Wisconsin Public Radio

Manufacturing is still critical to the economy United States. Clyde Prestowitz, says it's time to start realizing the positive spillovers that manufacturing creates... Read more  

Events & Activities

Stephen Olson at Chinese Development Institute Conference

 

 Clyde Prestowitz giving presentation to CDI...

 

Steve Olson teaching trade negotiations at the Mekong Institute...

 

Stephen Olson to speak at upcoming workshop organized by the International Institute for Trade and Development on 

"Economics of GMS Agricultural trade in goods and services towards the world market"

Chiangmai, Thailand Sep 8-12.

(11/16/10) Prestowitz discusses currency battles in the International Herald Tribune

Big companies evade currency battles

BY JACK EWING AND MOTOKO RICH

DATELINE: FRANKFURT

If there is a currency war going on, global corporations are doing their best to become noncombatants.

Political leaders like Wolfgang Sch?uble, the German finance minister, may have been growling about U.S. actions that could weaken the dollar, pushing President Barack Obama to fend off charges last week that policy makers were trying to give U.S. exporters an unfair advantage. But for years, companies on both sides of the Atlantic have been realigning their operations so that exchange rates matter much less than they used to.

Indeed, for all the outcry in diplomatic circles, a weaker dollar is not likely to help the U.S. job market in the short term, economists and business leaders say. Nor is it likely to scuttle the modest European economic recovery, which depends heavily on exports from Germany and other countries.

At least since the 1980s, many big companies have been making more and more goods in the countries where they are sold rather than shipping the products abroad. For large swaths of global trade, this effectively takes exchange rates out of the equation.

Click Here to read the the entire article.

Join our mailing list

Latest Publications


The Betrayal of American Prosperity.


The Trans-Paific Partnership and Japan.


Making the Mexian Miracle.


Industrial Policy and Rebalancing in the US and China.


The Evolving Role of China in International Institutions.

 

Contact us

Economic Strategy Institute

1730 Rhode Island Avenue, NW, Suite 414 |  Washington DC  |  20036
Ph (202) 213-7051  |  Fax (202) 965-1104  |  info@econstrat.org