In The News

Only 3 Percent of What You Buy Is Made in China, But It's the Most Important 3 Percent

Greg Lindsay August 25, 2011
For four decades, corporations have outsourced manufacturing operations to Asia, reducing costs. Shifting manufacturing off-shore eliminated jobs and also “sacrificed the know-how to think of new ways of manufacturing goods,” explains Greg Lindsay for Fast Company. In all, services represent two thirds of the US economy. Manufacturing’s role is small: San Francisco Federal Reserve economists...

The Great Failure of Globalization

Jeffrey Sachs August 24, 2011
US and European leaders are in denial over realities of global capital markets and competition from Asia, contends Jeffrey Sachs, director of the Earth Institute at Columbia University. Sachs argues that rapid globalization, responsible for the sharp economic decline of the west, has disproportionately hurt the unskilled and middle class while benefiting the wealthy. “The path to recovery now...

Top Indian Technology Firms TCS, Infosys, Wipro, Aegis and Others in US Are Going for Local Hiring

Shruti Sabharwal August 22, 2011
Indian IT firms are seeking to employ more Americans as a result of the high US unemployment rate and criticism of outsourcing. “In response, IT firms are now pulling out all the stops to be seen as job creators with a stake in local economies,” writes Shruti Sabharwal for the Economic Times. Sensitive to charges of stealing jobs, the Indian firms have joined a number of US initiatives: Wipro...

The Trouble With Outsourcing

August 1, 2011
Outsourcing has been tried in every field – from manufacturing to security – relying on specialized companies to provide efficient service or parts at a low price. “There are signs that outsourcing often goes wrong, and that companies are rethinking their approach to it,” reports this article in the Economist. The mishaps behind the manufacture of Boeing’s Dreamliner, with supply-chain delays and...

Measuring the Human Cost of an iPad Made in China

John Bussey June 6, 2011
Lower standards in workplace protections in China, along with the ample supply of low-cost labor, minimize manufacturing costs for Apple and other technology firms. Consumers demand low prices, companies pursue profits and the Chinese want jobs and economic growth. John Bussey of the Wall Street Journal describes how contract manufacturers satisfy those goals while shielding governments and...

In a Borderless World, Innovation Reigns Supreme

Ashok Bardhan April 4, 2011
Economists and policymakers recognize that investment in research and development – by government or industry – contributes to innovation, employment and higher living standards. In pursuit of bigger markets and lower costs US firms started the trend of relocating manufacturing and services overseas, and now R&D activities follow, explains economist Ashok Bardhan. The transfers raise...

A Bolt From the Blue Sea

Nayan Chanda March 31, 2011
Japan is the source of advanced technology for multiple industries. Triple tragedies of an earthquake, tsunami and nuclear accident – with thousands killed, hundreds of thousands displaced and rolling blackouts – immediately revealed many economic interconnections and the vulnerability of the global supply chain, explains Nayan Chanda, YaleGlobal editor, in his regular column for Businessworld....