MGI explores the integration of China and India into global sectors, how middle income economies can compete, and what impact multinational companies have on the U.S. current account deficit. Underpinning these insights is research examining the impact of foreign investment on developing countries and how industries are restructuring globally.
Making foreign investment work for China The McKinsey Quarterly, 2004 Special Edition: China Today As China continues to open its economy, policymakers must remember that opening the door to foreign investment is just a first step. Equally important is ensuring that competition flourishes or consumers will pay the price. Read more on the McKinsey Quarterly site Launch this report, in Simplified Chinese (PDF - 799 KB)
Perspective—Beyond cheap labor: Lessons for developing economies The McKinsey Quarterly, 2005 Number 1 Instead of trying to win back low-wage assembly jobs, Mexico and other middle-income nations must create jobs in higher-value-added activities to continue moving up the development path. Unfortunately, the fixation on China-to say nothing of political rhetoric against globalization-is blocking reform efforts in many countries. Read more on the McKinsey Quarterly site Launch this report, in Spanish (PDF - 433 KB)
Don't blame trade for U.S. job losses
The McKinsey Quarterly, 2005 Number 1 New research by Martin Baily, a senior adviser to MGI and senior fellow at the Institute for International Economics, together with Robert Lawrence, professor of trade and investment in the John F. Kennedy School of Government at Harvard and a senior fellow at the IIE, reveals job losses in the U.S. were not due to a flood of foreign goods or offshoring.
Perspective—A new look at the U.S. current account deficit: The role of multinational companies
December 2004 America's growing current account deficit has set off alarm bells among many economists and policy makers. But today's debate misses its mark by ignoring the trade between multinational companies, their foreign affiliates, and consumers. What is needed is a global, rather than national, view on the deficit and policies to ensure the best global economic outcomes.
If India is to replicate the success of its IT and outsourcing industries elsewhere in its economy, its leaders must lower barriers to trade and encourage foreign investment in other sectors.
New horizons: Multinational company investment in developing economies
A major study suggests that both multinational companies and developing economies could find enormous benefits through foreign direct investment. But global expansion has its pitfalls as well as its opportunities, and CEOs as well as policy leaders need to understand them both. Read more Launch video presentation (7:20 min.): broadband| 56k Launch slideshow
The truth about foreign direct investment in emerging markets
Developing countries’ policymakers think they must not only offer incentives to attract foreign direct investment but also protect their local economies by restricting the way multinationals operate. Are these countries wrong on both counts?
Video presentation
Diana Farrell explores the impact of multinational company investment on developing countries and the implications for policymakers and business leaders. Launch video presentation (7:20 min.): broadband | 56k
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