© 2019 Prof. Farok J. Contractor, Rutgers University Also See the Companion Post: Is the Indian Rupee Undervalued or Overvalued? What Purchasing Power Parity Theory Tells Us Currencies can be undervalued (very devalued) for natural reasons, such as political crises causing the rest of the world to become wary of holding that country’s assets or currency … Continue reading Advantages and Drawbacks of Undervalued Versus Overvalued Currencies
2019 Prof. Farok J. Contractor, Rutgers University Also See the Companion Post: Advantages and Drawbacks of Undervalued Versus Overvalued Currencies The basic idea of purchasing power parity (PPP) theory is that money, as such, has no value. It is merely a piece of metal, paper, or plastic—or even a phantasmic electronic entry. What gives money … Continue reading Is the Indian Rupee Undervalued or Overvalued? What Purchasing Power Parity Theory Tells Us
© 2018 Prof. Farok J. Contractor, Rutgers University A cause for celebration: The 17th-century English settlers survived starvation and death thanks to the help of Native American “Indians,” who taught them how to plant native crops and where to hunt and fish. Having just returned to the US in time for Thanksgiving with my family … Continue reading The Globalization of Thanksgiving Day
© 2018, Farok J. Contractor, Rutgers Business School After the pivotal Battle of Gettysburg in early July 1863 during the American Civil War, President Lincoln, the leader of the northern United States in combat with the southern Confederacy, was invited to speak at a cemetery for the dead soldiers. Growing up in a log cabin … Continue reading How a Two-Minute Speech of Only 272 Words Uttered by Abraham Lincoln Is Relevant for the World Today
Supposedly, dumping is the practice of a foreign company “selling below cost”—but in almost all cases, the dumping company is not losing money. © 2018, Farok J. Contractor, Rutgers Business School (Also see my April 13, 2018 post,TEN QUICK FACTS ABOUT US TRADE: Deficits, Dumping, and Discords, in which I introduced the topic of dumping … Continue reading What Is “Dumping”?
© 2018, Farok J. Contractor, Rutgers Business School Among the commercial issues in contention between the US government and China today, the transfer of technology is increasingly an agenda item brought up by the American side. According to a report in the Wall Street Journal on September 27, 2018, a Beijing policymaker summarized the Chinese … Continue reading Does China Systematically Force US Companies to Reveal Their Secrets?
© 2018, Farok J. Contractor, Rutgers Business School Trade Statistics Alone Can Frighten and Mislead In my July 11, 2018 blog post, The US-China Trade Spat: How the Public, Media, and Politicians Can Be Deceived by Data, I described how taking data and statistics out of the context of the larger picture can be not only … Continue reading Does Just One Product – the iPhone – Cause an $11 Billion Trade Deficit for the US?
© 2018, Farok J. Contractor, Rutgers Business School Trade Statistics Can Be Less Than Half the China Story Looking at trade statistics alone is misleading because they lack overall context. The $337 billion US deficit with China in 2017 sounds scary. But a review of other economic factors provides insight into the larger picture. 1. … Continue reading The US-China Trade Spat: How the Public, Media, and Politicians Can Be Deceived by Data
© 2018, Farok J. Contractor, Rutgers Business School Xinhua, China’s leading official news agency, conducted a 30-minute interview with me on June 18, 2018. The video clips and articles are available at the links below. Links to Xinhua Videos (English) ‒ June 18, 2018: These brief clips show only a fraction of my 30-minute interview … Continue reading The US-China Trade Spat: My Interview with Xinhua – June 18, 2018
© 2018, Farok J. Contractor, Rutgers Business School Click photos to see larger images at the source sites. The featured image of the Stars and Stripes above is courtesy of the Smithsonian. On two holidays in the US—Flag Day and Independence Day—patriotic Americans will climb to the second floor of a nondescript building on the Mall … Continue reading The “Star-Spangled Banner” and an Early Example of Outsourcing: The American National Anthem Was Composed on a Ship Built in India