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The global marketplace has changed significantly since the 1970s. Technological advancement, falling transportation costs and other impediments to trade in goods and services, increased mobility of capital, and more outward-oriented commercial policies in developed and developing countries alike are combining to create a truly integrated world economy. Firms are finding it increasingly essential to think globally. These developments pose important new questions and challenges to policymakers, the private sector, and academic scholars. The framework for studying economics and business has changed irreversibly to embody the global aspects of economic and policy interactions. Using cutting-edge innovations in the theory of international economics and new empirical applications, this book explores international economic links from a variety of perspectives. From global policy simulations and models of economic policy reform to direct estimation of trade and investment links in the global economy, it offers new insights into a number of novel and perennial questions in international economics, as well as providing a comprehensive review of trends and new developments in the economics, business, and political-economy literature.