How Do Multinationals View India as a Global Supply Chain Partner and Market? Benefits, Concerns, and Obstacles

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© 2024, Farok J. Contractor, Distinguished Professor, Rutgers Business School India, with its expanding economy, has finally arrived on the world stage as a potentially very important market and supply chain partner for multinational companies. What factors within the country attract multinationals to engage in foreign direct investment (FDI) in India? What factors within India … Continue reading How Do Multinationals View India as a Global Supply Chain Partner and Market? Benefits, Concerns, and Obstacles

Premature Schadenfreude Directed at the US Dollar

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Photo Credit: ATHIT PERAWONGMETHA/REUTERS © 2023 Farok J. Contractor, Distinguished Professor, Rutgers Business School RECENTLY, THERE HAS BEEN A PROLIFERATION of wishful-thinking posts predicting the imminent decline of the US dollar as a universal currency, further stating that its fate is to be replaced by the Chinese yuan, the Indian rupee, or some other currency. Pundits … Continue reading Premature Schadenfreude Directed at the US Dollar

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

Does China Systematically Force US Companies to Reveal Their Secrets?

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© 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?

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)

The US-China Trade Spat: How the Public, Media, and Politicians Can Be Deceived by Data

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© 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

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 Is Globalization? (Part 1): How to Measure It and Why Many Oppose It

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© 2017 Farok J. Contractor, Rutgers Business School The rise of nationalistic political leaders has spanned the globe—from Donald Trump and Marine Le Pen in the West, to Recep Tayyip Erdoğan in the Middle East, to Narendra Modi and Rodrigo Duterte in the East. To varying degrees, each of these leaders espouses an “our country … Continue reading What Is Globalization? (Part 1): How to Measure It and Why Many Oppose It

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

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