An unrealized gain on a cash flow hedge implies that the price of the underlying hedged item (i.e., commodity price, foreign currency exchange rate, or interest rate) moved in a direction that will negatively affect the firm's profits after the hedge expires. Similarly, a loss implies that...

Institutional change, recognizing the different types and understanding the mechanisms that cause it, are the topics discussed. The arguments are then applied to globalization, correcting some serious misunderstandings. The author also develops a new theory of institutional change that advances...