Why Investment May Come Under Threat
By Weicheng Lian, Natalija Novta, and Petia Topalova
عربي, 中文, Español, Français, 日本語, Português, Русский
It might be hard to imagine a time when a 512 kilobyte computer cost more than $28,000. That was in 1984. Today, you can buy a much more powerful computer for under $300. […]
Asia’s Supply Chain and Global Rebalancing
Much of the debate over global rebalancing has focused on the U.S.-China trade imbalance. But that’s missing the bigger picture. With the growth of cross-border supply chains—a signature feature of Asia’s trade in recent decades—it would be misleading to focus on bilateral imbalances and exchange rates.
Instead of specializing in producing certain types of final goods, Asian exporters increasingly have specialized in certain stages of production and become vertically integrated with each other. So, as Asia’s economies strive to rebalance their growth models, we need to understand better how the regional supply chain affects the way exchange rates and shifts in global demand work.