This book on international business merges managerial decision-making in with the conceptual
tools provided by international economics. It integrates the theoretical study of international
trade and foreign direct investment with the actual strategic and operational decisions of
exporters and multinational enterprises. The book first covers some basic material on exchange
rates that is essential for understanding all types of international business transactions. It
then focuses on trade first analyzing the gains from trade and then enumerating the many costs
of cross-border goods and service transactions and identifies four essential elements of a
multinational strategy: factor advantages trade costs scale economies and market sizes. In
addition the volume covers issues of central importance to firms that invest overseas:
political risk taxation and expatriate assignment.
