Handbook of defense economics : volume 2 Defense in a globalized world The second volume of the Handbook of Defense Economics addresses defense needs practices threats and policies in the modern era of globalization. This new era concerns the enhanced cross border flows of all kinds (e.g. capital and labor flows revolutionary rhetoric guerrillas and terrorists) including the spillovers of benefits and costs associated with public goods and transnational externalities (i.e. uncompensated interdependencies affecting two or more nations). These ever increasing flows mean that military armaments and armies are less able to keep out security threats. Thus novel defense and security barriers are needed to protect borders that are porous to terrorists pollutants political upheavals and conflicts. Even increased trade and financial flows imply novel security challenges and defenses. Globalization also underscores the importance of a new set of institutions (e.g. the European Union and global governance networks) and agents (e.g. nongovernmental organizations and partnerships). This volume addresses the security challenges in this age of globalization where conflicts involve novel tactics new technologies asymmetric warfare different venues and frightening weapons