Unit One An Overview of International Business 1
Ⅰ An Introduction to International Business 1
1．Definitions 1
2．Why Nations Trade? 2
Ⅱ History of International Trade 3
Ⅲ Protection or Free Trade? 5
Ⅳ MNCs and Globalization 6
1．Global Exchange 7
2．Have a Break 7
Ⅴ Effects of Technology on International Business 8
Vocabulary 10
Notes 18
Related Terms 25
Post-reading Activities 28
Supplementary Reading 31
Unit Two Theories of International Business 35
Ⅰ The Age of Mercantilism 35
Ⅱ The Theory of Absolute Advantage 37
Ⅲ The Theory of Comparative Advantage 38
Ⅳ The Factor Proportions Trade Theory 40
Ⅴ The Leontief Paradox 42
Ⅵ The Product Cycle Theory 43
Ⅶ Protectionism 46
Vocabulary 47
Notes 53
Related Terms 57
Post-reading Activities 61
Supplementary Reading 65
Unit Three Economic Integration 73
Ⅰ Levels of Economic Integration 73
1．Preferential Trade Arrangement(PTA) 74
2．The Free Trade Area(FTA) 74
3．The Customs Union 74
4．The Common Market 75
5．The Economic Union 75
6．Monetary Union 75
Ⅱ European Integration 76
Ⅲ North American Economic Integration 78
Ⅳ Integration in Asia 80
1．ASEAN Free Trade Area(AFTA) 80
2．The ASEAN Plus Three(APT) 81
3．Asia-Pacific Economic Cooperation(APEC) 82
Vocabulary 84
Notes 88
Related Terms 99
Post-reading Activities 103
Supplementary Reading 107
Unit Four Multinational Corporations 114
Ⅰ The Multinational Corporate Phenomenon 114
1．Definitions of the Multinational Corporation 114
2．Why Do We Have Multinational Corporations? 115
3．The Most Powerful Institution in the World Today 116
Ⅱ Foreign Direct Investment(FDI) 117
1．Definitions 117
2．Impacts of FDI 118
3．Major Types of FDI 120
Ⅲ Technology Transfer 123
1．Introduction 123
2．Modes of Technology Transfer 124
Ⅳ Market Entry Modes of Multinational Corporations 126
1．International Joint Ventures(IJVs) 126
2．Fully Owned Subsidiaries 127
Vocabulary 130
Notes 137
Related Terms 143
Post-reading Activities 147
Supplementary Reading 150
Unit Five Instruments of Trade Policy 158
Ⅰ Tariffs 159
1．Specific Tariff 159
2．Ad Valorem Tariff 160
3．Compound Tariff 161
Ⅱ Quotas 162
Ⅲ Embargoes 163
Ⅳ Exchange Controls 164
Ⅴ Product Standards 167
Ⅵ Anti-dumping 168
1．Anti-dumping 169
2．Anti-dumping,Safeguards,Countervailing Duties 169
3．WTO—Doha Development Round 170
Ⅶ Subsidies 171
1．Export Subsidies 171
2．WTO Rules on Subsidies 172
Vocabulary 173
Notes 179
Related Terms 184
Post-reading Activities 188
Supplementary Reading 192
Unit Six International Marketing 202
Ⅰ Marketing Research 203
Ⅱ Segmentation 205
Ⅲ Marketing Objectives and Strategy 208
1．Marketing Objectives 208
2．Marketing Strategy 208
Ⅳ Marketing Mix 210
1．Product 210
2．Price 211
3．Place(Distribution) 213
4．Promotion 215
Ⅴ Product Life Cycle 217
1．Introduction Stage 218
2．Growth Stage 218
3．Maturity Stage 219
4．Decline Stage 219
Vocabulary 220
Notes 226
Related Terms 232
Post-reading Activities 236
Supplementary Reading 240
Unit Seven GATT and WTO 243
Ⅰ GATT 243
1．A Bfief History of GATT 243
2．The Goal of GATT 244
3．GATT 1994:Structure 245
4．The Principles of GATT 246
Ⅱ WTO 248
1．A Brief History of WTO 248
2．The Function of WTO 249
3．The Principles of WTO 249
4．China's Accession 252
Vocabulary 256
Notes 260
Related Terms 266
Post-reading Activities 270
Supplementary Reading 275
Unit Eight Market Transition and Development in China 280
Ⅰ Market Transition 280
Ⅱ Development with Its Major Trading Partners 282
1．Trade with the European Union(EU) 283
2．Trade with the USA 285
3．Trade with Southeast Asia 287
Ⅲ The Impact of Globalization on Chinese Economy 289
1．The Impact on the World Economy 289
2．The Impact on the Chinese Economy 290
Vocabulary 292
Notes 294
Related Terms 297
Post-reading Activities 300
Supplementary Reading 304
Appendix Ⅰ Vocabulary 312
Appendix Ⅱ Key to the Exercises 343