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Introduction to the Third Edition

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INTRODUCTION TO THE THIRD EDITION

Since the second edition of this book published in 2007, the globalization of the economy has seen its momentum challenged by two financial crises. Starting in the USA, the so-called ‘subprime’ crisis has obliged governments around the world to engage in Neo-Keynesian policies in order to consolidate the stumbling global financial system. More recently the ‘Eurozone’ crisis has called into question one of the most ambitious international cooperations and has seen populations asking for more protectionism. In the Middle East, dictatorial regimes have been ousted by the revolutionary ‘Arab Spring’ and the newly formed governments are trying to find a way between global exchange and Islamic tradition. During these difficult times, emerging countries from Asia, Latin America and Africa have increasingly asserted their newly found economic and financial power and demanded a bigger participation in world governance. The tsunami that struck Fukushima in Japan in March 2011 creating a nuclear accident has convinced many nations to reconsider their energy policy. Despite all of this, globalization, even though criticized, is still active. Firms are moving to the new emerging economies in order to capture the consumption appetite of the growing middle classes. It is still relevant and important to put together all aspects of global strategic management. This third edition is still about global firms and global management. Its objective remains to help undergraduate and graduate students, as well as company executives, to understand the main issues that companies and their managers confront when they ‘go global’ or ‘manage globally’, and to cope with these issues. Data have been updated and several new cases and examples added. At the end of each chapter there are now one or two new ‘Mini-Cases’ that students may discuss in class. The book...

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