Global Business Today
CharlesW. L Hill
University of Washington
PREFACE xiii PART ONE Chapter One Introduction 4 What Is Globalization? 6 The Globalization of Markets 6 The Globalization of Production 7 The Emergence of Global Institutions 9 Drivers of Globalization 11 Declining Trade and Investmen t Barriers 11 The Role of Technological Change 14 The Changing Demographics of the Global Economy 16 The Changing World Output and World Trade Picture 16 The Changing Foreign Direct Investment Picture 18 The Changing Nature of the Multinational Enterprise 19 The Changing World Order 22 The Global Economy of the Twenty-First Century 23 The ...view middle of the document...
S. Tariffs on Tire Imports from China 215 Chapter Eight Foreign Direct Investment 219
Opening Case: Foreign Retailers in India 219 Introduction 220 Foreign Direct Investment in the World Economy 221 Trends in FDI 221 The Direction of FDI 222 The Source of FDI 223 The Form of FDI: Acquisitions versus Greenfield Investments 224 Theories of Foreign Direct Investment 225 Why Foreign Direct Investment? 225 The Pattern of Foreign Direct Investment 227 The Eclectic Paradigm 228 Political Ideology and Foreign Direct Investment 230 The Radical View 230 The Free Market View 231 Pragmatic Nationalism 232 Shifting Ideology 232 Benefits and Costs of FDI 233 Host-Country Benefits 234 Host-Country Costs 236 Home-Country Benefits 237 Home-Country Costs 238 International Trade Theory and FDI 238 Government Policy Instruments and FDI 239 Home-Country Policies 239 Host-Country Policies 240 International Institutions and the Liberalization ofFDI 241 '
Opening Case: China Limits Exports of Rare Earth Minerals 189 Introduction 190 Instruments of Trade Policy 191 Tariffs 191 Subsidies 192 Import Quotas and Voluntary Export Restraints 193 Local Content Requirements 195 Administration Policies 195 Antidumping Policies 196 The Case for Government Intervention 197 Political Arguments for Intervention 197 Economic Arguments for Intervention 199 The Revised Case for Free Trade 201 Retaliation and Trade War 202 Domestic Politics 202 Development of the World Trading System 202 From Smith to the Great Depression 203
Focus on Managerial Implications 241 Key Terms 244 Chapter Summary 244 Critical Thinking and Discussion Questions 244 Research Task 245 Closing Case: Walmart in Japan 245 Chapter Nine Regional Economic Integration 249
Insuring against Foreign Exchange Risk 285 The Nature of the Foreign Exchange Market 287 Economic Theories of Exchange Rate Determination 288 Prices and Exchange Rates 289 Interest Rates and Exchange Rates 294 Investor Psychology and Bandwagon Effects 295 Summary of Exchange Rate Theories 296 Exchange Rate Forecasting 296 The Efficient Market School 297 The Inefficient Market School 297 Approaches to Forecasting 297 Currency Convertibility 298 Focus on Managerial Implications 300 Key Terms 303 Chapter Summary 303 Critical Thinking and Discussion Questions 304 Research Task 305 Closing Case: Billabong 305 Chapter Eleven The International Monetary System 307
Opening Case: I Want My GreekTV! 249 Introduction 250 Levels of Economic Integration 251 The Case for Regional Integration 253 The Economic Case for Integration 253 The Political Case for Integration 254 Impediments to Integration 254 The Case Against Regional Integration 255 Regional Economic Integration in Europe 256 Evolution of the European Union 256 Political Structure of the European Union 256 The Single European Act 259 The Establishment of the Euro 260 Enlargement of the European Union 264 Regional Economic Integration in the Americas 265 The North American...