In The News

Is Mexico the New China?

Rafael Rivero, Sara Miller Llana September 17, 2008
With uncertainty in oil prices and rising labor costs in Asia, Mexico is luring manufacturing jobs away from China. US companies seek manufacturers close to US markets, an attempt to curb transport costs. Chinese workers also demand protections and higher wages. An emphasis on public and worker education also attracts jobs: Mexico has emphasized worker education, which complements value-added...

China's Outsourcing Appeal Dimming

Ariana Eunjung Cha September 11, 2008
US manufacturers, who watch budgets and make products for consumers outside China, are less eager to outsource manufacturing operations work. “Soaring energy costs, the falling dollar and inflation are cutting into what U.S. manufacturers call the ‘China price’ – the 40 to 50 percent cost advantage once offered by Chinese producers,” reports Ariana Eunjung Cha for the Washington Post. Cha...

Carry On China

Nayan Chanda August 30, 2008
The decoupling theory suggests that China, in a league of its own, will expand voraciously on its own terms despite the beleaguered world economy. Although the Beijing Olympics demonstrated a superiority that supports this theory, China remains immutably linked with the world. Though China may want to remain the top global manufacturer, the nation cannot control foreign demand for manufactured...

Shipping Costs Start to Crimp Globalization

Larry Rohter August 4, 2008
Manufacturers increasingly sought a competitive edge by subcontracting out work for all manner of parts, from batteries to textiles, to countries with the lowest wages. But that strategy was viable only with low energy costs. Companies trying to keep costs low will move more operations closer to markets to reduce fuel costs, especially for bulky or perishable items like food. “Globe-spanning...

Can the US Bring Jobs Back from China?

Pete Engardio June 23, 2008
Despite a decline in the dollar and a spike in oil prices, finding a US manufacturer eager to develop prototypes for new products or compete for contracts is not easy. Not only does the US fail to compete in industries that require ample cheap labor, it also struggles to compete in terms of innovation. “American factories and supplier networks in many industries have withered in the era of...

Stung by Soaring Transport Costs, Factories Bring Jobs Home Again

June 18, 2008
Rising energy costs are putting the brakes to rapid globalization – and in some cases even reversing gears. Manufacturers are rethinking any plans to open new factories in low-wage nations, and some even ponder returning factories to the US and Mexico from China, reports Timothy Aeppel for the Wall Street Journal. Transportation costs are now equal to a 9 percent tariff on US imports, notes one...

EU Enlargement: The Dark Side of Globalization

June 2, 2008
As the European Union opened trade and borders, foreign investors set up shop in communities throughout the former Soviet Republic. For example, Samsonite opened a factory in Samorin, Slovakia, in 1997. But the jobs and economic development were short-lived, with Samsonite moving its production line on to China a decade later. “Samorin is a witness to the way that globalisation is fragmenting as...