⚖️Markets are not free and are regulated to some extent.
💡Limited success of countries in becoming rich through free trade.
🌍Rebalancing the global economy is crucial for sustainable growth.
🏛️Critique of shareholder value maximization in corporate governance.
📈Importance of long-term investment and commitment to the future of companies.
Are all markets regulated?
—Yes, all markets are regulated to some extent, with rules and regulations determining who can participate, what can be bought and sold, and how exchanges are conducted.
Can countries become rich through free trade?
—While some countries have experienced economic growth through free trade, it is not a guaranteed path to prosperity. Many rich countries, including the United States and Britain, were protectionist in their early stages of development.
What is the importance of rebalancing the global economy?
—Rebalancing the global economy is necessary to address the overreliance on export-led growth by countries like China, Japan, and Germany. The role of the buyer of last resort, traditionally the United States, needs to be reexamined to ensure sustainable growth.
What is the critique of shareholder value maximization?
—The focus on maximizing shareholder value in corporate governance can lead to short-term thinking and neglect of long-term investment. This approach often prioritizes immediate profits over the long-term health and sustainability of companies.
Why is long-term investment important?
—Long-term investment is crucial for the future success of companies. It allows for the development of infrastructure, innovation, and employee training, contributing to sustainable growth and productivity.
00:22Professor Jim Trang challenges the myths of free markets and free trade, arguing that all markets are regulated to some extent.
06:33He discusses the limited success of countries in becoming rich through free trade and the need to rebalance the global economy.
11:48Professor Trang critiques the focus on shareholder value maximization in corporate governance and emphasizes the importance of long-term investment and commitment to the future of companies.
