Description
Examines responses of multinational enterprises (MNEs) to shifts in the dollar, and suggests explanations for some puzzling macro patterns evident in the international economy, based on micro patterns observed in MNE behavior. Contends that global integration of markets remains incomplete due to informational discontinuities, and discusses implications for exchange rates, trade, and foreign direct investment. Rangan is affiliated with INSEAD. Lawrence is affiliated with the Brookings Institute and Harvard University. Annotation c. Book News, Inc., Portland, OR (booknews.com)
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"The unprecedented shifts in the U.S. dollar's exhange rate that started during the late 1970s and continued through the 1980s provide an ideal opportunity to explore how the global economy works and the role that multinational enterprises (MNEs) play in the phenomenon of globalization. In this book, Subramanian Rangan and Robert Z. Lawrence examine the international pricing, sourcing, and trade responses of MNEs to shifts in the dollar. Based upon the micro patterns they observe in MNE behavior, the authors suggest explanations for some puzzling macro patterns evident in our international economy. They conclude that the global integration of markets remains incomplete due to informational and other important discontinuities, and they refute stereotypes which portray multinational firms as either footloose or inflexible. Policy implications for exchange rates, trade, and foreign direct investment are also discussed. "
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