UNIT 1. The War on Terrorism 1. New Realities of Globalization, Michael Cherkasky, Chief Executive , January 2002 The start of the War on Terror can be traced back to the assassination of Egyptian president Anwar Sadat, some 20 years ago. Now that we know we are in a war, how are we going to fight it at home and abroad? 2. Rebuilding Afghanistan: A Multi-Billion Dollar Plan, Josh Martin, The Middle East , March 2002 While some of the Taliban and Al Qaeda terrorists may still be in the country, able to cause trouble, the rebuilding of Afghanistan, one of the world’s poorest countries before September 11, 2001, is now going to start. It isn’t going to be easy or cheap. 3. Money’s… Costing More, Mel Mandell, World Trade , April 1, 2002 Among the many effects of terrorism is the increased cost of doing business, in particular, the increased cost of credit insurance. 4. Going Global Can Bring on a World of Challenges, Tom Witkowski, Boston Business Journal , November 20, 2001 High-tech firms do not just produce in the United States. Many of them look to India to help produce high-tech goods, but after September 11, 2001, that strategy is riskier than it was before. UNIT 2. The Nature of International Business Part A. Introduction to International Business 5. International Trade: Globalization vs. Protectionism, Alan Greenspan, Vital Speeches of the Day , April 15, 2001 International trade and the economic development it has helped to engender is the subject of this speech by the chairman of the Federal Reserve Board to the committee on finance of the United States Senate. It discusses the advantages of international trade over protectionism. 6. American Corporations: The New Sovereigns, Lawrence E. Mitchell, The Chronicle of Higher Education , January 18, 2002 Corporations are growing in power and there doesn’t seem to be any real accountability for them. This would seem to be true on both the international and domestic levels. 7. 2001’s Most Influencial People in World Trade, Lara L. Sowinski, World Trade , December 13, 2001 Who are the most important people in world trade at the beginning of the twenty-first century? 8. Europeans Covet U.S., Nick Lico, Advertising Age , April 9, 2001 The American auto market is the largest automobile market in the world, but not every manufacturer is in it. Those that are not would like to be and are making plans. 9. Free Trade Bush’s Way, Marc Cooper, The Nation , April 15, 2002 The experience of Latin America and its relationship with the United States, and how that relationship has changed over the past 15 years, is the subject of this article. 10. Smart Globalization, Pete Engardio, Business Week , August 27, 2001 Being the first and the biggest firm in an emerging market is not necessarily the best long-term strategy. A better strategy is carefully building a local presence in the market. Part B. Economic Theories of International Trade, Development, and Investment 11. Integrating Multinational Firms Into International Economics, James R. Markusen, NBER Reporter , Winter 2001/2002 The evolution of multinational firms has not been very well integrated into international economy theory. James Markusen has developed a theory to help explain the actions of multinationals in the global economy. UNIT 3. The International Environment: Organizations and Monetary Systems Part A. International Organizations 12. Where the Elite Preens Itself, Jenni Russell, New Statesmen , January 28, 2002 The World Economic Forum brings the world’s wealthiest and most powerful people together. But the question is, “Do they accomplish anything?” Or is it just a gathering of the rich and powerful where the most important question and concern is the color of one’s name badge? 13. Free Trade Area of the Americas: NAFTA Marches South, Claudio Katz, NACLA Report on the Americas , February 2002 NAFTA has been a success, at least as far as the United States is concerned. Now the United States wants to extend NAFTA to create a new trade group, the Free Trade Area of the Americas (FTAA). Part B. International Monetary System and Balance of Payments 14. The Deficit That Just About Everyone Overlooks, Clive Crook, National Journal , February 17, 2001 During the economic boom of the 1990s there was one bit of bad economic news that nearly everyone overlooked and that was the balance of payments. Now with the U.S. economy slowing down, people might begin to pay attention. 15. The Sacking of Argentina, Tim Frasca, The Nation , May 6, 2002 Agentina’s economy imploded in December 2001. Who is to blame? Politicians, businessmen, the IMF, or the World Bank? One thing is sure, there is plenty of blame to go around. 16. Failure of the Fund: Rethinking the IMF Response, Joseph E. Stiglitz, Harvard International Review , Summer 2001 The Asian financial crisis shook the financial world at the end of the 1990s. Unfortunately, it would seem, the actions of the IMF did not help matters. In fact, they may have actually made things worse. 17. Accounting Challenges Overseas, Mel Mandell, World Trade , December 1, 2001 Globalization has forced the accounting profession to attempt to standardize practices worldwide. This is no easy task when fluctuating different currencies, cultural expectations, and varying degrees of openness in societies is considered. But organizations engaged in global trade need to address these issues and here are some ideas. 18. What the New Currency Means to the European Economy, Bruce Barnard, Europe , December 2001/January 2002 The euro was launched to provide Europe with a sounder, more efficient economy. While the start has been a little rocky, the long-term prospects are very good. UNIT 4. Foreign Environment Part A. Financial Forces 19. Economics Focus: Big MacCurrencies, The Economist , April 27, 2002 Every year The Economist magazine does a survey of the average price of a Big Mac to determine whether a currency is overvalued or undervalued. Over the past 16 years, it has proven to be an excellent predictor of long-term currency values. Part B. Economic and Socioeconomic Forces 20. Nike’s Voice Looms Large, Jeff Ballinger, Social Policy , Fall 2001 Sweatshops are something that developing countries seem to be able to grow in abundance. The problem is that some multinational corporations turn a blind eye to working conditions in these countries. 21. Social Accountability in Central America: Not Just