Daniel Gross tries to explain why Maine lobster is getting less expensive while other foods are doing the opposite:

At root, the global forces that are driving up the price of food don't significantly affect the vacation lobster business in Maine. Commercial and consumer demand doesn't vary much for off-the-boat lobster. Sure, many lobsters are sold to processing plants. But unlike other seafood products—think of canned tuna, or clam sauce, or frozen fish fillets—lobster is not produced or marketed on a mass global scale, which also means there are no speculators trying to make a killing on lobster futures. The fact that people are eating more and better in China and India isn't much boosting the demand for lobsters from Maine. Even in the United States, lobster remains to a large degree a regional product. [...]

With demand down, and with distributors facing higher costs, there has been significant pressure on lobster producers to keep costs low.

Isn't this analysis too complicated? Isn't Maine lobster simply a luxury good, the price of which falls when times get tough and demand -- primarily from the United States and Canada -- drops? That's what one ShopRite owner thinks:

The price has come down, but more important, what I'm hearing is, the supply side to supermarket retailers is better because tourist consumption is down in Maine," he said. "So there's been more consistent supply."

(Hat tip: Tyler Cowen)

In India, more women are wearing jeans and other Western clothing. That's bad news for sari weavers in the city of Varanasi. Demand for Varanasi's famed, 6-meter silk saris, which have been hand-woven there for centuries, is falling, as the Christian Science Monitor recently reported.

The problem is due to much more than changing fashions, however. The hand-woven saris -- which typically have ornate patterns and scenes, such as Mughal processions of horses and elephants -- have to compete against cheaper copies that are churned out by machines, some of which are in China. The result: Varanasi's hand loom weavers are plunging into grinding poverty.

In the face of creative destruction, perhaps weavers could reframe their product. "What we really need is for crafts in India to reposition themselves, like in Italy, where handmade has a high value," Adarsh Kumar of the All India Artisan and Craftworkers Welfare Association told the CSM.

Indeed, couldn't ornately woven fabric be used to make table linens, decorative sofa pillows, tunic shirts that could be paired with jeans, and even Western-style dresses? And all marketed to people worldwide, not just Indians? In fact, one Canada-based businesswoman is using such logic to preserve alpona, another Indian art form that's been in decline.

It looks like the business savvy to reposition Varanasi saris hasn't yet materialized. And if it doesn't, weavers' lives may be left in tatters.

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A few weeks back, I blogged a Times of India story about how China's construction boom was driving up iron prices, resulting in widespread theft of manhole covers in Mumbai.

Now, the New York Times is reporting that the epidemic of manhole theft is spreading throughout the United States as well. In Philadelphia alone, 2,500 covers have been stolen in the last year, costing the city at least $300,000. Widespread manhole-cover theft has also been reported in Long Beach, Cleveland, Memphis, Miami, and Milwaukee. Some cities are now switching to plastic covers or welding down the metal ones.

Police are trying to crack down on junkyards, but as one North Philadelphia scrap metal collector reports, the demand curve is not in their favor:

These guys here," Mr. Sergeant said, pointing at one scrap yard, "They’d buy a police cruiser and melt it down if we brought it in. The prices for metal are just that good these days."

The September cover of Esquire is going to be pretty cool. An electronic ink diplay, built on the same technology that E Ink used in the Amazon Kindle, will flash the words "the 21st Century Begins." The logistics of pulling of this feat are a story in globalization:

First Esquire had to make a six-figure investment to hire an engineer in China to develop a battery small enough to be inserted in the magazine cover. The batteries and the display case are manufactured and put together in China. They are shipped to Texas and on to Mexico, where the device is inserted by hand into each magazine. The issues will then be shipped via trucks, which will be refrigerated to preserve the batteries, to the magazine's distributor in Glazer, Ky.

So, has the magical world of Harry Potter and its animated Daily Prophet sprung into being? Esquire Editor-in-Chief David Granger sees a bright future for e-ink:

Pointing to the prototype sitting on a conference room table, Mr. Granger said, "The possibilities of print have just begun. In two years, I hope this looks like cellphones did in 1982, or car phones."

Alternatively, it could look a lot like this.

Al Bello/Getty Images

It was only a matter of time before the declining dollar affected the world of sport. In years past, the Europe's prime basketball talent bolted across the pond for the superior pay and play of the NBA. Now, the trend appears to be heading in the opposite direction, thanks to the rising euro and an influx of Russian investment in the European league. Suddenly, playing in Europe doesn't sound like such a bad idea after all.

Former New Jersey Net Bostjan Nachbar (above left, with Dallas's Dirk Nowitzki) is the latest player to spurn the NBA and sign a more lucrative contract with a European team, which pays in the much more attractive euro, and often tax-free:

The NBA had better be careful," Nachbar said. "European teams are offering a lot of money. It's much more, considering there are no taxes, than what I could make signing for the midlevel exception."

Once confined to players with previous overseas experience, the trend is spreading to home-grown Americans, too. Highly rated high schooler Brandon Jennings, struggling with academic issues, shocked the college basketball world by opting to play in Europe instead of attending school. And Atlanta's Josh Childress, unhappy with the state of contract negotiations with the Hawks, is weighing an offer to play in Greece.

Although the NBA, already cultivating the Chinese market, has been eyeing European expansion, I don't think this is exactly what Commissioner David Stern had in mind.

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Scrap metal is piled up at a metal recycling facility on July 17 in Chicago, Illinois. With scrap metal prices near historic highs, many communities are experiencing an increase in thefts of metal including cemetery ornaments, plumbing pipe, gutters, and even manhole covers.

Coors, Miller, and now Anheuser-Busch are all owned by foreign conglomerates. So where can a patriotic guy find an all-American brew these days?

Believe it or not, Pabst Brewing Company is now the largest American-owned brewer. But Pabst doesn't even brew its own beer anymore. All 29 Pabst beers, from Schlitz, to Lone Star to Colt 45 to the legendary Pabst Blue Ribbon are outsourced to SAB Miller, based in South Africa.

Next on the list comes Boston Beer Company, which counterintuitively bottles its famous Sam Adams lager in Pennsylvania.

Third is D.G. Yuengling and Son Inc., known far and wide as America's oldest brewery, operating in Pottsville, PA since 1829.

Here's the full list of America's top American-owned breweries according to the Brewer's Association:

1. Pabst Brewing Co.
2. Boston Beer Co.
3. D.G. Yuengling and Son Inc.
4. Sierra Nevada Brewing Co.
5. New Belgium Brewing Co. Inc.
6. High Falls Brewing Co.
7. Spoetzl Brewery
8. Widmer Brothers Brewing Group
9. Redhook Ale Brewery
10. Pyramid Breweries Inc.

The globetrotting documentarians over at Current Vanguard have just posted an interesting new short film from the Philippines, where the primary export is the country's own citizens.

"Destination Anywhere" looks at the 20 million Filipinos who work abroad in fields ranging from housekeeping to medical care. The billions of dollars in remittances they send home every year account for about 10 percent of the Philippines' GDP. While this is generally viewed as positive for economic growth (President Gloria Arroyo has described the overseas workers as "heroes of the republic".) it doesn't do much for the kind of longterm development and savings that could stimulate job creation at home. Plus, as the film's director, Tracey Chang, finds, there are enormous social costs when you consider the Philippines' millions of separated families.

For more on the relationship between remittances, corruption, and poor economic planning, check out "The Remittance Curse" in the current issue of Foreign Policy.

PETER PARKS/AFP/Getty Images

The first Olympic medal ceremony took place Thursday near Tiananmen Square, as the 6,000 gold, silver, and bronze medals were formally presented to organizers of the Beijing games.

Assembled in a mint in Shanghai and a product of Melbourne-based BHP Billiton Ltd., the metals themselves are a story in globalization. The gold and silver medals are comprised of silver from Australia (the gold medals are plated with gold from Chile) while the bronze medals are smelted from Chilean copper. A ring of Chinese jade from the Qinghai province adorns each.

The combined lode cost BHP, the world's largest mining company, over $1 million in raw materials. Although the company declined to comment on the specific values of the medals, the rising cost of commodities was not enough to deter the mining giant.

For one, the Olympic sponsorship was merely a drop in the bucket for BHP, a billion-dollar corporation. Second, for BHP, it's all about the big picture. Iron ore -- not gold, silver, or bronze -- is the BHP's primary product, and while the company and China have tussled in the past, China comprises 20 percent of BHP's business (already up from 12.5 percent when the agreement was announced in 2005). Apparently, a little Olympic goodwill can go a long way.

Monday's ruling by a French court that eBay must pay French luxury goods manufacturer LVMH $60.8 million and do more to prevent counterfeit sales (think: fake Louis Vuitton handbags) raises big questions about globalization and the future of e-commerce.

As International Herald Tribune blogger Daniel Altman puts it, who should police the Internet? There's a potential slippery slope here, Altman points out, if countries are left to their own devices and sue portals such as Amazon for books considered libelous or YouTube for videos considered indecent.

The French, at least, have a history of holding Internet providers accountable for content hosted on sites they own. There's precedent in the United States, too, from the 2001 decision ordering Napster to prevent illegal file sharing between users of its site.

To some, Monday's ruling reeks of protectionism. The ruling condemns eBay's unauthorized sales of certain perfumes, limiting the sale of these luxury items to approved channels such as perfume and department stores, not the open market.

What's the answer? Leaving regulation to national courts may lead to a hodgepodge of different rulings in different countries, making it difficult for multinational firms to navigate.

Altman asks if a "global authority" to help nations and multilationals sort out e-commerce is necessary. Perhaps, but it's hard to imagine what such an authority would look like or how it would operate. I think it's safe to say eBay is on its own for now.

Spencer Platt/Getty Images

As the general election heats up, John McCain is adamantly proclaiming himself a free trader while attempting to paint Barack Obama as a protectionist. But the attempted hostile takeover of Anheuser-Busch by Belgain brewery InBev may place McCain in a precarious political position.

McCain, who sided with the Bush administration during the Dubai Ports World controversy two years ago, has been mum on the issue so far. The spotlight instead has focused on his wife, Cindy, who owns beer distributor Hensley & Co. and some $1 million in Anheuser-Busch shares and would stand to benefit from a deal.

With tradition and patriotism on one side, and financial gain and free trade principles on the other, McCain faces a tough choice. Although his reputation as a straight-talking maverick precedes him, I wouldn't be suprised if politics won out, just as it did with McCain's support of offshore drilling and Obama's decision to forgo public campaign financing.

The reason? Missouri, which went Republican the past two presidential elections, could be in play this year. Missouri politicans from both sides are lining up against the deal, and saveAB.com, which has garnered over 59,000 signatures on its online petition offers the following message, dripping in election year rhetoric:

Like baseball, apple pie and ice cold beer (wrapped in a red, white and blue label), Anheuser-Busch is an American original. ... With your help we can fight the foreign invasion of A-B. We will fight to protect this American treasure. We will take to the Internet, to the streets, to the marble halls of our capitals, whatever it takes to stop the invasion.

If you're a struggling American newspaper trying to maintain quality and improve local coverage, what's one possible solution?

Outsource to India, says the deputy editor of the Orange County Register, California's fifth-largest newspaper. On a one-month trial basis, Mindworks Global Media, an India-based company, will copy-edit some of the Register's stories and lay out pages for a community newspaper at the same company that owns the Register.

This isn't the first time an American news outlet has outsourced to India. Last year, Passport blogged about a Pasadena, California, news Web site that hired Indian journalists to cover meetings of the Pasadena City Council, which are broadcast over the Internet.

There are bound to be some hiccups and gaffes along the way, but it could work better than expected. Mindworks says on its Web site that its workers are "trained thoroughly to become familiar with the client publication and the region," and some employees are bound to have been educated at American universities. And perhaps articles about India and other countries will include more nuance and context.

For American editors and reporters, increased outsourcing is understandably scary. But what if it's key to fundamentally reinventing newspapers, whose U.S. circulation and advertising revenue have been plummeting? Those of us who work in journalism will have to up our game and make ourselves relevant. It's creative destruction at work.

Jeff Rubin, chief economist at CIBC World Markets, a top Canadian investment bank, has put together a fascinating PowerPoint presentation (ppt) on "The Age of Scarcity." Here's one slide that illustrates the astonishing rate at which the world is decreasing its reliance on the U.S. economy:

(Hat tip: Paul Kedrosky)

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Via World Politics Review and 2point6billion comes this story from the Times of India about Mumbai's mysterious manhole shortage. It seems that in the last few months, over 1,500 manhole covers have been stolen from the city and surrounding region by organized gangs, with predictable consequences for sanitation and safety.

Who's the culprit? According to local authorities, it's China, where massive Olympic construction projects have driven up the global prices for iron ore. The municipality bought the covers for about $80 and they're now selling on the black market for about $130.

A senior official said that he/she had also heard of thefts being reported in Europe and North America. Just to bring things full circle, many of those covers were also probably manufactured in India.

Ryan Anson/AFP/Getty Images

July 11 could not come fast enough for a few million folks dying to get their hands on the new faster, sleeker, cheaper iPhone 3G. (Count me in.) But what I found most interesting about Steve Jobs's big announcement yesterday is Apple's abandonment of its iPhone business model so far: exclusive carrier agreements.

In the six countries where you can officially get an iPhone, Apple has signed deals with mobile carriers (such as AT&T here in the United States) that give Apple a cut of the revenue from the carriers' service plans. But within weeks of the iPhone's launch last year, a massive global gray market in hacked iPhones emerged -- much to Apple's surprise. The company still made money on iPhone handsets, but it was missing out on millions of dollars in revenue it could have gotten from its partners, since more than a million new iPhone users were using hacked phones on different carriers. So, instead of pursuing what was clearly an untenable course, Apple yesterday switched gears, dropping plans for exclusivity agreements in new markets. In other words, they learned from the gray market that their business model simply wasn't the best way to go:

We've changed our business model, from getting a cut of the future revenues to just a more traditional model," Mr. Jobs said in an interview on Monday. "That’s enabled us to roll out around the world much faster."

As for the new business agreement in the States, Apple and AT&T will no longer share revenues as of yesterday. But it still sounds like AT&T will be the exclusive carrier through the end of its multi-year contract, believed to be five years. At the very least, it will be harder to gripe about AT&T's slow download speeds on the new 3G network.

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FP readers already know the story of "How Sushi Went Global." And it's generally no secret that you can get a spicy tuna roll everywhere from Bangalore to Belize. But barbecue? Yes, apparently slow-cooked pig's butt is starting to go global, too.

The word out of the 2008 World Championship Barbecue Cooking Contest, the world's largest pork BBQ contest held last weekend in Memphis, is that the globalization of barbecue is in the "embryonic" stages.

The trend can apparently lead to some awkward interactions:

At one point this year, a member of the Deominox team [from Belgium] was trying to talk his way in past the gate. The 'good old boy' working the entrance [had to ask for] help.... The language barrier almost got the Deominox team disqualified when it turned in its blind box in the whole-hog contest. Two of the non-English-speakers handled the delivery, but they missed the deadline after walking past signs they didn't understand. A sympathetic official interceded and successfully made the case for giving the team a break and letting their samples be judged...."

Now, before getting carried away about diluting of an American icon, it's important to remember that around two-thirds of this year's contestants still hailed from Tennessee. Perusing the list of winners, I don't see any foreign teams. Nor did I see baby backs on the menu the last time I was in Beijing. Of course, that was two years ago....

Fans of the NBC show "The Office" know that the TV show is based on a British series of the same name that first aired on BBC back in 2001. What they might not know is that similar to telenovelas, reality shows like "Big Brother," and other TV genres, it's truly gone global.  The French have "Le Bureau," the Quebecois have "Le Job," the Germans have "Stromberg," and Chileans are about to air their own version of the show too.

What viewers might not realize is that the show is actually, well, "Japanese" in origin. On "Saturday Night Live" this past weekend, series creator Ricky Gervais talked about how the Asian version first inspired him. Then he presented the following clip. Enjoy!

In the United States, the Oreo cookie is a classic. Millions of American children have enjoyed dunking the sweet treat -- white cream sandwiched between two round, crisp, chocolate cookies -- in milk as an afternoon snack.

Kraft Foods, makers of the Oreo, introduced the cookie to China in 1996. But the Chinese didn't exactly take to them. So starting in 2005, the Wall Street Journal reports, Kraft engaged in a classic case of adapting a product to suit local tastes. The Chinese found the cookies too sweet, so Kraft reduced the sugar in them. China was developing a thirst for milk -- a product that traditionally hasn't been a Chinese dietary staple -- so Kraft launched a campaign, complete with Oreo ambassadors, to "educate" the Chinese on how to dunk the cookies in milk.

The most radical change was in the shape. Noticing that sales of wafer cookies were increasing faster than those of traditional biscuit-like cookies, a new version of the Oreo was created: a long, narrow, layered stack of crispy wafers and vanilla and chocolate cream, all coated with chocolate. Whoever said Oreos have to be round?

Of course, amid rising food prices and increased demand for chocolate (whose consumption in China has nearly doubled in the past five years), the success of the Chinese Oreo brings to mind the broader question of "Can the World Afford a Middle Class?," a topic recently addressed in FP and one that fans the flames of Chinese frustrations with the West.

(Meanwhile, Oreos have been trying to colonize British biscuit tins, the BBC reports.)

A poem that has been circulating on the Internet lately offers insight into the frustrations that many Chinese -- including those studying in the United States -- feel in reaction to criticisms that have been leveled against their country in recent times. An excerpt is below:

When we have a billion people, you said we were destroying the planet.
When we tried limiting our numbers, you said it is human rights abuse.

When we were poor, you thought we were dogs.
When we loan you cash, you blame us for your debts.

When we build our industries, you called us polluters.
When we sell you goods, you blame us for global warming.

When we buy oil, you call that exploitation and genocide.
When you fight for oil, you call that liberation and democracy.

The full poem, whose origins are unclear, is here. There's also a video version that uses historical images, magazine covers, and political cartoons to reinforce the point:

INDRANIL MUKHERJEE/AFP/Getty Images

Ah, globalization at work: Workers at a factory in China's southern Guangdong province were making "Free Tibet" flags, naively unaware of what the colorful flags -- banned in China -- represented.

The owner of the factory said the orders for the flags had been placed from overseas.