In The News

US Exporters Feel Favorable Trade Winds

Peter S. Goodman February 5, 2007
Many politicians running for office lash out at global competition, blaming it for a host of domestic problems during election campaigns. Yet trade is a two-way street, and firms with international trade links can succeed. Examples in the US include MTS Systems, which makes tire testers, and Caterpillar, which manufactures construction and mining equipment. A sagging US dollar, the rapid...

India: Poverty Retreats with Globalization’s Advance

Baldev Raj Nayar February 1, 2007
As globalization gained speed during the latter part of the 20th century, so too did India’s integration with the world economy. Baldev Raj Nayar, emeritus professor of political science at McGill University, counters critics who suggest that globalization has increased instability or poverty. By opening the door to multinational firms, India strengthened and diversified the country’s economy. He...

Democrats Give Bush the Business on Trade

Peter S. Goodman February 1, 2007
To avoid petty special-interest confrontations, the US Congress can extend authority to the president to negotiate trade deals. Congress retains final approval, voting yes or no on deals negotiated by the president. But a Democratic Congress at odds with the Republican president has demanded guarantees on labor and environmental protections in any future negotiations. Otherwise, Congress will...

Beyond Oil: Reappraising the Gulf States

Kito de Boer January 31, 2007
Nations without oil must conserve and seek energy alternatives. Likewise, nations with oil must create jobs that do not rely on the petroleum industry. Rapid population growth in the Gulf nations means less oil revenue spreading throughout the economy for citizens. The wealthy Gulf Cooperation Council nations have high rates of unemployment that could lead to unrest. Inconsistent education...

The Global Question: Who Needs the US?

Peter Gumbel January 30, 2007
Global trade has flourished in recent years, so much so that it’s no longer the province of developed nations. The US is the world’s leading economy, accounting for almost 30 percent of the world’s gross domestic product, yet the nation cannot sustain prosperity by living on funds borrowed from China and other nations that save. Economists remain divided about how much a disruption in any...

Rich Man, Poor Man

January 25, 2007
As the complexity of the global marketplace increases, top executives and the wealthy have seen a dramatic rise in compensation while average workers confront the pain of labor outsourcing and stagnant wages. This irony has sparked a renewed urge towards protectionism and redistribution that puts free-trade principles at risk. Rather than the government piling up obstacles for globalization or...

Globalization’s Unequal Discontents

William H. Overholt January 23, 2007
Sometimes globalization is a mechanism that levels playing fields and sometimes it is a bulldozer. Throughout history, globalization has often enriched business owners and risk-takers, while doing little for ordinary workers. In recent years, the modern workforce has gradually included more workers from China, India and other emerging nations, and that global competition has stagnated wages for...