Farok Contractor

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Distinguished Professor
Office Location: 
WP 1094
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Academic Info

Ph.D., University of Pennsylvania; Managerial Science and Applied Economics
M.B.A., University of Pennsylvania (Wharton School)
M.S., University of Michigan; Industrial Engineering
B.S., University of Bombay; Mechanical Engineering


Alliances; International Business; Joint Ventures; Licensing; Foreign Direct Investment; International Marketing; Global Enterprises; Globalization; Valuation of Intangible Assets; Foreign Market Entry; Royalty Rates; technology Transfer; Negotiating Alliance Agreements; Corporate Knowledge Management; Intellectual Property; Government Policies towards Foreign Investment; Strategy; Inter-firm Collaboration; Asian Business.


International Business

Dr. Farok Contractor is ‘Distinguished Professor’ in the Management and Global Business department at Rutgers Business School. He has also taught at the Wharton School, Copenhagen Business School, Fletcher School of Law and Diplomacy, Tufts University, Nanyang Technological University, Indian Institute of Foreign Trade, XLRI (India), Lubin School of Business, Theseus, EDHEC and conducted executive seminars in the US, Europe, Latin America and Asia.

He is a graduate of the Wharton School, University of Pennsylvania, where he received his Ph.D. (Managerial Science and Applied Economics) and MBA, and the University of Michigan, where he received an M.S. in Industrial Engineering. Farok Contractor’s research has focused on corporate alliances, outsourcing and offshoring, valuation of intangible assets, the technology transfer process, licensing, and foreign direct investment. He is particularly focused on the negotiated, inter-firm aspects of International Business such as alliances between firms from different nations, including joint ventures, and licensing, as well as negotiations between investors and governments. His work treats the strategic implications of companies sharing their expertise and markets with other firms, and has involved gathering data from a large number of companies.

Dr. Contractor has written well over a hundred scholarly papers on these topics, and books: (1) International Technology Licensing: Compensation, Costs and Negotiations (Lexington Books), (2) Licensing in International Strategy; A Guide for Planning and Negotiations (Quorum Books), (3) A co-authored textbook, Introduction to International Business (Kendall Hunt), (4) Cooperative Strategies in International Business (co-edited) (Lexington Books), (5) Government Policies and Foreign Direct Investment (UNCTAD), (6) Economic Transformation In Emerging Countries: The Role of Investment, Trade and Finance (edited) (Elsevier), (7) The Valuation of Intangible Assets In Global Operations (edited) (Quorum Books), (8) Cooperative Strategies and Alliances (co-edited) (Oxford: Elsevier), (9) Global Outsourcing and Offshoring: An Integrated Approach to Theory and Corporate Strategy (co-edited) (Cambridge University Press, 2010).

Prof. Contractor has among the highest citation counts amongst scholars in the field of International Management (Academy of International Business (AIB), or Academy of Management (AOM)) with Google Scholar citation totals exceeding 9000 citations (as of August 2016) in other scholarly papers. Prof. Contractor has also been rated by several surveys as among the top-ranked contributors of scholarly papers to the field.

Dr. Contractor has chaired or been on the supervisory committees of 17 doctoral dissertations on International Strategic Management topics, and served on the faculty of several Doctoral and Junior Faculty Consortiums organized by the Academy of Management, Academy of International Business, and CIBERs. Dr. Contractor has served on the Executive Board of the Academy of Management’s International Management Division, was Chair of the division and Program Chair at the at the Academy of Management. Earlier, he was elected to a two year term on the Executive Board of the Academy of International Business, and is an active member in other professional bodies in the field of International Management.

He was elected a permanent Fellow of the Academy of International Business, an honor reserved for approximately 2 percent of an academy membership exceeding 3,500 persons worldwide. Prof. Contractor has also held other term fellowships such as the Fulbright Fellowship and Unilever Fellowship. Recently he has been Nanyang Visiting Professor at Nanyang Technological University.

Conferences organized by Dr. Contractor have had a catalytic influence on company practices. The Rutgers/Wharton/IMD conferences on Cooperative Strategies in International Business served to spark interest in corporate alliances which subsequently proliferated to the point where alliances today comprise a central facet of corporate strategy. The conference books continue to be used in graduate and executive programs worldwide. A conference he initiated at Bocconi University on Global Outsourcing and Offshoring strategies resulted in a definitive compilation of papers on the subject and further research on the subject.

He has served Rutgers University in many capacities such as Department Chair for the International Business Department for six years, as Research Director of the CIBER (Center for International Business Education and Research), Coordinator of the Ph.D. program in International Business, the Dean’s Leadership Council, and several other key school and university initiatives. He also writes articles covering contemporary issues dealing with International Business for a worldwide audience in 133 nations (as of July 2016), for executives, students and the thoughtful public at https://globalbusiness.me/.

Before his academic career, Prof. Contractor was an executive with the international arm of the Tata Group of Companies, an India-based multinational group. Besides Rutgers, Prof. Contractor also taught at the Wharton School, full time, for four years, conducted courses at universities in Europe and Asia and lectured and given executive seminars throughout the world.


Business Insights

Rutgers Business School News

Business Insight: Why people oppose globalization

Thursday, June 22, 2017

Globalization is accused of causing job losses, culture shocks and xenophobia, but modernization of lifestyles and industries alter work and life patterns more fundamentally, Distinguished Professor Farok Contractor writes in a piece recently published by YaleGlobal Online. More ›

TAGS: Business Insights Farok Contractor Global Business

Rutgers Business School News

Business Insight: How the G20 can ensure the marvelous gains from globalization aren't lost

Wednesday, September 7, 2016

Except for climate change, most of the other issues tackled by the G20 are short-term in nature, Rutgers Business School professor Farok Contractor writes in a piece published by The Conversation. This is necessary, but misses a great opportunity to build an institution that addresses the long term collective destiny of humankind.  More ›

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Business Insight: What the G20 leaders need to do

Friday, August 19, 2016

Professor Farok Contractor, who teaches international business, said communication and coordination will be key tasks for leaders from the 20 most powerful economies in the world as they contemplate new policies in Hangzhou, China, in early September. More ›

TAGS: Business Insights Expertise Farok Contractor International Business

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Business Insight: Globalization's Angst and the "Brexit" Vote

Wednesday, June 29, 2016

The action of 17.4 million voters from a small island on the western edge of the Eurasian landmass has sent shock waves to the world. The message contained in the decision to leave the European Union resonates with a lot of people in other countries. More than specific concerns of the British people about the European Union, the vote highlighted growing worldwide anxiety over the impact of globalization. A segment of the public in Europe and the United States seem united by their common concerns over integration. More ›

TAGS: Business Insights Farok Contractor Global Business International Business Management and Global Business

Rutgers Business School News

Business Insight: Does China manipulate its currency as Donald Trump claims?

Tuesday, June 14, 2016

Why do politicians like Trump keep bashing China? What does "undervaluation" or "overvaluation" of a currency mean? And what advantage can a nation derive from trying to control or manipulate its exchange rate? More ›

TAGS: Business Insights Farok Contractor Global Business

Rutgers Business School News

Business Insight: Inversions and Versions (of Tax Truths)

Tuesday, April 12, 2016

In simple terms, an inversion is when a U.S. company shifts its corporate headquarters to a country like Ireland where corporate taxes max out at 12.5 percent compared to the maximum 35 percent U.S. tax rate. For large multinational firms, the annual savings can be in the billions. But the U.S. government would then lose even more than that in tax revenues. More ›

TAGS: Business Insights Expertise Farok Contractor Finance and Economics Global Business Thought Leadership

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Business Insight: What's driving the Chinese and world stock markets?

Friday, January 15, 2016

The drop in Chinese stock markets has had more than a ripple effect on world markets and threatens to produce a bearish environment everywhere. Are the fears of a spillover and world recession justified? A longer term view suggests otherwise. More ›

TAGS: Business Insights Expertise Farok Contractor Global Business

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IMF elevates Yuan to elite currency status – so what?

Tuesday, December 1, 2015

Under the watch of Zhou Xiaochuan, governor of the People's Bank of China (China's central bank), China’s exports to the rest of the world almost quintupled and in 2015, China is the world’s largest exporter, with 13 percent of the global total. If one takes the World Bank’s purchasing power parity (PPP) exchange rate, the size of the Chinese GDP in 2015 is neck-and-neck with that of the U.S. And yet, few governments or institutions have been willing to hold the yuan or renminbi yuan (or RMB) as an asset.  More ›

TAGS: Business Insights Farok Contractor Finance and Economics

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Chinese Cyber-Espionage on U.S. Companies: Is it really a case of the pot calling the kettle black?

Monday, September 28, 2015

In the U.S., the role of government and its interests are separate from those of private business. The Chinese government sees its role as allied and interpenetrated with business. The Chinese have a very different notion of nationalism and solidarity that idealizes a Utopian vision of all noses pointing in the same direction, to promote China. By contrast, the American war of independence from Britain was fought on the very principle that government should keep its nose out of private business and not tax, or overly regulate, commerce. More ›

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The refugee crisis - Does Europe benefit or lose? The angle not covered by the media

Monday, September 14, 2015

Most of the migrants are young and will swell the labor force. From a simple Economics 101 point of view, yes—wages could drop very slightly as the supply of labor across Europe increases. But pictures on television and other media showing invading hordes miss the larger story. More ›

TAGS: Business Insights Economics European Union Expertise Farok Contractor International Business Thought Leadership

Rutgers Business School News

Seeking Safety Abroad: The Hidden Story in China's FDI Statistics

Thursday, September 10, 2015

In August there were no deep fundamental economic reasons for the simultaneous swoon of stock markets around the world, Rutgers Business School professor Farok Contractor writes. The Chinese economy is slowing down from the heady days of 10 percent or more annual growth rate to a mere 6 or 7 percent. So absurd is the news hype and consequent global angst, amplified by the internet and media, that a 7 percent growth rate – ordinarily the envy of most nations – is instead portrayed as a reason to sell assets. More ›

TAGS: Business Insights China Farok Contractor International Business Management and Global Business

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What the Iran nuclear deal means for American business

Thursday, July 16, 2015

"From a commercial angle, it is a "win-win" story for both the Iranians and the US. Iranian youth are open and eager for western ideas and brands," Professor Farok Contractor writes. "The Iranian economy badly needs upgrading, to bring it up to Western standards. The potential is large. Iran has 10 percent of world oil reserves, but has only a 4 percent market share currently." More ›

TAGS: Business Business Insights Farok Contractor Management and Global Business

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Learning from the History of Globalization

Thursday, September 11, 2014

This blog was originally posted on GlobalBusiness.me, where Rutgers Business School professor and Executive Education instructor Farok Contractor shares unbiased perspectives on international business issues. Reposted with permission. Today is a great day to remember that history matters. More ›

TAGS: Blogs Executive Education Farok Contractor International Business Rutgers Business School