© 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
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 The current debate about trade with China sparked by the Trump administration is uncannily reminiscent of the 1970s, when Japanese companies were deemed a threat to the United States. Phrases such as “Japanese invasion” were used by frightened journalists and fear-mongering politicians. The threat from Japanese imports … Continue reading WWMS? (What Would Milton Say?)
© 2018, Farok J. Contractor, Rutgers Business School Acting on his campaign rhetoric that China is “raping our country,” Don Trump recently announced a 25 percent tariff on steel, 10 percent on aluminum, 30 percent on solar panels, and 20–50 percent on washing machines—products he alleged are being “dumped” by the Chinese—and threatened a “trade … Continue reading TEN QUICK FACTS ABOUT US TRADE: Deficits, Dumping, and Discords
© 2017, Farok J. Contractor, Rutgers Business School This is an update to my September 7, 2017 post, in which I described seven reasons why India’s manufacturing competitiveness still lags behind China’s — but also how the Modi government is taking steps to alleviate the bottlenecks. (See reader comments in the original post.) Click for PDF of … Continue reading India Jumps 30 Places Higher in World Bank Rankings: Update on “Thousands of Hindu Gods – Made in China”
In the past five years there’s been a lot of significant achievements, such as the inclusion of the RMB (or the yuan) in the IMF SDR basket, which is putting China on the path to becoming a recognized internationally tradable currency. Interview: China could sustain 6 pct growth rate in medium term: U.S. expert Source: … Continue reading Xinhua Interviews Farok Contractor about China’s Economic Growth: October 10, 2017