Japan's export-led recovery will falter and more Japanese banks and companies will fail. Mexico is also likely to suffer as export growth dries up and foreign capital stops flowing in. Germany's sound macro-economic policy, low levels of consumer debt and fair equity prices see it poised to be a winner along with the euro. The challenge lies in letting down its barriers without destroying its prized political system. But there are signs that businesses realise that they must play their part in the battle against climate change.
Carbon trading looks like the most efficient solution to the problem of greenhouse gas emissions.
If governments and business co-operate, they may be able to mitigate global warming without needlessly damaging the world economy. The first globalisers Often seen as hidebound, the Victorians were great technologists and adventurers. It shows how technological change enabled the Victorians to reap huge benefits from trade. The Economist Newspaper Ltd. 2001. All rights reserved.