In The News

Chinese Companies Face Uphill Path for Profit in India

Wei Gu September 26, 2008
Chinese manufacturers have long been able to manufacture products at a fraction of the cost of production elsewhere, setting the standard for production models in recent years. However, with a surplus of producers in their domestic market, Chinese companies look west to India. As journalist Wei Gu notes, India is both the alluring “prize” of emerging markets as well as a steppingstone to Western...

Keeping Up With China's Olympic Shine – Part II

Alexandra Harney September 24, 2008
China has become known as factory to the world – as manufacturers invested in factories to take advantage of a labor force that accepts low wages and a government with minimal environmental standards and even less enforcement. Shoppers like low prices while the companies enjoy immense profits. China, indeed the entire world, pays a heavy price for manufacturing firms gathering in a place with...

Keeping Up With China's Olympic Shine – Part I

David Dollar September 22, 2008
Awarded the right to stage the 2008 Olympics, China set to work polishing cities and parks, designing grand architecture, and coaching citizens to be warm and welcoming hosts. No sacrifice was deemed too great for achieving a successful Olympics and sending a message worldwide about China’s can-do spirit. Perhaps more than anyone else, China’s people appreciated the end results, with the emphasis...

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...

Globalization and Politics

Nayan Chanda September 17, 2008
Faced with a battered American economy and a five-year high unemployment rate, US presidential candidates tend to slip into anti-trade mode. Piling blame on foreigners is convenient and attracts votes. But the US has misidentified the source of its economic woes, suggests Nayan Chanda in his column for Businessworld. Outsourcing is just one side of the coin of globalization; on the flip side,...

Township for Foreign Workers Could House Up to 20,000 Under One Roof

Imelda Saad September 12, 2008
Singapore banks on its stable, multicultural society to attract investors and businesses. Investment in infrastructure construction has required foreign workers who bring new cultures and habits, some considered unacceptable by local Singaporeans. Hence, dormitory operators have proposed building huge “townships” for up to 20,000 foreign workers in one location, a concept that flourishes...

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...