JMSC6047, Business & Financial Journalism in an Age of Globalization

Get free sex in Copenhagen

pia@buhla.dk — Fri, 04 Dec 2009 16:00:29 +0000

Because of the COP15 meeting a lot of prostitutes are travelling to Denmark. But the City’s counsil apparently doesn’t want the prostitutes to “serve” the many guests: The counsil has contacted more than 160 hotels and asked them not to arrange prostitutes for the guests.

Therefore the prostitutes are now protesting with free sex. Read the whole article here on Cphpost.dk which is a newspaper for expats and other foreigners in Denmark.

Bhopal 25 years later

randrew44@yahoo.com — Thu, 03 Dec 2009 09:14:07 +0000

http://edition.cnn.com/2009/WORLD/asiapcf/12/02/india.bhopal.anniversary/index.html

Ryan Andrews

Quite a sad and timely article on the damage big business can cause and the repurcussions after they pack up ship and head out. The slideshow is very well done as well.

N Korea has gone crazy!!!

eageywang@hotmail.com — Thu, 03 Dec 2009 09:11:11 +0000

North Korea was redenominating its currency. Residents has less than a week (starting from Dec.6) to change a limited number of old bills into new ones. But there is a limit of 100 thousands per household, the rest of their bills will be collected by the banks. That’s outrageous!!! That’s legal robbery!!! At the same time, N Korean government has cut down telephone service and announced a curfew. You don’t want to miss this! — Natalie Wong

Who’s in Charge… of Climate Treaty?

H Park — Wed, 02 Dec 2009 12:26:03 +0000

The COP15 is about to begin soon. Who will lead the conference? The U.S.? China? Is there no one else worth mentioning its name before the landmark meeting? How about the EU? Well, market analysts beg to differ, projecting that the Copenhagen summit will be a playing field mostly between the U.S. and China. Amid this, the EU will be widely ignored of its efforts it had achieved in reducing carbon gases. But this coming meeting is not about who has the power, or who is most influential. It should be held by giving equal opportunities and voices to participating nations, whether they be developed, developing or underdeveloped economies, while taking note of endeavors by the EU. — Park Hyongki

Climate change debate

timfungkwokho@yahoo.com.hk — Mon, 30 Nov 2009 08:02:19 +0000

There has been a heated debate among the scientists as to whether climate change has been caused by human activities in terms of excessive emissions of greenhouse gases or it is simply the result of natural variations in solar radiation. Some argue that the trend of rising temperature is going to end. Irrespective of the certainty of continuing climate change, it is indeed the responsibillity of politicians to deal with the potential threat. Read the article for details.

By Tim Fung

Dubai World Shakes the World

susie.pku@gmail.com — Mon, 30 Nov 2009 05:36:14 +0000

Last week, when the government supported Dubai World announced that it would delay the repayments of its debt which is about 60 billion US dollars, the global financial markets were shaken. Stock markets all over the world slumped. The possible default deeply undermined investors’ confidence. (US stock slumps, Japan market plummets, Emerging-markets drops)

Some experts said Dubai’s rescheduling of repayments could be regarded as default so far. Perhaps because RBS is Dubai’s largest lender, Dubai’s default has great influence on the European markets. So, on the other hand, the US dollars and yen rise.

It is a very serious warning to the world about the economic recovery. Have we really gone out of the swirl? Dubai kept borrowing money and investing much on constructions during the crisis, which made it look immune to the global downturn. Now, the truth came out.

Luckily, Dubai’s losses seem to have limited impact. Today, the markets start gaining again. (Asian stocks up on Monday). But the vast development of Dubai is more or less blind, which leads to today’s crisis. More caution may be necessary amid the great tide of development.

– Li Shuxia Susie

Material for Nov. 30 posted

Rusty — Sun, 29 Nov 2009 04:24:51 +0000

You’ll find research and idea material for three areas–arms control, medicine and cybercrime–in the left rail. These three complete our tour of main business issues for next three to five years. See you in class Monday, and don’t forget: drinks at the FCC, 6 p.m., Tuesday, Dec. 1.

After Complaints, Gates Foundation Opens Education Aid Offer to All States

cindy.sy.lee@gmail.com — Fri, 27 Nov 2009 15:15:38 +0000

Originally, Gates Foundation had chosen 15 states to give $250,000 each, to help them prepare the grant proposals that could help their states win the Department of Education’s $4 billion grant competition, known as Race to the Top. However, after the some officials complained, the foundation has broadened its offer to include the other 35 states, which are competing for the money and can prove they share the foundation’s views about education reform. Now all the states are happy! - Cindy Lee

Foreign Direct Investment in China–different report

Saiyu ZHOU — Fri, 27 Nov 2009 15:05:15 +0000

Foreign direct investment in China decreased more that 30% percent due to the financial crisis. And It was reported differently in Chinese media and foreign media.

One media said “Foreign Direct Investment Drops by 32.7 Percent”.

The article from China Daily said “China still top destination for FDI”.

—Saiyu ZHOU

Globalisation: Good or bad?

globe.kennethchan@gmail.com — Fri, 27 Nov 2009 13:25:49 +0000

Though it is a old story, there are some good thoughts on different sides of globalization, especially when comparing people’s comment 10 years ago to the situation nowadays..

http://news.bbc.co.uk/2/hi/talking_point/1444930.stm

Kenneth Chan Chun Kit

McSpotlight

globe.kennethchan@gmail.com — Fri, 27 Nov 2009 13:24:44 +0000

About everything and exploitation of animals from MNC McDonalds. Definitely there are some good stories to cover and warn our audiences on McDonald’s business..

http://www.mcspotlight.org/

Kenneth Chan Chun Kit

Crisis Far From Over

H Park — Fri, 27 Nov 2009 11:43:22 +0000

Dubai debt shock has sent a ripple effect across the world, igniting fresh concerns over the viability of the global economy. European and Asian stock markets took a heavy pounding, losses led by shares of construction and financial, two sectors with considerable exposure to the UAE city’s rapid expansion and investment in infrastructure and property. This goes to show that the world is more closely linked than we think, and that the crisis has not abated yet. Given the re-emergence of the fallout, can we expect the dollar to become strong… again? — Park Hyongki

FDI in Vietnam & King Bongo

dcmp@hotmail.com — Fri, 27 Nov 2009 09:27:44 +0000

An interesting article here on an IMF conference regarding Foreign Direct Investment in Vietnam in the end of the 20th century. Particular interesting, as it shows the direct effect and importance FDIs have on domestic economic development.

And here’s a Rusty recommendation:

An obit. in the NYT of the famous “King Bongo” of Gabon.

- dan Pordes

Corrupt NGOs: The Pinnacle of Evil. At Least Dictators don’t pretend they’re Nice.

natashareneekhan@gmail.com — Fri, 27 Nov 2009 07:14:49 +0000

As an extension of some issues we discussed in Monday’s lecture, this (rather dated, but valid) Forbes article outlines issues of NGO governance and transparency. Though donors and international organizations have increased direction to NGOs, ultimately, NGOs should understand that if they are more transparent, they can get more money!

One example of misuse and embezzlement of NGO funding is this Indonesian fine art and handicrafts NGO (?!??!?!) leader, recently charged for welfare fund misuse.

Finally, I came across a book I now plan to read – American author Paul Thoroux’s ‘travel’ book, Dark Star Safari: Overland from Cairo to Cape Town. This review explains the former Malawi peace corp volunteer’s very skewed and jaded view of NGOs in Africa. Note an interesting observation by the reviewer when he discusses cultural spending and saving habits, and its link with aid and development. – Tash Khan

Where has all the money gone…

phillippa.stewart@googlemail.com — Wed, 25 Nov 2009 06:43:50 +0000

…turns out no-one knows! This BBC article jumped out at me after we discussed finding out about where the aid for developing countries actually went. The BEEB obviously bugged our class.

Excellent story resource, and McD’s CSR

rich.macauley@gmail.com — Wed, 25 Nov 2009 05:33:23 +0000

Considering the theme of this week’s lecture being questions and not answers, I thought I’d share with you an excellent source of story ideas.

It’s another place which should hopefully provide lots of inspiration for stories, and best of all its free.

Sign up for a media account at Brookings, and you can read articles written by leaders-in-their-fields, experts and the like. There’s also a calendar (I think) of events which should be good for story planning, and I believe you can request transcripts of some of the events.

Regarding our talk about Corporate Social Responsibility, here’s what McDonalds is doing about its own reputation.

Apparently as well as all the billions of dollars they are already spending (probably) on saving the environment, each of the 40 new restaurants to open in Germany next year will be constructed at least in part with natural stone and wood, to ‘remind diners of the restaurant’s relationship with nature’.

Let’s just hope it’s taken from sustainable forests?

– Rich Macauley

This Year’s Economics Nobel Winner on Why Greed Isn’t Always Good

jonathanstray@gmail.com — Mon, 23 Nov 2009 13:22:21 +0000

Standard economic theories assume that everyone acts in their selfish best interest all the time, leading to the “tragedy of the commons” where shared resources are overused and destroyed. NPR has an illuminating interview with Elinor Ostrom, who doesn’t think this is accurate. She points out that social groups successfully manage shared resources all the time, such as a pasture shared among farmers that must not be overgrazed. After decades of developing these ideas, she won the 2009 Nobel in economics for her research examining how people work together to solve economic problems in their common interest. She explains it like this:

The core is still an individual, but the individual is a little more complex than the caricature of “me first always”. The “me first always” caricature model can be used, mathematically, to predict outcomes when the problem is pure private goods and you have a highly competitive market. But we have to also understand that humans are more complex than immediate material self-interest as the only goal. So humans learn norms and ways of expressing themselves, and the importance of love of brothers and sisters and their spouse, and members of their community. Then, instead of taking my individual interest only into account, an individual outside of a really narrow market situation can take the broader community into account.

Take that, rational agents. This is really illuminating stuff, and makes for an excellent comeback when you’re sitting at the bar with a trader who is trying to tell you that a) greed makes capitalism work best or b) everyone is greedy all the time anyway.

Full interview is here.

Chinese investment in Africa – No strings attached?

daustenmorris@gmail.com — Mon, 23 Nov 2009 10:26:19 +0000

This article is the most recent of NYTimes examination of Chinas relationship with Africa. Earlier this month, China pledged $10 billion in loans (double what it pledged in 2006) to the continent. However, China’s “no strings attached” African aid policy is becoming increasingly scrutinized. — Deirdre

Macau keeps rolling on…

randrew44@yahoo.com — Mon, 23 Nov 2009 06:59:29 +0000

Ryan Andrews

I keep following the situation in Macau to get some reflection on the overall economy and while much construction has been halted stocks and IPO’s continue to do well as this article touches on. I find it quite surprising as I know Las Vegas in the States is geting crushed on all fronts. Guess it shows the house always does Wynn.

http://dealbook.blogs.nytimes.com/2009/11/10/sands-seeks-33-billion-in-hong-kong-ipo/

Weapons trade and Arms Embargoes

siggins_hk@yahoo.ca — Sun, 22 Nov 2009 16:21:49 +0000

This is part of a larger report that examines UN arms embargoes since the 1990’s. As one might suspect, the major weapons dealers are present, but what surprised me most was the involvement of several Eastern European countries. There are case studies that are particularly interesting. I would recommend reading the ones on Sierra Leone and Sudan. According to this report, in 2004 the UN Security Council passed resolution 1556 but China and Russia insisted that this resolution not include the government of Sudan. The EU and the US felt differently. Both China and Russia abstained from voting on a UN resolution that would have extended the arms embargo, thereby undermining it. This happened in March 2005. CNOOC’s failed bid for Unocal happened at the end of March 2005. By then the differences of opinion between the US and China over Sudan had been raging in the UN for about a year.

Sandra

Overworked? Here’s help

Rusty — Sun, 22 Nov 2009 06:06:11 +0000

I have just sent you all this e-mail. Please read closely:

Dear Everyone:

I have posted all your articles to the blog. Thanks. They’re excellent. Extensive readings and background material for the Nov. 23 talk are also posted.

I am concerned that most of you are too loaded down with work at the end of the term. I am therefore canceling the final essay. Instead, we will use the final session, Dec. 7, for an informal discussion of what topics you think should have been included this term. In other words, what global business issues over the next three to five years did we leave out? Remember that we’re talking about issues, not technique. Things like covering earnings, economics and companies will be covered in the classes offered in the spring.

On Nov. 23, we will discuss foreign direct investment and the role of business in development.

On Nov. 30, we will collapse two lectures into one and talk about cybercrime, the business of health care and so forth.

Then we’ll finish on Dec. 7 with the issues discussion.

I’m pleased with the way this semester has gone. If you’ve submitted your first two essays and your weekly readings, your grade will be in good shape.

Thanks, regards,
Rusty

A Taste of Wine… Fund

H Park — Sun, 22 Nov 2009 05:38:47 +0000

A little story I did way back in Korea, but thought I could have done more research on wine and its industry, instead of relying on raw data by a chief executive of an asset management company. Rusty, comments and advice will be much appreciated or links to related sites for future reference. Thanks.–Park Hyongki

What does Hunger Mean to Agriculture Commodities?

luyueyang@hotmail.com — Sun, 22 Nov 2009 05:38:19 +0000

Nearly one in seven of the world population is hungry, said this NYTimes story. Despite more than ten years of concentrated effort, the problem is that nobody seems to have the money!

I post this article partly because I cannot figure out what the increasing hunger in developing countries will mean to agriculture commodities. Is it because we have not enough food, or the price of agriculture commodities is too high?

— Yueyang LU

Almost There – WTO Chief speaks on the progress on the Doha round of trade talks

tktleung@gmail.com — Sun, 22 Nov 2009 05:37:59 +0000

A recent article by Canada’s Globe and Mail on an interview with WTO chief Pascal Lamy on his thoughts about reaching to an end of the eight-year drag (or battle, for protectionist) of the Doha round of talks. Lamy believes that as the deal is almost complete, one of the key players, US, will win the congress approval as it provides a “win-win” situation to tackle the multi-laterial trade inbalance among WTO members.

Lamy also suggests that global economic situation will definitely put pressure on the WTO system as protectionists might argue the organisation’s advocacy in free-trade might hurt the domestic (or US) suppliers.

November 4, 2009

WTO chief on ’sweet and sour’ Doha deal

By BRIAN MILNER
From Wednesday’s Globe and Mail

Source URL: http://www.theglobeandmail.com/report-on-business/wto-chief-on-sweet-and-sour-doha-deal/article1350517/

As head of the World Trade Organization, Pascal Lamy has kept a sharp lookout for fresh outbreaks of protectionism during the global economic crisis, even as he attempts to steer the Doha Round of global trade talks to completion and awaits an agreement on climate change before tackling the thornier trade issues posed by a raft of new environmental rules.

The Doha negotiations have dragged on for eight years, but Mr. Lamy is convinced a deal can be concluded by next year. “We are nearly there, but there remain a few nuts to crack, mostly the U.S.” he told The Globe and Mail’s editorial board yesterday.

You have been pessimistic in the past about completing the Doha Round. What makes you more positive now?

I’m never optimistic or pessimistic. Neither disease can I afford to contract. … What I’m saying is, given what’s on the table, which is roughly 80 per cent of the deal already cooked, what remains to be done [is] doable.

Are you convinced it can get through the U.S. Congress, given the current protectionist climate and its desire to safeguard farm subsidies?

If we were to conclude a deal in 2010, ratification would not come before 2011. And the implementation of such a deal would take five years in developed countries and 10 years for developing countries. So it’s not a big bang overnight. Of course, it’s probably one of the reasons the U.S. President is cautious at this stage. You need the package to be accepted by Congress with a mix of sweet and sour tastes. People won’t like cotton subsidy reductions, but they will like more services market openings in India and China. … The good thing is that it’s a win-win game.

Where do you see the protectionist hot spots during this crisis?

We’ve been monitoring trade policy development very closely. … There have been a lot of protectionist pressures [in terms of rhetoric]. There hasn’t been a lot of that in reality. Some here and there. Buy America. There is an increase in the use of trade defence mechanisms … as would be expected. … There is a huge correlation between the economic cycle and the use of trade defence instruments.

All in all, the system has worked.

But it’s too early to reach an assessment of how the system has weathered the crisis.

The jury will be out for at least one or two years. The stress test of the WTO system is not over. As long as unemployment will be on the rise, protectionist pressures will multiply.

Korea-EU Trade Pact

H Park — Sun, 22 Nov 2009 05:37:59 +0000

The European Union and S. Korea forged a preliminary trade deal a month ago, sending signals to the world that politically they support free trade, not protectionism. The EU is Korea’s second biggest export destination after China. The free trade pact will certainly increase more goods shipped to the European market. And the EU has been gaining greater market interest in S. Korea than the U.S. Although the two sides still face thorny issues such as automobile and agriculture, the deal faced little resistance from the public compared with the KORUS FTA. What will happen to U.S.-Korea FTA? — Park Hyongki

Raising Capital from Non-Traditional Sources by Ken Silverstein

cindy.sy.lee@gmail.com — Sun, 22 Nov 2009 05:37:59 +0000

What’s the most important thing for many organizations to regain their footing, as the economy is recovering? Raising Capital! One way for global organization to raise capital from non-traditional way is to get their hands onto the “Sovereign wealth funds” from foreign governments, who are willing to invest in their enterprises for essential resources. This article will tell you how “Sovereign wealth funds” can affect the nations and their economy. –by Cindy Lee

Rains cast cloud on US crops yields

Saiyu ZHOU — Sun, 22 Nov 2009 05:37:59 +0000

The commodity market is just as sensitive as the stock market. Heavy rains in the US boosted the prices of corn, soybean and wheat by 35%. No wonder there is a derivative market for WEATHER!

Saiyu ZHOU

Useful website for options

globe.kennethchan@gmail.com — Sun, 22 Nov 2009 05:37:59 +0000

I have been following options and I find this site really useful.

http://www.reuters.com/finance/options

I hope all of you can get use of this good site with options information in the market.

Chan Chun Kit,Kenneth

Chinese Drywall Triggers More Trade Tension

luyueyang@hotmail.com — Sun, 22 Nov 2009 05:37:59 +0000

Another scandal about “Made in China”. I have nothing to say, but hope that people can learn lessons from the case. Please see the story in NYTimes. — Yueyang Lu

Too early to equal China with the US

susie.pku@gmail.com — Sun, 22 Nov 2009 05:37:59 +0000

The cover story of the latest issue of Economist is about “the odd couple”- China and the US. In the article “A Wary Respect”(Economist.com), the author argues that although G2 has become a heated topic, it seems that China has overestimated its power compared to the America’s.

In terms of economy, China is fast developing, but it still lags behind as a technological innovator and has very few international brands.

In terms of politics, China is suffering a period of protests and social tensions.

While China has become the biggest lender to the US, which in theory enables China to destroy the American economy, it is also true that China possesses large amount of dollar reserves. Consequently, a sell-off of the US debts is suicidal for China, thus cannot be a real threat to the US.

Concerning currency status, the decline of US dollars does not really give RMB a chance to become a global currency, while it helps America’s export and trades.

Therefore, basically I agree with the article. Although China is rising quickly and playing an important role in the global community, it is still too early to regard it as equal with the US in terms of power and international influence.

– Li Shuxia Susie

Can’t solve it with just a delivery order: More people will be people the ranks of the hungry, U.N. World Food Programme warns

tktleung@gmail.com — Sun, 22 Nov 2009 05:37:59 +0000

A recent article on there are not just an inequality in wealth distribution but food is also unequally distributed as more and more people in the developing world will fact starvation for the coming years.
The global climate change is a becoming a "catalyst" in this aged problem. Maybe G-8 or now the G-20 should have thought of something during their earlier meeting to tackle this problem instead of the financial crisis
The food problem is way more significant to many of us.

UN food agency says 200 million more people hungry
Article URL: http://news.yahoo.com/s/ap/20091026/ap_on_bi_ge/as_australia_world_food_crisis_5/print
By ROD McGUIRK, Associated Press Write

Mon Oct 26, 8:39 am ET

CANBERRA, Australia – Most of the developing world is paying more for food despite drops in commodity market prices during the global economic slowdown, with 200 million people joining the ranks of the hungry in the past two years, the U.N. World Food Program said Monday.

The agency’s executive director Josette Sheeran blamed climate change, escalating fuel costs and falling incomes. She said the number of “urgently hungry” had now reached its highest ever — 1.02 billion.

“One out of six people in humanity will wake up not sure that they can even fill a cup of food,” Sheeran told reporters. “We have to make no mistake that hunger is on the march.”

She said while prices had tumbled on global commodities markets due to the financial crisis, the prices of most food staples in the developing world have soared.

“The food crisis is not over. We have an anomaly happening where on global, big markets, the prices are down, but for 80 percent of commodities in the developing world, prices are higher today than they were a year ago, and the prices a year ago were double what they were the year before that,” she said.

“What it means is for about 80 percent of the developing world, people can afford one third as much food today as they could two or three years ago,” she said.

Sheeran signed Monday a 140 million Australian dollar ($130 million) four-year aid agreement with the Australian government. The agreement includes AU$40 million to provide school meals in Southeast Asia, Africa and possibly South America and will add to the WFP’s overall budget for global food aid.

Sheeran, who flew to Canberra from Manila on Sunday, said the Philippines could lose up to 1.1 million tons (one million metric tons) of rice because of the recent typhoons.

Africa and India were also losing crops due to drought and floods.

She said the two back-to-back typhoons in late September and early October that killed nearly 1,000 people in the Philippines, coupled with the Indonesia earthquake that killed more than 1,000 on western Sumatra and the recent tsunami that killed 183, mostly in Samoa, were examples of natural disasters becoming more frequent and ferocious in recent decades.

She said there had been a fourfold increase in the number of natural disasters in the past 20 years.

“All we know is that the world is facing increasingly frequent and ferocious natural disasters and the most vulnerable people and nations are getting hit hard and we better prepare now,” she said.

Ends/

Testing their metal, testing their mettle…

fionayingcheung@hotmail.com — Sun, 22 Nov 2009 05:37:59 +0000

International trade in iron ore is largely dominated by a very few firms, and China’s attempts to get a foot in the circle of influence are, so far, unsuccessful. This informative article details the many causes of concern for China in iron ore trading, including speculations that its problems (dependance, very large amount of building projects, fact that demand for this nonrenewable resource will only continue to rise, driving prices up etc.) will be exacerbated by a change in the pricing system.

Copenhagen Drama

luyueyang@hotmail.com — Sun, 22 Nov 2009 05:36:18 +0000

Expect a drama in Copenhagen climate conference? Here is what it is likely to be: no financial support and the lead star may not sing! The Bloomberg story gives us a clear idea of what we can expect from Copenhagen. — Yueyang Lu

This guy hates Goldman Sachs

daustenmorris@gmail.com — Sun, 22 Nov 2009 05:33:17 +0000

Matt Taibbi, for Rolling Stone, slams Goldman Sachs for engineering every financial crisis since the 1920s. Fair? Not sure. But it’s pretty entertaining. He leaves off on the carbon credit market and how it’s the latest in the “commodities casino” that Goldman already has a leg up on. –Deirdre Morris

Diminishing dollar, but America is still stronger than China

timfungkwokho@yahoo.com.hk — Sun, 22 Nov 2009 05:32:49 +0000

This article explains that though the American dollar is diminishing in value, it is rather unlikely that the dollar will collapse as neither the euro nor the yuan is yet ready to usurp it. China also does not have the option to dump the Treasury bills as a tubmiling dollar would hurt its own economy.

On the other hand, there are talks about the growing power of China that is ready to challenge American leadership. However, on the whole, China’s economy is still less than a third the size of America’s at market exchange rates. Read the analysis of the comparison between China and America. An interesting read.

Tim Fung

Bilateral trade pact between China and Taiwan

phillippa.stewart@googlemail.com — Sun, 22 Nov 2009 05:31:49 +0000

Interesting piece on Bloomberg. Thought this quote was quite revealing about how less developed countries’ perceive regional trade pacts:

“Taiwan is keen to sign a trade agreement with China on concerns its exports may suffer after the free-trade agreement China has with Asean takes effect next year.”

Pip

Rising protectionism in the world

globe.kennethchan@gmail.com — Sun, 22 Nov 2009 05:31:49 +0000

An easy newsfed for everything related to protectionism

http://topics.nytimes.com/topics/reference/timestopics/subjects/p/protectionism_trade/index.html

Like this one, talking about how protectionism rises after the global crisis

http://www.nytimes.com/2009/11/06/business/global/06trade.html?_r=1

Kenneth, Chan Chun Kit

Does the devil MNCs really play a role in eliminating protectionism?

globe.kennethchan@gmail.com — Sun, 22 Nov 2009 05:31:49 +0000

Does the devil MNCs really play a role in eliminating protectionism?

Here is a good acticle concerning the issue and the summary is as fellows:

Why have governments not erected as many trade barriers in the troubled 1970s and 1980s as they did in the 1920s and 1930s? Professor Milner of Columbia argues that the increased internationalization of business has made many firms in many sectors of industry opponents of protectionism, and that this makes a difference to governments. Her evidence is drawn from six U.S. industries in the 1920s, six U.S. firms in the 1970s and six French industries, also in the 1970s. An enormous amount of good work has gone into this valuable study, which is meticulous in its analysis and sensible in its judgments.

http://www.foreignaffairs.com/articles/43724/william-diebold-jr/resisting-protectionism-global-industries-and-the-politics-of-in

You can access the article by your university ID from HKU library system.

Kenneth, Chan Chun Kit

Dopenhagen

natashareneekhan@gmail.com — Sun, 22 Nov 2009 05:31:49 +0000

The moniker “Dopenhagen” has worryingly been coined, amidst concerns that Copenhagen will turn into another Doha, where “all or nothing” negotiation tactics and dragged-out talks basically amount to one big fail.

This blog entry echoes the link between Doha and Copenhagen, citing the economic and environmental “breaking point” as oil prices reached USD 147 in 2008, and, as such, how solutions may be linked as well.

The author, who works with the European Commission DG Enterprise and Industry, posits that “in a game where all players would have to give and take in order to harvest the bigger prize of rapid sustainable development that both the Doha and Copenhagen talks promise to generate, the Old World might look toward agricultural concessions in return for binding targets of New World CO2 reductions.”

Indeed - especially with these “crucial” meetings coming up – world affairs have again become a riveting soap opera. Though as both an audience and a global citizen, it is scary to watch decisions unfold, particularly with erratic players and certain uncertainty serving as a backdrop for decisions. – Tash Khan

European companies need Chinese raw materials

pia@buhla.dk — Sun, 22 Nov 2009 05:31:49 +0000

This press release is from the EU and is about Chinese export restrictions.

The EU complains that China makes too many restrictions on export of key raw materials and a lot of European companies depend on these raw materials.

Therefore the European Union has just requested a WTO panel on Chinese Export restrictions to tackle the unfair trade. The US and Mexico has requested the same but this press release is the european view on the concerns.–Pia

Another never-ending complaint about China’s trade policy

bjmarco@gmail.com — Sun, 22 Nov 2009 05:31:49 +0000

Not surprisingly, the complainers are EU and U.S.. And the subject matter is China’s export tariff on bass metals. Click here to see WSJ’s coverage on the latest dispute.

-lui

Mexico to Replace China as Top Trade Market?

H Park — Sun, 22 Nov 2009 05:31:49 +0000

Recent data showed that Mexico has replaced China as the world’s top market to manufacture goods and export them to the U.S. A number of factors have driven this such as the appreciation of the yuan and Mexico’s close proximity to the world’s largest consumption-based economy. The article noted that even Chinese companies are making inroads to Mexico to make use of the NAFTA for outbound shipments to the U.S. It’s always fair and good to have more than one dominant market for operations. — Park Hyongki

China to Address Yuan Inflexibility?

H Park — Sun, 22 Nov 2009 05:31:49 +0000

China’s undervalued currency of yuan has always been an issue for the U.S., claiming that it has contributed to trade imbalance between the world’s largest economy and the world’s fastest growing economy. As to whether China will really address this issue is uncertain, and hardly likely in the near future. Every country has their own way of control or maintaining their foreign exchange policies. China is no different, and has averted this issue. But like the IMF said it will eventually have to notice this as the country further develops and aims to become one of the top destinations for financial services.–Park Hyongki

Myanmar ride on ASEAN trade wave

angkaloeu@yahoo.se — Sun, 22 Nov 2009 05:31:49 +0000

The self isolated government of Myanmar have recently been showing some willingness of opening up its borders for economic benefits, not only for China but also historic enemies as Japan and the U.S. The country’s ASEAN membership might be a beginning of the path leading away from isolation.

Xinhua today reports Myanmar officials signed a memorandum of understanding over 80 million US Dollar export to China. Apart from its traditional ally, Myanmar have also the last days worked on boosting trade and investment with Japan, as well as receiving U.S. officials in its capital, to discuss an eventual easing up of the American sanctions against Myanmar, imposed 1997.

China Debt Woes are Trouble for Copenhagen

Koo Chun Ho, Ronnie — Sun, 22 Nov 2009 05:31:49 +0000

China is not just on an accelerated path to more consumer spending and a rapidly-expanding economy, but its people are adapting to various spending practices, such as hire purchase and credit spending. One Chinese woman in an CNN report allegedly has 50 credit cards in her wallet! Looks like China needs to learn the right habits and avoid the bad ones from the Americans.

On a darker note, if figting debt and focusing too much on the economy will reduce China’s devotion to fight carbon emission, and this may be very bad news for the Copenhagen climate talks, because China is producing a quarter of those emissions. Hopefully the debt issue will not become too big an issue for the Chinese.

Ronnie Koo

Can a Eurozone-like trade bloc operate in East Asia?

fionayingcheung@hotmail.com — Sun, 22 Nov 2009 05:30:38 +0000

With Czech Republic ratifying the Lisbon Treaty, it can now come into force by Dec 1st of this year. Fundamental changes include human rights provisions – values that must now be adhered to by all member states of the European Union. By contrast…could such provisions be enacted in a pan-east asian trade bloc? Perhaps bilateral trade agreements are not the only barriers to integration – fundamnetal differences in values, governance and a history of bad blood between east asian countries may prevent a Eurozone-like bloc from being anything but a distant aspiration. – Fiona

When Mickey comes to Shanghai

susie.pku@gmail.com — Sun, 22 Nov 2009 05:29:50 +0000

On this Wednesday, Shanghai government approved the Shanghai Disneyland project.

For Mickey fans, for kids and for cartoon lovers, it means they have another great place to visit during holidays and vacations. They are happy.

Owners of the land near the future theme park are also happy, because the land price soared right after the government announcement.(China Daily)

Some people said Obama should be happy, too. Because it seems that the approval was carefully timed before Obama’s visit to China, the large amount of investment gives him “face” and demonstrates the promising future of Sino-US cooperations. (Yahoo News)

Probably Hong Kong is not happy. (CRI News)Faced with a rising Shanghai, Hong Kong has been in anxiety in recent years. Now, Shanghai even opens a Disney, which, according to some Hong Kong people’s anticipation, will reduce the mainland tourists to Hong Kong. I think, however, more essentially, the Disneyland is likely to become another icon for Shanghai and makes it a more international city which at least parallels with Hong Kong, if not more competitive.

By the way, although I agree that the two Disney parks may be complementary, the China market size cannot be counted as 1.3 billion, among which 900 million are farmers. The low-income population is also a large number. If the entire population is the major reason for some people to believe that Hong Kong Disney can co-exist with Shanghai’s, it is not convincing at all.

Disney is a happy land for most people. However, when Mickey has a new home, there are also numerous people becoming worried. This time, Mickey comes to Shanghai.

– Li Shuxia Susie

Rising trade barriers in EU

timfungkwokho@yahoo.com.hk — Sun, 22 Nov 2009 05:29:11 +0000

Since the global financial crisis, there has been more than 220 new restrictive trade measures. Fortunately, there is not yet any sign of the spiral of protectionism as in 1930s. Read this article for details.

By Tim Fung

Fate of Sugar Industry

cindy.sy.lee@gmail.com — Sun, 22 Nov 2009 05:28:36 +0000

Although sugar industry is one of the most important industry in Kenyas, it’s fate would be determined by the duty free sugar imports from COMESA member countries. Who will protect this local industry in Kenyas? Could goverment of Kenyas come up with an alternative solution that will not harm Kenyas’s sugar industry? – Cindy Lee

Why China resists the demands for a stronger yuan

timfungkwokho@yahoo.com.hk — Sun, 22 Nov 2009 05:28:07 +0000

There have been calls from America, International Monetary Fund and European Central Bank to demand China to revalue its yuan. But since the rise of yuan by 21% against the dollar from 2005 to 2008, China has not done any further actions concerned. This article explains China’s inaction and when the right circumstances may come.

Tim Fung

Trade Barriers Rise as Slump Tightens Grip

Saiyu ZHOU — Sun, 22 Nov 2009 05:28:05 +0000

Rusty’s right about the rising trade barriers!

This news article talks about the rising trade barrier and protectionism in times of global recession. It’s worth reading even though it’s a bit old–March 22, 2009.

—Saiyu ZHOU

Chinese Agencies Struggle Over World of Warcraft

yi_mam@hotmail.com — Sun, 22 Nov 2009 05:27:24 +0000

Any issues related to the China’s Internet industry are sophisticated. You can add many tags on it… Try this one.

There is supposed to be a SoD (segregation of duty) between China’s Culture Ministry and the General Administration of Press and Publication over online-game authorization. But the cutline is getting blurred, or maybe it has never been clear.

For those who can read Chinese and enjoy playing online-game, this CBN article explains better.

- WANG, Yi

Lobbying Against Financing China Wind Project

luyueyang@hotmail.com — Sun, 22 Nov 2009 05:26:55 +0000

Really intersting stuff here.

Just before President Obama is preparing his China trip with the purpose of promoting technology cooperation to fight climate change, lobbists said that U.S. should not spend federal stimulus money on financing a Chinese-backed wind project in Texas. What will come out of the presient’s China mission? Let’s wait and see. — Yueyang LU

Another obstacle for Obama: Joblessness

eageywang@hotmail.com — Sun, 22 Nov 2009 05:26:21 +0000

Yes you may all know that the jobless rate in US, according to the latest analysis, is 10.2%. But you may not know who are in this crowd. If you do know, you will see that how difficult it is for Obama to tackle yet another tough problem. This article says that the joblessness is worse than it looks. And another analysis gives an overview on the Obama administration’s situation. Surprisingly, it says that the lawmakers can find long term unemployment solution overseas — in Germany. Check this out. — Natalie WONG

Who reads the FT?

natashareneekhan@gmail.com — Sun, 22 Nov 2009 05:25:55 +0000

I urge you all to look at this Financial Times Advertising Ad, where the FT sales team has humorously categorized its readers – Business Decision Makers, Entrepreneurs, Client-Facing Professionals, Finanial Professionals, High Net Worth Individuals and Opinion Leaders.

Great to get acquainted with our audience as business journalists! - Tash Khan

Awesome Energy Efficient Building being built in China

natashareneekhan@gmail.com — Sun, 22 Nov 2009 05:25:35 +0000

“The most energy-efficient (building) in the world” is being built in Guangzhou. Built on a curve to better capture wind, “the outer skin (of the building) controls glare and includes a photovoltaic system for energy” – pretty cool stuff. – Tash Khan

New Regulatory Challenge for Hong Kong Gold Trading

Koo Chun Ho, Ronnie — Sun, 22 Nov 2009 05:25:08 +0000

Hong Kong has a long history with gold trading at the Gold and Silver Exchange Limited, and electronic gold trading has on the rise in these two decades. However, the trade has been overshadowed by the more vibrant stock market. With the opening of the gold storage facility in the Hong Kong International Airport, Hong Kong aims to boost its status to that of the Asia’s gold trading hub. But Hong Kong’s investment regulatory framework is full of loopholes, as seen by the minibond saga and PCCW’s controversial stock split before the attempted privitisation. Will they succeed this time? Let’s see the RTHK’s report here.

More Complaints about Renminbi

luyueyang@hotmail.com — Sun, 22 Nov 2009 05:24:41 +0000

Is it the Unites States that always urging China to appreciate yuan? Not really. There are more compaints from developing countries, like Brazil, since most emerging currencies have gained this year.

Read this story from NYTimes. — Yueyang Lu

Stimulus create empty city

angkaloeu@yahoo.se — Sun, 22 Nov 2009 05:23:58 +0000

Al-Jazeera reports how China’s boosted government spending to “keep face” with a strong GDP growth results in doubtful projects, such at the town of Ordos.

In five years time Ordos was built basically from nothing, now hosting shining skyscrapers and impressive infrastructure, planned home to some five million inhabitants. But it turns out that nobody wants to move to Ordos due to the high real estate prices, and many of the apartments purchased are mere investments, as the streets of this planned-to-be megacity still proves empty.

Watch this four-minute-video for story and shoots from the town itself.

Simple presentation to educate on crisis

globe.kennethchan@gmail.com — Sun, 22 Nov 2009 05:23:35 +0000

To avoid global finanical crisis and prevent environmental pollution, the best way is to educate people with simple presentation arousing their interests. This is the role of journalist and we may learn something from the below video.

http://www.youtube.com/watch?v=gLBE5QAYXp8

Chan Chun Kit Kenneth

10 Priorities for Socially Responsible Investors

globe.kennethchan@gmail.com — Sun, 22 Nov 2009 05:23:12 +0000

Want to be a good investor? Apart from understanding the information provided by Bloomberg, these may be good guidelines for all of us.

http://socialinvesting.about.com/od/sriinvestorconcerns/tp/SRI-Important-Issues.htm

Chan Chun Kit, Kenneth

World’s Most Polluted Factories

H Park — Sun, 22 Nov 2009 05:22:50 +0000

Here’s a nice interactive map that shows the world’s most polluted factories that trouble the atmosphere with lots of carbon gases. Copenhagen… Here we come?–Park Hyongki

The Future of News?

H Park — Sun, 22 Nov 2009 05:22:28 +0000

More and more news websites are utilizing video multimedia tools to attract readers or viewers to their contents. In other words, like this articles says, they are becoming more like “television, than newspaper.” CNN, ESPN, Bloomberg, Reuters etc. are making use of videos to deliver stories, and make sure their cyber visitors click play before reading. Yikes. Also, there’s good money in it. Advertising.–Park Hyongki

The world’s most powerful

pia@buhla.dk — Sun, 22 Nov 2009 05:22:03 +0000

Barack Obama, Hu Jintao and Vladimir Putin. They are all leaders with alot of power and they are the most powerful people in the world. But who else controls this world?

This article tries to answer that. It is from Forbes and they have just ranked the world’s most powerful persons. They are ranked after four criteria: how many people they have influence over, how much money they control, if they are powerful in more than one sphere and if they actively use their power.–Pia

Thomson Reuters enters Web Age

dcmp@hotmail.com — Sun, 22 Nov 2009 05:21:35 +0000

An article about Reuters entry into the digital age, precipitated by the financial crisis. I thought it might be interesting to look at as we had a talk from the competitor, Bloomberg, earliar this week.

The article is from British newspaper website timesonline.co.uk (The Times) and includes an overview of their strategy mentioning Project Utah, a common platform for all of Thomson Reuters’ 200 financial products for the first time. Check it out here.

- daniel pordes

Can the Cellphone Help Global Poverty?

cindy.sy.lee@gmail.com — Sun, 22 Nov 2009 05:21:10 +0000

In this article, the author wrote about a staff worked in Nokia as a “human-behaviour researcher”, who’s job is to travel around different countries, peer into the lives of people from rural area, accumulate as much knowledge as possible about human behaviour so that he can feed helpful bits of information back to the company. When describing the journey of this Nokia’s staff, the author bring out how cell phone may affect the poor, how they may make use of the little cell phone to generate extra profit, and may eventually walk out of the poverty. – Cindy Lee

Poverty tourism.

phillippa.stewart@googlemail.com — Sun, 22 Nov 2009 05:20:45 +0000

This article sprang out at me a few months ago. I would love to know if the slum dwellers get any of the money from these black tourism businesses or if it is just further exploitation of the poor…

Pip

Reforms on derivatives needed

timfungkwokho@yahoo.com.hk — Sun, 22 Nov 2009 05:20:22 +0000

Derivatives take many forms, including futures, options, forwards and swaps. This article in The Economist introduces what derivatives are and thier developments. And during the financial crisis, the loss of confidence in the derivatives magnified the seriousness of the problem. Therefore, there have been calls to regulate them. Read another article for details.

Tim Fung

Obama’s China Trip

susie.pku@gmail.com — Sun, 22 Nov 2009 05:19:58 +0000

While only spending one day in Japan, which used to US’s best partner in Asia, Obama plans to stay in China for four days. Recently, I always feel amazed about how China’s international position has changed in the past five years. I took a journalism course in 2005 when I was a freshman in university. The required reading for that course was New York Times. The teacher asked us to pay special attention to the reports related to China. But at that time, I found out that articles about China were quite rare, probably only once per week in the international news page. Now, however, China news appears on NYT almost every day, and usually occupies the headline position. How huge the changes are. Sorry for the digression.

I read two articles on NYT about Obama’s trip to China. One is about Obama says the US does not regard the rising China as a threat (NYT), which I just don’t believe; the other is about China’s comparison between its fight in Tibet and the American civil war(NYT Tibet), which sounds a little bit strange to me. I think that the economic relations may be one of the most important factors between Sino-US relations because either side has the power to make mutual destruction of both. But the fight is covered up and mediated by many other factors, like diplomatic measures or political controversies. I believe the drama between the two countries has just opened its curtain. Stay tuned, more will come next.

– Susie Li Shuxia

What will Obama do in China?

eageywang@hotmail.com — Sun, 22 Nov 2009 05:19:34 +0000

Obama seem to be having lots of flash lights these days…I am so happy that he is here. I really hope they can discuss something really substantial. First, I wish they can talk about trade, real trade, without anti-dumping discriminations. Really hope Obama can boost his people to keep buying things as to digest China’s export. Second, I hope they can keep cool on RMB issues, don’t push too hard on China. Third, wish they can talk about climate change and really sketch something out. This article has a lot of expectation on my third hope. Quite positive towards China. It says US is already a step left behind. The author believes climate change is the best topic and a win-win deal between the two – global scale, great money, lots of jobs. Let’s pray for these to happen. – Natalie Wong

Only local business can end global poverty

Saiyu ZHOU — Sun, 22 Nov 2009 05:19:10 +0000

This article from the Financial Times says UN’s aid in economic development in developing countries is not working. It says it should help local business in order to fight poverty in developing countries.

—Saiyu ZHOU

Niall Ferguson again on Chimerica…

daustenmorris@gmail.com — Sun, 22 Nov 2009 05:18:45 +0000

…except this time, he calls Chimerica “a monstrous hybrid like the part-lion, part-goat, part-snake of legend.” In the article I posted a few weeks ago by him, he likened Chimerica to a marriage made in heaven. – Deirdre Morris

China: the biggest threat to the world economy?

phillippa.stewart@googlemail.com — Sun, 22 Nov 2009 05:18:25 +0000

Very interesting piece from the Telegraph. Will China be to blame if we enter a second wave of recession? Also, check out the comments at the end – very illuminating, and raises a lot of questions for debate.

Pip

Fumbling for new China tone

yi_mam@hotmail.com — Sun, 22 Nov 2009 05:18:04 +0000

FT’s editor is obvious not happy with Mr Obama’s China tour. He is indicating that Obama conceded too much. Check out this editorial.

In light of this week’s lecture on China and the US

rich.macauley@gmail.com — Sun, 22 Nov 2009 05:17:50 +0000

I’d like to flag up an except from a very well-respected BBC radio programme, named the Today Programme

The programme dated 17 November (available to download here or just to stream here) discusses the point that China is not – in historic terms – an economic superpower.

Of course we are all aware of how important the country is, but there seems to be a fair amount of media reminding us all – perhaps in light of president Obama’s visit – that at about a tenth of the size of the US economy, there are still some holes in China’s bravado.

In regards to the discussions concerning China’s green record at our class on Monday, I thought this may also be of interest.

China is developing its renewable energy sector far faster than the US is, perhaps because it has a controlled economy, whereas the West’s investment in green technology dried up during the financial crisis.

This NYT articles also reminds me of the white elephants our guest lecturer mentioned. Let’s hope that all this ‘measuring local officials by the number of projects they start’ could be used to encourage such officials to build as much green plants as possible, and show the West how it can be done.

– Rich Macauley

Matt Winkler-Bloomberg News

randrew44@yahoo.com — Sun, 22 Nov 2009 05:17:30 +0000

Some interesting commentary regarding what we discussed this week with the guest speaker in regards to the role Bloomberg News plays as a “News Agency” and it’s possible conflict with the people it covers and caters to.

http://financialservices.house.gov/media/pdf/073101mw.pdf

Current “recovery” in the US and China unsustainable

natashareneekhan@gmail.com — Sun, 22 Nov 2009 05:17:08 +0000

Written by Michael Pettis, a Peking University’s Guanghua School of Management professor specializing in Chinese financial markets, this blog post examines recent misplaced optimism on US consumption increase, which has been largely driven by government stimulus and considered unsustainable.

Pettis posits that the key to the rebalancing of China and US consumption will depend on Chinese households getting more income (rather than further public or private investment). – Tash Khan

China-US Relations-Back to the Drawing Board

H Park — Sun, 22 Nov 2009 05:16:52 +0000

The whole world knows by now that China is the biggest emitter of toxic greenhouse gases, surpassing the U.S., which is still one of the heaviest pollutors and contributors to global warming. So, what should they do about this? Continue to just talk, smile and shake hands in front of cameras at major international summits that are turning out to be pretty much like a fashion show for world leaders? Or for God’s sake, get down to business? Mr. Presidents, the whole world is watching and waiting for substantial results. It’s time to make something happen. Or should we just give up on all hopes of compromise.–Park Hyongki

Treasury: China Must Boost Domestic Demand

Saiyu ZHOU — Sun, 22 Nov 2009 05:15:27 +0000

Once again, the US urged China to boost its domestic demands and have its currency appreciate. Here the ABC news story.

Once again, I’m tempted to put Wiki’s article here. Here is a crash course to Reform of Chinese Financial System. It’s quite comprehensive, I have to say.

—Saiyu ZHOU

China Helps the Powerful in Namibia

susie.pku@gmail.com — Sun, 22 Nov 2009 05:15:14 +0000

I still remember one teacher said (is it Rusty?) : why do you think the Chinese leaders are busy with going around Africa? All they want is energy, nothing else.

So, in this article, it’s said that China sponsors powerful people in Namibia (NY Times) to study in China. From one side, the African country is impoverished, China claims that it’s just trying to help. On the other, China is accused of using such measures as a bribery of the powerful, and all it’s after is energy. Maybe China’s intention for seeking alliance has been public for long. This time, according some experts, the problem lies in that “Chinese government officials seem caught off guard by the public scrutiny exercised by a vibrant civil society”.

Even if China’s aid to Africa is just for energy in return, it’s not a big wrong doing from my perspective. What do you expect from diplomatic relations, friendship or true love? Only interests are permanent.

– Susie Li Shuxia

Making Millions in China

dcmp@hotmail.com — Sun, 22 Nov 2009 05:14:58 +0000

Following our lecture on Sino-US economic relations, and American attempts to get China to open its markets to more of their products, here’s a video from CBS to show that some U.S. companies are already making large profits there. – dan pordes

No-win situation for good customers

pia@buhla.dk — Sun, 22 Nov 2009 05:14:45 +0000

Nicole Kwan talked about the problems with credit cards. I found this article about banks that are now starting to charge the good customers an annual fee. This is another problem because it might encourage some to be bad creditors.

Note: In Denmark it is actually normal to pay an annual fee of around 150 HKD or more for holding a credit card.–Pia

Why the China-US Trade Dispute is Heating Up?

cindy.sy.lee@gmail.com — Sun, 22 Nov 2009 05:14:28 +0000

China and U.S. have built the most complicated relationship in the world. While they rely heavily on each other economically, there are many sensitive issues boiling up between Washington and Beijing. For examples, U.S. has accused China of manipulating its currency to unfairly promote exports, while China has openly called for the replacement of the U.S. dollar as the world’s premier currency. This article will describe more about the situation. – Cindy Lee

China Cautious of Lending Bubble

Koo Chun Ho, Ronnie — Sun, 22 Nov 2009 05:14:13 +0000

China’s regulators issued a memo for midsize, local commercial banks to restrict lending activities, another step seen as a measure to curb excessive credit in the economy. Refer to Wall Street Journal article dated Nov.20 for further details.

Personally, I believe China is in a dilemma, because on one hand she has to counter shrinking export revenue by boosting internal demand, but on the other, she has to keep inflationary pressures in check, as commody prices spiral upwards.

Which one should China handle first?

Koo Chun Ho, Ronnie

Fears of China property bubble

globe.kennethchan@gmail.com — Sun, 22 Nov 2009 05:13:55 +0000

With the injection of Chinese capital in the market, property in China may suffer from potential bubbling issue sooner or later. See the latest coverage of FT on this issue.

http://www.ft.com/cms/s/0/ea14130c-d46e-11de-a935-00144feabdc0.html

Chan Chun Kit Kenneth

Bubble Trouble: Why Real Estate Is China’s Biggest Headache

globe.kennethchan@gmail.com — Sun, 22 Nov 2009 05:13:42 +0000

Another acticle about China property market bubble. The government would have to monitor the issue closely before it turns out to be a huge crisis in China economy.

http://www.time.com/time/world/article/0,8599,1939768,00.html

Chan Chun Kit Kenneth

Changing economic balance – China and U.S.

angkaloeu@yahoo.se — Sun, 22 Nov 2009 05:13:28 +0000

In radio news program BBC World Business News, correspondent Chris Hogg gives a short analyze on the changing economic relationship between China and U.S.

Topics are value of RMB, debt holdings and how much the balance between China and U.S. will shift in the future.

Jojje Olsson

Chinese Company Aims at ‘Made in the U.S.A.’

luyueyang@hotmail.com — Sun, 22 Nov 2009 05:13:16 +0000

Made in China or made in U. S.? Chinese companies have begun to embrace the American market with a “Made in the U. S.” product.

After the proposal to build a wind farm in Texas, which would use turbines made in China, has been turned down, China’s largest solar manufacturer plans to open its first American plant near Phoenix.

Here is a story from the New York Times.

Updates on the China’s Social Security Fund

eageywang@hotmail.com — Sun, 22 Nov 2009 05:12:59 +0000

Agricultural Bank of China, the nation’s third-largest lender by assets, plans to introduce China’s National Social Security Fund, the country’s national pension fund, as an investor before its initial public offering, as announced Wednesday. This article is here. The original source is chinaknowledge.com, but it’s a charged site. The agricultural bank it is still not opened to foreign investors before its IPO. The article about this info is HERE.

FYI, here is a story on China’s social security fund’s first loss ever in 8 years. 2008 Report on the fund.

–Natalie Wong

Readings are up for Monday, Nov. 23

Rusty — Sun, 22 Nov 2009 05:12:34 +0000

Big business and development is the topic for this talk. On Nov. 30, we’ll wrap up the final two lectures in one session. Please see an important e-mail coming to you regarding the Dec. 7 session and your final essay.–Rusty

Soros interviews now online

Rusty — Sat, 14 Nov 2009 03:46:48 +0000

The Financial Times for some reason didn’t put Hong Kong’s Q&A session onto its Web site. That material is online now at the Open Society Institute. His talk is worth listening to–he thinks there is a good chance of another leg down in the financial markets.–Rusty

Nov. 16: We welcome Nicole Kwan

Rusty — Sat, 14 Nov 2009 03:33:24 +0000

I’m delighted that a guest lecturer I promised you early in the term will join us Monday. Many of you know JMSC graduate Nicole Kwan from the JMSC Web site or from her book, “Dragon and the Crown: Hong Kong in the 20th Century, Told by a Man Who Was There.” Kwan will look into China’s economic future a year after the financial crisis and outline the issues we need to watch. We’ll also open up the discussion to career questions if you wish, and you can get answers from someone besides an old white guy.

I’ll be compressing the development lecture into the first half of the following week; that’s an adjustment we can handle. Will be glad to see you all Monday. This trip to U.S. was a long, tiring haul.–Rusty

First Essay

Koo Chun Ho, Ronnie — Sun, 25 Oct 2009 08:06:43 +0000

Business and Financial Journalism in an Age of Globalization

Essay 1

Koo Chun Ho, Ronnie

Master of Journalism 2009-2010

The Faculty of Social Sciences

Supervisor: Dr. Rusty Todd

25 October 2009

Table of Contents

Research Topic 3

Part I: Can the world’s nations create global markets that will not crash? 3

Part II: Does the global financial crisis prove that the world’s nations cannot prevent catastrophic climate change? 4

Bibliography 6

Appendix 7

Research Topic:

Does the global financial crisis of 2008-09 prove that the world’s nations cannot prevent catastrophic climate change and cannot create global markets that will not crash?

Part I: Can the world’s nations create global markets that will not crash?

Since the birth of the capitalism, global markets have experienced seasons of booms and busts that are hallmarks of the capitalistic market structure. The world witnessed the Great Depression of the ‘30s, the 1973 oil crisis, 1987’s stock market crash, the dot-com bubble of the late ‘90s and the global financial tsunami of 2008-09. Although fundamentals were different for each crisis, governments and investors were often caught off-guard against such calamities. Academics, such as Nobel Laureate Paul Krugman, and Nassim Taleb, a professor for uncertainties who authored ‘The Black Swan’, echoed that financial markets are highly unpredictable and often inefficient, and coupled with insatiable greed among corporations and investors, global markets will likely continue to crash to rectify market distortions. On the upside, sound regulations and investors’ prudence may cushion the crashes, but prevention is improbable.

For decades, modern financial theories are highly revered and closely adopted by Wall Street traders, and Krugman believes that traders are still devoted to the Efficient Market Hypothesis even after the financial tsunami, because ‘the myth of rational market is beautiful, comforting and lucrative’ (Taleb, 2007).

Indeed, the Modern Portfolio theory and the Capital Asset Pricing Model delineated an idealized scenario with efficient markets and rational investors. Then Myron Scholes, an inventor of the Black-Scholes Formula for valuing options, joined hands with another Nobel laureate to form the infamous Long-Term Capital Management that eventually went bust, dragging investors and part of the world economy into financial distress(Taleb, 2007)

After such an embarrassment, devotees to efficient markets and rational investors continued to be blinded by greed and ignorance. Investors were convinced that the ‘tech companies’ were reasonably-priced when pared against future growth potential during the dot-com era. Those investors were ‘left holding the bag while the underwriters made hundreds of millions in fees’ as the bubble burst. (Smith & Davis, 2006). Apparently, investors missed their lessons learnt and trusted Lehman Brothers’ asset-backed securities with full faith before its collapse in the fall of 2008. Not long after Lehman’s bankruptcy, Bernard Madoff, Ex-chairman of NASDAQ stock exchange, was arrested for operating a $50 billion Ponzi scheme that even HSBC Holdings fell for. Taleb figured that such devoted ‘reverence for experts’ that blinds people from making rational decisions, and fuels rare but impactful events to happen (Taleb, 2007).

Since people are greedy, markets can be inefficient and investors can be irrational, we can foresee that markets will continue to crash, as long as they forget about previous lessons learnt and makes earning money their top priority.

Part II: Does the global financial crisis prove that the world’s nations cannot prevent catastrophic climate change?

On the environmental front, the global financial crisis does not prove that the world’s nations cannot prevent catastrophic climate change. However, both the financial crisis and the global warming crisis share core elements that foreshadow huge challenges for tackling future climate change. Greed over morals and uncompromising attitudes among nations are common stumbling blocks for resolving the two crises. Furthermore, for both crises, mitigation is possible, while prevention is not, according to the Intergovernmental Panel on Climate Change (IPCC, 2007).

To tackle climate change effectively, a global regulatory framework needs to be installed for carbon emissions, especially as the Kyoto Protocol expires in 2012. But with the United Nations Bonn rounds in April 2009 making little progress, confidence in the Copenhagen rounds scheduled in December is fast eroding (Max, 2009).

As with fighting tariffs in the World Trade Organization’s Doha rounds after the global financial meltdown, securing global carbon emission targets is equally challenging to the world’s nations. In the Doha rounds, India, China and the US could not agree on the tariff threshold (Lamy, 2008). Similarly, the environmental conventions are hampered, as the industrialized and developing countries cannot reach a consensus. Indian delegation leader for the Bonn talks, Shyam Saran, believed that disagreements stemmed from ‘technological resources pledged towards developing nations for tackling climate change’ (Morales & Van Loon, 2009).

Referring to Figure 1: Income and GHG Emissions, China, the United States and India currently contribute the most greenhouse gas emissions to the environment. Therefore, success on curbing catastrophic climate change depends much on the willingness of these major polluters to cooperate and keep their promises on carbon emission levels. Based on this assumption, the future for tackling global warming is still highly uncertain. According to Chairman of Kyoto Protocol forum Harald Dovland, industrialized countries cannot commit themselves to anything without solid pledges from the US. Meanwhile, China and India provided vague promises to cut emissions in proportion to economic growth and to keep per-capita emissions below that of developed countries respectively (Morales & Van Loon, 2009). With economic development at the top of their agenda, countries may show less enthusiasm for environmental issues at hand after the global financial crisis.

On a brighter note, bilateral and regional agreements are forged to tackle climate change much as the Free Trade Agreements work to overcome economic challenges. US President Barack Obama is currently pushing for the Major Economies Forum that includes major polluters in the world, and Alden Meyer, of the Union of Concerned Scientists, received the move as an opportunity for ‘the smaller group to break the logjam’. Following that China and India signed a bilateral new accord to reduce carbon emissions (Singh & Duce, 2009). According to Yvo De Boer, UN’s top climate official, this ‘makes it easier for an international deal’ in Dec 2009.

In sync with governmental initiatives, major corporations are rolling out their green policies as they realize being green can also be profitable. Recently, Chinese electric car and battery maker BYD chairman becomes the richest man in China (Chang, 2009) and BYD plans hybrid car ventures with Volkswagen AG. Meanwhile, General Motors also clinched a similar deal with South Korea’s LG Chem to challenge Toyota’s dominance in the lucrative hybrid car market (Kang & Cha, 2009). Even supermarket giant Walmart switches to corn-based packaging that promises to reduce 11 million pounds of greenhouse gas emissions (Brubaker, 2009)

With more green initiatives from the corporations and the governments, there is still optimism that greenhouse gas emissions can be mitigated so that global temperature increase can be capped at two degrees, the level that separates sustainable climate change from the catastrophic one(IPCC, 2007). But even so, the worlds’ nations can only delay the climatic disaster, and total prevention of climate change is not possible.

Bibliography

Brubaker, H. (2009, October 20). Wal-Mart Switches to Corn-Based Plastic Packaging. (The Philadelphia Inquirer ) Retrieved October 25, 2009, from redOrbit: http://www.redorbit.com/news/science/277847/walmart_switches_to_cornbased_plastic_packaging/index.html

Chang, R. S. (2009, October 16). BYD Chairman Is Richest Man in China. Retrieved October 25, 2009, from The New York Times: http://wheels.blogs.nytimes.com/2009/10/16/byd-chairman-is-richest-man-in-china/

IPCC. (2007). Climate Change 2007: Synthesis Report. Intergovernmental Panel on Climate Change (IPCC). Valencia: IPCC.

Kang, S., & Cha, S. (2009, October 22). GM’s Volt, Electric BMWs May Boost South Korean Battery Makers. Retrieved October 25, 2009, from Bloomberg.com: http://www.bloomberg.com/apps/news?pid=20601109&sid=a6LoIiAgZUx8

Lamy, P. (2008, July 29). World Trade Talks end in Collapse . Retrieved October 25, 2009, from BBC News: http://news.bbc.co.uk/2/hi/7531099.stm

Max, A. (2009, April 9). Climate talks to move to smaller forum. (AP ) Retrieved October 25, 2009, from Encyclopedia.com AP News: http://www.encyclopedia.com/doc/1A1-D97EUGU00.html

Morales, A., & Van Loon, J. (2009, April 8). Nations Fail to Offer CO2 Targets at UN Climate Talks (Update2). Retrieved October 25, 2009, from Bloomberg.com: http://www.bloomberg.com/apps/news?pid=20601130&sid=aA4Q7qPFb.ZU

Singh, G., & Duce, J. (2009, October 21). China, India Sign Climate Change Cooperation Accord (Update1). Retrieved Oxtober 25, 2009, from Bloomberg.com: http://www.bloomberg.com/apps/news?pid=20601072&sid=aFyFHkF6C3Fs

Smith, R., & Davis, P. (2006, August 23). Quattrone Deal Drops All Charges, Allows His Return to Wall Street . Retrieved October 25, 2009, from The Wall Street Journal.com: http://online.wsj.com/article/SB115625644423642209.html?mod=rss_whats_news_us_business

Taleb, N. N. (2007). The Black Swan. United States of America: The Random House Publishing Group.

Appendix

Figure 1: Income and GHG Emissions

Courtesy of IPCC Synthesis Report 2007

US vs China – Friends or Foes?

H Park — Sat, 24 Oct 2009 02:03:54 +0000

I am sure this kind of article (not related to commodities…) has been published numerous times over the years since China became the talk of the economic town. Will China overtake Japan as the world’s second largest economy? Will China lead global growth? Will China equal the U.S.? It is truly worth noting that Asia’s most populous country has come a long way to becoming the world’s fastest growing economy. And the U.S. is recognizing its importance and the value of sustaining “fair and balanced” relations with China.–Park Hyongki

Regulations for Commodities

eageywang@hotmail.com — Fri, 23 Oct 2009 23:25:23 +0000

Just like what we’ve learned and discussed in class, commodity futures can be ANYTHING. In my opinion, though future is not a new invention in derivatives, it has all the complexity and risk. This article talks about the regulation of commodity as a first move of global financial market regulation. It explains why it need regulation, and focused on currency as a commodity. Really worth reading! And it’s very up-to-date as well. — Natalie WONG

Choose pork or fish

pia@buhla.dk — Fri, 23 Oct 2009 11:17:31 +0000

Lorea suggested a few weeks ago that we should all become vegetarian and I think you should all check this out.

My friend posted this figure on Facebook and I have posted it on my own (danish, sorry) blog so that you can see it too.

It is like a classic food pyramide but this one shows which foodstuffs that releases the most carbon dioxide.

It shows that it is better to eat pork than beef.–Pia

‘Buy less Iranian oil’, says U.S.

angkaloeu@yahoo.se — Fri, 23 Oct 2009 09:47:56 +0000

China and Japan are urged by U.S. to buy less petroleum from Iran, in what is described as “an effort to pressure Iran for repeated violations of of U.N. resolutions aimed at its nuclear programs.” According to AP’s sum up, an American administration official claimed the move had been somewhat successful.

In contrast, Chinese Premier Wen Jiabao last week said that China intends to strengthen cooperation with Iran, as the Iranian Vice President visited Beijing. Moreover, China and Russia are hinting that they will not pass economic sanctions on Iran at the U.N. Security Council.

Jojje Olsson

Foreign goods in China impetrenable…what about brands?

daustenmorris@gmail.com — Fri, 23 Oct 2009 05:44:33 +0000

This Economist.com article discusses the challenges of foreign companies in China. It’s interesting because it seems like everyone and their mom wants to bring a western brand to China these days.

There have been some very successful companies in China. Retail and food companies come to mind (KFC, Hagen Daaz, etc.). What do these brands do that others haven’t been able to do? How big a role does guanxi play?

Is Global Warming a Fact or a Belief?

luyueyang@hotmail.com — Fri, 23 Oct 2009 02:56:50 +0000

Survey shows that fewer Americans believe in climate change. Is it because people are too concerned with the economic crisis to care about global warming, or is it due to the intense lobbying campaign against global warming legislation? Hard to say. Here is the Guardian story. — Yueyang LU

How to submit docs and pdfs

Rusty — Fri, 23 Oct 2009 02:27:45 +0000

If you want to upload something to a page or a blog category, here’s how.

Describe what you’re uploading in the text box. Then position the cursor just after the description. Above the text window, you’ll see “Upload/insert.” Click on the big asterisk- or sun-shaped icon to the right of that phrase. A new window will open. Click “browse” and select the file you want to upload. Click “upload.” When the file has loaded, click “insert into post.” Your file’s name will appear in blue where the cursor was sitting.

If you can’t successfully upload your essay to the site, just e-mail it to me.

–Rusty