Introduction Case Establishing a Global Outlook—Susan's Story 1
Chapter One Contemporary World Economy and Its Development 3
1.1 Fundamental Elements of the Contemporary World Economy 4
1.2 Historical Review of the World Economy 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 Globalization on Corporation's 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 Union an Optimal Currency Area? 108
Chapter Five Freedom of Trade—Forerunner of Economic Globalization 111
5.1 Trade Expansion and Openness of Trading Countries 111
5.2 GATT/WTO Efforts in Promoting Freedom of the World Trade 117
5.3 Free Trade vs.Protectionism Debate 122
Chapter Summary 129
Questions and Problems 130
Online Study 130
Case Study：Free Trade for Steel?The Debate Continues 130
Chapter Six Financial Globalization 133
6.1 Definition，Driving Forces and Measurement 134
6.2 The International Capital Flows 135
6.3 Benefits of Financial Globalization 140
6.4 Risks of Financial Globalization 143
6.5 Multilateral Structure and Policymaking 149
Chapter Summary 159
Questions and Problems 161
Online Study 161
Case Study：Is Capital-Market Liberalization the Right Policy? 161
Chapter Seven Challenges to the Sustainable Development of the World Economy 164
7.1 Unbalanced Economic Development 164
7.2 World Population Challenge 170
7.3 Environmental Challenges and Economic Development 180
7.4 Pandemic Diseases 187
Chapter Summary 190
Questions and Problems 191
Online Study 192
Case Study：Global Climate Change and the Kyoto Protocol 192
Chapter Eight International Collaboration and Coordination 195
8.1 Correcting International Externalities via Multilateral Interventions 196
8.2 Protecting the Global Environment Through Multinational Efforts 199
8.3 International Policy Coordination 204
Chapter Summary 212
Questions and Problems 212
Online Study 213
Case Study：A French Judge Combats an International Externality 213
Chapter Nine Countries in the Globalized World Economy 216
9.1 The Division of Country Groups 217
9.2 Developed Countries and Their Economic Performance 220
9.3 Developing Countries'Economic Development Strategies in the Globalization Era 230
9.4 Economies in Transition 238
Chapter Summary 252
Questions and Problems 253
Online Study 260
Case Study：Lessons from Economic Transition in Russia and China 261
Chapter Ten China's Economic Reform and Its Integration into the World Economy 268
10.1 Development Strategy Before China's Economic Reform 269
10.2 China's Economic Reform and Integration into the World Economy 273
10.3 China's Economic Achievement and Its Development Strategy 284
Chapter Summary 292
Questions and Problems 293
Online Study 293
Case Study：An Example of Application of Comparative Advantage Strategy—Taiwan's Economic Development 293