In The News

Strike Threatens Nigeria's Oil Production

Rory Carroll October 14, 2004
Oil production is at the center of current political controversy in Nigeria: The government has become rich from oil sales, while the majority of the population remains destitute. Trade unions imposed an oil workers' strike over the past three days, demanding that the government maintain domestic oil subsidies. Though oil production has continued during the strike, the major oil workers...

The Price of Free Trade - Part I

Mustafizur Rahman September 29, 2004
Instituted some 30 years ago, the international Multi-Fiber Agreement (MFA) set export quotas on all textile manufacturing nations. Some poorer countries, like Bangladesh and Cambodia, received larger quotas, which enabled them to attract foreign investment and sharply boost their earnings. Artificially protected from competition, they built their developing economies around the textiles...

Tremors of Global Insecurity Reach Shangri-La

Kesang Sherpa September 27, 2004
As the South Asian nation of Nepal has seen, the forces of globalization may be both a blessing and a curse. While open borders helped to develop trade, manufacturing, and tourism as the country's economic pillars, a Maoist insurgency has devastated the country in recent years. Amidst this social and financial crisis, Nepali workers overseas now bear the onus of supporting Nepal's...

Budapest, the Next Bangalore? New EU Members Join the Outsourcing Race

Stefan Wagstyl September 21, 2004
American companies have become the world's leaders in outsourcing services to regions with low labor costs. Western European firms, previously slow to follow this global trend, have now begun outsourcing labor to central and eastern European countries, whose advantages include geographical proximity and language proficiency. Despite early optimism, a few obstacles lie ahead. First,...

In Some States, Foreign Trade Means Jobs

Timothy Aeppel September 21, 2004
When outsourcing started becoming a trend in America's many industries, Midwestern states, such as Ohio and Michigan, suffered the biggest job losses. Compared to other US regions, however, the Midwest experienced higher-than-average exports, which helped lessen the impact on employment. A Bank of America market strategist suggests that "the more integrated a state is with the global...

Nagging Doubts About the Benefits of Globalization, and a Look at the Evidence

September 20, 2004
The phenomenon of "outsourcing" still fans the flames of much heated debate in both Europe and North America. At once praised and vilified, it has crept into all levels of discourse and political rhetoric. Some economists, led by Nobel laureate Paul Samuelson, have argued that by facilitating business and technological growth abroad, outsourcing companies may be sowing the seeds of...

France Hopes to Block the Wave of Globalization

A. Sheshabalaya September 20, 2004
Job outsourcing has figured prominently in worldwide economic discussions, and the French government has taken a decisive, though controversial, step to address the phenomenon. In an effort to protect domestic employment, Prime Minister Raffarin announced a large subsidy for companies refraining from relocation. Honorable intentions aside, writes global Ashutosh Sheshabalaya, France may be...