In The News

Battle Over Steel Exposes Europe’s Globalization Dilemma

Jonathan Fenby June 1, 2006
Europe is polarized over globalization, unsure about whether traditions of ample social benefits can survive today's capitalism and competition from countries with low wages and labor standards. Yet consolidation through acquisitions is a trend for many industries, including steel, to reduce costs and increase economies of scale. Europe has long scooped up firms from around the globe, but...

Globalization: How the New Shift of Power Is Affecting Inflation

Hamish McRae May 31, 2006
Because of globalization, manufacturers must pay increasing prices paid for raw goods like oil or minerals, and consumers discover dropping prices for products on store shelves. This analysis of the International Monetary Fund’s “World Economic Outlook” suggests that ten years ago, developed countries provided the impetus for trade, but the emerging economies of India, China and Eastern Europe...

Russia's Energy Diversification Moves

Vladimir Radyuhin May 31, 2006
Blocked from investing in Europe’s retail energy market, Russian firms seek other customers in Asia, including Japan and China. The nation has substantial natural gas and oil reserves, and Gazprom, Russia’s natural-gas firm, anticipates acquiring stakes in the EU distribution network. However, the EU has balked, expecting Russia to open its own energy markets and abide by western standards of...

Chinese Influence in Brazil Worries US

Humphrey Hawksley May 24, 2006
The US has claimed the right to influence Latin America since the 1823 Monroe doctrine. Yet China diligently presents itself to the developing world, including Latin America, as a formidable model for ending poverty. Nations in South America like Brazil have taken notice, and the US can only fret about protecting the Americas as its turf. China continues to invest billions for infrastructure,...

Globalization Needs a Reality Check

Lyal White May 23, 2006
Globalization offers no guarantees – and does not necessarily lead to diversity, innovation and competition. Sometimes, large players present multiple brands, using globalization to mask ownership and monopolies. Consolidation of markets into global monoliths can encourage a standardization that inhibits innovation. Economic globalization does influence politics, because countries seeking...

EU Shoe Duty Trips Up Retailers

Juliane Von Reppert-Bismarck May 22, 2006
European consumers like bargains from Asia, but continental manufacturers expect protection from competition, fully expecting the government to increase tariffs on overseas products. So the EU trade commissioner aims for some compromise, for example, imposing tariffs on shoes for adults, but not for children. Clever retailers find loopholes with every exemption, simply labeling more shoes for...

Managing Globalization: How Diversification Can Act as a Hedge

Daniel Altman May 18, 2006
Bolivia’s steps to resume control of its natural gas industry from foreign multinational companies have not led to a drop in stock prices. Like the investors who protect portfolios with diverse investments, multinational firms rely on globalization and diverse geographic regions to protect their bottom-line profits. Of course, energy firms face limitations when it comes to diversifying based on...