The globalisation of business in the last 40 years has made it essential that business people and those pursuing business studies courses understand the economic forces that shape the international business environment. Our experience, gained on both sides of the Atlantic from teaching economics to business studies students and those not majoring in economics, led to our dissatisfaction with existing texts. While excellent in themselves, the approach adopted by the standard international economics books is largely inappropriate for the "business" student. The texts on "international business" while being less "theoretical" than their economics counter-parts tend to include areas such as accounting, human resource management, marketing and strategic management. As a result international economic issues are not dealt with in sufficient detail. Our aim then in writing this book is to provide business studies students with a text that deals with these issues both rigorously and in depth but in a away that is sympathetic to their needs.