Series in International Business and Economics – serie

After years of debate and a turbulent passage through Congress, The North American Free Trade Agreement came into effect on 1st January 1994. The agreement heralds a new era in North America's economic and political behavior and will dominate the international economic arena of the western hemisphere in the coming decades. In order to understand the implications and challenges of NAFTA on both a domestic and international level, this book examines the corporate, managerial and financial consequences for the participating countries (United States, Canada and Mexico), as well as the wider impact of economic regionalism in the new world order, especially in relation to the European Union. An overview of the agreement itself is followed by analysis from an external perspective and an examination of intra-regional issues.

This is a collection of 21 articles that deal with the frontiers in financial theory of economics. Most aspects of finance are covered - domestic corporate and investment issues as well as questions and problems of topical value in international finance. It includes topics such as: initial public offerings, debt restructuring, mergers, dividend policy, stock returns, capital structure, measures of risk aversion, microstructure of equity markets, agency cost and employee stock ownership, international takeover bidding, futures and forward contracts in currency markets, offshore loans, and market efficiency.

Problems of world trade are one of the many international economic challenges that still remain despite the development of the "new world order" over the past twenty years. Clearly, a workable economic order has not yet been achieved, and this book aims to explore the significance of various issues in international trade that may be instrumental in bringing it about. International trade topics - both theoretical and applied - are discussed from a number of perspectives: the Anglo-Saxon, the Pacific-Asian, the European, and from a number of developing economies. The contrasting points of view in these 25 papers will help improve the reader's understanding of the various sources of conflict and cooperation in relation to many of the specific issues, such as exports, trade in services, trade agreements, and foreign direct investment, that affect the world economy and its progress towards a new world order.

New economic conditions brought about by political seachange, international trade agreements, and technological advances have posed new problems and challenges for many countries and trade communities. This book addresses a wide range of topical issues in commercial policy that will continue to be pertinent for some years. Under examination are bilateral trade agreements, foreign direct investment strategies, regional and global integration; trade reforms; privatization; capital flows; portfolio diversification, and international and technological competitiveness. Particular topics under scrutiny include the causes and remedies of the US trade deficit; the difficulties in penetrating Japanese markets; inflation indicators in the UK; NAFTA, the Uruguay Round and Common Agricultural Policy; industrial and technology policies in the US, and globalization in the airline industry.

Service activities such as banking, insurance, telecommunications, business auditing, distribution, trading, and other services have been at the forefront of the transformation process in East Central Europe and the former Soviet Union. These reforms, though far from complete, are now sufficiently advanced to draw lessons and to identify strategic options for Foreign Service firms expanding in the region. In this volume, leading analysts and practitioners offer an appraisal of the service markets and the challenges related to foreign entry into the services sector in Central and Eastern Europe during the "second wave" of transformation. What is the emerging pattern of change? What is the outlook for promising business in the area of services? Which entry strategies have proven particularly successful? How do the leading service providers from the West deal with the challenges confronting them in service markets of the region? This collective volume used case studies, field research and industry studies to consider strategic options for Foreign Service firms in East Central and Eastern Europe for the late nineties and beyond.

This book examines the nature of the evolutionary relationship that developed between the United States and the GATT (General Agreement on Tariffs and Trade) system, and considers the effects of this relationship on their individual evolution and development. These effects were felt, within the GATT system, on its role in international trade, manner and method of functioning, form, and the very nature of its existence; and, within the United States, on its international trade policy and role in the system, the nature of the relationship between the executive and legislative branches vis-a-vis trade, and the relationship between the branches of government and private industry. The book begins by looking at the events, particularly in the 1920's and 1930's, that predated and created the environment out of which the GATT system developed. It then looks at the formation process and the development of the GATT system as a whole. Since the role of the United States was crucial throughout this entire process, the book examines that role in particular depth, especially as it reflected and helped to form US trade legislation. The role of the other countries throughout this entire process is included in the examination and analysis only in so far as they had an effect upon the evolution and development of the GATT system and affected the course of US action.

Fundamental changes in recent decades have heightened the need for new and viable solutions to the problems of world trade. In the new climate of internationalisation an expanding number of firms are engaged in international trade, barriers have been coming down, and trading blocs, whose members may share the advantage of lower tariffs and the absence of quotas, are beginning to predominate. Such systems, however, have a generally negative impact on global trade and can be catastrophic for developing and non-industrialised economies. The degree of recent change has created an uncertainty that now demands new global trade systems - a new set of rules for the new environment. This book tackles some of the unresolved issues in international trade that will continue to press into the next century: the continuing controversy over NAFTA; globalised trade policy agreements vs local trade agreements; global leadership; the development and impact of the WTO; the single European market; trade controls; transition economies; trade policy reform; global airline competition; competition in financial services; trade wars; trade policies; and commercial policy, and international technology cooperation.

The market model, introduced over thirty years ago, is one of the most studied and utilized return generating models in finance. Over three decades, it has withstood rigorous testing and, with refinements over the years, remains the standard of reference today, being applied to almost all existing global investment opportunities. The resulting literature is prolific, and the aim of this book is to consolidate the most important literature on the market model, focusing especially on recent research involving issues related to the model. The market model is analysed in detail and its characteristics discussed, criticisms presented and possible shortcomings tested. The book also presents a guide to the various applications of the model, as well as a discussion of other types of model, their forecasting power and their relationship with the market model.

This text addresses many of the issues which arise in the funding and settlement of cross-border financial transactions, covering a broad spectrum of the international finance issues encountered in global business operations. Global and regional capital markets are becoming increasingly important. Accounting differences in reporting financial information, and innovations in these financial markets, are examined. Theoretical issues in international finance are addressed by applying a neural network model to the effects of foreign exchange rates, using cluster analysis and Chernoff's faces to explain historical mutual fund performance, and examining the impact of asymmetric information in trade balance announcements on prices of financial assets. Portfolio investment and foreign direct investment are addressed by examining the diversification benefits of reducing risk and enhancing return in selected Latin American capital markets, and the role of various firm-, industry- and country-specific variables which influence the entry mode in foreign markets through foreign direct investment. Foreign exchange, futures, equity and debt markets are explored, including a strategy of borrowing in low interest rate countries and lending in high interest rate countries, foreign exchange issues affecting intra-firm cross-border trade, the risk and return of emerging-market debts relative to emerging-market equities, and the socio-ethical and economic effects of international debt in developing economies. Studies devoted to national issues include an analysis of foreign direct investment in the United States and a study of the financial ratio distribution of Japanese firms.

This book brings together a collection of studies intended to touch upon, and advance the understanding of, the changing role of trade and foreign direct investment in a globalizing economy, and how the economies of the nation state, and the economic policies of national governments, are becoming increasingly intertwined. It examines the impact of globalization on the competitiveness of a variety of regions and countries, ranging from the European Union and New Zealand to Taiwan and Ghana, and sets out the main analytical components of competitiveness, viewed from the perspective of both firms and countries. It describes and analyzes the interface between trade, FDI flows, and the activities of MNE's, as each is affected by, and affects the level and pattern of globalization - and, in some cases, regionalization. The determinants of outward FDI and its implication for the economic structure and competitiveness of the home country are examined, as is the impact of some of the more recent developments in the global economy - and particularly that of the liberalization of trade and investment regimes - on inbound FDI. It deals with some of the consequences of globalization, and the deepening of cross-border economic relationships, on the policies of national governments. The impact of regional economic integration on FDI and trade (including trade by the foreign affiliates of MNE's) is examined, as are the policies pursued by national governments in response to recent economic events, and the implications of globalization for the macro-economic and macro-organizational policies of national administrations.

This book deals with one of the great dramas of our day, the transformation of countries from economic backwardness, or a socialist somnolence, into greater efficiency and participation in the invigorating currents of international trade and investment. This book is about building market institutions and about the struggle to shed institutional baggage of the past. It is about new 'openings'. It is about liberalization of economic policies, about relaxing controls, and welcoming the influx of foreign capital and goods. Above all, the underlying theme of this book is the search for appropriate government policies, on issues vital to emerging nations (defined here as developing nations and former communist bloc countries), such as exchange rate management, acquisition of technology, privatization, capital flows, trade and direct investment.

The tremendous growth and expansion of global financial services have produced significant changes in the banking sector worldwide. North America, especially, has experienced far reaching changes due to both global and regional developments. NAFTA (the North American Free Trade Agreement) has had a significant impact on banking in Canada, the United States and Mexico, and will continue to do so. As the principle of national treatment is a vitally important fixture of the accord, governments - federal, state and provincial - in all three nations are now required to open up and level the playing field for financial competitors throughout North America. This book aims to present, analyse and discuss the evolution, current state and outlook for financial services in North America, with special attention to the banking sector. Authors from all three nations and representing different policy perspectives address the theme within the context of the globalization of trade and financial services; changes in domestic banking and regulatory policies in Canada, Mexico and the United States; and the impact of NAFTA and its financial services provisions on the banking sector of each nation.

As the new millennium dawns, a new world order is taking shape. The political environment in which the global economy has to function is finally recovering from the bewilderment which followed the collapse of the bipolar system which had, in turn, come into being after World War Two. The aim of this book is to provide a discussion of the new world order as manifested by some of the changes which dominate the arena, specifically the dichotomy of concurrent attempts at globalization and regionalization of international trade and financial issues. The book is organized into four parts. Having set the stage in Part I, Part II deals with globalization issues, especially the World Trade Organization and its impact on global trade, as well as examining labor standards and reviewing the long-standing debate on trade policy. Part III provides an examination of some of the larger and more successful attempts at regional integration and regionalization of trade issues in Asia, the European Union, and the transitional economies of Central Europe. Finally, Part IV provides an analysis of one of the vehicles of bringing about the changes which are necessary to turn this still abstract idea into reality, namely the multinational corporations.

This book provides an in-depth analysis of the management and investment strategies of Japanese multinational companies, examining foreign investment from a Japanese perspective by studying international business practices and the behaviour of multinational companies in the global environment. Beginning with an overview of recent trends in international capital flows and the role of international mergers and acquisitions, it describes the global environment for Japanese multinational companies as it affects Japanese foreign direct investment, as well as the impact of Japanese foreign investment in the host countries. The domestic cultural environment of Japanese companies is investigated, providing a background to the understanding of the expansion of Japanese business activities throughout the world. Foreign investments in various parts of the world are examined in detail, as are their impact on the domestic economy of Japan. A comprehensive analysis of the strategic planning process in Japanese multinational companies follows, and the book concludes with an assessment of the management and leadership styles of Japanese multinational companies and how they differ from Western leadership styles. This book is a valuable source of information about recent developments in the international economy in which Japan is playing a prominent role.

The world's financial markets experienced a strong globalization trend in the 20th century. With the removal of barriers to cross-border flow of capital, financial markets have become truly global during the last two decades of the century. The research papers included in this book study a number of important issues in the world's financial markets. The recent emerging markets crisis, which started in South-Eeast Asia and affected all the world's developed and emerging financial markets, is studied in detail. Another important issue, which receives considerable coverage in the book, is the European financial integration. The financial markets in the United States, Europe, Asia, and Latin America are studied extensively and the linkages between them are analyzed. The objective of the book is to provide the reader with a comprehensive and balanced overview of the world's financial markets at the end of the 20th century.

The global economy has undergone some major changes during the last several years. The objective of this book is to examine one particular aspect of the new global economic order, namely international public policy. The power of national governments in determining international public policy is being replaced by the dual extra-national entities of globalism - manifested by the WTO and regionalism - best exemplified by such groupings as the European Union and NAFTA. The reason for the importance of this topic is that government policy makers, like their private sector counterparts and academic researchers, are in uncharted waters. None is as familiar with the evolving system that is purportedly to manage the global economic arena. In the interim, and in the absence of a functioning global economic system, the role of academic researchers in the international public arena should include an examination of the changes which have already taken place as well as those which will be forthcoming in the coming years and decades. The first purpose of this volume is twofold: to provide an examination of international public policy in its current form; and to provide a forum for publication of some of the research findings in ongoing studies of international public policy. The second purpose of this book is to augment the work done in the area of examining the internationalizing process of public policy. It is hoped that it will also lead to an acceleration of the examination process.

This volume of collected essays by eminent scholars in the fields of International Trade and Investment have been written and edited in honour of H. Peter Gray. Over a career in economics spanning almost 40 years, Peter Gray has been a prolific writer. He has made significant contributions and syntheses in a variety of subfields in international economics; the interaction of national economics and the foreign sector, causes and results of international financial flows, the economics of foreign direct investment, the assignment of policy tools for domestic and international objectives, and the macroeconomic impact of trade policy, among others. He has directly influenced scores of graduate students who continue to carry his passion for inclusiveness of variables in the economic analysis of the causes, effects, and relative importance of shifts in domestic and international economic (and social) variables. Contributors to this volume include John Dunning, John Hagedoorn, Thomas Pugel, Ingo Walter and Gabriel Benito.