Book Description

The text uses a thematic approach to managing the risks of trade in goods and services, the protection and licensing of intellectual property, and foreign direct investment. The authors examine both private and public law issues from both an international and comparative perspective. This edition focuses on the transactional aspects of international business as well as on the legal, cultural, political and economic environment affecting managerial decision making on a global scale. ... Read more

Reviews (1)

It is an excellent book for international lawyers
This book contains a concise explanation of every day problems regarding foreign transactions, together with an explanation of the Common law system specially in United States, this book concentrates pertinent cases for each of the subjects explained in it. ... Read more

Book Description

"A sobering, timely wake-up call to the looming dangers of a massive - critically necessary - correction in the U.S. Richard Duncan writes with immense clarity and experience, weaving historical material into a rich tapestry of disturbing patterns, warning that the world cannot afford to ignore the lessons of Asian and Latin American financial crises - and Japan's malaise - as an even greater economic threat looms. A must read, with economic seat belt buckled." - David H. Satterwhite, Managing Director, The Economist Conferences Corporate Network-Japan

"Richard Duncan has written a fascinating study of history in the making. He is right to propose that we need joint efforts by different stakeholders to overcome a coming monetary crisis." - Frank J. Richter, Director, Asia, World Economic Forum

"Hard on the heels of the collapse of the "new economy" is that of the "new finance". Richard Duncan crisply explains why payback time for years of USs credit excesses, payments imbalances and securitized sub-par lending is imminent. Mr Greenspan, your time is up. The wisdom of Ludwig von Mises will prevail." - Philip Bowring, Columnist, International Herald Tribune

"Make no mistake - much of the discontent with the global financial system is rooted in the dollar standard. The risk of a dolar crisis is real and the author deserves much praise for clearly exposing a force that many seek to deny. A must read for anyone with a savings deposit." - Jesper Koll, Chief Economist, Merrill Lynch Japan

"This is a welcome attempt at exploring the symptoms of what may become a major financial storm. Is the world wise to expect the problem to find its own solution? Richard Duncans suggestions for a cure imply a degree of worldwide slump that may prove difficult to foster, but his arguments are worth listening to." - Philippe Delhaise, President, Capital Information Services Ltd ... Read more

Reviews (28)

Great points on international trade issues, poor solutions
This book is really worth the read for anyone trying to make sense of our world economic environment. Mr. Duncan makes many persuasive points as he explains the cause of the boom/bust cycles that have occurred since the breakdown of the Bretton Woods agreement. A major point is that the proliferation of a fiat "dollar standard" has created credit inflation in the banking systems of export heavy nations. This increase in credit created much distortion and malinvestment, and the cycle ended with over-capacity and speculation. Asset bubbles were then created in equities and real estate. He also describes the "boomerang dollar" as the money flowing out of the US, because of our current account deficit, finds it's way back here as foreign nations buy our corporate, federal, and agency debt. Our budget deficit is largely financed by foreigners who then add the dollar denominated assets to their bank reserves. The author's work is well researched and presented.
In part four the author presents his solutions to what he believes is a looming global deflationary depression. He describes a global minimum wage, and the empowerment of the IMF to basically become the world's central bank. It was enough to make the Austrian hairs stand up on the back of my neck. I believe his solutions are thankfully unworkable. The cost and logistics of overseeing the minimum wage compliance would be staggering. We have enough trouble enforcing work laws in our own country. How do we expect some UN knockoff to monitor an employer in Saigon or Calcutta? The author's solution to allow the IMF to use special drawing rights to provide global welfare makes me wonder if he may have written the fourth part of his book as an intellectual exercise, target practice if you will.
Mr. Duncan's book is important in its factual examination of some very troubling global economic developments. I'm glad I read it. But, his solutions are way off the mark. Any real solutions come with much pain, it can't be avoided. We need a sound money system, less government intervention, and more reliance on free market forces.

Read between the lines
Having traded currencies successfully for the past 20 years, I found this book to be a credible resource. With the U.S. deficit spiraling in the wrong direction, we need to be aware of all the possibilities to create optimum contingency plans. This book will provide you with the information to make the informed decisions.

Dollar Crisis Accurate and Timely
I first read The Dollar Crisis four months ago. With each re-read, the author's reasoning for and results of the coming dollar crisis makes more sense. It lays an extremely good foundation for the current world imbalance and makes valid predictions which are based on historical models.

Although I wish the author had given additional recommendations for what we, as individuals, might do to protect ourselves before the eventual dollar demise, I do believe his idea of establishing a Global Minimum Wage may be the best way, internationally, to avoid the collapse of the dollar. I wish him the best of luck if he pursues this ambitious solution.

Starts with conclusion and then uses facts to back it up
this book is typical of this "the sky is falling" genre. It presents many useful statistics about trade imbalance and growing debt for the U.S. However, rather than try to determine potential scenarios or outcomes, I feel like the author is always trying to make the data fit his conclusions. While these conclusions may play out, most people are just not that good at determining the future. For example, he talks extensively about the coming disinflation. Since his book, inflation has reappeared. Also, it seems like it's going to be with us for a while because of the Fed's agressive monetary policy, and strong demand from China for commodities.

Also, he tries (like many others) to suggest a gold standard is better than the fiat standard we have. While I understand the sentiment, it's just hard to believe that in today's very, very complex financial world that we could ever go back to Gold. Besides, no one (outside of the gold circles) seems to care if money isn't backed by gold.

Bottom line for the world: If I borrow $10, it's my problem. If I borrow $3 trillion, it's everyone's problem. In other words, the world is married to the dollar for now, and any other marriage (i.e., to a future currency) will take a lot of time to unwind. Also, countries are probably not going to stop buying our debt for quite a while since we're all hooked.

Bottom line for the book: Great facts. Conclusions too far-reaching.

A bit rushed, yet a valuable book nonetheless
As I write, the Fed has declared victory over the deflationary threat and is getting ready to raise interest rates. Thus, one reading this book would think that its dire warnings regarding deflation constitute old, passe news. They should beware. Duncan wrote this book in order to further educate people amongst the common investor class as well as analysts/economists about how dire the *overall* economic picture is in America. I.E. Said deflationary threat may have seemingly dissipated, yet the larger trends outlined in the book beg the question over whether disinflation/deflation have truly been knocked out in favor of a genuine economic recovery.

For any student of economics, political economy or investments, this book will serve as a rare and valuable primer regarding the real reasons why we are the richest nation on the planet, the core reasons for said status, the true nature of "money", and our relationships with other nations deemed as our "creditors". Quantitatively supplemented with charts, tables, graphs, quotes and figures cited directly from sources such as the IMF, Federal Reserve and luminaries/authors in the field (Stiglitz, Soros, Von Mises, Keynes, Friedman, Krugman, et al.), Duncan certainly backs up effectively his core assertions. If nothing else, the book serves as a mini course in global finance and macro-economics, and thus deserves a read.

The book didn't get much press or publicity in the U.S. after it was published in 2003. No wonder. Its bearish tone and thesis are hardly qualities that Kudlow and Cramer would rant about, let alone even cite cautiously. However, the book does compliment other compelling texts with similar subject matters such as "Conquer the Crash" by Robert Prechter, Jr., "Financial Reckoning Day" by William Bonner, "The Case Against the Fed" by Murray Rothbard, "The Truth About Markets" by John Kay, "The Mystery of Capital" by Hernando de Soto and even "After the Empire" by Emmanuel Todd -- in describing what would otherwise be washed out in the mainstream media and press.

I was initially put off by the grammatical oversights that pop up every now and then, yet later figured that the book practically went from author's computer to the printing press. That's rare, considering the large publisher, yet considering the urgency of the material, I overlooked it. Again, the majority of the content outweighs aesthetic concerns.

Also, Duncan can be annoyingly redundant with many of his core points, which, coupled with the above complaint, gives the book's writing the sense that no one else really reviewed said text. Yet, again, the urgency of Duncan's arguments, that our current account and trade deficits are out of control, that foreign creditors are starting to show palpable concern, that current trends resemble past lead-ups to crashes while out-sizing them, amongst other points, mitigate such concerns.

The language he uses in describing his latter proposals is rushed and not as empirical as what he revealed earlier, yet his proposals are bold enough to warrant attention. If the reader wholly disagrees with his proposals regarding how to confront and treat our Himalayan-sized global money imbalances, at least the reader has a sober, solid foundation after the first 3/4s of the book for trying to arrive at their own proposal(s).

Great book, generally. The type of text that should be required reading at the *high school* level nowadays (yes, indeed, raise the bar...considering what future generations must contend with, debt-wise). ... Read more

Book Description

A comprehensive reevaluation of the nature of economic systems across the globe, A New View of Comparative Economic Systems is today's choice for today's world.This exciting text is not merely a re-treading of an obsolete Soviet-oriented text, but a fresh, new, and comprehensive reappraisal of the nature and study of economic systems.A New View of Comparative Economic Systems defines a new approach and will set the standard for years to come in Comparative Economic courses. ... Read more

Book Description

Doing Business in 2005: Obstacles to Growth is the second in a series of annual reports investigating the scope and manner of regulations that enhance business activity and those that constrain it.New quantitative indicators on business regulations and their enforcement can be compared across more than 130 countries, and over time.The indicators are used to analyze economic outcomes and identify what reforms have worked, where and why.Topics in Doing Business in 2005 include: Licensing and Inspections: Having registered a business, now what?In most countries, firms face a myraid of sector specific licenses as well as inspections to enforce compliance.The Doing Business database constructs two sets of indicators on the regulation of operations.One measures the steps, time and costs of complying with licensing and permit requirements for ongoing.The other assesses the enforcement of regulations through two of the most common types of inspections-labor and tax.Registering Property: Property registries were first developed to help raise tax revenue.What was good for the tax authorities has since proven to be good for strengthening property rights-the registries strengthen incentives to invest, facilitate trade, and expand access to credit.New indicators cover the steps, time and cost to register property.Measures of the legal provisions that strengthen property rights and the efficiency of property registries are also developed.Protecting Investors: Corporate governance issues are often thought to affect only publicly-listed companies in developed countries.In fact, corporate governance is relevant for every large privately-held company that has more than one owner.New indicators examine several possible types of shareholder expropriation, including related-party transactions, guarantees and loans to company managers and directors, mergers and acquisitions, disclosure of ownership information, and treatment of conflicts of interest.Including a new emphasis on gender, Doing Business not only provides insights into business contraints throughout the world but highlights particular barriers faced by women.Doing Business is a comprehensive resource that no investor, economic adviser, business developer, or economic policymaker should be without. ... Read more

Book Description

Canadians have long defined themselves as "not Americans." They cherish their differences from the United States, but as their powerful neighbour grows ever more dominant on the world stage, can they hope to hold on to their national identity? In Fire and Ice, Michael Adams challenges the myth of inevitability that has led us to believe our Canadian way of life is doomed to extinction. Drawing upon a decade of never-before released pulse-taking from both sides of the border, Adams reveals that Canada and the United States are not coming together, but are diverging in significant ways. ... Read more

Reviews (4)

An entertaining and insightful read
Adams clearly states in the introduction that this is a book intended for a Canadian audience, however he does 'hope it may be of interest to Americans who may be intrigued by a glimpse of a country so seemingly near and yet with their mental postures far from their own' and adds that 'Europeans, Australians and even the Queen's subjects in Tony Blair's Britain who are ambivalent about American influence on their societies might also find some useful lessons in the Canada-U.S. nexus' (pg 15). As he says 'Canadians may like Americans, speak the same language, and consume more their fast food and popular culture, but we embrace a different hierarchy of values. Moreover, the differences, as I have attempted to show, are increasing rather than decreasing with economic integration' (pg 142).

Fire and Ice came from years of research into the ideals and values held by Canadians from 1983 to 2000, Adam states that he was 'impressed with just how much Canadians' social values seemed to be diverging from those of Americans. (After all, we are frequently made to feel we have become nothing more than unarmed Americans with health insurance.)' (pg xii) - and this is even before September 11th.

He notes being particularly interested in finding out 'why an initially "conservative" society like Canada has ended up producing an autonomous, inner-directed, flexible, tolerant, socially liberal, and spiritually eclectic people while an intentionally "liberal" society like the United States has ended up producing a people who are, relatively speaking, materialistic, outer-directed, intolerant, socially conservative, and deferential to traditional institutional authority. Why do these two societies seem to prove the law of unintended consequences?' (pg 10).

Despite relying heavily on the statistics produced by Environics, the company he co-founded, Adams is able interpret the findings so they're more or less understandable to the layperson. He brings up current events, and there are numerous references to pop culture, everything from Rockstar Games' Vice City, Eminem's 8-Mile, to Blade Runner - however with a decidedly American flavour.

In writing this book Adams offers Canadians a more detailed description of our national identity than the traditional 'not American' retort. In particular, his 'reading of Canadian values tells me that none has become more important in this country than autonomy - and that autonomy, in the context of interdependence, is valued at every level from the individual right up to the nation' (pg 144).

Fire and Ice makes for an entertaining and insightful read into the Canadian and American psyches. However far as his aim to remain impartial goes, he falls somewhat short of the mark. Without slandering America, there is a discernable favouring of Canadian ideals and values - completely understandable as Adams himself is Canadian. Highly recommended reading to sceptical Canadians, Americans interested in viewing themselves through a maple-leaf shaped lens, and, heck, everyone else.

A Little More Snow Melt Needed
I bought this book because I am an American who just moved to Canada and you can not go into a book shop without having this book prominently displayed. It is everywhere so I figured "when in Rome" and picked up a copy. The book is the detail of the authors studies of the American and Canadian cultures and if they are becoming more similar or growing apart. The author lets the reader know up front two very important things, first that the book is meant for a Canadian audience and secondly that the author is a full time professional sociological researcher.

For the first important point, that the book is meant for a Canadian audience, if you are a thin skinned American then I would not suggest you reading this book. It is not that the author takes any nasty cheap shots at Americans. It is just that he does not sugar coat the differences when they are more negative toward the American side. I could not argue with any of his comments, it was just that he was exposing some of the rather unsightly bits about the US and at times that can be uncomfortable for an American.

The second point I felt was important was that the author is not an author by trade, but basically a researcher. This meant that this book was one of the most difficult to read and unnecessarily dense books I have read in a long time. If the author could have said a sentence in five words he used 25 and used a fair number a words that the common reader has never heard of. If you buy the book keep going through the painful first chapter, the road gets better after about 40 pages but the book is never a walk in the park.

With these criticisms aside I did find parts of the book interesting. It would be good for an American to read these types of books to detail out the differences between the two countries and maybe to show them that all things American are not always the best. It is just that this book is so unfriendly to the reader that I do not think this is the vehicle for wide appeal.

Fascinating
What do you get when the co-founder of a political polling company steps back, looks at the numbers, and decides to write a book? You get a fascinating and sometimes counter-intuitive look at the evolution of current "American Values". Mr. Adams' premise is that even before 9/11, Americans were moving further away from a society of Idealism and Fulfillment, and towards Exclusion and Survival.

This is not a ponderous volume of statistics, but a quirky, quick read, that leaves one with a lot to think about.

This book was obviously aimed at the Canadian reader, and I hope he releases a updated version for the American audience when the 2004 figures have been compiled. But you can just skip over some of the Canada-specific references, and the long suffering pose of submission but inherent superiority to the U.S.. It IS enlightening to see the U.S. through Canadian eyes.

There are some interesting insights to George W's presidency, the debate over same sex marriages, and a discussion of the regional differences in the U.S., and implications for the future.

I was surprised to learn that Canada has more in common with New England than New England has in common with the Deep South. And that the cultural trends among young people are very divergent from the 60+ crowd, and not always in the direction I expected.

Not a perfect book. But worth reading.

Worth the read...
It's too bad that this book is not available in the US but easily ships from Canada (check out the author's website). The title should say how the US is drifting to the right while the most of our allies and friends are going the other direction; perhaps that explains the lack of support in Iraq. The Christian Right has a huge influence in this country whereas in Canada and Western Europe church attendance continues to decline. The book explains many interesting trends but the one that sticks out for me is that in the US, 59% of the population feels the man should be head of the household; in Canada that number is in the low teens. ... Read more

Book Description

Research on economic growth has exploded in the past decade. Hundreds of empirical studies on economic growth across countries have highlighted the correlation between growth and a variety of variables. Determinants of Economic Growth, based on Robert Barro's Lionel Robbins Memorial Lectures, delivered at the London School of Economics in February 1996, summarizes this important literature.

The book contains three essays. The first is a survey of the research on the determinants of long-run growth through the estimation of panels of cross-country data. The second essay details the interplay between growth and political freedom or democracy and finds some evidence of a nonlinear relationship. At low levels of political rights, an expansion of rights stimulates growth; however, once a moderate level of democracy has been obtained, a further expansion of rights reduces growth. The final essay looks at the connection between inflation and economic growth. Its basic finding is that higher inflation goes along with a lower rate of economic growth. ... Read more

Reviews (2)

For advanced students
The person who buys this book must be really acquainted with economics (senior or master). It involves, as the title states, the determinants of growth and inflation, along with political matters. I really liked this book because it gathers econometric models to support the essays that consists in many political variables just as democracy and civil rights. Barro, as a Harvard professor, has a well-known academic life. So I would suggest for every macroeconomic student to buy this book, it really helps for courses just as Macroecon or Development Economics.

A careful study.
This book is essentially a report on a series of analyses of the determinants of growth, democracy, civil liberties, and inflation. As a statistical analysis with interpretation, it is excellent. If you want to know what factors really affect these variables, you will find answers here. However, the utility for modelers is limited, because the author inexplicably omits to report the extimated constant terms in any of his regressions. One hopes that succeeding publications will provide more help to those who are trying to construct dynamic models of economic growth. ... Read more

Book Description

This unique textbook provides a framework for discussing ethical dilemmas related to today's computer technology and the Internet. Each chapter begins with a case study, based on an actual legal or business scenario. Interdisciplinary readings, questions, and exercises, written and Internet, help students develop a more complete understanding of the material.This book is appropriate for Business Law, Information Systems, Management, and Ethics course areas. ... Read more

Book Description

This book provides students with a grasp of basic economic tools through the analysis of important economic issues and their related policy perspectives.Economic theory is presented in a simple, market-oriented framework at a level of technicality that is deliberately appropriate for a basic first course in economics directed at non-majors.Complex topics more appropriate for a Principles of Economics course are left out or contained in appendices.In analyzing economic situations and the implications of policies, liberal and conservative viewpoints are effectively balanced -- the careful presentation of conservative and liberal viewpoints is one of the unique characteristics of this book. ... Read more

Reviews (1)

An insightful analysis of the World's economic systems.
This book explores and compares the different economic systems throughout the world in an easy, almost non-academic manner (it's used in several universities as a textbook.) Mr. Gardner writes in an entertaining and easy-to-understand style, and his explanations are precise and informative. Having been written in 1988, the book still dedicates a good portion of its content to the Soviet communist economic system, which is now a "distant" memory. Still, it's a good reminder of how divided the world was economically and philosophically for almost the entire 20th Century. All in all, a must read for people who want to learn the basics (and a lot of nuances) of the main economic systems of the world ... Read more

Book Description

How do the public policies of the United States, Japan, Germany, France, Italy, and the United Kingdom stack up against one another? Comparing Public Policies combines a conceptual discussion of policy-making with an examination of seven specific policy areas using a cross-national perspective. Adolino and Blake strike a balance between policy analysis and description as they provide students with a helpful mix of analytical tools and background information.

The book begins with a concise overview of the policy process and then considers the role of cultural, economic, political, and institutional influences on policy-making. A brief chapter describes the political system of the six countries and provides necessary context. The core of the book is devoted to seven policy areas: immigration, fiscal policy, taxation, health care, social policy, education, and the environment. Each chapter shares a common framework that begins with an introduction to a policy topic, follows with its examination in each country, and concludes with an analysis of cross-national trends-past and present-in policy choices, outcomes, and dynamics. A final chapter re-examines the internationalization of public policy in industrialized countries. Adolino and Blake also consider how policymakers use this comparative perspective to guide them in their policy choices and help them pursue those choices within the political process.

Useful pedagogical features have been incorporated throughout the text. "In Depth" boxes offer students a more detailed discussion of a policy issue, political process, or analytical technique while "Country At-a-Glance" boxes provide quick reference to the political institutions of each country. A wealth of recent data is displayed in numerous tables and a glossary gives students a practical guide to terminology. ... Read more

Book Description

A witty and accessible tour de force that is immersed in the latest economic thinking, Culture and Prosperity is an indispensable guide to the world around us and destined to become a classic text for understanding the politics of globalization.

Guided by the belief that a combination of lightly regulated capitalism and liberal democracy -- the American business model -- is not just appropriate for America at the dawn of the twenty-first century, but a universal path to freedom and prosperity, the United States is an unrivaled colossus seeking to remake the world in its own image.

After a decade of successive market revolutions around the world, beginning with the collapse of the Berlin Wall and continuing in countries as diverse as Argentina and New Zealand, the effectiveness of the market economy as a route to prosperity and growth is not in question, but a more sophisticated appreciation of the strengths and limits of markets is urgently required.

In this new and illuminating analysis of the nature and evolution of the market economy, John Kay attacks the oversimplified account of its operation, contained in the American business model and favored by politicians and business people. He even questions whether it offers an accurate description of the success of the American economy itself.

In an absorbing argument that rewards close reading, and rereading, Culture and Prosperity examines every assumption we have about economic life from a refreshingly new angle. Taking the reader from the shores of Lake Zurich to the streets of Mumbai, from the flower market of San Remo to the sales rooms at Christie's, John Kay reveals the connection between a nation's social, political, and cultural context and its economic performance.

Reviews (5)

A book for social democrats and europhiles
New Keynesians, Europhiles, and those who like to set up a straw-man model of the American economy and then have it will like this book a great deal. Mr. Kay has an elegant and confident style that inspires belief that his pronouncements are the way things are. He does not have much use for the Chicago school of economics, nor of the idea that small government and lower taxes can add vibrancy to an economy. He is a Social Democrat who sees little difference between Mao, Stalin, and the management at Ford Motor Company.

This idea is so strange as to seem laughable to me. Mao and Stalin brutalized entire peoples and mismanaged entire countries. Ford, an international company, is still a miniscule part of the American economy and any mismanagement it might engage in has much more limited effects. Employees who dislike working at Ford and consumers who become disenchanted with its products have other places to work and other products to buy. The citizens of the USSR and China had no such option.

Mr. Kay also says, strangely, that European productivity is higher than that in America but really doesn't explain the way the measurement is made nor the effect the recently higher Euro against the Dollar has played in that measurement. I am not declaring him wrong, I simply would like to have a more complete demonstration of his claim.

A most egregious mistake he makes, like many who dislike capitalism, is to equate greed with self-interest. He claims that many people do things that are not directly related to acquisition or more money or material goods and claims this to be a proof that people don't act as capitalism claims. Adam Smith and other explainers of the capitalist model and any of us who believe it in always talk about rational self-interest NOT naked greed, which is a form of irrationality. That people want to build concert halls or have parks or shelters for the indigent is not irrational nor against a person's self-interest. However, opponents of capitalism need to have greed as the straw man to knock down however silly the claim that it is a foundational principle of capitalism.

Does the book explain why some nations are rich but most remain poor as the subtitle promises? I think that Hernando Desoto's "The Mystery of Capital" is much more convincing. But I have my own beliefs, and while I am a fan of European history and culture, I think that Socialism has cost Europe a great deal. However, you may believe differently and if you do, you will likely enjoy this book more than I.

A description of how complex comparative economics is
There have been many arguments put forward as to why some nations seem forever destined to remain poor and others, primarily European in cultural heritage, are prosperous. Those arguments range from the extreme believers in absolutely free markets as the reason for wealth to the relentless and continuous exploitation of the poor as the reason for poverty. As is nearly always the case when there are two extremes, the truth is somewhere in the middle, with each nation having different reasons for their economic performance. However, there are some general reasons, and Kay cites them with examples.
The first requirement for prosperity is a government whose members are not concerned solely with increasing their personal wealth. Although there are many others that he could have used, Kay cites the example of Joseph Mobutu in the Congo (Zaire). In terms of natural resources, the nation is extremely wealthy, but under Mobutu the country, with the exception of his cronies, was completely bankrupted. Kay also places a lot of blame on Western institutions that supported the Mobutu regime, lending billions of dollars that have largely vanished with no physical evidence remaining. Organized mineral production in the country has largely ceased.
In general, the countries of sub-Saharan Africa all suffer from the problem of greed and weak, incompetent government. In an excellent quote, Tom Friedman states, "Come to Africa- it's a freshman Republican's paradise. Yes, sir, nobody in Liberia pays taxes. There's no gun control in Angola. There's no welfare as we know it in Burundi, and no big government to interfere in the market in Rwanda. But a lot of their people sure wish there were." These examples also demonstrate that free markets are not the answer. Some of the freest markets in the world are in these countries, where bandits rule by controlling mining and then sell their ill-gotten gains to the highest bidder. Government leaders also readily sell their decisions to the one willing to pay the most. It is very sad to note that in many of these countries, economic productivity is now lower than it was when they were still under colonial rule.
Stable governments with honest leaders are also not enough. Kay cites the example of Tanzanian President Julius Nyerere, one of the few honest leaders to emerge in sub-Saharan Africa. Nyerere ran a government largely free of corruption and tried to develop factories and a stable economic infrastructure. Under his rule, Tanzania was considered one country that could possibly rise from the muck that is the disaster of Africa. Unfortunately, despite all of the aid and advice from Westerners, the GDP of Tanzania was lower when Nyerere retired than it was when he took office. One giant factory designed to supply the entire country with shoes was a disaster and never operated at more than 5% of capacity before it was closed.
Kay also has a true sense of history, something often lacking in modern commentators on economics. He reminds us that the early industrial revolution in England was very hard on the social structure, people and the environment. Thousands were herded into slums to provide the labor pool, and left to fend for themselves when they were no longer needed. Children were forced to work very long hours at dangerous jobs that required someone of their size and dexterity. Westerners travel to sweatshops in third world countries and are strongly critical of the conditions they find. It is often forgotten that the conditions they find are much better than when Europe industrialized. The reality is that economic conditions eventually dramatically improve, it just takes some time.
In examining the conditions that lead to a country being prosperous, Kay concludes that the following conditions must hold:

* Stable, honest government.
* Laws that clearly define property rights and that are enforced in an even-handed way.
* A sense of community, where people do not blindly follow the path of personal self-interest.
* A spirit of innovation, where new ideas are constantly generated, tried in small experiments and then only executed in the large when they have passed the initial tests.

Kay also spends a great deal of time on the American stock market bubble fueled by the dot-com craze of the nineties. His statements and conclusions regarding the behavior of the American economy will not please those who praise it as the model of efficiency. He considers the descriptions of the American economy to be vastly oversimplified and even whether they accurately describe how it functions.
I enjoyed the book, especially the examples of economic successes and failures. So much so, I wished there had been more of them. A large section is spent on describing the fundamentals of markets, which I largely skimmed. One thing is very clear. In performing a comparison of the economic performance of countries, you realize how complex economic productivity is. Those who argue that all will be well if only free markets and democracy take hold are misguided and/or simple-minded. Societies and cultures are extremely complex and Kay demonstrates that even well intentioned actions can be detrimental.

Analysis of the intersection of culture and economic theory
The subtitle to this book describes the content succinctly - "Why Some Nations are Rich but Most Remain Poor". Author John Kay, a prominent British economist, postulates that one of the reasons is due to cultural factors. These cultural norms may both free and confine the society when it comes to prosperity. If international trade benefits both rich and poor countries then why do poor countries remain poor? In a brilliant exposition of economics he argues that it is not the free markets and constant search for materialistic acquisition that has made America prosperous but it is largely a factor of the various institutions we have in place. That is one reason why many countries have been unsuccessful in trying to emulate the American economic machine. If our success were based entirely on free markets then bringing them to other countries would allow them to prosper, but they often do not. If you were taught the traditional Adam Smith and Keynesian economic models you will be delighted with this additional perspective on the international market and why our models often don't work in other countries. By the same token the models that work in their cultures may not work at all in ours. A fascinating read and a fresh view of international economics, "Culture and Prosperity" is a highly recommended book.

Illuminating if a bit dense
John Kay is one of those writers with the rare knack for making economics understandable, and his skills are in full display in this book. Kay offers a sophisticated critique of the assumption that markets can, on their own, guarantee prosperity, and he shows how culture and institutions play a crucial role in driving economic growth. At the same time, he rejects facile attacks on capitalism, arguing convincingly that markets remain the most powerful engine of prosperity ever invented.

Kay's style is generally quite readable, but at times here -- more so than in his FT work -- he gets bogged down in theory and detail, and there are ponderous passages to wade through. On the whole, though, this is illuminating stuff, and anyone interested in understanding why some parts of the world are rich while others are poor should take a look.

Informative and entertaining
This excellent book is an illuminating introduction to the key economic issues of our time. I had never imagined that a book on economics could be interesting, yet this work has shown me not only that the label of 'the dismal science' is unjustified, but also that the workings of the market economy can be explained with wit and lucidity. Highly recommended. ... Read more

Book Description

This second edition of an innovative undergraduate text offers an approach to understanding different economic systems that reflects both recent transformations in the world economy and recent changes in the field of Comparative Economic Systems. The traditional way of teaching comparative economics, with its reliance on relatively simple dichotomies (private vs. state, planning vs. market) does not take into consideration the many variants and mixtures of economic systems that exist in the real world. The Rossers' introduction in the first edition of the concept of the "new traditional economy" -- the effort by a developing country to embed a modern economic system into a traditional culture, usually religious -- presented a new way to look at developing economies. Their innovative examination of Iran and its effort to develop a "revolutionary Islamic economy" as an alternative to market capitalism illustrates the use of this new tool in comparative economics.

After a four-chapter theoretical and historical overview, the book focuses on fifteen country studies, organized by economic system. The chapters on advanced market capitalism examine the economies of the United States (a chapter new to this edition) Japan, France, Sweden, and Germany. The chapters examining transition in former socialist economies discuss Russia, the former Soviet Republics, Poland, Hungary, Yugoslavia (including expanded treatment of the most successful transition economy, that of Slovenia), and China. The chapters in the final section of the book discuss "alternative paths" taken by the developing economies of Iran, India (its complex mix of socialism, capitalism, and tradition is examined in a chapter new to this edition), Mexico, and South and North Korea. The book concludes with a look at future trends that will continue to transform the world economy. ... Read more

Book Description

This book challenges the widely accepted notion that globalization encourages economic convergence--and, by extension, cultural homogenization--across national borders. A systematic comparison of organizational change in Argentina, South Korea, and Spain since 1950 finds that global competition forces countries to exploit their distinctive strengths, resulting in unique development trajectories.

Analyzing the social, political, and economic conditions underpinning the rise of various organizational forms, Guillén shows that business groups, small enterprises, and foreign multinationals play different economic roles depending on a country's path to development. Business groups thrive when there is foreign-trade and investment protectionism and are best suited to undertake large-scale, capital-intensive activities such as automobile assembly and construction. Their growth and diversification come at the expense of smaller firms and foreign multinationals. In contrast, small and medium enterprises are best fitted to compete in knowledge-intensive activities such as component manufacturing and branded consumer goods. They prosper in the absence of restrictions on export-oriented multinationals.

The book ends on an optimistic note by presenting evidence that it is possible--though not easy--for countries to break through the glass ceiling separating poor from rich. It concludes that globalization encourages economic diversity and that democracy is the form of government best suited to deal with globalization's contingencies. Against those who contend that the transition to markets must come before the transition to ballots, Guillén argues that democratization can and should precede economic modernization. This is applied economic sociology at its best--broad, topical, full of interesting political implications, and critical of the conventional wisdom. ... Read more

Book Description

There is no doubt that we are in the middle of a transition to a knowledge-based economy. Breakthrough technologies in microelectronics, biotechnology, new materials, telecommunications, robotics, and computers are fundamentally changing the game of creating wealth. While these new industries are growing explosively, existing industries such as banking and retail are being transformed beyond recognition. As a result, a new global economy is emerging to replace existing national economies.

What will it take for individuals, companies, and entire countries to succeed in the new economics of the twenty-first century? Rather than focusing on spending, Lester C. Thurow argues that we must emphasize investment in basic knowledge, education, and infrastructure. Only by committing ourselves to building communal wealth can we maximize opportunities for building personal wealth as well. Building Wealth is an indispensable guide to surviving -- and thriving -- in the economies of the twenty-first century.

Reviews (35)

How Rich Countries get Rich
Overall, it is a fascinating read for anyone interested in economics, or how rich countries become rich. Lots of good facts which reflect on the competitive, and opportunistic capitalist paradigm we currently live in.

1) There has been significant change in the economic landscape, and that change continues to accelerate. Before the industrial revolution, 98% of the world's population had income only from farming. Now less than 2% are farmers.

2) The world is increasing a global market. Coca Cola gets 80% of its revenues from outside the United States.

3) The gap in wealth continues to widen.
- Bill Gates market value is the same as the poorest 110,000,000 Americans.
- In the United States, the average CEO pay is 212x the average worker.
- The top 1% of people in the US own 40% of the total wealth.
- Africa GDP is the same as it was in 1965. Has not changed in 35 years.

4) We are all busier. With the invention of electricity, the average hours of sleep dropped from 9 hours to 7 hours a day.

5) Old companies must destroy themselves (re-invent themselves) in order to stay competitive and grow. Also, individuals must constantly change and grow to remain competitive. If not, they will fall behind.

6) Capitalism is a tough game. The number of businesses failing (88% a year) is almost as many as new business are formed. Wealth is constantly being transferred from one group ~ to another.

7) There are many basic ingredients to create wealth. Some are cultural (like entreprenuership), some are created and enforced by the government (intellectual property, law and order, infrastructure), some are learned by the individual (skills, knowledge)

8) Each country, and region has its strengths and weakness. In order to build wealth for the future, each country must act differently:

- Japan: Clean up the banks, bring in professional management, restore government credibility, and create internal growth. Japan is too big to play the export game anymore.
- US: Break the two-tier society (rich and very poor) by improving education for more skilled workers, and investing more in infrastructure
- Europe: Encourage entrepreneurs and corporate flexibility

9) Wealth is created when there is a disequillibrium (imbalance) in technology, or society. When there is change, there is opportunity ~ because wealth is being transferred.

10) Know your weakness and go where that weakness is not important.

How Rich Countries Get Rich
Overall, it is a fascinating read for anyone interested in economics, or how rich countries become rich. Lots of good facts which reflect on the competitive, and opportunistic capitalist paradigm we currently live in.

1) There has been significant change in the economic landscape, and that change continues to accelerate. Before the industrial revolution, 98% of the world's population had income only from farming. Now less than 2% are farmers.

2) The world is increasing a global market. Coca Cola gets 80% of its revenues from outside the United States.

3) The gap in wealth continues to widen.
- Bill Gates market value is the same as the poorest 110,000,000 Americans.
- In the United States, the average CEO pay is 212x the average worker.
- The top 1% of people in the US own 40% of the total wealth.
- Africa GDP is the same as it was in 1965. Has not changed in 35 years.

4) We are all busier. With the invention of electricity, the average hours of sleep dropped from 9 hours to 7 hours a day.

5) Old companies must destroy themselves (re-invent themselves) in order to stay competitive and grow. Also, individuals must constantly change and grow to remain competitive. If not, they will fall behind.

6) Capitalism is a tough game. The number of businesses failing (88% a year) is almost as many as new business are formed. Wealth is constantly being transferred from one group ~ to another.

7) There are many basic ingredients to create wealth. Some are cultural (like entreprenuership), some are created and enforced by the government (intellectual property, law and order, infrastructure), some are learned by the individual (skills, knowledge)

8) Each country, and region has its strengths and weakness. In order to build wealth for the future, each country must act differently:

- Japan: Clean up the banks, bring in professional management, restore government credibility, and create internal growth. Japan is too big to play the export game anymore.
- US: Break the two-tier society (rich and very poor) by improving education for more skilled workers, and investing more in infrastructure
- Europe: Encourage entrepreneurs and corporate flexibility

9) Wealth is created when there is a disequillibrium (imbalance) in technology, or society. When there is change, there is opportunity ~ because wealth is being transferred.

10) Know your weakness and go where that weakness is not important.

How can one be wrong so much, and yet be successful?
It is so sad how wrong someone can be proven over and over again and still, he/she is rewarded, called a genius and is allowed to teach our youth. Here is a quote from the author: "Can economic command significantly... accelerate the growth process? The remarkable performance of the Soviet Union suggests that it can... Today the Soviet Union is a country whose economic achievements bear comparison with those of the United States." This was in 1989, just shortly before the Societ Union collapsed. Unfortunately, being this wrong in economics gives one awards and allows you to teach college students while being described a genius. Sad. Mr. Thurow may be a 'genius', but geniuses can be wrong too.

A Wealth of Knowledge! Must Have For The 21st Century!
Heh, a reviewer claimed that the book is out dated, and reffered to the media hyped "technology meltdown" as a reason to give up home in technology and the building of wealth through intellect. We are now 2 years into the 21st century (3 years if you think it started in the year 2000), the markets are readjusting, and technology is abounding. The "internet bubble" or "Dot Com Crash" was a cataclysm of investors and venture capitalists, smart and stupid, who got too greedy, and forgot the fundamentals of business, internet or no internet. The markets will ALWAYS naturally receed and recess after "bubbles", which is what happened. Technology, however, did and has not receeded. Wealth is being built upon the foundations of intellect, and Thurow's book shows how this is to be accomplished by analyzing all other economic revolutions and what occured to make them possible. If Thurow was giving stock predictions and analysis, and "hot picks of the week" (which he absolutely does not), then i would understand the discredit which some reviewers have given him. But this is just not the case. Thurow analyzes the wealth being generated by Global corporations, and small businesses alike through the internet. He gives examples of those who have made it to the top of the wealth pyramid. He points to revolutionary ideas and systems which have fueled economies for decades. He answers questions, he asks questions. For futurists, insight, knowlegde, and analysis of history is key. If you want to be someone who is ahead in the future, and if you want to know what it will take to grow financially in the current century, "Building Wealth" gives insights into how it has been done, and what it may take. As with all good financial books, a disclaimer: This is not going to TELL you how to get RICH. It will teach you about current debates on the direction of capitalism, and what is believed will happen in 21st century buisness. Expand your mind, expand your wealth, even if it be only a wealth of mind.

How Rich Countries Get Rich
Overall, it is a fascinating read for anyone interested in economics, or how rich countries become rich. Lots of good facts which reflect on the competitive, and opportunistic capitalist paradigm we currently live in.

1) There has been significant change in the economic landscape, and that change continues to accelerate. Before the industrial revolution, 98% of the world's population had income only from farming. Now less than 2% are farmers.

2) The world is increasing a global market. Coca Cola gets 80% of its revenues from outside the United States.

3) The gap in wealth continues to widen.
- Bill Gates market value is the same as the poorest 110,000,000 Americans.
- In the United States, the average CEO pay is 212x the average worker.
- The top 1% of people in the US own 40% of the total wealth.
- Africa GDP is the same as it was in 1965. Has not changed in 35 years.

4) We are all busier. With the invention of electricity, the average hours of sleep dropped from 9 hours to 7 hours a day.

5) Old companies must destroy themselves (re-invent themselves) in order to stay competitive and grow. Also, individuals must constantly change and grow to remain competitive. If not, they will fall behind.

6) Capitalism is a tough game. The number of businesses failing (88% a year) is almost as many as new business are formed. Wealth is constantly being transferred from one group ~ to another.

7) There are many basic ingredients to create wealth. Some are cultural (like entreprenuership), some are created and enforced by the government (intellectual property, law and order, infrastructure), some are learned by the individual (skills, knowledge)

8) Each country, and region has its strengths and weakness. In order to build wealth for the future, each country must act differently:

- Japan: Clean up the banks, bring in professional management, restore government credibility, and create internal growth. Japan is too big to play the export game anymore.
- US: Break the two-tier society (rich and very poor) by improving education for more skilled workers, and investing more in infrastructure
- Europe: Encourage entrepreneurs and corporate flexibility

9) Wealth is created when there is a disequillibrium (imbalance) in technology, or society. When there is change, there is opportunity ~ because wealth is being transferred.

10) Know your weakness and go where that weakness is not important. ... Read more

Book Description

The surprising finding of this book is that, contrary to conventional wisdom, global income inequality is decreasing. Critics of globalization and others maintain that the spread of consumer capitalism is dramatically polarizing the worldwide distribution of income. But as the demographer Glenn Firebaugh carefully shows, income inequality for the world peaked in the late twentieth century and is now heading downward because of declining income inequality across nations. Furthermore, as income inequality declines across nations, it is rising within nations (though not as rapidly as it is declining across nations). Firebaugh claims that this historic transition represents a new geography of global income inequality in the twenty-first century.

This book documents the new geography, describes its causes, and explains why other analysts have missed one of the defining features of our era�a transition in inequality that is reducing the importance of where a person is born in determining his or her future well-being. ... Read more

Reviews (4)

The Inequality Transition
Glenn Firebaugh is the first scholar to document an extraordinarily important pattern in modern economic history.

Prior to industrialization, persons in one nation fared about as well as persons in other nations with respect to income and standard of living. Within nations, however,individual deviations from the means of national income were commonly quite large.

One effect of industrialization was to reverse this situation. Today dramatic disparities in income are found between industrial and non-industrial nations, with industrial nations and their citizens being quite well off and non-industrial nations and their citizens being quite poor, on average.

Using highly regarded national income data and bringing to his analysis a set of well-reasoned assumptions, Firebaugh makes an astounding discovery. In the last quarter of the 20th Century income inequality began to increase within nations and
decline across nations. An economic process that has pointed in one direction for over a hundred years has begun to reverse itself.

Firebaugh coins the term "inequality transition" to identify the two stages of an economic process related to the global spread of industrialization. In the first stage, the principal source of global income inequality moves from within-nations to between-nations. In the second stage, the principal source of global income is restored to the historic norm, namely, within-nations. Today we are in the early stages of the second phase of the inequality transition.

Critics of modern, capitalist, industrial expansion have it wrong. Contrary to their pessimistic pronouncements, today, the overwhelming majority of the world's poor are not getting poorer but are getting richer. Spreading industrialization is improving the lot of most of the world's peoples. Indeed, the promise of global economic justice is inherent in the notion "inequality transition."

Much of What You Thought You Knew Is Wrong
Much of what you thought you knew is wrong! If you are seriously interested in globabilization and recent trends in world income inequality, you need to read Glenn Firebaugh's The New Geography of Global Income Inequality (Harvard U. Press, 2003). In a straightforward and detailed presentation, Firebaugh explains the arithmetic of inequality -- how it divides into within-nation and between-nation components. He then charts each of these, both over-time and at the present time. You will learn where the U.S. fits in the world, and which countries and continents are at the top and the bottom in terms of income and inequality in income. Most important, you will see that, contrary to much current journalistic and even scholarly writing, world income inequality has actually been decreasing since the 1990s. This books complements and in important ways adds to recent books by Stiglitz, Easterly, Soros, Bhalla, Diamond, and Landes

Are the rich getting richer?
Are rich nations getting richer and poor nations getting poorer? Are the rich nations exploiting the poor nations, as critics of globalization in the trade protest movement suggest? The answer to both questions is no, according to Firebaugh, who shows that world inequality is on the decline. This book should become a classic among scholars, but it should also be of interest to the general public. Firebaugh writes well and uses plain talk and common sense along with plenty of supporting evidence.

The New Global Equality
This thorough and informative investigation should be rewarding reading for anyone who is interested in understanding the past, assessing the present, and thinking about the future of world income inequality. This book puts conventional wisdom to the test about the course of global income inequality at a time when alarms are being sounded about large-scale economic changes that are occurring throughout the world with increasing globalization. Among the claims of conventional wisdom that this book challenges are: (1) world income inequality is increasing across nations, with the rich getting richer and the poor getting poorer; (2) globalization exacerbates inequality across nations; and (3) international exchange is inherently exploitative. One of the nice things that the author is able to do is point out how inequality within nations and inequality between nations contribute to the overall level of global income inequality. I would recommend this book to readers of all ideological persuasions who are interested in a thoughtful presentation and discussion of evidence about a contentious issue. ... Read more

Book Description

A Frenchman rents a Hollywood movie. A Thai schoolgirl mimics Madonna. Saddam Hussein chooses Frank Sinatra's "My Way" as the theme song for his fifty-fourth birthday. It is a commonplace that globalization is subverting local culture. But is it helping as much as it hurts? In this strikingly original treatment of a fiercely debated issue, Tyler Cowen makes a bold new case for a more sympathetic understanding of cross-cultural trade. Creative Destruction brings not stale suppositions but an economist's eye to bear on an age-old question: Are market exchange and aesthetic quality friends or foes? On the whole, argues Cowen in clear and vigorous prose, they are friends. Cultural "destruction" breeds not artistic demise but diversity.

Through an array of colorful examples from the areas where globalization's critics have been most vocal, Cowen asks what happens when cultures collide through trade, whether technology destroys native arts, why (and whether) Hollywood movies rule the world, whether "globalized" culture is dumbing down societies everywhere, and if national cultures matter at all. Scrutinizing such manifestations of "indigenous" culture as the steel band ensembles of Trinidad, Indian handweaving, and music from Zaire, Cowen finds that they are more vibrant than ever--thanks largely to cross-cultural trade.

For all the pressures that market forces exert on individual cultures, diversity typically increases within society, even when cultures become more like each other. Trade enhances the range of individual choice, yielding forms of expression within cultures that flower as never before. While some see cultural decline as a half-empty glass, Cowen sees it as a glass half-full with the stirrings of cultural brilliance. Not all readers will agree, but all will want a say in the debate this exceptional book will stir.

... Read more

Reviews (3)

An Analysis of Tyler Cowen's Creative Destruction
Book Review For: Dr. Nicholas Capaldi
Loyola University New Orleans, Louisiana
BA705 Business Ethics-Spring 2004

In Tyler Cowen's Creative Destruction, he addresses the viability of diverse culture in a rapidly expanding global market economy. Most specifically, he focuses on "the particular aspects of culture consisting products which stimulate and entertain us." Cowan defines the following: "music, literature, cinema, cuisine, and visual arts, as the relevant manifestations of culture." The book attempts to answer, by his own account, the age-old question "dating back at least far as Greek civilization: Are market exchange and aesthetic quality allies or enemies?" He proposes that market economies and cross cultural trade have catapulted societies throughout history by facilitating the spread of scientific ideas, creative arts, and enabling isolated cultures to experience a "richer menu of choice" The author offers extensive detail concerning alternative arguments throughout the book as well as the fact that, as in all things, there are opportunity costs associated with each view and some resulting in tragic outcomes.
Cowen qualifies himself on this subject by defining his approach according to his "background as an economist" and his relevant studies of the "scholarly literature and diverse experiences as a cultural consumer", rather than an analysis based on a "single path of specialized study." He outlines his argument that the global economy fosters positive influences on the world's culture by subsequently analyzing the following three "primary lessons":
1. The concept of cultural diversity has multiple and divergent meanings.
2. Cultural homogenization and heterogenization are not alternatives or substitutes; rather, they come together.
3. Cross cultural exchange, while it will alter and disrupt each society it touches, will support innovation and creative human energies.
Cowan begins with the concept definition of cultural diversity as it can be understood in multiple contexts. He explains that diversity is not a single concept. First, "diversity within a society refers to the richness of the menu of choice in that society." The most fragile cultures, with respect to technology, also tend to respond in an explosive fashion to the introduction of new ideas and technologies. They have proven to adapt these technologies and innovations in ways their trading partners never anticipated.
Secondly, Cowan states, "Many critics of globalization focus on diversity across societies comparing whether each society offers the same "menu of choice" and whether societies are becoming more similar," through the process of globalization. He notes that generally, "diversity across societies is a collectivist concept because it does not consider the choices faced by an individual." A libertarian would allow "individuals to create their own meaning." For the purpose of Cowan's argument, libertarians foster individual creativity which is agreed by most to be the backbone of culturally diverse arts.
Limitations placed by government, or activists for that matter, on the market of exchange can significantly alter the outcomes, possibly even the survival of, poorer cultures. Cowan believes that poorer cultures especially, should be allowed to participate in cross cultural trade, even at a social cost, in order to experience the "gains from trade" with outside cultures. As Adam Smith argues in his, Wealth of Nations.., "the best vehicle for innovation is a free market system." Cowan's argument borrows from Smith's ideas and appropriately applies this concept to his claim that cultural diversity requires innovation for the survival of those poorer cultures which would otherwise cease to exist in the long run. As the adaptation process of the new technologies an innovations occur within a poorer culture; it becomes interwoven with aspects borrowed from foreign cultures. Cowan defines this concept later as "synthetic culture."
Synthetic culture refers to the fact that pure societies are mostly obsolete. For example, "The original ideas and inspirations of tribal groups of Zaire have been commodified, and shaped into new synthetic forms, for the purpose of courting outside markets Cowan retorts that the same "defenders of diversity decry the passing of previous cultures and implicitly oppose diversity-over-time," without regard to the necessity of innovations for survival. Cowan's argument has remarkable semblance to that of Cass Sunstein's "Paradoxes of the Regulatory State" where Sunstein argues that "redistributive regulation harms those at the bottom of the socioeconomic ladder." Here, Sunstein points out that often times regulations have "perverse effects" which serve opposite to the activist intended agendas. Likewise, Cowan argues that those who defend cultural diversity for the sake of "creative purity" will, if successful, risk eliminating the cultures they claim to be defending.
Cowan's final "primary lesson" states that "Cross-cultural exchange brings about value clashes that cannot be solved scientifically, in the short term. In the long run however, any "disruptions and alterations will inevitably support innovation and creative human energies." The whole world has a broader menu of choice (from participating in cross-cultural exchange) but older synthetic cultures must give way to newer synthetic cultures." Cowan states, "As we might expect from cross cultural contact, it supports greater diversity of identity, or ethos, within each society while limiting diversity across societies. As identities move closer together, they cease to make artistic production distinct in varying locales." Cowan claims however, that these ethoses are replaced inevitably by a greater number of partial "niches."
Cowan concludes that "Modernity allows us to enjoy the diversity of the world to a very high degree, relative to the previous ages, even when it undercuts that diversity in some regards. The mere fact exists that change will produce serious disappointment for individuals who seek to preserve particular markers of cultural identity." Cowan states "that it is not obvious (nor reasonable) why markers from the past should have more normative force than other possible markers." So, "Are market exchange and aesthetic quality allies or enemies?" Cowan believes that not only are market exchange and aesthetic quality allies, but they are also interdependent and make the whole world better off. Cross cultural exchange broadens cultural diversity across cultures and its influences within some cultures may even save them from extinction.

really focuses on the globalization of cultures
When I bought this book, I was expecting some economical theories especially on Shumpeter' 'Creative Destruction', but T. Cowen really emphasizes on the exposure of culture exchange in today's world.
He really gives good examples, that he explains in details (sometimes it is a bit repetitive).
In summary, I would say that it is a very interesting book to read on globalization because it shows a different aspect of it.

the economics of culture
Cowen's book is one of the few books to
discuss free trade in the context of
cultural goods. easy and fun to read.
No economics background needed.
You will learn a lot about
the history of different cultural goods, including
persian rugs and the successful
movie industry in India (Bollywood).
simply great! ... Read more