« Chronic Disease a Particular Problem in Thailand | Main | Quote of the Day for Wednesday, March 1, 2006 »
February 28, 2006
The Real Reason behind Barriers to Cross-Border Deals
"Nations Rebuild Barriers to Deals," says the New York Times headline today. The headline should read "Western Nations Rebuild Barriers to Deals," as the article is entirely about federal governments in Europe and the United States.
I was drawn to these short lines:
The rising urge to protect national interests has deeper roots than just a desire to protect national interests, some experts in the field say.
"An overseas owner may not have the same kind of approach as a domestic one," Mr. [Julian] Franks [of the London Business School] said.
I haven't a clue what that weak-kneed response to the question means, so let me give you the real answer: the fear of loss of power on the part of elected federal officials.
They are afraid that Dubai World Ports won’t feel as beholden to them as an American company might. That’s one reason—-unstated—-that this particular UAE company will be dragged through the Washington mud until they pay enough homage and pledge the fealty which politicians will demand.
My view sounds cynical. It’s actually recognition of reality.
Read this related post for additional thoughts on politicians’ fear of loss of power in a era of increased globalization, and then let’s all set back and watch. I suspect the endgame of the Dubai Ports story will be either a show of ring kissing, after a tortured series of hearings, or a outright Congressional rejection of the deal followed by a withdrawal of the deal.
We’ll see if I’m right.
Trackback Pings
TrackBack URL for this entry:
http://www.heritagetidbits.com/cgi-bin/mt/mtb.cgi/1243
Comments
Post a comment
Thanks for signing in, . Now you can comment. (sign out)
(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)