Introduction Case Establishing a GlobalOutlook—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 HistoricalReviewoftheWorldEconomy (11)Chapter Summary (16)Questions and Problems (17)Online Study (17)Case Study: The Nationalities of the Top 25 Multinational Corporations andIndustrial 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 Globalizationon 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 Unionan 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)