Index

ABN Amro 206 Association of Southeast Asian Nations Abramoff, Jack 225 (ASEAN) 64–5, 122, 132–3, Abu Dhabi 186, 223 135, 137 Adam Smith Institute 95 AT&T 163 Adidas 163 Australia 5, 9, 17, 117, 130, 226, African Growth and Opportunity 237 Act 78 economy 34, 54–5, 199, 244 AIG 203–4, 216 fi nance 177, 179, 202, 209, 214 Air Transport Association (ATA) 22 Foreign Investment Review Airbus Industrie 144 Board 142 Algeria 131 investments 142, 171 American Enterprise Institute 95 migration 8 Andean Community 72 trade 27, 31, 54–5, 58, 116, 129–30, Angell, Norman 28, 193 137 Angola 77 and China 60–1, 135 Apple 228 and GATT/WTO 118, 123 Argentina 5, 10, 17, 115, 204, 223 29, 41, 46, 48, 80, 105, 143, economy 73–4, 188 208, 218 fi nance 74, 102, 183, 192, 198, 214 Azerbaijan 79 trade 27, 31, 74, 112, 119, 126, 137 Armenia 79, 217 Bahrain 75, 129 ASEA Brown-Boveri (ABB) 159 banana dispute 126 ASEAN-India FreeCOPYRIGHTED Trade Agreement Banana Republic MATERIAL 163 (AIFTA) 135 Bangladesh 5, 10, 11, 18, 69, 134 Asia-Caribbean-Pacifi c (ACP) labor 222–6, 229 group 131 trade 70, 122, 126

The Contemporary Global Economy: A History Since 1980, First Edition. Alfred E. Eckes, Jr. © 2011 Alfred E. Eckes, Jr. Published 2011 by Blackwell Publishing Ltd. 290 Index

Bank for International Settlements economy 36, 73, 187–8, 197 (BIS) 146, 166, 183–9, 194–6, fi nance 20, 83, 183 214, 242–3 investment 19, 73, 188 Medici 208–9 labor 222–3 Bank of America 201, 206 state-owned enterprises 142, 153 banking 101, 109, 141, 167, 169, 173, trade 27, 73–4, 153, 232 224, 232 Bilateral/regional 72, 129, 132, deregulation 97–100, 176, 178, 137–8 180–1, 194 GATT/WTO 118–19, 123, 126 Great Depression 31, 93, 168–9, 213 Bremmer, Ian 142 47, 200–5, 209, Bretton Woods (NH) 34–5, 84, 90, 232–4, 243 91, 169–75, 179, 188, 190, 199, Japan 179, 185 216 Latin America 193–4 BRIC 57, 102, 245–6 offshore 186, 198 British Columbia Resources and Wriston 181–3 Investment Corporation 52 Barzini, Luigi 40 Brown, Gordon 209, 215 Basel Accords (1987) 185 Brunei 74, 130, 133 Basel Committee on Bank Buffett, Warren 185, 195, 201 Supervision 243 Bulgaria 41, 43, 207–8, 222 BBVA 208 Burma (Myanmar) 64, 65, 221, 223 Bear Stearns 205–6, 217 Bush, George H. W. 98, 148–9, 184 Beijing consensus 51, 102 Bush, George W. 98, 129, 196, 201, Belarus 46, 79, 80, 81, 217 214 Belgium 8, 45, 48, 226 business, international 14, 79, 87, Bell Canada 52 104–8, 139–65, 230 Benetton 163 see also multinational corporation Bergmann, Barbara R. 110 (MNC); transnational Bernanke, Ben 30, 217 corporation (TNC) “Big Bang” 178–9, 185 Byrd, Robert 126 Blair, Tony 43, 202 BMW 45–6, 160 Cai Fang 229 Boeing 22, 80, 113 Caisse de depot et placement du Bolivia 72, 101, 223 Quebec 210 Botswana 6 California Public Employees’ Bove, Jose 21 Retirement System 186 BP (British Petroleum) 45, 46, 141, Cambodia 64, 223, 226, 228 234 Camdessus, Michel 188, 190 Brazil 5, 10, 17, 36, 90, 102, 117, 140, Cameroon 221 214, 235 Canada 5, 9, 17, 34, 51–3, 61, 116, and BRICs 49, 57–8, 102, 139, 164, 117, 214, 241 245–7 fi nance 171, 179, 210, 246 and China 60–1 labor, sweatshop 226 Index 291

migration 8 health and safety issues 232–4 trade 31, 51, 53, 132, 137 labor 221, 228–9 bilateral/regional 61, 133–4, trade 116, 215, 243–5 142 trade negotiations 134–5 GATT/WTO 118, 123, 125, 126 China National Petroleum NAFTA 48, 52–3, 71, 128 Corporation 60, 142 Canon 147, 161, 185 216 capitalism 102, 193, 231 Churchill, Winston 28 criticisms of 27, 91–4 Cisco Systems 161 and former Communist Cisneros, Henry 200 countries 20, 59, 61, 68 Citibank 168, 173, 177, 180, 181–5, and Friedman 97 209 and Greenspan 98, 184 climate change 234–8 and Smith 87–8 Clinton, William J. 98, 194, 196 see also free market fi nance 81, 194 Caribbean Community subprime lending 200–1 (CARICOM) 137 industrial policy 98, 108–9, Carrefour 45, 69, 141, 164 148–9 Castro, Fidel 92 trade negotiations 129 Cato Institute 95 Club of Rome 145 Cayman Islands 186 Coca-Cola 158, 161 Central African Republic 6 Cold War 3, 14, 28, 35, 40–1, 48, 139, Central American Free Trade 140, 150, 160, 184, 239 Agreement (CAFTA) 72, 129, collateralized debt obligation 157 (CDO) 192, 209 Central and Eastern Europe 15, 79, collateralized mortgage obligation 207–8, 216 (CMO) 166 Chambers, John 161 Colombia 72, 129, 134, 137, 217 Chile 5, 10, 17, 97 Commodity Futures Modernization economy 8, 31, 74, 115, 180 Act (2000) 194 trade 27, 72, 74, 118 Commonwealth of Independent States trade negotiations 127, 129–33, (CIS) 79, 112 135–7 communications 3–4, 22–3, 26, 30, 73, China 5, 9, 17, 58–61, 114, 127, 222, 79, 91, 140, 213, 224 346 and fi nance 179, 207 and BRICs 245–6 and global business 11, 14, 23, 141, currency manipulation 243–4 143, 157, 160, 162, 165, 229, economy 58–61 239 foreign-currency reserves 18, 60, and Great Recession 213 197 and trade barriers 122, 132–3, 151, investment in 19, 59–60, 163–4 155 state-owned enterprises 60–1, and trade expansion 116 142 and Wriston 105 292 Index

competitiveness 42, 48–9, 54, 62, 74, Denman, Roy 154 77, 148, 149, 154 Denmark 41, 43, 48, 143, 237 and 180 deregulation 4, 11, 49, 84–5, 95, 106, and China 134 109, 148, 221 and Japan 109, 147 and Europe 42 and Korea 137 fi nance 174–6, 178, 179, 181, 187–8, and Reagan 108–9, 148–9 194, 203 and World Economic Forum 48–9, and Friedman 97 54, 77 and Gramm 100, 194 Comprehensive Economic labor 221 Partnership 133 and Reagan 20, 97, 176 Comprehensive Economic and Trade and Sachs 100 Agreement (CETA) 134 and Smith 88 Congo, Democratic Republic of 6, 77, and Thatcher 42, 176 221 derivatives 99–100, 175, 194–5, 203, convertibility, capital-account 101, 210 170, 187–8 Deutsche Post AG 141 Costa Rica 72, 134, 135, 217 developing world 57–84, 138, 219, cotton subsidies 126 240, 244–5 Council on Competitiveness 109 economic growth 27, 240 Countrywide Financial 201, 203 economic nationalism 92, 143, 145, credit default swap (CDS) 203–5 172 credit standards 202–5, 242 in GATT/WTO 124 crime 224, 228, 240 literacy 6, 240 Cuba 102, 223 market opening 115, 190 currency reserves 16–18, 59–60, 76, migration 11 82, 199 population 14, 20 current account 16, 196 developmental state 32, 58, 62, 68, 73, defi cits (CAD) 16, 18, 51, 80, 116, 90, 92–3, 114, 118 195–9, 208, 229, 243–5 direct investment see foreign direct Cyprus 41 investment (FDI) Czech Republic 6, 10, 15, 18, 41, 43, Dodd, Chris 201, 242 44, 80, 87 Dodd-Frank Act (2010) 242 Doha Round 123–5, 127, 132, 134, Da Silva, Lula 137 215 Daimler see Mercedes Dominican Republic 72, 107, 129, 223 De Gaulle, Charles 144, 173 Dresdner Bank 178 debt bondage 220, 223, 225 Drucker, Peter 3, 21, 105–7, 110, 112, de-globalization 28, 167 158 Dekker, Wisse 155 Dudack, Gail 192 Dell 228 Dunlap, Albert 158 Delors, Jacques 42, 188 DuPont 143, 163 Deng Xiaoping 90 Duranty, Walter 32 Index 293

East Asia 5, 9, 17, 48, 92, 138 Embraer 73 economy 7, 20–1, 27, 37, 58–64 Engels, Friedrich 90–1 fi nance 81–2 environment, natural 21, 52, 65, 95, trade 15, 16, 58–64, 112, 130, 132 124, 135–6, 144–5, 224 East Asian Miracle 58 climate change 234–8 economic growth 6–7, 27, 28, 74, 101 Ericsson 163 and central planning 92 Eritrea 223 developing countries 6–7, 140 Estonia 41, 43, 80, 207, 222 East Asia 7, 62, 66, 92–3 euro 83, 103, 199, 211, 218, 221, 230, Eastern Europe 7, 79, 82 241, 246 gross domestic product (GDP) 7, euro area 5, 9, 15, 17, 47, 49, 51, 211, 17, 114 218, 230, 246 gross domestic product per “Euro sclerosis” 42, 144 capita 7, 9, 27 eurodollar market 106, 171, 173, 182 and G-20 214 Euro-Mediterranean Free Trade Area and IMF 188 (EMFTA) 131 and laissez faire 85–6, 175, 188 Euronext 192 and Smith 85–6 European–American Business Council see also individual countries (EABC) 45 economic integration 14–18, 36, 38, European Central Bank (ECB) 42, 43, 130, 139, 156 47, 214, 216–17 Asia, East 64 European Commission 42, 44, 65, 130, Asia, South 68 154, 178, 188, 241 Asia, Southeast 64–5 European Community 120–1, 150, and business 139, 156, 159, 162, 173, 177 164 see also European Economic Central and Eastern Europe 79, 83 Community; European Union China 134–5 European Economic Community India 135 (EEC) 34, 41, 143 Japan 55–6 see also European Community; Latin America 71, 72 European Union North America 48–53 European Free Trade Association Oceania 54–5 (EFTA) 134, 143 Western Europe 40–8, 130, 143, European Recovery Program 171 154, 156, 159 European Round Table of see also fi nancial integration; trade Industrialists 42, 125, 154, 156 negotiations European Union (EU) 40–8, 117, 161 Economic Policy Institute 50 fi nance 46 economists, fi nancial 99, 176 Great Recession 47–8, 211–15, 217, Ecuador 62, 72, 137 241 Egypt 5, 8, 10, 17, 76, 92, 131 Lisbon Treaty 43 El Salvador 217 Maastricht Treaty 41–2 Electrolux 151 membership 41–2 294 Index

European Union (EU) (cont’d) fi nancial crisis (2007–10) see Great migration 8 Recession (2007–10) trade 44–6, 112–16, 142, 232–3 fi nancial integration 166, 174–80, negotiations 121, 123, 125, 184–90, 191–4, 207–12, 130–4, 136–7 246 WTO 125–6 Financial Stability Board 214, 243 see also European Community; Fingleton, Eamonn 60 European Economic Finland 41, 48, 80 Community Fisher, Irving 99 export-led growth 15, 16, 61, 68, 109, Fitch Ratings 203 114, 197, 198, 243 Flextronic 161 export-processing zone 114, 226 forced labor 220–3, 225, 240 exports 14, 114–17, 141–2, 178, 186, see also human traffi cking 191 Ford Motor Company 79, 141, 143, agriculture 69, 112, 114, 124 153, 159 developing countries 56–83, foreign direct investment 115–16 (FDI) 18–19, 151–2, 171–2, fi rst global economy 25–7 187–8 Great Depression 31–2 Foxconn 59, 228 high-income countries 39, 44–55 France 5, 8, 9, 17, 21–2, 51, 237 manufactures 11, 15, 16, 69, 110–12 and de Gaulle 144, 173 petroleum 36, 112, 114 economy 27, 40, 48, 51, 180 raw materials 31, 33, 112 industrial policy 30, 149 services 112 and EEC/EU 41, 43, 47 textiles 122–3 fi nance 213–14, 218 see also individual countries investments 26, 46, 141, 151, 160, ExxonMobil 141, 234 171 trade 45, 147, 150, 154 Fallows, James 90 trade policy 118, 132, 154 Federal Deposit Insurance Frank, Barney 242 Corporation (FDIC) 168, 169, free market 93, 95–8, 108, 115, 139, 171, 181, 216, 242 149, 184, 204, 239 Federal National Mortgage Association and China 109 (Fannie Mae) 200 critics 94–5, 103, 234 Feldstein, Martin 148 and economists 49, 85–8, 95–8, Fiat 42, 79, 132, 159 174–5 fi nance 166–90 and Gramm 100, 169 deregulation of 174–80 and India 68 Great Depression 29–30 “invisible hand” 85, 93, 94 international 166–7 and Korea 137 resurgence of 19–20, 187–8 and multinationals 139 stock markets 19–20, 184, 191–2, and rationality 98–100 206, 239–40 and Reagan 97–8, 176 Index 295

and “shock therapy” 100–1 General Electric (GE) 14, 69, 141, 157, and Thatcher 42, 176–7 159 free trade 25–8, 31, 49, 115, 121, 250 (GM) 79, 143, 147, absolute advantage 26, 86, 111 165, 216 and business 155–7 Generalized System of Preferences and Canada 52–3, 133, 179 (GSP) 120 and China 134 Georgia 13, 46, 79, 81, 222 comparative advantage 88–9, 94, Germany 5, 8, 9, 17, 29–33, 89, 105, 112 140, 213, 237 and economists 85–91, 96–8, 102, economy 14, 27, 40, 48–9, 51, 187 104 industrial policy 30, 149 and EU 79, 131–2 and EEC/EU 41, 130 and FTAA 72 fi nance and India 135–6 banking 43, 210 and Israel 75 Great Recession 47, 209–10, and Japan 133 214–18 and Korea 21, 63, 136–7 investment 46, 160, 171, 202 and safety 233–5 migration 11, 75 and Singapore 62 services 19, 45 and Taiwan 64 trade 45, 147, 154 and US 128–30 unifi cation 41, 48 see also ASEAN; CAFTA; Mercosur; Ghana 6, 10, 18, 61, 90, 92 NAFTA Glassman, James K. 192 Free Trade Area of the Americas Glass-Steagall Act 98, 100, 168–9, 213, (FTAA) 72 242 Friedman, Milton 3, 30, 95, 96–8, global economy 25–38, 84–110, 102, 103, 109–10, 174–7, 217, 220–38 219 fi rst (1870–1914) 2–3, 25–7, 193 Friedman, Thomas L. 115, 161, 193 redistribution of power 245–6 Fukuyama, Francis 115 second (1980–2010) 3–4, 139–40 globalization 3–4, 91, 98, 137, 139–40, Gabon 221 158, 161, 174, 247 Galbraith, James K. 102–3 and business 137, 153, 156–8, Gap 163 159–61, 164–5 Gazprom 142 defi nition 25 General Agreement on Tariffs and and developing countries 76, 83, Trade (GATT) 35, 44, 45, 69, 139–40 71, 115–28, 130, 135, 235 dislocations 20–1 Kennedy Round 119, 150 fi nance 19–20, 174, 184, 188, 202 Tokyo Round 120, 150 and high-income countries 39, 56 Uruguay Round 118, 121–3, 160 history 25–39, 193 General Agreement on Trade in market-led 23 Services (GATS) 122, 127 migration 8–14 296 Index

globalization (cont’d) Grundig 147 protests 21–2, 136, 240 Guatemala 217 technology 22–3 Gulf Cooperation Council 75, 132, underside of 229–38 135, 137 and Wriston 181 Guyana 12 see also anti-globalization; de-globalization; multinational Haier 164 corporation; transnational Haiti 12, 107 corporation Harley-Davidson Corporation 153 globally integrated enterprise 143, Hassett, Kevin 192 162 Hawke, Bob 54 gold 26, 32, 76, 81, 85, 144, 173, 193, Hayek, Friedrich 90, 95, 96, 102, 110, 206, 213, 222 175, 177 gold standard 25–30, 34, 170–4, 198, health and safety issues 226, 229–33 212 Heckscher-Ohlin 88 Goldman Sachs 14, 57, 178, 204, Heinz 158 206 Heritage Foundation 95 Goodwin, Fred 206 Hewlett Packard Corporation Gore, Albert 234, 236 (HP) 148, 159, 228 Gramm, Phil 100, 123, 135, 168, 194, high-income countries 5, 9, 17, 21, 200 39–58, 70, 144, 215–19, 231, Great Depression (1929–39) 29–33, 241–7 84, 93–4, 99, 103, 169–70, business 155–6 184–5, 207, 214–16, 242 economic growth 7, 65, 68, 146, and unilateralism 29, 212, 245 191, 241, 246 see also Keynes, John Maynard employment 37, 50, 212 Great Recession (2007–10) 167, fi nance 19, 190–1, 206, 208 191–219 investments 171 causes 195–207 labor 2, 70, 225 global impact 211–12, 239–40 life expectancy 4, 240 G-20 213–16 migration 2, 8, 12–13 policy responses 212–19 outsourcing/offshoring 113, 239 poorest countries 212 population 13, 247 spread 206–11 production-sharing 113 unemployment 211–12 services 18 Greece 40–1, 44, 47–8, 61, 199, trade 15–16, 39, 111 216–17, 243 import competition 20, 150, 156, greenhouse gases (GHG) 234–7 240 Greenspan, Alan 49–50, 97–8, 191–2, negotiations 124 194–5, 199, 204 triad 107, 155, 158 Group of 77 145–6 Ho Chi Minh 92 Group of Twenty (G-20) 213–17, Honda 219 243 Honduras 12 Index 297

Hong Kong 5, 9, 17, 61, 106, 114, 117, Indonesia 5, 9, 11, 17, 57, 90, 92, 152, 135 214, 234 economy 20, 36–7, 57, 61, 141, 159 and ASEAN 64 fi nance 188–9, 191–2, 197–8, 206 and China 134 migration 12 economy 65–6, 246 shipping 230 fi nance 188, 197 trade 15, 58, 61, 64, 112, 114, 116 and IMF 66, 188–90 trade policy 127, 135 investment 189 HSBC 208–9 labor 163, 222, 227–8 human traffi cking 230–40 trade 58, 66 Hungary 13, 41–4, 80, 207, 217 negotiations 119, 133 Hyundai 63, 80, 137 industrial policy 43, 55, 58, 62, 68, 89, 108–9, 147–9, 154 IBM 143, 158, 161–3, 165 information 42, 105, 107, 155, 162, Iceland 42, 134, 199, 210–11, 217, 192, 204, 229, 232, 242 229 fl ows 1–2, 4, 8, 11, 14, 22–3, 27, 80, imports 140, 239 import competition 150–3 processing 4, 18, 22–3, 69, 116, 140, import substitution 32, 34, 73, 160, 229, 232, 239 90–2, 114, 115, 118, 120 and rational markets 99 see also individual countries Infosys 69 income inequality 27 Institute of Economic Affairs 95 India 5, 10, 18, 33, 36–7, 117, 236–7, Intergovernmental Panel on Climate 247 Change (IPCC) 236–7 and BRICs 49, 57, 102, 187, 245–6 International Bank for Reconstruction economy 7, 20–1, 27, 68–9, 92, 124, and Development see World 162–5, 187, 211 Bank services 69, 136, 164 International Chamber of Commerce fi nance 20, 83, 179, 197 (ICC) 124, 156 Great Recession 211, 214 International Labor Organization IMF 82, 102, 188 (ILO) 220–4, 226 investments 19, 69, 78, 139–40 International Monetary Fund World Bank 171 (IMF) 57, 101–2, 146, 170, health and safety 233 172–4, 182, 194, 197, 204 labor 12, 221–2 Asian crisis 66–7, 102, 190, 197 population 11–14, 66, 68, 78 capital account state-owned enterprises 142 liberalization 188–90 terrorism 231 Central and Eastern Europe 80–2, trade 54, 58, 69, 70, 83, 116 208 negotiations 53, 69, 118–19, current-account 196, 243–6 123–6, 132, 135–7 Great Recession 207, 211–18, 243 protectionism 21, 33, 69, 89–90, Greece 47 92, 136 Latin America 183 298 Index

International Organization for Jensen, Michael 99 Migration (IOM) 224 Jordan 12, 127, 129, 131, 134 International Telecommunications JPMorgan Chase 205, 206, 217 Union (ITU) 23 JVC 163 International Trade Organization 34–5 intra-industry trade 111–12 Kadlec, Charles 192 Iran 74, 146, 182, 186, 223 Kaufman, Henry 183, 195 Ireland 41–4, 47, 90, 199, 216, 230, Kazakhstan 6, 207 241 Kennedy, Paul 109 Israel 5, 10, 17, 75, 222 Kennedy Round (GATT) 119–20, 130, trade 75, 128, 131, 133, 137 150 Italy 4, 14, 22, 40, 41, 149, 171, 204, Kenya 6, 229 226, 237 Keynes, John Maynard 2, 3, 31–2, 63, fi nance 29, 47, 214 84, 216–19 trade 45, 154, 171 and Bretton Woods 84, 169–71 and critics 95–7, 175, 241 Japan 5, 9, 17, 29, 30, 55–6, 66, 112, and Great Depression 93–5, 168, 114, 117, 142 213 and China 233–4, 245 and neo-Keynesians 99, 103 economy 36, 49–51, 132–3, 180, Kia 80 186, 193, 247 Kindleberger, Charles 213 agriculture 21, 63 King, Mervyn 198 business 40, 45, 107, 125, 139–41, Klaus, Vaclav 87 156, 158, 161 Kodak 147 development model 37, 61, 90, Korea, North 6, 221, 223 91–3, 114 Korea, South 5, 9, 17, 90, 92, 117, 162, industrial policy 55, 109, 147–9, 230, 244 154 economy 7, 37, 55, 57, 59, 61, 62, services 19, 105, 202 141, 159, 180, 187 and Europe 40, 42, 153–4 and agriculture 63 fi nance 19, 176–80, 184–5 and business 63, 113, 153, 162, currency 16, 18, 173, 186, 197, 225–6 244, 246 fi nance 18, 197, 214, 245 direct investment 46, 55, 151–4, Asian crisis 188–90 185, 226, 229 labor 221 fi nancial crisis 184–5, 193 trade 15, 16, 39, 54, 58, 59, 61–3, Great Recession 202, 208–9, 211, 76, 105, 112, 114–17, 153 214–18 protectionism 21 population 12–14, 247 trade policy 119, 123, 125–6, trade 54, 55, 58, 59, 63–4, 65, 72, 129–37, 140 76, 82, 106, 115–17, 136, 147, Kristof, Nicholas 227 150–4, 230 Krueger, Anne O. 101 policy 119–21, 132–4, 137 Krugman, Paul 103–4, 228, 245 Index 299

Kuwait 75, 186, 223 London Stock Exchange 26, 169, Kyoto Protocol 235–6 178–9 Kyrgyzstan 12, 207 Long-Term Capital Management (LCTM) 175–6, 184 Lamy, Pascal 188 Lucky Goldstar (LG) 63, 153 Landesbanken (Germany) 210 Landis, James 93, 95, 242 Ma Ying-jeou 64 Landsbanki (Iceland) 211 Maddison, Angus 27, 37 Laos 64 Madoff, Bernard 204, 208–9 Latin America 5, 9–10, 17, 70–4, 171, Madrid, Miguel de la 115 182, 244 Magaziner, Ira 108, 148 economy 8, 36–7, 70–4, 212, 247 Mahan, A. T. 28, 38 fi nance 33, 81, 101, 183–4, 168, Mahathir, Mohamad 66–7 188 Malaysia 5, 9, 11, 17, 62, 102, 117, debt crisis (1980–5) 101, 183–4 119, 159 global fi nancial crisis 208 and ASEAN 64 labor 221–4 economy 65–7, 141, 159 migration 112 fi nance 189, 197 trade 33, 70–4, 83, 112, 138 Asian crisis 66–7, 188–9, 197 protectionism 29, 112 health and safety 233 Latvia 41, 43, 80, 207, 208 labor, forced 222–3 least-developed countries 5, 6, 9, 12, trade 58, 112, 114, 116 17, 116 trade policy 119, 133 Lebanon 12, 131 Malta 41 Lee, Kuan Yew 62 Malthus, Robert 145 Lee, Myung-bak 63, 137 manufactures 18–19, 36–8, 50 Lehman Brothers 206–9, 214 exports 15–16, 26, 31, 111–14, 116 Lenin, Vladimir 91 labor costs 104, 106, 111 Lenovo 174 tariffs 51, 124 Lesotho 6, 12 trade liberalization 95, 111–12, 124 Levitt, Theodore 158 transition to services 18–19 Liberia 6, 10, 18 see also individual countries and Libya 63 trade negotiations life expectancy 4–6, 27, 78, 80, 102, maquiladora 107, 115, 159 230 market-opening 14, 25, 71, 105, 115, List, Friedrich 87, 89–90 220 literacy 4, 6, 240 Markowitz, Harry 175 Lithuania 10, 41, 43, 80, 207 Marshall, Alfred 93, 100 “Little Bang” (Canada) 179 Martin, Claude-Noel 155 living standards 6–8, 24, 64, 71, 218, Marx, Karl 32, 59, 90–2, 94, 239 228–9, 235, 247 Mattel 227 Lloyds TSB 209–10 Mauritania 223 London, City of 26, 171, 178, 242 Mauritius 6, 10, 18, 77–8 300 Index

McDonald’s 21, 193, 211 Mozambique 222 Mediterranean debt crisis 47–8 Mozilo, Angelo 201 see also Great Recession; Greece Mulroney, Brian 52–3, 179 Medvedev, Dmitry 82 Multifi ber Arrangement 156 Mercedes Benz 45–6, 158, 160 multinational corporation (MNC) 71, Mercosur 72, 132, 137, 239 79, 96, 112, 122, 139, 141–6, Merkel, Angela 215 161, 164–5, 173, 230 Merrill Lynch 181, 185, 202, 204, 206 see also transnational corporation Merton, Robert 175 (TNC) Mettler, Ruben F. 106 Mundell, Robert 103, 174 Mexico 5, 10, 17, 57, 115–16, 117, 245 Myrdal, Gunnar 90, 96 economy 11, 70–2, 107, 141, 158–9, 180 Naisbitt, John 105 fi nance 183, 188, 192, 212–17 Nasser, Gamal Abdel 92 instability 240–1 Nath, Kamal 125 population 11, 13, 71 Nehru, Jawaharlal 92 trade 51, 71, 115, 130 Nestle 158 NAFTA 48, 53, 71, 72, 107, 116, Netherlands 8, 26, 43, 45, 46, 48, 66, 128, 240–1 171, 214, 226 policy 125–7, 131, 133 New Zealand 5, 8, 9, 17, 226 Michelin 46, 151 economy 54–5 Microsoft Corporation 163, 228 fi nance 177, 179 Middle East and North Africa 74–6 trade 31, 55 migration 2, 3, 139, 193, 214, 225–6, negotiations 118, 124, 130, 135–7 240, 247 Niger 221 international 2, 3, 8–13, 27, 36, 56, Nigeria 6, 10, 11, 18, 57, 76, 77, 246 78 Nike 162–3, 226, 227 rural to urban 12–13 Nintendo 228 Migration Policy Institute (MPI) 12 Nissan 80, 230 Miller, Merton 175 Nixon, Richard M. 95, 98, 182 Mitchell, Charles E. 168 Nkrumah, Kwame 92 Mitsubishi 163 Nokia 161, 163 Moet Hennessy-Louis Vuitton 161 Nomura 185, 209 Moldova 12, 79, 222 Nortel 163 Mondale, Walter 148 North Africa 5, 8, 10, 74, 131 Mongolia 217 North American Free Trade Agreement Monnet, Jean 41–2 (NAFTA) 48, 56, 107, 116, Moody’s 203, 205 128–34, 239 Moore, Mike 124 and Canada 53 Morgan Stanley 206 Chapter 11 128, 235 Morgenthau, Henry M., Jr. 170 and Japan 157 Morocco 129, 131 and Mexico 71–2, 159, 240 Motorola 163, 228 and US 51, 147 Index 301

Northern Rock 209 Poland 6, 10, 13, 18, 41–4, 101 Norway 117, 134, 143, 186, 202, 209, economy 7, 80 232 and Great Recession 207, 217 migration 11 Obama, Barack 129, 215, 231 trade 15 offshoring 14, 80, 112, 113, 160, 163 population Ohmae, Kenichi 107, 108, 139, 158, aging 13–14, 49, 51, 241, 247 161 growth in 11, 13, 27, 49, 58, 67, 76, oil-exporting nations 36, 57, 58, 75, 77, 105, 140, 145, 247 144–6, 177, 182–3, 198 Porter, Michael 107–8 Old Navy 163 Portugal 40, 41, 44, 47, 88, 104, 143, Oman 75, 129 199, 243 O’Neill, Jim 57 poverty 12, 21, 50, 61, 68, 124, 192, O’Neill, Paul 196 221, 230, 246 Organization for Economic Prebisch, Raul 90, 120 Cooperation and Development Prince, Charles 202 (OECD) 2, 19, 46, 62, 63, 95, Prince Michael (Yugoslavia) 208 146, 218, 246 privatization 4, 20, 80, 81, 97, 100–2, outsourcing 80, 113, 160–2, 165, 221 134, 149 Procter and Gamble (P&G) 163 Paddock, Paul 145 production sharing 21, 106–7, 112–13 Paddock, William 145 protectionism 29, 42, 89, 156–7, 215 Pakistan 5, 10, 11, 12, 18, 68–70, and China 60 118–19, 217, 231 and France 150 Palestinian Authority 131, 147 import substitution 32, 34, 73, 90, Palmisano, Sam 162 101, 114, 115, 118, 120 Panasonic 163 and India 69, 92 Panitchpakdi, Supachai 124 and Japan 151 Papua New Guinea 223 trade negotiations 121 Peccei, Aurelio 145 and US 52, 153 Pechiney 159 public opinion 12, 53, 109, 129, 157, Pecora, Ferdinand 168 227, 237 Peru 62, 72, 129, 130, 134–7, 223 Putin, Vladimir 82 Petersen, Donald 162 Petrobras 73, 142 Qatar 124, 186 Peugeot Citroen 80 Philippines 5, 9, 17, 245 Rand, Ayn 98 economy 64, 67, 164, 180 RAPEX 232–3 fi nance 189, 197 Reagan, Ronald 4, 20, 88, 96–8, 102, labor 11–21, 222–5 108, 109, 148 trade 67, 122, 133 and communications 23 Philips 42, 46, 147, 151, 153, 155, 161 and fi nancial deregulation 176, 184 Pinochet, Augusto 74, 97 and trade policy 127–8, 153 302 Index

real estate 55, 67, 75, 151, 180, population 8, 13 185–6, 189, 193, 198, 205–7, trade 46, 81, 82, 115–16 241 Reed, John 184 Sachs, Jeffrey 81, 100–1 Regan, Donald 181 Saipan 225 regionalism 56, 62–5, 72, 158, 246 Salinas de Gotari, Carlos 115 and business 139, 143–4 Samsung 63, 163 Cold War 35, 79, 114 Santander 208–9 EU 44, 130, 154–5 Sarkozy, Nicolas 215 South Africa 78 Saudi Arabia 5, 10, 17, 117, 186, 214, trade negotiations 127–38 223 trade patterns 112–14 currency reserves 76, 197 see also ASEAN; CAFTA; European petroleum 53, 58, 76 Union; Mercosur; NAFTA trade 63, 70, 76, 198 regulatory state 31, 93, 242 Saudi Aramco 142 Reich, Robert 108–9, 138 Schacht, Henry 143 Reinhart, Carmen 167, 176 Scholes, Myron 175 Reliance Industries 69 Schuman, Robert 41–2 remittances 12, 16n, 77, 196 Schumpeter, Joseph A. 240 Renault 79, 149, 159 securitization 99, 166, 194 Roderick, David 153 Serbia 80, 217 Rogoff, Kenneth 167, 176 Servan-Schreiber, Jean-Jacques 144 Rohatyn, Felix 148 services 15, 18–19, 26–7, 37, 40, Romania 43, 80, 217, 222 58, 62–3, 67–9, 72–3, 104–5, Roosevelt, Franklin D. 30, 32, 169, 112 213 and ASEAN 135 Royal Bank of Scotland (RBS) 206, and Canada 133–4 208 and China 135 Rukeyser, Louis 192 and EU 40, 45, 131, 136–7 Russian Federation 6, 10, 18, 101, 106, fi nancial 168–9 117, 175, 194 and Japan 55, 133 and BRICs 57, 102, 142, 245–6 third-wave 104 economy 20, 80–2, 102, 113, 187, and Toffl er 18, 104 192, 202 and US 4, 50–1, 128–30 criminal activity 222, 224 and WTO 122–3, 127–8 and integration 15, 79–83, Seychelles 217 113 Shapiro, Irving 143 shock therapy 100–1 Sharpe, William 175 sovereign-wealth fund 186 Shell 45–6, 141 state-owned enterprise 142 Shiller, Robert 100 energy 81–2, 115 shipping see transportation fi nance 18, 81–2, 197–8, 212, 214, “shock therapy” 81, 100–1 244 Shultz, George 177 Index 303

Siemens 45–6, 159, 163 state-owned enterprise (SOE) 3, 142, Singapore 5, 9, 17, 61–6, 117, 230, 160, 165, 239, 246 233 Stelco 52 and ASEAN 64–5 Stiglitz, Joseph 99, 100–3 economy 12, 20, 37, 57, 62, 92, 106, Strauss-Kahn, Dominique 207 159 sub-prime lending 200–1, 206 fi nance 62, 189, 191, 214 sub-Saharan Africa 6, 10, 13, 18, 83, sovereign-wealth fund 186 230, 240, 244, 247 trade 15, 16, 26, 58, 62, 124, economy 8, 21, 76–8, 211 129–37 labor, forced 221 Sinopec 60, 142 trade 16 Slovakia 7, 41, 43, 80 Sudan 223 Slovenia 41, 43 Suharto 66, 190 Smick, David 207 Sukarno 66, 92 Smith, Adam 85–95, 109–11, 239 Summers, Larry 194 socialism 79, 96, 114–15 Sunbeam 158 Solvay 159 Swaziland 6 Sony 147, 161, 185, 228 sweatshops 163, 224–8 South Africa 6, 10, 18, 31, 62, 204, Sweden 41, 43, 48, 80, 143 222, 226, 246 Switzerland 48, 117, 133–4, 143, 186 economy 76–8 Syncrude 142 fi nance 20, 83, 179 Syria 131 population 6, 11 trade 78, 118, 123, 137 Taiwan 36–7, 61–7, 93, 117, 122 South Asia 5, 10, 17, 68, 135 currency reserves 18, 197–8 economy 8, 20–1, 113 economy 15, 64 population 13–14 production-sharing 59, 106, trade 62, 112 113–14, 159, 162, 226–8 sovereign-wealth fund 179, 186 trade 58–9, 63, 76, 112, 116 Soviet Union 32, 171 Tajikistan 12 and autarky 35, 81, 114 Talbott, Strobe 161 collapse of 4, 8, 41, 43, 45–6, 69, Tata 69 100, 224 technology 4, 14, 22–3, 157–8, 162–5, and Reagan 23 178, 180 state planning 2, 32, 34, 92 see also communications; see also Russian Federation globalization; information Spain 22, 41, 237, 244 technology; transportation business 79 Tesco 69 economy 40, 44, 212 textiles 32, 59, 64, 70, 85, 113, 116, fi nance 47, 199, 208–9, 214, 243 140, 150, 225, 228 trade 131 Asia 70, 114 Standard and Poor’s 203 and Israel FTA 128 State Grid 60 Mauritius 78 304 Index

textiles (cont’d) illegal activity 220–1, 225, 229–32 and MFA 156–7 and services 15, 45 trade theory 85, 104 triad 154, 161 trade trends 111 Triffi n, Robert 172–3, 199 Uruguay Round 122 Troubled Asset Relief Program Thailand 5, 9, 12, 17, 67–8, 117, 232 (TARP) 216 and ASEAN 64 Tunisia 131 fi nance 48, 66–7, 189–90, 198, Turkey 5, 10, 17, 32, 74–5, 131, 222, 214 226 labor 221–2, 225 development 32, 57, 90, 246 trade 58, 67, 112, 114, 116, 124–6, economy 8, 75, 212, 214 133, 135 and Europe 8, 41, 232 Thatcher, Margaret 4, 42, 85, 87, 96, migration 8, 11 102, 149, 176–7, 201 trade 75, 122 Third Wave, The 104 Thomson 151 UBS 178, 205–6 Thurow, Lester 109, 148 Uganda 222 “tiger” economy 15, 37, 61, 101, 109, Ukraine 6, 10, 13, 15, 18, 46, 79, 80, 112 82, 207, 217, 234 Toffl er, Alvin 18, 104 UN General Assembly 145 Tokyo Round 118, 120–1, 130, 150 UN Offi ce on Drugs and Crime Tonga 12 (UNODC) 223–4 Total 45 UN World Tourism Organization Toyota 80, 141, 147 (UNWTO) 22 trade negotiations 21, 34, 44–5, 52–3, UNCTAD 90, 118, 120, 141, 142, 56, 69, 72, 115, 215 163–4, 186 bilateral and regional 127–38 208 multilateral 116–26 Unilever 159, 164 transnational corporation (TNC) 11, United Arab Emirates 11, 63, 75–6, 122, 125, 141, 146, 157, 160 117, 131, 186 see also multinational corporation United Kingdom (UK) 2, 5, 9, 12, 16, (MNC) 17, 31, 90, 226, 230 Trans-Pacifi c Partnership deregulation 20, 174, 178–9 (TPP) 129–30 economy 40, 48, 180, 187 Transparency International (TI) 77 and Europe 34, 44, 143 transportation 4, 11, 14–15, 22–3, fi nance 46, 169, 171, 174, 178–9, 26, 30, 54, 77, 104, 116, 197, 199, 244 213 sub-prime loans 200, 201 and business 143, 180 Great Recession 200, 201, 214 containers 12, 22–3, 72, 141, 224, migration 8, 11 230–1 services 18 deregulation 87 trade 44–5, 111, 112, 117 and exports 116 United Nations 146, 216, 224 Index 305

United States (US) 5, 13, 9, 17, 36, and Greenspan 98, 191, 194, 195, 49–52, 117 199, 204 and China 46 US Food and Drug economy 96, 147–9, 161 Administration 232 Great Depression 29–33, 93–4 US Government Accountability Offi ce fi nance 19 (USGAO) 232 creditor nation 29 US International Trade debtor nation 29, 93, 198–9 Commission 152, 153 direct investment 171–2 US National Science Foundation 236 government budget defi cit 196, US Trade Representative (USTR) 237 217 household savings 50–1, 196, 244 Vale 73 regulation/de-regulation 168, Vedder, Richard 228 174–80 Vietnam 5, 9, 11, 17, 68, 92, 122, 126, reserve currency 103, 144, 171–4, 130–3, 189, 232, 246 197–9, 246 ASEAN 67 health and safety issues 229–34 economy 15, 187 services 19 labor 67, 162–3, 226–9 trade 16, 51, 116, 140–2 Vietnam War 37, 67, 100, 144, 173 negotiations 52, 72–3, 75, 111, Vodaphone 141 121, 127–30 Vogel, Ezra 147, 184–5 Uruguay Round (GATT) 35, 115, 118, volatility 4, 21–2, 176, 194, 210, 240 121–4, 127–8, 156, 160, 239 Volcker, Paul 195, 242 US Central Intelligence Agency Volkswagen 45, 79, 80, 151, 159, 160 (USCIA) 236 Volvo 42, 145, 159 US Commodity Futures Trading Commission 194 Wal-Mart 69, 141, 164, 230 US Consumer Product Safety Washington consensus 49, 61, 98, Commission 233 101–2, 187 US Department of Agriculture weapons of mass destruction 231 (USDA) 232, 234 Welch, Jack 14, 157 US Department of Homeland welfare state 24, 34, 40, 144 Security 232 White, Harry Dexter 169–71, 216 US Environmental Protection Wiggin, Albert 168 Agency 235 Williamson, Gilbert 161 US Bank, New Williamson, John 101, 187 York 169, 194 Wipro 69 US Federal Reserve System, Board of Wolf, Martin 214 Governors (USFRBG) 43, 49, World Bank 7, 14, 16, 57–8, 68, 84, 169, 171, 180, 182, 205, 242, 99–102, 170–1, 216–18, 247 245 World Customs Organization 231 and Bernanke 30, 217 World Economic Conference and Friedman, Milton 30, 96, 217 (1933) 212–13 306 Index

World Economic Forum (WEF) 22, and Russia 82 45, 48–9, 54, 77, 156 and South Africa 78 World Trade Organization (WTO) 21, and Vietnam 68 35, 45, 61, 114–18, 122–7, 132 World War I 2–3, 26–31, 34, 36–7 and Brazil 73, 126 World War II 31, 33–5 and Canada 53, 125 Wriston, Walter 105, 177, 180–4 and China 60, 64, 122, 126, 157 dispute settlement 125–6 Yeltsin, Boris 81 Doha Round 123–5, 127, 132, 134, Young, John 148 215 environment 233–7 Zambia 6 and EU 123–5 Zenith 153 and India 69, 134 Zimbabwe 6, 10, 18, 77, 223