Table Of ContentSpringer Texts in Business and Economics
Farrokh Langdana
Peter T. Murphy
International
Trade and Global
Macropolicy
Springer Texts in Business and Economics
For furthervolumes:
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Farrokh Langdana (cid:129) Peter T. Murphy
International Trade
and Global Macropolicy
FarrokhLangdana PeterT.Murphy
RutgersBusinessSchool FortSalonga,NY,USA
Newark,NJ,USA
ISSN2192-4333 ISSN2192-4341(electronic)
ISBN978-1-4614-1634-0 ISBN978-1-4614-1635-7(eBook)
DOI10.1007/978-1-4614-1635-7
SpringerNewYorkHeidelbergDordrechtLondon
LibraryofCongressControlNumber:2013937047
©SpringerScience+BusinessMediaNewYork2014
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To my wife Mary, and to all my students.
Farrokh Langdana
To my wife Babette, to my wonderful family,
and to all the students, professors, and
administrators of the unparalleled Rutgers
Executive MBA Program.
Peter T. Murphy
About the Authors
Dr. Farrokh Langdana is a professor in the Finance/Economics Department
at Rutgers Business School, New Jersey. In addition to this volume, he is the
author of three research-oriented books—two coauthored with Prof. Richard
C.K.Burdekin—andthetextbookMacroeconomicPolicy:DemystifyingMonetary
andFiscalPolicy,nowinitssecondedition,andseveralpublicationspertainingto
macroeconomicpolicyandmacro-experimentation.
Dr. Langdana is currently the Director of the globally ranked Executive MBA
(EMBA)ProgramatRutgersBusinessSchool.HeteachesMacroeconomicPolicy
aswellasInternationalTradeandGlobalMacroeconomicsintheEMBAProgram
aswellasinthefull-timeandFlexMBAprogramsatRutgersBusinessSchool.
InadditiontobeingtherecipientoftheWarrenI.SusmanAwardforExcellence
in Teaching (Rutgers University’s highest teaching award), Prof. Langdana has
also been awarded the Paul Nadler Award for Teaching Excellence, the Horace
dePodwinResearchAward,overtenExecutiveMBATeachingExcellenceAwards
vii
viii AbouttheAuthors
and over 20 Rutgers MBA teaching awards. In addition to teaching in the United
States,Prof.LangdanahasalsotaughtExecutiveMBAstudentsinChina(Beijing
andShanghai),Singapore,France,andinIcelandandhaslecturedinIndia.
Please visitBusiness.Rutgers.edu/Langdanamacro andscrolldown forsomeof
Prof.Langdana’[email protected]
PeterT.MurphyisanoperatingpartnerwithDubilier&Company.Hecurrently
servesasPresidentandCEOofDCSafety,aleadingsupplierofsafetyproductsto
the automotive industry. Mr. Murphyhas 25yearsofexperience asapioneer and
leader in global business, establishing ventures and achieving growth in dozens
of countries across Asia, Europe, and the Americas. Mr. Murphy’s expertise in
strategyandvaluecreationiscomplementedbyhishands-onexperienceinmultiple
disciplines, including sales, operations, supply chain, finance, marketing, and
technology.Hisindustryexperience,inadditiontoautomotive,includesthepack-
aging,apparel,medicalequipment,andretailsectors.
Mr.MurphyreceivedhisMaster’sinBusinessAdministrationwithaconcentra-
tion in Finance from Rutgers Business School and was awarded the Executive
MBA Achievement Award for Highest Academic Achievement in the EMBA
Program. He earned his Bachelor of Science in Humanities from Iona College.
He has given lectures on international business and global trade to academic and
businessaudiencesinAsiaandtheUnitedStatesandhastaughtattheMBAlevel
asanadjunctlectureratRutgersBusinessSchool.
[email protected]
Acknowledgments
The authors are most grateful to the Rutgers Executive MBA classes of 2011 and
2012fortheirdetailedcommentsandsuggestionspertainingtoearlydraftsofthis
volume.Whilealargenumberofourcurrentandformerstudentsprovidedvaluable
feedback, we would be gravely remiss if we did not explicitly mention Allison
Nagelburg, Dhruti Mistri, Surabhi Sharma, Hong Jing, Saravanan Pillai, Rushab
Kamdar,ToshiyoHayashi,MaryJaneSalvato,andKenLaMontagnefortheirvery
significanteditorialsuggestions.
WedoublythankSandraBarker (RutgersEMBA, 2012)forkindlyagreeingto
beourofficial,andamazing,proofreaderandeditor,andthattoowhentherequest
was made by us at the eleventh hour! Sandra worked night and day, at the end
literallybycandlelightintheaftermathofHurricaneSandy,tohelpbringthiswork
to life. She was also instrumental in recruiting our talented fact-checker, Nancy
Nguyen (BA, Rutgers, 2010), whose thorough efforts greatly improved the final
product and to whom we are most grateful. Sandra came through yet again by
enlistingourtwotalentedillustrators,CastroDesrochesandRicardoParedes,who
deliveredwonderfulinterpretationsoftheconceptsthatweoutlined.Wearemost
thankfultobothfortheirfinework.
The authors also thank Tia Angelos of Getty Images, Elizabeth Dunn of Duke
University,RobertDoaneoftheMITMuseumandespeciallyElisaMarquezofAP
Imagesfortheirgraciousassistanceinsecuringmanyofthephotographswhichso
enhancetheappealofthisbook.WewouldfurthermorelikethankRalphFosterfor
permissiontoincludegraphsandinformationfromhisworkinChap.13.
BothauthorsareindebtedtoJonGurstelle,oureditoratSpringer,forallowingus
the time and the flexibility to complete this volume. With Farrokh Langdana
dealing with family issues in Bombay and with running the Rutgers EMBA
Program in New Jersey, as well as the academic portions of three programs in
Asia,andwithPeterT.MurphybalancinghisresponsibilitiesasCEOofDCSafety
with those of raising newborn twins, the book warranted several deadline push-
backs,andJonhasindeedbeenmostgracious.
BothauthorsareparticularlygratefultoProf.BarryKarafin,whoseuncompro-
mising refusal to “buy” conventional free trade doctrine in our hyper-connected
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