Archive for August 27th, 2014

The other side of financial globalization of football

August 27, 2014

Usually we celebrate how globalisation and finance has transformed football across the world.

Akash Bhattacharya provides the other side of this development:

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When a hamburger becomes a doughnut and other lessons about globalization…

August 27, 2014

There are two views on US economy. One it is on a perennial decline and other it shall recover given its strong institutions etc.

Daniel Inkenson belongs to the first kind and shows how US is on a perennial decline. Companies are quitting US and locating elsewhere. Reason – taxation issues, infra issues and so on.

He points how Burger King wishes to buy a Candian doughnut maker Tim Hortons and move to Canada:

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How reliable are companies’ credit ratings?

August 27, 2014

Krishna Kant  of BS points to an internal study which looks at rating agencies of some 250 odd companies.

The ratings are same for companies which appear to be different on fin ratios:

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Competition Commission of India slaps fine om 14 car makers..

August 27, 2014

One day old news but an important one. Competition Commission of India slapped fine of Rs 2500 cr on 14 automakers for not allowing competition in the auto components market. CCI gradually gaining teeth and understanding what is going on in Indian economy. This is a body which should have been formed long back as we have had all kinds of practices in the name of competition and private ownership.

I mean how do 14 players prevent competition? We are told in textbooks that large number of players ensure there is competition. But it is not the case here. These 14 car players have sort of formed a cartel and not allowed other players to sell auto components/parts of their brands:

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Ricardo on Orissa-West Bengal potato/vegetable trade..

August 27, 2014

India and its politics is interesting and bizarre at most times.

I am not sure how many of us are following the Orisaa/West Bengal crisis on trading of potatoes and vegetables.

Apparently. Orissa supplies veggies to WB and latter supplies potatoes to Orisaa. Just like Ricardo’s example, it seems WB has comparative adv over potatoes and Orissa over veggies. The two states specialise in their comp adv and trade with each other. Win win for both as our text-books suggest.

Alas, the reality is not as simple. There are lot of other considerations which influence trade and it is not just economics.

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