Advantages and Drawbacks of Undervalued Versus Overvalued Currencies

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© 2019 Prof. Farok J. Contractor, Rutgers University UPDATE: See the August 11, 2019 post: Trump Administration Labels China a “Currency Manipulator”: What’s behind the accusation, and who’s right? 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, … Continue reading Advantages and Drawbacks of Undervalued Versus Overvalued Currencies

Tax Avoidance by Multinational Companies: Methods, Policies, and Ethics (Updated)

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© 2018, Farok J. Contractor, Rutgers Business School An earlier version of this article was published on this site on May 5, 2016, and also in AIB Insights, Vol. 16, No. 2 (2016). Recommended Citation:  Contractor, Farok J. Tax avoidance by multinational companies: methods, policies, and ethics. Rutgers Business Review, Vol. 1, No. 1, pp. 27–43 (2016). Also see … Continue reading Tax Avoidance by Multinational Companies: Methods, Policies, and Ethics (Updated)

Globalization Continues – And Multinationals Play by Rules Set by Other Nations (Despite What Trump Says)

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© 2017 Farok J. Contractor, Rutgers Business School  Globalization is driven by two inexorable logical constructs: (1) Multinational companies go and sell where enough customers are located, serving foreign markets by whatever means possible. And: (2) Multinational companies produce (or outsource) wherever it is rational or cheap to do so following the rules of various countries … Continue reading Globalization Continues – And Multinationals Play by Rules Set by Other Nations (Despite What Trump Says)

What’s at Stake in China-US Relations? An Estimate of Jobs and Money Involved in the Bilateral Economic Tie

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© 2017 Farok J. Contractor, Rutgers Business School   Recommended Citation: Contractor, Farok J. What is at stake in China-US relations? an estimate of jobs and money involved in the bilateral economic tie. Rutgers Business Review, Vol. 2, No. 1, pp. 1–22 (2017). •  This is an updated version of my January 15, 2017 post.  A version … Continue reading What’s at Stake in China-US Relations? An Estimate of Jobs and Money Involved in the Bilateral Economic Tie

Four Salient Facts about the Chinese Yuan

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© 2017 Farok J. Contractor, Rutgers Business School On February 23, 2017, just hours after his new Treasury secretary pledged a more methodical approach to analyzing Beijing's foreign exchange practices, President Donald Trump declared: "Well...I think they're grand champions at manipulation of currency. So I haven't held back.... We'll see what happens."  — Reuters Four Salient Facts: … Continue reading Four Salient Facts about the Chinese Yuan

What’s at Stake in China-US Relations? Job and Money Calculations Under Various (Trumpian) Scenarios

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© 2017 Farok J. Contractor, Rutgers Business School This post was updated on March 10, 2017 as What’s at Stake in China-US Relations? An Estimate of Jobs and Money Involved in the Bilateral Economic Tie—click to be automatically redirected. A shorter version was published as an article on YaleGlobal Online February 28, 2017, as  Disrupting US-China Relations Will Incur … Continue reading What’s at Stake in China-US Relations? Job and Money Calculations Under Various (Trumpian) Scenarios

The G20 Summit in China: An Annual “Talking Shop”? Or a Potential Bedrock of Global Civilization?

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© 2016 Prof. Farok J. Contractor, Rutgers Business School Note: A version of this article was also published on The Conversation as How the G20 can ensure the marvelous gains from globalization aren't lost. What do summits such as the G20 accomplish? Posing for pictures after their summit, the leaders of the G20, a mixed bag of … Continue reading The G20 Summit in China: An Annual “Talking Shop”? Or a Potential Bedrock of Global Civilization?

Capital Outflows from China and the Hidden Story in China’s FDI Statistics

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© 2015 Prof. Farok J. Contractor, Rutgers University Permission to Reproduce: A version of this post was published as  “The Chinese prefer investing overseas; dummy companies may ease transfers and devalue renminbi” by  YaleGlobal Online, September 10, 2015; it was the number-one story in a Google search for “China FDI” that day and is also available as a  podcast. The global panic … Continue reading Capital Outflows from China and the Hidden Story in China’s FDI Statistics