In The News

A Climate of Our Own Making

Scott Barrett May 25, 2006
Climate change grabs international attention, but spurs little action. In this article, environmental economist Scott Barrett urges governments to confront the inevitability of global warming and points to key shortcomings in global climate-control policy. To slow climate change, experts generally argue for stabilizing greenhouse gas concentrations in the atmosphere. Such progress, however,...

With Jobs Scarce, US Pilots Sign on at Foreign Airlines

Susan Carey May 24, 2006
After 9/11, the US airlines laid off more than 10,000 pilots, many still out of work. As US airlines struggle, the pilots take early retirements and fret about the safety of pension plans. Many abandon seniority systems or union protection in the US to land jobs with the booming aviation industry in China, India, Southeast Asia and the Middle East. With a global shortage of skilled commercial...

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...

Outsourcing Your Heart

Unmesh Kher May 23, 2006
People forced to pay their own health-care costs tend to hunt for bargains. As a result, medical tourism is booming, with patients in the US, Canada and UK scheduling flights to obtain surgery in India, Thailand, and other countries with trained physicians and procedures that cost 25 percent or less than those based in the US. Uninsured or underinsured patients in particular arrange for plastic...

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...

Managing Globalization: Old Tax Breaks Fade in New World

Daniel Altman May 17, 2006
Businesses that open subsidiaries solely to reduce tax liabilities may want to think twice before relocating to China or India. Taxation has become more complicated as more firms go multinational and countries welcome more foreign firms. But governments continue to impose and enforce taxation, reports author Daniel Altman. Tax evasion and underreporting are challenges for China. Both China and...

The Perils of Soft Power

Josef Joffe May 16, 2006
Any nation has an array of options for extending influence throughout the world: One is “hard power,” or military escalation. Another method, touted by a group led by Harvard Professor Joseph S. Nye Jr., is “soft power,” or cultural capital deployed across the globe. But soft power can produce antagonistic reactions. US movies, music and education may be popular in other nations, but world...