Introduction Case Establishing a GlobalOutlookSusans Story 1
Chapter One Contemporary World Economy and Its Development 3
1.1 Fundamental Elements of the Contemporary World Economy 4
1.2 HistoricalReviewoftheWorldEconomy 11
Chapter Summary 16
Questions and Problems 17
Online Study 17
Case Study: The Nationalities of the Top 25 Multinational Corporations and
Industrial Sectors 18
Chapter Two Catalysts of World Economic Development 21
2.1 International Division of Labor 21
2.2 Technology Innovations and Diffusion 26
2.3 Function of the World Market 30
2.4 Measurement of Economic Development 35
Chapter Summary 42
Questions and Problems 43
Online Study 44
Case Study: Yao Ming The Next Big Thing for International Services 44
Chapter Three Globalization Era 49
3.1 Definition and Measurements 50
3.2 Advantages and Disadvantages of Globalization 56
3.3 Effects of Globalizationon Corporations Development 61
3.4 Drivers of Corporate Internationalization and Globalization 66
Chapter Summary 71
Questions and Problems 72
Online Study 73
Case Study: The Battle in Seattle and the Anti-Globalization Movement 73
Chapter Four Regional Economic Integration 76
4.1 Economic Integration and Economic Blocs 76
4.2 Basic Theory of Economic Integration 81
4.3 European Integration 85
4.4 North American Economic Integration 97
4.5 Other Economic Alliances 100
Chapter Summary 106
Questions and Problems 108
Online Study 108
Case Study: Is European Unionan Optimal Currency Area? 108
Chapter Five Freedom of TradeForerunner of Economic Globalization 111
5.1 Trade Expansion and Openness of Trading Countries 111
5.2 GATTWTO Efforts in Promoting Freedom of the World Trade 117
5.3 Free Trade vs. Protectionism Debate 122
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