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chapter 1 globalization 3 opening case the rise of ecuador¡¯s rose industry 3 introduction 4 what is globalization 5 theglobalization of markets 5 theglobalization of production 6 management focus vizio and the market for flat-panel tvs 8 the emergency of global institutions 8 drivers of globalization 10 decliningtrade and investment barriers 10 the role oftechnological change 12 thechanging demographics of the global economy 14 thechanging world output and world trade picture 14 thechanging foreign direct investment picture 15 country focus india¡¯s software sector 16 thechanging nature of the multinational enterprise 18 thechanging world order 19 the globaleconomy of the twenty-first century 20 management focus china¡¯s hisense-an emerging multinational 21 the globalization debate 22 antiglobalizationprotests 22 country focus protesting globalization in france 23 globalization, jobs, and income 24 globalization,labor policies, and the environment 26 globalizationand national sovereignty 27 globalizationand the world¡¯s poor 28 managing in the global marketplace 29 chapter summary 31 critical thinking and discussion questions 32 research task 32 closing case who makes the apple iphone? 33 endnotes 34 chapter 2 international trade theory 37 opening case creating the world¡¯s biggest free trade zone 37 introduction 38 an overview of trade theory 38 thebenefits of trade 38 the patternof international trade 39 tradetheory and government policy 40 mercantilism 40 absolute advantage 41 country focus is china a neo-mercantilist nation? 42 comparative advantage 44 the gainsfrom trade 45 qualificationsand assumptions 46 extensionsof the ricardian model 47 country focus moving u.s. white-collar jobs offshore 50 heckscher-ohlin theory 52 theleontief paradox 52 the product life-cycle theory 53 product life-cycle theory in the 21st century 54 new trade theory 56 increasingproduct variety and reducing costs 56 economiesof scale, first-mover advantages, and the pattern of trade 57 implicationsof new trade theory 57 national competitive advantage: porter¡¯s diamond 58 factorendowments 60 demandconditions 60 related andsupporting industries 60 firmstrategy, structure, and rivalry 61 evaluatingporter¡¯s theory 61 implications for managers 62 chapter summary 63 critical thinking and discussion questions 64 research task 65 closing case the rise of india¡¯sdrug industry 65 appendix international trade andthe balance of payments 67 endnotes 69 chapter 3 the political economy of international trade 73 opening case china limits exports ofrare earth metals 73 introduction 74 instruments of trade policy 75 tariffs 75 country focus are the chinese illegally subsidizing auto exports? 76 subsidies76 importquotas and voluntary export restraints 77 localcontent requirements 78 administrativepolicies 79 antidumping policies 79 management focus u.s. magnesium seeks protection 80 the case for government intervention 81 politicalarguments for intervention 81 country focus trade in hormone-treated beef 83 economicarguments for intervention 84 the revised case for free trade 85 retaliationand trade war 85 domesticpolitics 86 development of the world trading system 86 from smithto the great depression 87 1947¨C1979: gatt,trade liberalization, and economic growth 87 1980¨C1993:protectionist trends 87 the uruguayround and the world trade organization 88 wto:experience to date 89 the futureof the wto: unresolved issues and the doha round 90 country focus estimating the gains from trade for america 93 implications for managers 94 chapter summary 96 critical thinking and discussion questions 96 research task 97 closing case u.s. tariffs on tire imports from china 97 endnotes 98 cases legal outsourcing 101 the global financial crisis and protectionism 102 glossary 104