In The News

The Multilateral Trading System: A Response to Its Challengers

Ernesto Zedillo March 9, 2009
Protectionism could derail all the efforts applied on the fiscal and monetary fronts to address the ongoing global crisis, suggests Ernesto Zedillo, director of the Yale Center for the Study of Globalization. In an essay for a new ebook published by VoxEU he writes, “Despite the multitude of statements against protectionism made by leaders and their finance and trade ministers in recent months,...

Despite Rhetoric, Offshoring Won’t Stop

Dinesh C. Sharma March 9, 2009
As economic crisis sweeps the globe, citizens expect their political leaders to create jobs, but it leads to other problems in the process. For example, in the US, President Barack Obama has vowed to end “tax breaks” for companies that ship jobs overseas, causing consternation among some in the Indian IT industry. Indian IT provides services to financial, banking and insurance firms around the...

Is Protectionism Unavoidable?

Jeffrey E. Garten February 6, 2009
The warnings on protectionism are dire. Economists and historians repeatedly remind us about the danger of sliding into protectionism embodied in the notorious Smoot-Hawley Tariff Act of 1930. By raising import tariffs on thousands of goods, inviting retaliation, causing collapse of international trade, the act transformed a US recession into a Great Depression. Deepening anxiety about vanishing...

Outsourcing’s Appeal Grows During Volatile Times

Melanie Rodier January 23, 2009
The purpose behind most outsourcing is to increase efficiency and reduce costs. Firms can go to agencies that provide specialized and time-limited support in investor reporting, analyst research, legal research, regulatory oversight or information technology. “Outsourcing providers often invest in the latest technology, offsetting the expense by sharing the technology among several clients,”...

How 6 Parts Nearly Delayed World's Biggest Airliner

Chana Joffe-Walt November 6, 2008
Manufacturing can’t always keep pace with new products and ideas, and that is the case for some giant ball bearings, a needed part for major aircraft as well as wind turbines, reports Chana Joffe-Walt for National Public Radio. After calling his supplier in Germany, a US engineer working on the Airbus A380 was surprised to learn that delivery of the custom ball bearings would take 18 months and...

Outrage Over Offshoring Goes Off-Target

Ann All October 17, 2008
Offshoring work overseas by US companies is a handy populist issue during a US presidential campaigns. The issue distinguishes the two candidates: Republican John McCain staunchly supports free trade and low taxes; Democrat Barack Obama supports free-trade agreements, but urges tax incentives for companies that keep jobs inside the US. Many US workers bitterly blame the loss of high-skilled...

A Lesson in the “Link”

Nayan Chanda October 16, 2008
Just as one foul ingredient can spoil a recipe, so can one sloppy procedure ruin reputations for any firm and its country. The most recent case: Chinese dairies trying to boost profits with melamine-tainted milk that went into all kinds of products, causing health problems for more than 50,000 children. It’s good business practice for companies to monitor their supply chains, down to the smallest...