Category Archives: Global Contexts

Postponing Customization of the Prius to the NJ port

An article in the New York Times (Sept 23, 2011) describes customization of the Toyota Prius, manufactured in Japan, at the Newark port. Cars are tailored to customer requirements such bluetooth, accessories, quality touchup, satellite radios, alloy wheels etc.  This … Continue reading

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Airbus and Boeing long term airplane demand forecasts

An article in the New York Times (September 19, 2011)  states that Airbus predicts that a demand for 27,800 airplanes by 2030 with a potential revenue impact of $ 3.5 trillion and an implied air traffic growth rate of 4.8 … Continue reading

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The impact of infrastructure on Colombian exports

An article in the Economist (Sept 17,2011) describes the poor infrastructure in Colombia as resulting in export costs of a container that are 20 % higher than a similar task in Argentina. Thus, the poor infrastructure is estimated to be … Continue reading

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Will China’s inflation impact the USA ?

A report by Hale and Hobijn (http://www.frbsf.org/publications/economics/letter/2011/el2011-25.html) suggests that imports from China account for 2.7 % of US consumer expenditure. Of that 2.7%, over 55 % consists of services in the US, thus imports of China constitute 1.2 % of … Continue reading

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Ecommerce, couriers and cash on delivery in India

An article in the New York Times (Sept 14, 2011) describes FlipKart – an ecommerce company in India that employs couriers for home delivery of orders with cash paid on delivery. Given the preference for cash transactions and payment ion … Continue reading

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Reducing automobile weight and mpg increase

A New York Times article (Sept 14, 2011) describes efforts by auto manufacturers to decrease the weight of their cars -Land Rover plans to cut 1100 lbs in 10 years, Audi by 175 lbs in 1 year, Toyota by 35 … Continue reading

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Two Tier pay in the US auto industry

A New York Times article (Sept 13, 2011) describes the practice of hiring new workers at $ 14 per hour while paying older workers twice that amount. These new employees permit manufacturing at price points comparable with global competition and … Continue reading

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Enforcing other country’s laws in the US

Another report on Gibson guitars in the Economist (Sept 3, 2011) describes the rosewood related production shutdown at Gibson guitars that we discussed earlier. But it claims that US manufacturers have to abide by every plant and wildlife regulation set … Continue reading

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Innovative use of wool as an oil spill solution

An article in the Economist (Sept 3, 2011) describes a businessman in a wool fabric producing region of Italy who have experimented with the use of wool to soak up oil from oil spills. Their tests show that coarse wool … Continue reading

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Drug Shortages in the US – other issues

An article in the Economist (Sept 3, 2011, pg 29) describes the increase in drug shortages from 58 drugs in 2004 to 211 in 2010 and 198 by Sept 2011.  Most of these drugs are generics whose prices are set … Continue reading

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