In The News

Trade Deal Sparks Fight Over Socks

Ian Swanson November 1, 2007
The US Congress and Department of Commerce are considering raising tariffs on sock imports from Honduras. Passage of the Central American Free Trade Agreement in 2005 decreased protections between the US and several Latin American states, and some analysts suggest that factories based in the US will close and move jobs to Honduras, with its low production costs. A Canadian company is taking...

Consumer Mouse That Is Roaring

Peter Kell October 29, 2007
The marketing of some products, particularly those targeting children, is irresponsible. Some firms make outlandish claims, all to make a profit. As a result, global consumer trust has declined both in rich and poor countries. Still, some countries regulate products and marketing more heavily than others. "As consumers we face the reality that product standards in other countries can have a...

Gale Warning, Global Burden Sharing

Joergen Oerstroem Moeller October 19, 2007
Global questions of political economy have traditionally revolved around sharing public goods or dealing with crises. Today, however, the world must decide how to distribute the costs of tremendous challenges that are looming over the horizon. Joergen Oerstroem Moeller, visiting senior research fellow with the Institute of Southeast Asian Study, anticipates the world to be buffeted by the...

In Search of Common Sense

Bo Ekman October 12, 2007
Globalization and an unchecked quest for economic growth have rapidly changed the world. Growing numbers of people expect a standard of living substantially higher than what the earth has capacity to provide. Humans increasingly confront problems global in scope, yet the world lacks a cohesive form of governance that efficiently addresses issues that surpass national boundaries. The world could...

Crouching Alliance, Hidden Angst?

Yu Bin October 10, 2007
Recent military exercises by the members of the Shanghai Cooperation Organization, particularly Russia and China, have prompted speculation about an emerging military alliance between the two Asian powers, standing in opposition to the United States. However, Yu Bin, senior fellow for the Shanghai Institute of American Studies and political science professor at Wittenberg University, argues that...

Outsourcing Is Too Wild to Fit Economic Theory

Andy Mukherjee October 9, 2007
Firms that consult and perform outsourcing work make use of all available space, time and labor. Global outsourcing is highly unpredictable and firms can perform projects from many locations, explains Andy Mukherjee for Bloomberg.com. Mukherjee provides an example: When Satyam Computer Services did one project for John Deere in Illinois, the firm rented nearby space, assigning 10 engineers to...

Rumble in the Graveyard

Margot Cohen October 1, 2007
Just two decades ago, gravestone suppliers based in India were poised to dominate the global market. But now, China imports colorful granite available only in Indian quarries, manufactures tombstones and sells them to the world. In the process, China undercuts prices from other producers, including those in India. As Sino-Indian trade reaches unprecedented levels, India’s trade deficit with China...