Mauro Guillen - Faculty Research in Knowledge@Wharton

China and the WTO: Looking Back, Looking Forward

Tue, 20 Dec 2011 16:06:25 EST

Ten years after China joined the World Trade Organization (WTO), the country has become the world’s largest exporter and accounts for some 10% of global trade. The International Monetary Fund predicts that by 2016, China will overtake the U.S. to become the world’s largest economy. How did membership in the WTO help transform China? What will the next decade mean for China and its trading partners? To discuss these questions and others, Knowledge@Wharton spoke with Wharton management professors Marshall Meyer and Mauro Guillen and finance professor Franklin Allen. Their insights appear in this special report, produced in collaboration with Beijing Review magazine.

Will a Eurozone Recession Put a Damper on the World's Fragile Economic Recovery?

Wed, 07 Dec 2011 15:00:31 EST

If large parts of Europe fall into a recession, as many experts are predicting, it is likely to have negative, although varied, effects on economies around the world. As European leaders hammer out yet another package of solutions this week, Wharton faculty weigh in on the impact of a eurozone recession, as well as the pros and cons of the recovery measures that are up for debate.

The Euro Zone of Denial Hits the Wall

Tue, 01 Nov 2011 10:59:28 EST

The eurozone’s efforts to fence in Greece’s debt problems have consistently lagged events. And now Italy's financial crisis has entered high gear, despite Prime Minister Silvio Berlusconi's pledge to resign. Another big worry: Creditors could lose all confidence in Europe’s ability to fix these problems, leading to a collapse in Europe’s banking system and other parts of the global economy. Knowledge@Wharton spoke with Wharton finance professor Franklin Allen and Wharton management professor Mauro Guillen about barriers to long-term solutions and the cultural differences that always lie under the surface.

Will the U.S. and Europe Rise Again -- or Sink Together?

Mon, 31 Oct 2011 12:38:04 EST

In today's highly interconnected global economy, problems in one country often lead to difficulties in another. The United States and Europe are experiencing that reality up close as leaders try to deal with debt problems, investment-shy business sectors and seemingly intractable unemployment. At a recent presentation attended by Wharton board members, professors Franklin Allen, Richard Marston and Kent Smetters warned that a true recovery for either region will take time, and that conditions could get worse before they get better.

Pointing Fingers: Can Europe and the U.S. Work Together to Solve the Financial Crisis?

Wed, 12 Oct 2011 14:52:54 EST

Even as U.S. officials and investors watch Europe struggle to shore up its financial system and avert another shock to the global economy, signs of a subtle transatlantic "blame game" have surfaced. Experts from Wharton and elsewhere note that although there are no immediate answers to the mounting crisis -- and its impact on capital markets in the U.S. -- it's clear that any finger pointing needs to be replaced by a sense of urgency and mutual cooperation.

Succession Planning at the IMF: Europe Against the Rest of the World?

Wed, 25 May 2011 16:03:17 EST

As nominations for a new managing director are collected from member countries of the International Monetary Fund (IMF), European leaders are closing rank around French Finance Minister Christine Lagarde as their preferred candidate. But others see the dramatic resignation of former IMF chief Dominique Strauss-Kahn on May 18 as an opportunity to break with tradition and seriously consider candidates from emerging markets in Asia and elsewhere. Experts say there would be a number of benefits to having a non-European at the helm, including rescuing the institution from irrelevancy.

Uprising in Egypt: Rebirth in an Ancient Land?

Wed, 02 Feb 2011 15:51:26 EST

The protests in Egypt are likely to lead to long-term benefits for frustrated citizens accustomed to living under the thumb of a corrupt system that has left millions of young adults jobless and instilled a sense of hopelessness for the future, say Wharton faculty and other observers. Yet much-needed reforms will take many years to unfold, they add, and their success will depend in part on how military leaders want events to play out.

Strategies for a Two-speed World

Thu, 10 Feb 2011 09:00:46 EST

Competing successfully in this new decade requires companies to meet the needs of both low-growth and high-growth markets while differentiating themselves from foreign and local competitors. Building a low-cost global production network that taps into the strengths of each geographical region is critical. Also crucial to success: innovating products, processes and business models to increase margins wherever possible -- and to gain market share. Key decisions will involve looking at profit vs. growth, best price vs. best value, and new rewards systems.

The New BRICS on the Block: Which Emerging Markets Are Up and Coming?

Wed, 19 Jan 2011 16:05:35 EST

Building on the foundation of the well-known BRIC countries (Brazil, Russia, India and China), a new set of up-and-coming emerging markets is gaining attention. The so-called "CIVETS" -- Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa -- are now touted as hot markets because they have diverse economies, fast-growing populations and the potential to produce outsized returns in the future. But like the BRICs before them, each of the CIVETS countries presents a blend of opportunity and risk, according to emerging market analysts. The biggest risk, they say, is the potential for political instability.

Outsourcing: New Pressures to Stay Home, Old Reasons to Go Abroad

Tue, 11 Jan 2011 15:59:35 EST

Has outsourcing run its course in the wake of the recession and complaints from U.S. politicians about stubbornly high jobless rates? Exports from emerging markets fell markedly in 2009, and more companies are thinking harder about the unknowns of going abroad. But the cost savings in Asia are still highly attractive to multinationals, and export levels went up again in 2010. What's more, China's workforce is gearing up to manufacture an ever-wider range of products.

The Global Economy in 2011: A Rocky Ride or Smoother Sailing Ahead?

Wed, 05 Jan 2011 15:12:34 EST

In the United States, most experts are betting that the economy will grow stronger in 2011, but they warn that high unemployment, a depressed housing industry and other problems could dampen growth. Meanwhile, the fate of the euro is still in question, and the specter of inflation looms large in China, Latin America and India despite their resilience to the recent global downturn. In the Middle East, observers expect renewed growth, but they note that resource constraints will become an increasing problem. Knowledge@Wharton spoke with Wharton faculty and other experts to get their views on what's ahead in 2011.

Worlds Apart: What's Behind the U.S.-China Currency Dispute?

Wed, 13 Oct 2010 14:48:17 EST

Faced with the possibility of a global currency war, Western countries are increasing their scrutiny of China's currency policies, accusing Beijing of intervening in the markets to keep China's currency weaker than it would be otherwise. In the U.S., politicians and regulators say such tactics undermine efforts to boost exports, and thus take away jobs from American workers. But the controversy is more complicated than that, and touches on policies and attitudes that go back decades. Knowledge@Wharton spoke with Wharton professors Franklin Allen and Mauro Guillen about what is at stake, and why this particular conflict is so difficult to resolve.

Europe's Migrants: 'The World Is a Smaller Place'

Wed, 13 Oct 2010 14:48:17 EST

France expels Roma Gypsies; a prominent German economist says migrants are destroying the country; a far-right party with an anti-immigration platform wins its first parliamentary seats in Sweden. Few countries in Europe have escaped the recent heated debates about immigration within their borders. Against this backdrop, a growing body of research is helping Europeans understand whether, and under what conditions, immigration is economically and socially beneficial. As one Wharton expert notes, "It's not a zero-sum game."

Deflation -- Delusion or Danger?

Wed, 15 Sep 2010 15:42:34 EST

The collapse in home prices during the past few years is a reminder of the horrors of deflation. Millions of homeowners owe lenders more than their homes are worth, making it impossible to sell, trade up, downsize or move for a new job. What would happen if deflation were to spread across the entire economy, driving down wages and the prices of all goods and services?

'A Major Transformation': The Pros and Cons of the Dodd-Frank Act

Tue, 11 Jan 2011 15:59:19 EST

According to Wharton experts, the Dodd-Frank Wall Street Reform and Consumer Protection Act is a good start toward future financial stability, but they warn that significant concerns remain unaddressed, and stress that the details of implementation must be handled carefully to avoid creating new problems. "I don't think there's a full appreciation of the major transformation of the financial structure that is upon us," one faculty member says.

Practical Advice for Companies Betting on a Strategy of Globalization

Wed, 12 Jan 2011 13:17:35 EST

When several senior executives of Spanish multinationals met recently for a panel about globalization at the Wharton Global Alumni Forum in Madrid, they insisted on the need for "not putting all your eggs in one basket" when managing during times of crisis. Panelists spoke about the globalization strategies their companies have pursued, mistakes they have made along the road, and the importance of top-quality teams when moving into foreign markets.

Will Hopes for European Austerity Be Deflated?

Wed, 23 Jun 2010 15:52:02 EST

Following Greece's pledge to reduce its debts dramatically through a combination of government spending cuts and tax increases, others, including Spain, Germany, France -- and just this week, the U.K. -- began the march toward austerity. While many question whether a country like Greece can make good on its promises without resorting to debt restructuring, the bigger question is whether the austerity measures will actually work.

The Brave New World of Sovereign Wealth Funds

Wed, 26 May 2010 16:26:29 EST

Sovereign wealth funds, the large investment funds supported by governments, are mostly a positive economic force that can provide a shot in the arm to the companies -- and countries -- they invest in. They are also a stabilizing force for the nation where the investment originates. Those are some of the main takeaways from a new Wharton study, "The Brave New World of Sovereign Wealth Funds." In this interview with Knowledge@Wharton, Wharton management professor Mauro F. Guillén, who helped to oversee the research, and two Wharton MBA candidates present some of their key findings.

Crisis, Contagion and Bailouts: What's Next for the European Union?

Wed, 12 May 2010 15:14:35 EST

In the run-up to this week's announcement of the European Union's $960 billion stabilization plan, Wharton management professors Mauro Guillén and Saikat Chaudhuri, and Jean Salmona, founder and chairman of the editorial board of ParisTech Review, participated in an interview with Knowledge@Wharton on likely outcomes from the financial crisis facing Greece, some of its sister countries and the European Monetary Union more generally. How did events spin so out of control? How will the politics of the crisis affect the Eurozone's economic performance? Guillén, Chaudhuri and Salmona addressed these and other questions on May 7, just before the huge financial support package was announced.

The Pain in Spain ... And What It Means for Europe and Beyond

Wed, 17 Mar 2010 17:58:09 EST

Spain's rapid decline from one of Western Europe's fastest-growing economies to one of its most troubled could mean distress ahead for the euro, the EU and, ultimately, the global economic rebound. With all eyes now on Spain's recovery plan, questions are being raised about potential repercussions if the country gets bail-out help from its fellow European Union members. Wharton professors discuss what needs to happen inside and outside of Spain to ward off further disaster.

Domestic Dynamics: Why Latin America's 'New Resilience' Will Keep Growth in Reach

Wed, 06 Jan 2010 15:21:35 EST

Stronger than developed markets but weaker than Asia -- according to analysts, that's how best to describe Latin America's growth prospects in 2010. With a new-found dynamism, all eyes across the region will be focused on the strength of economic recovery and business expansion in the months ahead. On the back burner for now: reforms addressing the region's longer-term competitiveness.

European Conundrum: Increasing Regulation without Stifling Growth

Wed, 06 Jan 2010 15:21:35 EST

Wall Street may have been the epicenter of the financial crash that shook the world, but Europe -- along with other global markets -- experienced the aftershock in the form of a deep recession in 2009. Wharton faculty and other experts predict that in addition to an anemic recovery, Europe will face a number of key challenges that will shape the business and economic environment in 2010 -- including concerns about economic integration, sovereign debt default, regulatory change and the European Union's place in the global economy.

Could Dubai World's Debt Default Spark a Crisis in the Middle East and Beyond?

Wed, 09 Dec 2009 17:18:52 EST

When Dubai World announced late in November that it wanted a six-month delay on payments on $26 billion in debt, the financial markets were thrown for a loop. The Dow Jones Industrial Average fell 155 points, or 1.5%, European stocks dropped and oil prices plunged. The Dubai story is still unfolding -- the emirate's stock exchange fell for the third consecutive day on December 9 after Moody's downgraded the ratings of six government-linked companies. Though some investors believe Dubai does not provoke as much fear as other corporate collapses over the past couple of years, Wharton professors point out that the world economy could face serious problems if similar financial troubles spread to European economies such as Greece.

'A Race to the Bottom': Assigning Responsibility for the Financial Crisis

Wed, 09 Dec 2009 17:18:52 EST

The global financial meltdown has been marked by shortages -- of oversight, due diligence, moral fortitude and common sense. Today, approximately two years after the housing bubble burst and world stock markets collapsed, possibly the only surplus left from the crisis is that of finger pointing and blame. A panel discussion earlier this week titled, "Responsibility and the Financial Crisis of 2008," brought together Wharton and University of Pennsylvania faculty to discuss the causes of the crisis, and more importantly, to answer the question, "Where do we go from here?"

Lessons from Brazil: Why Is It Bouncing Back While Other Markets Stumble?

Wed, 11 Nov 2009 16:18:47 EST

The sense of optimism in Brazil is palpable and it's not just because the country is getting ready to host soccer's World Cup in 2014 and the Summer Olympics in 2016. Brazil's economy was the first in Latin America to stage a recovery following the global economic crisis -- in the second quarter of this year. What has helped Brazil to remain so resilient while other markets are still struggling? And what can it do to maintain economic growth and become, as the World Bank predicts, the world's fifth-largest economy by 2016?

The Post-recessionary Global Economy: In Search of the New Normal

Mon, 09 Nov 2009 10:18:45 EST

The days of loose rules, easy credit and lax oversight, which led to excesses on many fronts, are ending. As the global economy climbs slowly towards recovery, two pressing questions remain: First, how do we prevent things from getting out of control again? And second, what is the so-called new normal? Speakers at the Festival of Thinkers in Abu Dhabi and experts at Wharton weigh in on both issues

Is the World Losing Faith in the U.S. Dollar?

Wed, 02 Sep 2009 16:37:02 EST

As the global economy appears headed toward recovery, concerns are growing that the United States' addiction to massive fiscal stimulus as an economic panacea could eventually lead to an even bigger crisis -- a loss of confidence in the U.S. dollar. Prominent voices are sounding dire warnings, worried that a gradual return to normalcy could undermine the political will needed to control deficit spending and prevent a disastrous long-term decline of the world's primary reserve currency.

Obama's Regulatory Plan: Too Hot, Too Cold, or Just Right?

Wed, 24 Jun 2009 16:27:19 EST

Five months into his administration, President Barack Obama on June 17 unveiled his complex, sweeping financial proposals to create a "21^st century regulatory framework" for the U.S. The proposed regulations give the Federal Reserve more power to watch over Wall Street and also create a new agency to curb abuses by mortgage and credit card lenders. Wharton professors and other experts say that while the new framework does not hamper financial innovation, it is also "too timid" and fails to address serious problems.

Economic Recovery: Are Happy Days Here Again?

Wed, 10 Jun 2009 17:08:51 EST

Stocks have rebounded on Wall Street during the past two months. The pace of job losses seems to be slowing down. Even quarterly reports from banks suggest that the banking sector is slowly struggling back to its feet. Do these signs portend the first indicators of an economic recovery? Not yet, according to experts at Wharton and elsewhere, who insist that despite some of the hopeful data, the recovery will be weaker and take longer to gain momentum than past slowdowns.

Deflation Fears: Could Falling Prices Let the Air Out of a Recovery?

Wed, 13 May 2009 16:53:27 EST

Experts are far from unanimous on the question, with some arguing that deflation could be widespread, while others insist an economic rebound and government stimulus efforts make deflation less likely. Some fear that a stimulus-driven recovery could trigger the opposite: inflation.

Going Green: Why Germany Has the Inside Track to Lead a New Industrial Revolution

Tue, 07 Apr 2009 12:01:31 EST

Already a leading player in so-called clean technology -- the mix of environmentally benign power generation and environmentally friendly technologies -- Germany may become the epicenter of the world's next industrial revolution: the triumph of clean, cheap, sustainable electricity.

Global Economic Forecast for 2009: Will Demand for Good News Outpace Supply?

Wed, 07 Jan 2009 17:01:05 EST

After a year of financial shock and sharp economic loss, 2009 is likely to be extremely difficult for the global economy, with investors, business leaders and policymakers struggling to find signs of recovery. Wharton faculty and other experts interviewed by the Knowledge@Wharton Network discuss the outlook for the U.S., Europe, Latin America, India, China and Japan.

The Race for Energy: What Will It Mean for Western Firms?

Mon, 22 Sep 2008 16:33:05 EST

Rising energy demand from China and India has unleashed a worldwide race to secure access to scarce fossil fuel resources, a more difficult proposition with the emergence of national oil companies in the resource-owning countries. While Western companies will likely feel the pain of increasing energy costs, there is a potential upside to global energy scarcity, according to experts from Wharton and The Boston Consulting Group: Renewable and nuclear energy present huge opportunities for investors and entrepreneurs.

Behind the Curve: Have U.S. Automakers Built the Wrong Cars at the Wrong Time -- Again?

Wed, 09 Jul 2008 17:42:19 EST

Gasoline at more than $4 a gallon has proved to be the price point at which U.S. consumers make big changes in their driving habits. With SUVs and pickups suddenly out of favor in the world's biggest automobile market, Asian manufacturers who invested heavily in fuel-saving technologies -- and European car makers who sell to markets where expensive gas is nothing new -- are better positioned to meet new consumer demands. Just how dire is the situation for U.S. auto manufacturers and is there any relief in sight?

The New Global Middle Class: Potentially Profitable -- but Also Unpredictable

Wed, 09 Jul 2008 17:41:19 EST

A new global middle is rising up in emerging economies around the world, providing competition for labor and resources along with enormous promise for multinationals eager to sell to the burgeoning ranks of first-time consumers. But don't expect this new group to act in the same way -- and have the same preferences -- as prior generations of middle-class consumers, suggest Wharton faculty and analysts.

When Are Emerging Markets No Longer 'Emerging'?

Wed, 05 Mar 2008 15:48:59 EST

The term "emerging markets" is now more than 25 years old and has come to define wide swaths of the world undergoing rapid economic change. Dozens of countries fall under the label even though they are evolving at their own pace and with their own twists on economic development. Now, as many emerging markets show signs of a strong and growing middle-class population, observers wonder whether the term has lost some of its meaning. What qualifies a country as "emerging"? While some say measures based on income or other statistics are critical factors, others place an increasing emphasis on the way business is conducted, with rules that are transparent and apply equally to all participants.

The Global Auto Industry: New Cars, Old Problems

Wed, 23 Jan 2008 16:49:57 EST

The rise in delinquencies on auto loans is one sign that America's auto industry is in trouble -- along with the rest of the economy. How hard are the auto makers being hit and what should the Big Three do to stem the damage? Meanwhile, the global auto industry has seen some interesting developments, including the introduction in India of Tata Motors' Nano and the arrival of five Chinese auto manufacturers at the Detroit auto show earlier this month. Will China and India be big players in the global market for cars? What is the current state of Europe's auto industry? Knowledge@Wharton asked Wharton management professors John Paul MacDuffie and Mauro Guillen to steer us through the turmoil.

Is One Global Model of Corporate Governance Likely, or Even Desirable?

Wed, 09 Jan 2008 15:30:15 EST

In Germany, labor unions traditionally have had seats on corporate boards. At Japanese firms, dozens of loyal managers cap off careers with a stint in the boardroom. Founding families hold sway on Indian corporate boards. And in China, Communist Party officials are corporate board fixtures. But as companies continue to globalize, should they consider adopting one uniform model of corporate governance? Or do global investors benefit from diverse governance structures? Wharton faculty and others offer their opinions.

In Global Entrepreneurship, One Small Initiative Can Make One Huge Difference

Wed, 31 Oct 2007 13:49:19 EST

Entrepreneurs love to grumble about the roadblocks and delays created by bureaucrats. Government officials, they say, are slow, bumbling and concerned only about sticking to the rules and clocking out at 4:55 p.m. But in a study of global entrepreneurship, Raffi Amit and Mauro Guillen, both Wharton management professors, have found that a simple, if smart, bureaucratic initiative mattered critically in determining a country's level of entrepreneurship.

Once Called the 'Sick Man' of Europe, Germany Is Showing New Signs of Vitality

Wed, 28 Mar 2007 13:10:22 EST

Talk about good timing. With Germany assuming the rotating presidencies of the European Union and the Group of Eight (G8) developed nations, the country is enjoying an economic resurgence. It remains a formidable exporter of goods worldwide, its unemployment rate has eased and a recent major tax increase has not dampened economic activity as much as many had feared. Still, there is some question whether the recovery is sustainable and whether Germany is up to meeting such long-term challenges as an aging population and a declining birth rate, according to faculty members at Wharton and German business schools, as well as other experts.

Building a Modern Economy: How the 'Dubai CEO's' Big Bet Is Paying Off, for Now

Wed, 21 Mar 2007 15:21:30 EST

The announcement that Halliburton, the Houston, Tex.-based oil services company, was moving its headquarters to Dubai may have surprised many Americans. But for people in Dubai, it simply ratified decades of hard work. Led by the billionaire known today as "Dubai's CEO," Sheikh Mohammed bin Rashid Al Maktoum, Dubai's ruling family has invested heavily in the infrastructure of a modern economy. So far their efforts have been impressive, although observers warn of a possible real estate bubble, among other concerns.

Private Equity Is on a Roll, but Are Investors in for a Let-down?

Wed, 10 Jan 2007 15:27:02 EST

With private equity investors of all types flush with cash -- from venture capitalists and hedge funds to large leveraged buyout (LBO) firms such as The Blackstone Group and The Carlyle Group -- private financing hit record levels in 2006 and is likely to remain strong in the new year, according to Wharton faculty and industry analysts. Nearly a third of the dollar value of all U.S. acquisitions last year involved private equity firms, up from 3% five years ago. But just how long can this boom continue, and what changes may be in store for private equity models?

Reluctant Vacationers: Why Americans Work More, Relax Less, than Europeans

Wed, 26 Jul 2006 12:03:13 EST

As most travelers to Europe know, French workers tend to take the month of August off, shutting down many of their shops and cutting back the hours of some museums. But the French aren't alone. People in much of Western Europe can afford to check out for a month because they receive an average of nearly two months a year in paid leave, a combination of vacation and government holidays. That distinguishes them from citizens of the United States, who, despite a similarly productive economy and a comparable standard of living, enjoy about half as much paid time off. What gives? Why are Americans reluctant, or unable, to extricate themselves from their jobs and sign up for some serious vacation time?

The Long and Winding Road to Privatization in China

Wed, 10 May 2006 17:29:08 EST

China's sweeping economic reforms, which have lifted the country to a starring role in the global economy in only a quarter-century, are marked by a more gradual transition from state control to private ownership of firms than in other countries that have also made the transition, according to Wharton faculty. Indeed, privatization in China has come slowly as government officials weighed the prospect of massive layoffs necessary to restructure bloated state-owned enterprises, known as SOEs. Privatization was also met with resistance from influential company managers, many of them Communist party officials. Despite these obstacles, however, a vibrant, entrepreneurial private sector has managed to survive alongside state-controlled firms.

Germany's Angela Merkel: A 'Continental European Politician in the Making'

Wed, 08 Mar 2006 08:42:04 EST

During her first few months in office, German Chancellor Angela Merkel has attained the kind of approval rating that politicians the world over dream about, largely due to the way she has handled herself on international matters in visits to Washington, Moscow and Brussels. But her main challenge is Germany's economy, Europe's largest and the world's third biggest. It is a challenge that has been staring German leaders in the face for a long time, for a number of reasons: lackluster GDP growth over the last five years; a vast, overburdened welfare state; an anemic service sector; stubborn protectionist sentiment, and an aging population that will place greater strain on the nation's budget in years to come. In whatever policies she proposes, Merkel will have to tread softly to avoid alarming citizens and trade unions wary of change, say scholars at Wharton and business schools in Europe.

The Rise of Spanish Multinationals: On the Move in a Global Economy

Wed, 08 Mar 2006 16:27:20 EST

Last fall, Spain's Banco Santander Central Hispano announced that it would pay $2.4 billion for a 20% stake in Philadelphia-based Sovereign Bank. It was a deal that didn't surprise Wharton management professor Mauro Guillén, who has been watching the strategic moves of the bank since the late 1980s. But Guillen's interest goes beyond Banco Santander. In a recently published book titled, The Rise of Spanish Multinationals: European Business in the Global Economy, Guillén explores why and how Spanish companies in a variety of industries have acquired a prominent presence in the global economy, and what this expansion means -- economically, financially, politically and socially -- for Spain and the rest of Europe.

The Two Faces of Intellectual Property in Brazil

Wed, 01 Mar 2006 17:07:52 EST

Last March, the Brazilian government publicly threatened to break the patents on four anti-retroviral medications if the global companies that made those drugs did not agree to allow Brazil to produce generic equivalents or buy those patented drugs at discounted prices. Pharmaceuticals, however, are not the only sector in which the U.S. and Brazil have lately been clashing swords over intellectual property (IP) issues. Last April, the U.S. government gave Brazil an ultimatum to crack down on widespread piracy of compact discs, videos, software and other IP-protected products or lose its trading status as a most-favored nation. Yet despite the Brazilian government's hard-line stance on IP, some experts suggest that the country has recently made significant progress in the area of IP reform. The goal -- as shown by the launch of a new anti-inflammatory drug called Achéflan -- is to better promote technology innovation in the marketplace.

In the Current Round of Global Trade Talks, Brazil Aims for Center Stage

Wed, 01 Mar 2006 17:08:24 EST

As trade ministers from the world's leading industrial nations scurried to get ready for crucial meetings in Hong Kong that could decide the fate of the World Trade Organization's Doha Round, they made sure to establish contact with a handful of the largest, most influential developing countries, including Brazil, China, India, Russia and South Africa. To no one's surprise, Brazilian President Luiz Inacio Lula da Silva is leading the Latin American trade delegations in their attempts to push the U.S., Europe and other industrialized nations to make deep cuts in their agricultural tariffs and subsidies. The existence of such protective measures makes it hard for developing countries like Brazil, where economic development is more urgent than ever, to sell their agricultural products to rich countries.

Brazil: A 'Test Case' for Continuation of Free-market Reforms in Latin America

Wed, 01 Mar 2006 17:07:47 EST

Many Latin American countries, after trying to beat back rampant inflation and ignite economic prosperity through the adoption of free-market principles promoted by Washington in the 1990s, have grown unhappy with the results. So are these nations returning to the populist, leftist policies of the past? Or are leaders in the region still largely committed to democracy and market reforms, despite their disillusionment with the rate of change? Experts differ on the answer to this question, but agree on one thing: Brazil, Mexico and Chile are less inclined to revert to populist strategies, at least for now, than some of their neighbors.

Farewell, Peter Drucker: A Tribute to an Intellectual Giant

Wed, 30 Nov 2005 15:55:06 EST

Decades ago, Peter F. Drucker single-handedly began the exploration of what he called "the dark continent of management." That exploration, which gave birth to the field of management, came to an end on November 11 when Drucker passed away at age 95. Wharton professors point out that Drucker's most important contributions are grounded in his writings on management and marketing. Despite his death, his legacy and impact as a role model will last.

Spain's Largest Bank Is Back in the U.S.: Let the Competition Begin, Again

Wed, 16 Nov 2005 16:31:00 EST

Spain's largest bank, Banco Santander Central Hispano, has made another move toward its goal of becoming one of the biggest financial institutions in the world. With its announcement on October 24 that it will purchase 19.8% of Sovereign Bancorp of Philadelphia, Santander returns to the U.S. where, from 1991 to 1997, it owned a 29% stake in First Fidelity Bancorp. Santander's action has for now left BBVA, Spain's second-largest bank, in the dust, despite BBVA's acquisitions last year of two small U.S. institutions focused on the Hispanic population. What is Santander's overall strategy? Will its latest move put more pressure on BBVA, or are the two banks going after very different markets?

Are Failed Infrastructure Projects Linked to the Presence of the IMF or World Bank? Read on ...

Wed, 07 Sep 2005 15:24:58 EST

When Wharton management professor Witold Henisz was studying the problems that Western investors have financing infrastructure projects in developing countries, one common denominator made him curious: The involvement of the International Monetary Fund or the World Bank. So Henisz and several colleagues combed through three decades of market reform and industry decentralization projects in dozens of countries, looking for a link between failed or troubled reform efforts and the presence of the IMF or World Bank. They found one. Working on two separate papers, the researchers conclude that the IMF and World Bank do indeed play a significant role in these areas �- but often in a negative way. "If you see the IMF and World Bank influencing reforms in a country...," says Henisz, "It's not a seal of approval. It's a warning flag."

In the Wake of the Latest 'No' Votes, Will Economic Growth in Europe Be a Go?

Wed, 29 Jun 2005 16:12:24 EST

The reasons why voters in France and the Netherlands rejected the European Constitution a few weeks ago were many. But two overarching themes of the referendums were discontent and fear: discontent with politicians' inability to revitalize the lagging economies of many EU countries, and fear of what the future may hold for people accustomed to secure jobs and generous benefits. Scholars at Wharton and at universities in Europe say that the 25-member EU must institute free-market, Anglo-Saxon-style reforms to reinvigorate the economies; in particular, they point to labor laws that make it difficult to hire and fire people. But some also say that Europe can achieve higher growth rates without completely abandoning the social welfare policies that have been in place since World War II.

Global Players See Great Opportunity for Retail Banking in Emerging Economies

Wed, 22 Sep 2004 14:17:34 EST

As emerging economies in Eastern Europe, Latin America and Asia continue to mature, financial firms - including Citigroup, General Electric and major European banks - are stepping up efforts to bring retail banking services to developing nations. These firms, watching the erosion of U.S. and European banking profit margins, are increasingly willing to face the risks of setting up retail operations, such as checking and savings accounts and credit cards, in new markets. If successful, these initiatives can provide a foot in the door for future growth, according to Wharton faculty and banking executives.

Venezuela's Fate Is Tied to Oil, and That's the Problem

Wed, 08 Sep 2004 14:39:32 EST

The link between the August 15 presidential referendum in Venezuela and the state of the global energy markets is clear. Once incumbent Hugo Chávez demonstrated his ability to get re-elected, oil markets calmed down, at least temporarily, even though Chávez is unpopular among foreign economists and analysts. Uncertainty about the future of the Chávez regime had been one of several factors pushing world oil prices to record highs in recent months. But looking ahead, how solid is Chávez's support, and what would happen to this struggling economy if oil prices drop?

Hispanic Banking: The Race Is On

Wed, 25 Aug 2004 14:35:51 EST

With Hispanics now constituting the largest minority in the United States – some 40 million people – their appeal to financial institutions is growing. Spanish banks are taking advantage of their strong presence in Latin America to move into the United States, even as U.S. banks are trying to take advantage of the growing Hispanic presence in their country to expand into Latin America. Part of the appeal: Many Hispanics do not even have a bank account.

Argentina: A Country Driven to Despair Looks for a President

Wed, 23 Apr 2003 00:00:00 EST

The loud protest of banging pots is no longer heard on the streets of Buenos Aires. The famous message that the Argentine people shouted at the ruling class � �All of you, get out!� � has been losing its power with the passage of time. And almost a year and a half after the economic debacle, the same old group of candidates is preparing to compete in historic presidential elections on April 27. Widespread apathy exists among the people, voters are fragmented and the leading Peronist party is in crisis. In this setting, what type of government will emerge from the upcoming elections? And will it be able to carry out the reforms that the country so desperately needs?

A Global View of Corporate Governance: One Size Doesn�t Fit All

Wed, 20 Nov 2002 00:00:00 EST

Corporate governance plays a fundamental role in any economy, but does it play the same role, asks Wharton management professor Mauro Guillen in a research paper entitled �Corporate Governance and Globalization: Is There Convergence Across Countries?� The answer, Guillen concludes, is no. Despite increasing globalization, separate economies go about corporate governance in different ways, ranging from the Anglo-Saxon shareholder-centered model found in the U.S. and the U.K., to the hybrid shareholder/stakeholder models typically found in Japan and Germany.

Argentina: Can It Go From Bad to Worse?

Wed, 16 Jan 2002 00:00:00 EST

If ever the Broadway show tune �Don�t Cry For Me, Argentina� had poignancy, now is the time. The fact is, a lot of people are crying over Argentina, including the country�s bankers, government leaders and middle class, not to mention outside investors. Knowledge@Wharton looks at what went wrong with the Argentine economy and whether a recovery is on the horizon.

The Promise, and Pitfalls, of European Alliances

Wed, 19 Dec 2001 00:00:00 EST

With U.S. and European businesses increasingly finding merger partners across the Atlantic, managers face new sets of barriers that go well beyond the usual problems of integrating two different business cultures. A panel at Wharton�s 2001 Global Business Forum looked at why some mergers work and others don�t.

Corporate Culture Can Break (or Make) a Merger

Wed, 26 Sep 2001 00:00:00 EST

Can one mega-company absorb another and still run things the way it used to? Should it even try? How large does corporate culture loom in the high-tech sector, or in any industry? Is there one type of culture that holds the key to success? Wharton faculty explore these questions and more as they look at the broader issues raised by executives intent on establishing the �right� culture for their organizations.

Surfing Time for Wharton�s Summertime-Savvy Professors

Wed, 04 Jul 2001 00:00:00 EST

The summer holidays are here, and Wharton professors have identified their favorite surfing spots. Some of these locations will interest those who just want to get their toes wet; others are for more experienced surfers. Check them out.

How Entrepreneurship and Democracy Affect Internet Development

Wed, 06 Dec 2000 14:31:13 EST

Rarely has a technology had greater effect on the spread of the global marketplace than the emergence of the Internet. Many businesses have recognized the potential of a globe-spanning connection and have adapted their marketing and distribution strategies to accommodate e-commerce. But the speed at which the Internet develops can vary from country to country, and this has serious implications for the way in which a company manages its e-commerce strategy. In a new paper, Wharton�s Mauro Guillén and Sandra L. Suárez of Temple University�s Department of Political Science explore the economic and structural factors that affect the growth of the Internet in different countries.

Mexico�s President-Elect Faces High Expectations

Wed, 16 Aug 2000 12:09:56 EST

Vicente Fox, a conservative former Coca-Cola executive with a fondness for cowboy boots, has already made history by winning Mexico�s election for president, thereby ending the 71-year, one-party grip on that office by the Institutional Revolutionary Party (PRI). The challenges that await Fox when he takes office in December range from reforming taxes and attracting foreign investment to encouraging entrepreneurship and fighting corruption. But perhaps his biggest challenge will be managing the expectations of those who are impatient for change.

Gore and Bush on the Issues: Long on Assumptions, Short on Details

Wed, 19 Jul 2000 14:03:01 EST

When Gov. George W. Bush and Vice President Al Gore wrap up their nominating conventions in the next few weeks they will get back to campaigning in earnest, and voters are sure to hear plenty of talk about the state of the U.S. economy, the future of Social Security, health care, electronic commerce and foreign trade, among other issues. But so far, the candidates for the American presidency have been somewhat vague on the details. Wharton professors analyze what�s been said so far, and what hasn�t.

How Globalization Is Changing the World

Wed, 24 May 2000 14:45:22 EST

The protests that accompanied the 1999 World Trade Organization meeting in Seattle and the more recent International Monetary Fund meeting in Washington, D.C. highlighted very vividly the current debate over the merits of globalization. In an attempt to better understand the effects of globalization on economies, societies and political systems, Wharton management professor Mauro Guillen reviews existing literature on the subject, focuses on asking relevant questions and suggests, for now, that finding the right answers will be a complex and ongoing process.

Leveraging Differences in an Increasingly Borderless World

Wed, 10 Nov 1999 13:07:58 EST

As the world continues to shrink and the global marketplace grows, corporations increasingly look beyond their home countries for best practices. Executives are less concerned about where the ideas for improvements originate than they are about how to adapt a particular best practice to their unique corporate culture. Given the dominance American firms have had in the marketplace over the past decade (indeed, over the past half century), one might think that companies throughout the world would be eager to adopt the American model of corporate governance as unquestionably the best practice paradigm. Mauro F. Guillen, assistant professor of management at the Wharton School has found, however, that this is not the case. In fact, the opposite seems to be true, as he reports in a recent paper, �Corporate Governance and Globalization: Arguments and Evidence Against Convergence.�