This book offers a new perspective on the economics of globalization, based on the concepts of firms’ capabilities as the immediate cause of countries’ wealth. It presents new ways of looking at the way China, India, and Africa have been drawn into the global economy over the past two decades. It offers new perspectives on some of the most central questions in the current debate: What effects does the rise of China have for the advanced industrial economies? Why havesome industries adapted quickly and effectively to the changing global scene, while others have not? How were the ‘Transition Economies’ of Eastern Europe affected by trade liberalization? How have the economic prospects of sub-Saharan African countries changed over the past decade? This analysiscontributes to the recent literature on quality and trade, which is providing a new and different approach to the analysis of globalization, and which focusses on those economic mechanisms that are central to the current wave of this centuries-old phenomenon. This book forms the basis for the author’s course on Globalisation and Strategy, given to Masters students in Economics and Management at the London School of Economics.
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