In The News

Putting the Brakes on US Fast Track

David Dapice June 26, 2007
Negotiating a free-trade agreement is no easy task. To minimize complications or addition of provisions to cater to special-interest groups, US Congress gave the president the authority to negotiate such pacts, before submitting them for legislative review and an up or down vote. Jobseekers and politicians in the West increasingly worry that labor, health, safety and environmental regulations put...

Global Trade Talks Collapse Over Agricultural Subsidies

Carter Dougherty June 25, 2007
Another attempt to revive the Doha round of negotiations, the goal of which is a global trade agreement for reducing poverty in small developing nations, collapsed once again. The US and Europe resist slashing their own agricultural subsidies as much as developing nations, including India and Brazil, would prefer. Brazil and India refuse to open their markets to goods from the industrialized...

Discount Dentistry, South of the Border

Manuel Roig-Franzia June 20, 2007
Consumers who lack insurance for health care tend to make decisions based on price – and travel to neighboring countries known for low costs. US consumers who don’t have dental insurance head to Mexico, where prices are about one quarter what’s charged in the US. Costa Rica, Hungary and Thailand also offer low-cost dental havens. Some US consumers even decline insurance, because the premiums cost...

Capitalism with Special Chinese Characteristics

Gustav Ranis June 19, 2007
On the surface, China’s fast-growing economy looks superb. However, growing income inequality and the massive inflow of foreign funds can pose problems that often go unrecognized. International economics professor Gustav Ranis categorizes China’s economic problems as a type of “Dutch Disease,” a phenomenon when rapid growth in one export can lead to pockets of excessive wealth, weakening of other...

Fake Lipton Tea, Nescafe Leak Into EU, Hurting Unilever, Nestlé

Stephanie Bodoni June 19, 2007
Low costs in shipping and packaging allow counterfeiters to apply their skills beyond luxury goods to ordinary products, including tea, shampoo or soap. Some counterfeit toothpaste contained chemicals found in anti-freeze, and imitation teabags include sawdust or dyed wood chips. One factory in Pakistan with 20 people made a ton of counterfeit tea each day. With the internet easing ways to find...

Globalization in Every Loaf

Alexei Barrionuevo June 18, 2007
Ingredients for any processed food product, from bread to vitamins, can come from all over the world. “The lowering of trade barriers more than a decade ago has pushed food companies to scour the globe for more exotic – or the cheapest – ingredients to compete in a more global marketplace, not unlike automakers shipping in parts from all over,” writes Alexei Barrionuevo for the New York Times. A...

China's Conquest of Africa

Andreas Lorenz June 15, 2007
China is purchasing and investing in Africa’s natural resources and, in return, providing the continent with cheap consumer goods and a powerful trading partner. Not all Africans are pleased. Some, such as Michael Chilufya Sata, head of Zambia’s Patriotic Front, an opposition group, points out that the Chinese don’t have to pay taxes and warns voters that China could export dictatorship to Africa...