Jones, Charles

Protectionism vs. Globalization

Prestige Ameritech is America’s #1 maker of surgical masks. In outbreaks, demand peaks, but when it’s all over, hospitals go back to exclusively buying cheaper masks from China. Reduced demand makes Ameritech lay off workers. Ameritech is pushing for a federal contract to stabilize demand over time.

India’s Foreign Exchange Act of 1973 gave Coca-Cola an ultimatum: hand over 60% of the local subsidiary to Indian partners and the syrup recipe. Coca-Cola left in 1977. With the fall of the Soviet Union, socialist India’s primary sponsor, India embraced the free market to fully finance its debts. Coca-Cola and Pepsi came back, but Indians kept drinking Thums Up (goes well with spicy food) and Limca (appeals to national love for lemonade). Coca-Cola bought both brands but still produces them.