2 management - School of International Business and ...

127 The Puzzle of Globalization
TABLE OF CONTENTS
Summary ................................................................................................................................................................ 128
1 The Puzzle of Globalization ...................................................................................................................... 129
2 Economic Analysis of the Empirical Nature of Globalization ...................................................... 135
2.1 Natural Resources, Trade and Globalization ............................................................................ 135
2.2 Culture, Communication and Cross-Border Transactions .................................................. 137
2.3 Technology, Clusters and Migration ........................................................................................... 139
2.4 Openness versus Protectionism and the Power of Nations ............................................... 141
2.5 Multinationalization, Intra-Firm Trade and Globalization .................................................. 144
3 Economic Theories Dealing with Globalization ................................................................................. 146
3.1 Systemizing Cross-Border Transactions and Related Theories ......................................... 147
3.2 Theory of International Trade ....................................................................................................... 148
3.2.1 A Brief Historical Overview .............................................................................................. 148
3.2.2 A Simple Model of Free Trade: Inter-Industry Trade ............................................... 149
3.2.3 New Trade Theory: Intra-Industry Trade ..................................................................... 155
3.2.4 Theory of Trade Policy: Protection by Tariffs ............................................................. 156
3.2.5 Theory of Integration Policy ............................................................................................ 160
3. 3. Exchange Rates and Balance of Payments ............................................................................... 163
4 Managing Globalization ............................................................................................................................. 169
Appendices ........................................................................................................................................................... 174