the failures derive in part...

Degrees and Dollars

Paul Krugman March 8, 2011
The message is bleak: Education does not automatically lead to jobs, suggests Paul Krugman, New York Times columnist. To maximize profits, corporate executives steadily relocate factories to nations with low-cost workers or try fast-improving technology for tasks performed by well-paid, educated workers. Advanced technology and fast-growing productivity continue to reduce jobs, the economist...

India Needs a Sputnik Moment

David J. Karl March 4, 2011
Competition is a great motivating force for individuals and nations. In the global battle to innovate, the preferred weapon of choice is education. Warning his nation that India and China produce more engineers and scientists, US President Barack Obama calls for a Sputnik moment, harkening back to the 1950s when the Soviet satellite launch spurred new investments in education and technology. But...

Volatility in a Flash

Nayan Chanda March 2, 2011
Multinationals depend on intricate supply chains, with manufacturing plants based around the globe in locales offering low-cost labor and specialized skills, explains Nayan Chanda, YaleGlobal editor in his regular column for Businessworld. Chanda points out that “The success and failure of 21st century companies is increasingly determined by the efficiency of their supply chain management.”...