In The News

Unilateral Delusions

Joseph P. Quinlan October 20, 2008
US voters have an independent streak, preferring to overlook just how much American prosperity depends on foreign labor, capital and natural resources. Presidential candidates find it easy to attract voters, especially those worried about jobs and the economy, with anti-trade messages, and this year’s campaign is no different: Democrat Barack Obama criticizes firms that ship jobs overseas, while...

Outrage Over Offshoring Goes Off-Target

Ann All October 17, 2008
Offshoring work overseas by US companies is a handy populist issue during a US presidential campaigns. The issue distinguishes the two candidates: Republican John McCain staunchly supports free trade and low taxes; Democrat Barack Obama supports free-trade agreements, but urges tax incentives for companies that keep jobs inside the US. Many US workers bitterly blame the loss of high-skilled...

Why the Critics of Globalization Are Mistaken

Jagdish Bhagwati October 8, 2008
The centuries-old process of globalization – people in search of the best locations for their families, the best ideas for organizing daily life – has become an easy target in a more crowded world: workers fear factories and jobs relocating overseas, environmentalists worry about development shifted to countries with minimal enforcement, and savers fret about irresponsible spending and investment...

Globalization and Politics

Nayan Chanda September 17, 2008
Faced with a battered American economy and a five-year high unemployment rate, US presidential candidates tend to slip into anti-trade mode. Piling blame on foreigners is convenient and attracts votes. But the US has misidentified the source of its economic woes, suggests Nayan Chanda in his column for Businessworld. Outsourcing is just one side of the coin of globalization; on the flip side,...

China's Outsourcing Appeal Dimming

Ariana Eunjung Cha September 11, 2008
US manufacturers, who watch budgets and make products for consumers outside China, are less eager to outsource manufacturing operations work. “Soaring energy costs, the falling dollar and inflation are cutting into what U.S. manufacturers call the ‘China price’ – the 40 to 50 percent cost advantage once offered by Chinese producers,” reports Ariana Eunjung Cha for the Washington Post. Cha...

Outsourcing at Crux of Boeing Strike

J. Lynn Lunsford September 9, 2008
Job security used to mean workers didn’t have to worry much about competition. But a strike at Boeing has redefined the notion of job security, with striking workers pleading for the chance to compete for company projects. The aerospace industry has adopted outsourcing supply methods of the automobile industry, and suppliers around the globe increasingly contribute more to Boeing products. “In...

Shipping Costs Start to Crimp Globalization

Larry Rohter August 4, 2008
Manufacturers increasingly sought a competitive edge by subcontracting out work for all manner of parts, from batteries to textiles, to countries with the lowest wages. But that strategy was viable only with low energy costs. Companies trying to keep costs low will move more operations closer to markets to reduce fuel costs, especially for bulky or perishable items like food. “Globe-spanning...