After writing this column on the Treasury Department for HughHewitt.com, I was invited to appear on Fox Business to discuss the future of the bond market.
Keynesians howled last week when Britain’s chancellor of the exchequer, George Osborne, announced his intention to shrink the budget deficit by more than the previous Labour government. The fiscal squeeze would plunge Britain into a 1930s-style depression. Where would demand come from with the rest of the world limping out of recession? Mr. Osborne’s Labour predecessor joined the chorus, suggesting that for all his plans to cut public spending if Labour had won the election, Alistair Darling would always have found excuses for delay.
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When we think of exports, we tend to visualize container ships, trains or planes carrying large, heavy cargo. But former Federal Reserve economist W. Michael Cox tries to correct that impression in today’s New York Times (Feb. 17). While praising President Obama’s State of the Union speech call for the United States to “export more of our goods”, Cox says it would have been much better to have said “goods and services.” As Cox points out, the United States has a $144 billion surplus in services, including an 8-1 edge in operational leasing — handling short-term deals on planes, vehicles and other equipment — a 6-1 margin in movie and television program distribution, and a 4-1 advantage in architectural, construction and engineering services. In total, the United States is competitive in 21 of 22 services categories, with significant surpluses in 12 of them. Read
Kraft’s four-month battle for control of Cadbury was one of the leading Transatlantic business news stories of 2009. It was fiecely fought. It may be no coincidence that it was a battle of jock CEOs. In one corner was Kraft CEO Irene Rosenfeld, a former varsity star of four high school sports who decided to attend Cornell partly because of their athletic program. In the other corner was Cadbury CEO Todd Stitzer, a former professional tennis player.
It may be that the competitive spirit one learns on in competitive sports translates into a significant advantage in business. Neither CEO gave up easily: Rosenfeld has turned Kraft into the world’s biggest confectionary company, replacing Mars. Stitzer managed to get for his shareholders a 50 percent increase over Kraft’s original offer last September.
In the current economic environment it takes some courage to talk about a forthcoming, prolonged boom in the global economy. But Gregg Easterbrook (author of The Progress Paradox) has never been known for repeating concentional wisdom. His latest book — Sonic Boom: Globalization at Mach Speed — can serve as a primer on how to describe global economic change (and its likely intensification) in a way that a broad-based audience can relate to. He acknowledges that there is a paradox at the heart of globalization — more economic growth and opportunity, more stress and insecurity. And he describes both sides of the global economy coin, using both economic data and stories about communities.
This is not just a book about how Shenzhen is thriving. It is also about how Waltham, MA and Camden, S.C. are bouncing back. And it is about the fact that all communities will have to continually reinvent themselves to compete in the heightened, prolonged era of globalzation the author argues is coming. For anyone looking for a deep intellectual explanation of globalization, there might be more apporpriate books to recommend. But Sonic Boom is a valuable resource for anyone whose job includes explaining global economic change.
When communicating with people in The Netherlands, one of the easiest ways to get in dutch is to refer to their country as Holland. North and South Holland are just two of the 12 provinces in The Netherlands. Calling the whole country Holland is like referring to the United Kingdom (or Great Britain) as England. (For that matter, it’s like referring to the United States as America when you are speaking to Canadians.)
These are just a couple of small examples of the kind of idiomatic and cultural knowledge it is increasingly important to have, whether writing a speech, an article, a report or any other communications tool aimed at reaching a foreign audience. Read
This is a story I heard in Brussels. A globally prominent CEO was having troubles with the EU’s competition commission. He announced he was coming to town. He arrived with a fleet of black cars. He insisted on a reserved elevator to take him to his meeting.
The result: His company’s troubles with the commission continued for years.
Remember two things in dealing with Brussels.
First, the commission staff is made up of genuine experts in their fields. If you talk to them knowledgeably and with clarity, they will listen and they will hear.
Second, treat the staff with respect. Don’t sweep in like the king of the world. Show some humility. The staff knows you have your job to do. Show that you know they have theirs.
Trade negotiators for the EU and Latin American countries may soon be able to say ‘yes, we have no bananas’ crowding their trade agenda. According to a report from the Financial Times, an end to the world’s longest-running trade dispute — involving preferential EU tariffs on bananas — may soon be in sight. The newspaper suggests that a resolution of the 16-year-old conflict may give a boost to the World Trade Organization’s floundering Doha Round negotiations, especially if it leads the way to a resolution of tariffs on dozen of tropical products. Read