In The News

US Recovery, Asian Surge Will Boost World Trade 7.5%: WTO

Ravi Kanth April 4, 2004
The US economic recovery and Asian trade growth should push global trade higher this year, according to the World Trade Organization (WTO). Yet such growth is susceptible to three risk factors: the level of the US current account and budget deficits; the extent of European economic growth and the value of the Euro; and the volatility of oil prices. With the US current account deficit set to reach...

Clearing Clouds Over the Karakoram Pass

Ziad Haider March 29, 2004
Over the latter half of the 20th century, relations between China and Pakistan were anchored in large part on both countries' strategic interest in balancing India as a regional power. The Karakoram Highway, which runs for 500 miles between the two nations, is representative of those collective interests. However, says Ziad Haider of the Henry L. Stimson Center, since the Highway was...

A Tale of Two Cities

Kerry A. Dolan March 29, 2004
Forbes magazine compares the stories of a dozen Americans laid off in Silicon Valley because of offshoring to those of their Indian counterparts who gained some of those jobs in Bangalore, India's offshoring hotspot. Before losing their jobs, American workers in the technology industry were going about their usual business –taking home plump checks, closing on a condo, and generally enjoying...

Cashmere Moves on, and Scotland Feels a Chill

Allan Cowell March 27, 2004
For decades, the Scottish Borders region has sustained an active cashmere industry, producing lusciously soft scarves and sweaters for high-end consumers. Now, however, Chinese textile manufacturers are displacing Scottish producers from large swaths of the market. Chinese producers "are having their day as far as manufacturing goes," says one industry analyst, "and they have the...

American Democracy May Taste Indian Voting Machines

March 26, 2004
As the US presidential election approaches (and memories of the 2000 election's complications remain fresh), the question of how US citizens will vote – by machine or by paper – has become unusually heated. Now an Indian company, Bharat Electronics Limited (BEL), enters the fray by marketing its own voting machine designed for India' parliamentary elections. Importing electronic voting...

Containerized Trade Imbalance Set to Worsen

Beth Jinks March 25, 2004
A third of all shipping containers that land in Singapore are empty, according to recent surveys. This trend is set to continue throughout Asia, as more manufacturing shifts to the region. But shipping empty containers is costly – and worrisome to operators of shipping lines. The current imbalance, say observers, is partly due to the rise of countries like China, whose cheaper labor constitutes a...

Jobs Can Be Outsourced, Not Politics

Harold James March 24, 2004
The American outcry about outsourcing stems not just from job loss, but also from the politician's favorite platitude - trade. According to Princeton historian, Harold James, ascribing job loss to trade is fraught with complications. Moreover, from a historical point of view, it is a recurring theme that often ends terribly. As James notes, throughout the latter part of the 19th and early...