In The News

Worry on the Jobs Front

Nayan Chanda July 12, 2010
Global economic recession severely curtailed hiring in the developed nations – and economists debate whether the slowdown is temporary or a “new normal,” explains Nayan Chanda, editor of YaleGlobal Online, writing for the Times of India. Some analysts blame outsourcing, low-cost labor and minimal regulations in emerging economies for high unemployment rates. Yet decisions of policymakers,...

Companies Brace for End of Cheap Made-in-China Era

Elaine Kurtenbach July 9, 2010
An array of low-cost goods in stores of the West is possible because of ample Chinese workers willing to work for a few dollars a day. But the days of low-cost bounty could be ending, as more Chinese are willing to unionize and go on strike for better wages and benefits. Higher shipping costs and pressure from the West for China to increase the value of its currency add to an uncertain business...

Reverse Outsourcing

Nayan Chanda July 6, 2010
An old saying – what goes around comes around – applies to anything global, and that includes outsourcing. France and other developed nations with high labor costs have long and bitterly complained about jobs shifting to low-wage nations like China. But Europe’s rising unemployment, combined with rising wages in China, contribute to an agreement that brings up to 50 Chinese electronics and light-...

Germany's Export Boom Has Trade Partners Stewing

Armin Mahler, Christian Reiermann, Wolfgang Reuter, Janko Tietz June 30, 2010
Fortunes turn quickly, and the experience of German manufacturers shows that some firms emerge from recession with renewed strength. But global trade partners that rely on deficit spending claim that German prosperity comes at others’ expense, as suggests this Spiegel Online article. Critics complain that a weak euro, German wage stability and failure to stimulate domestic demand decrease the...

Entrepreneurs Wary of China Currency

Emily Maltby May 26, 2010
Any regulatory change creates winners and losers. Because of the strong trade relationship between China and the US, consumers and businesses in either country must adjust to changes from either government – and that includes the possibility of currency revaluation. Companies that export to China will benefit from revaluation, but the many small US businesses that depend on China for consistent...

Toyota’s Stumble is Not a Metaphor for Japan Inc.

Lam Peng Er March 26, 2010
Many equate Toyota’s current woes with a failure of Japan Inc, even Japan itself, according to East Asian specialist Lam Peng Er. But this would be a mistake. Toyota’s ills are really a congeries of missteps now caught up in conspiracy theories and political wrangling. For years, Toyota was synonymous with Japanese manufacturing excellence. But this search for constant improvement at an ever...

Demonizing China: Pundits Get its Role in Africa Wrong

Barry Sautman and Yan Hairong February 10, 2010
China’s growing trade with, and investment in, Africa have been much decried of late. It exploits African resources, critics have charged, makes shady deals with despots and warlords, and leaves the population no better, perhaps worse, than the Europeans before. But according to professors Sautman and Yan, China’s role in Africa has been much maligned. Though China mainly imports oil and other...