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 12
Chapter Summary 19
Questions and Problems 20
On-line Study 20
Case Study:The Nationalities of the Top 25 Multinational Corporations 20
Chapter Two Catalysts of World Economic Development 24
2.1 International Division of Labor 25
2.2 Technology Innovations and Diffusion 29
2.3 Function of the World Market 34
2.4 Measurement of Economic Development 39
Chapter Summary 48
Questions and Problems 49
On-line Study 49
Case Study:Yao Ming—"The Next Big Thing"for International Services 50
Chapter Three Globalization Era 55
3.1 Definition and Measurements 56
3.2 Advantages and Disadvantages of Globalization 62
3.3 Effects of Globalization on Corporation's Development 66
3.4 Drivers of Corporate Internationalization and Globalization 72
Chapter Summary 76
Questions and Problems 78
On-line Study 79
Case Study:The Battle in Seattle and the Anti-Globalization Movement 79
Chapter Four Regional Economic Integration 82
4.1 Economic Integration and Economic Blocs 82
4.2 Basic Theory of Economic Integration 88
4.3 European Integration 93
4.4 North American Economic Integration 104
4.5 Other Economic Alliances 107
Chapter Summary 114
Questions and Problems 115
On-line Study 116
Case Study:Is European Union an Optimal Currency Area? 116
Chapter Five Freedom of Trade—Forerunner of Economic Globalization 120
5.1 Trade Expansion and Openness of Trading Countries 121
5.2 GATT/WTO Efforts in Promoting Freedom of the World Trade 127
5.3 Free Trade vs.Protectionism Debate 132
Chapter Summary 141
Questions and Problems 141
On-line Study 142
Case Study:Free Trade for Steel?The Debate Continues 142
Chapter Six Financial Globalization 145
6.1 Definition,Driving Forces and Measurement 146
6.2 The International Capital Flows 148
6.3 Benefits of Financial Globalization 153
6.4 Risks of Financial Globalization 156
6.5 Multilateral Structure and Policymaking 163
Chapter Summary 175
Questions and Problems 177
On-line Study 177
Case Study:Is Capital-Market Liberalization the Right Policy? 178
Chapter Seven Challenges to the Sustainable Development of the World Economy 181
7.1 Unbalanced Economic Development 182
7.2 World Population Challenge 189
7.3 Environmental Challenges and Economic Development 200
7.4 Pandemic Diseases 208
Chapter Summary 212
Questions and Problems 213
On-line Study 213
Case Study:Global Climate Change and the Kyoto Protocol 214
Chapter Eight International Collaboration and Coordination 217
8.1 Correcting International Externalities via Multilateral Interventions 218
8.2 Protecting the Global Environment through Multinational Efforts 222
8.3 International Policy Coordination 227
Chapter Summary 235
Questions and Problems 236
On-line Study 237
Case Study:A French Judge Combats an International Externality 237
Chapter Nine Countries in the Globalized World Economy 240
9.1 The Division of Country Groups 241
9.2 Developed Countries and their Economic Performance 245
9.3 Developing Countries'Economic Development Strategies in the Globalization Era 257
9.4 Economies in Transition 266
Chapter Summary 282
Questions and Problems 283
On-line Study 289
Case Study:Japanese Labor Market and Capital Market 289
Chapter Ten China's Economic Reform and its Integration into the World Economy 293
10.1 Development Strategy before China's Economic Reform 294
10.2 China's Economic Reform and Integration into the World Economy 300
10.3 China's Economic Achievement and its Development Strategy 313
Chapter Summary 321
Questions and Problems 322
On-line Study 322
Case Study:An Example of Application of Comparative Advantage Strategy—China Taiwan's Economic Development 322