Crony Capitalism Takes Its Toll

Call it quanxi capitalism, crony capitalism, or just the old boy network, but U.S. corporations are discovering that doing business in Asia increasingly requires a major rethink of classical market economics. Who you know often overshadows what you sell, and personal connections can matter far more than price or quality. It's hard to tell what "corruption" means. It's harder still to apply the free trade rules of the OECD and the WTO. But try we must.

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