International business: the challenges of globalization [Eighth edition] 9780133866247, 1292095040, 9781292095042, 0133866246

Table of contents :
Front Cover......Page 1
Title Page......Page 4
Copyright Page......Page 5
Brief Contents......Page 6
Contents......Page 8
Globalization......Page 31
Apple’s Global iMpact......Page 32
Entrepreneurs and Small Businesses......Page 34
What Is Globalization?......Page 35
Globalization of Markets......Page 36
Globalization of Production......Page 37
Global Sustainability: Three Markets, Three Strategies......Page 38
Falling Barriers to Trade and Investment......Page 39
Technological Innovation......Page 43
Measuring Globalization......Page 44
Against Globalization......Page 45
For Globalization......Page 46
Inequality within Nations......Page 47
Inequality between Nations......Page 48
Global Inequality......Page 49
Culture Matters: The Culture Debate......Page 50
Manager’s Briefcase: The Keys to Global Success......Page 51
The Global Business Environment......Page 52
The Road Ahead for International Business......Page 54
Chapter Summary......Page 55
Teaming Up......Page 57
Market Entry Strategy Project......Page 58
Practicing International Management Case: IO Interactive-Storytelling Goes Global......Page 59
Appendix World Atlas......Page 61
Cross-Cultural Business......Page 69
Hold the Pork, Please!......Page 70
National Culture......Page 71
Physical Environment......Page 72
Culture Matters: Creating a Global Mindset......Page 73
Values and Behavior......Page 74
Aesthetics......Page 75
Manager's Briefcase: A Globetrotter’s Guide to Meetings......Page 76
Social group Associations......Page 77
Social Mobility......Page 78
Education......Page 79
Christianity......Page 80
Hinduism......Page 83
Buddhism......Page 84
Shinto......Page 85
Global Sustainability: Speaking in Fewer Tongues......Page 86
Body Language......Page 88
view of Work......Page 89
Material Culture......Page 90
Cultural Change......Page 91
Studying Culture in The Workplace......Page 92
Chapter Summary......Page 96
Key Terms......Page 97
Talk About It 2......Page 9
Teaming Up......Page 98
Market Entry Strategy Project......Page 99
Practicing International Management Case: A Tale of Two Cultures......Page 100
Political Economy and Ethics......Page 101
Understanding Vietnamese Business Culture......Page 102
Totalitarianism......Page 104
Democracy......Page 106
Manager’s Briefcase: Your Global Security Checklist......Page 108
Centrally planned economy......Page 109
Mixed Economy......Page 110
Market Economy......Page 112
Culture Matters: Playing by the Rules......Page 114
Civil Law......Page 117
Intellectual Property......Page 118
Taxation......Page 120
Antitrust regulations......Page 121
Philosophies of Ethics and Social Responsibility......Page 122
Labor Conditions and Human Rights......Page 123
Environment......Page 124
Bottom Line for Business......Page 128
Chapter Summary......Page 129
Ethical Challenge......Page 130
Market Entry Strategy Project......Page 131
Practicing International Management Case: Pirates of Globalization......Page 132
Economic Development of Nations......Page 133
India’s Tech King......Page 134
Classifying Countries......Page 135
National production......Page 136
Purchasing power parity......Page 139
Human Development......Page 140
Shortage of Capital......Page 141
Political Risk......Page 142
Conflict and violence......Page 143
Property Seizure......Page 144
Policy Changes......Page 147
Adaptation......Page 148
Political Influence......Page 149
The United Nations......Page 150
China’s Profile......Page 151
China’s Challenges......Page 152
Culture Matters: Guidelines for Good Guanxi......Page 153
Manager’s Briefcase: Russian Rules of the Game......Page 154
Bottom Line for Business......Page 155
Chapter Summary......Page 156
Talk About It 1......Page 157
Market Entry Strategy Project......Page 158
Practicing International Management Case: The Role of Social and Political Factors in the Lebanese Economy......Page 160
International Trade Theory......Page 161
China’s Caribbean Connection......Page 162
Volume of International Trade......Page 163
International Trade Patterns......Page 164
Culture Matters: Business Culture in the Pacific Rim......Page 167
Mercantilism......Page 168
Flaws of Mercantilism......Page 169
Absolute Advantage......Page 170
Comparative Advantage......Page 172
Factor Proportions Theory......Page 174
Stages of the Product Life Cycle......Page 175
Limitations of the Theory......Page 176
New Trade Theory......Page 177
Factor Conditions......Page 178
Related and Supporting Industries......Page 179
Bottom Line For Business......Page 180
Chapter Summary......Page 181
Talk About It 1......Page 182
Market Entry Strategy Project......Page 183
Practicing International management Case: BT in local and International Markets......Page 184
Political Economy of Trade......Page 185
Lord of the Movies......Page 186
Political Motives......Page 187
Global Sustainability: Managing Security in the Age of Globalization......Page 188
Economic Motives......Page 189
Cultural Motives......Page 190
Culture Matters: Myths of Small Business Exporting......Page 191
Export financing......Page 192
Manager’s Briefcase: Experts in Export Financing......Page 193
Tariffs......Page 194
Quotas......Page 195
Local Content Requirements......Page 197
Global Trading System......Page 198
General Agreement on Tariffs and Trade (GATT)......Page 199
World Trade Organization (WTO)......Page 200
Bottom Line for Business......Page 202
Chapter Summary......Page 203
Talk About It 2......Page 204
Market Entry Strategy Project......Page 205
Practicing International Management Case: The New Protectionism......Page 206
Foreign Direct Investment......Page 207
Das Auto......Page 208
Ups and Downs of FDI......Page 209
Worldwide Flows of FDI......Page 211
Market Imperfections (Internalization)......Page 212
Market Power......Page 213
Purchase-or-Build Decision......Page 214
Production Costs......Page 215
Customer Knowledge......Page 216
Following Rivals......Page 217
Balance of Payments......Page 218
Reasons for Intervention by the Host Country......Page 219
Reasons for Intervention by the Home Country......Page 220
Government Policy Instruments and FDI......Page 221
Host Countries: Restriction......Page 222
Bottom Line for Business......Page 223
Chapter Summary......Page 224
Talk About It 1......Page 225
Market Entry Strategy Project......Page 226
Practicing International Management Case: Driving the GreenCar Market in Australia......Page 228
Regional Economic Integration......Page 229
Nestlé’s Global Recipe......Page 230
Free Trade Area......Page 231
The Case for Regional Integration......Page 232
The Case Against Regional Integration......Page 234
Integration in Europe......Page 235
European Union......Page 236
Culture Matters: Czech list......Page 241
North American Free Trade Agreement (NAFTA)......Page 243
Andean Community (CAN)......Page 245
Central America and the Caribbean......Page 246
Asia Pacific Economic Cooperation (APEC)......Page 247
Gulf Cooperation Council (GCC)......Page 248
African Union (AU)......Page 249
Chapter Summary......Page 250
Talk About It 1......Page 251
Market Entry Strategy Project......Page 252
Practicing International Management Case: Fair Trade or Safe Consumption?......Page 254
International Financial Markets......Page 255
Wii Is the Champion......Page 256
Importance of the International Capital Market......Page 257
Purposes of the international Capital Market......Page 258
Forces Expanding the International Capital Market......Page 259
World Financial Centers......Page 260
International Bond Market......Page 261
Eurocurrency Market......Page 262
Functions of the Foreign Exchange Market......Page 263
Quoting Currencies......Page 265
Forward Rates......Page 268
Market Instruments and Institutions......Page 269
Important Currencies......Page 270
Over-The-Counter Market......Page 271
Currency Restriction......Page 272
Bottom Line for Business......Page 273
Chapter Summary......Page 274
Talk About It 2......Page 275
Market Entry Strategy Project......Page 276
Practicing International Management Case: The Effect of the Asian Crisis on Southeast Asian Corporations......Page 277
Appendix Calculating Percent Changein Exchange Rates......Page 278
International Monetary System......Page 279
Euro Rollercoaster......Page 280
Importance of Exchange Rates......Page 281
Efficient versus Inefficient Market View......Page 282
Difficulties of Forecasting......Page 283
Law of One Price......Page 284
Purchasing Power Parity......Page 285
The Gold Standard......Page 289
Bretton Woods Agreement......Page 291
Today’s Exchange-Rate Arrangements......Page 293
Manager’s Briefcase: Adjusting to Currency Swings......Page 294
Recent Financial Crises......Page 295
Bottom Line For Business......Page 298
Chapter Summary......Page 299
Talk About It 2......Page 300
Market Entry Strategy Project......Page 301
Practicing International Management Case: Banking on Forgiveness......Page 302
International Strategy and Organization......Page 303
Flying High with Low Fares......Page 304
Company Mission and Goals......Page 305
Core Competency and Value-Creation......Page 306
Manager’s Briefcase: Ask Questions before Going Global......Page 308
Two International Strategies......Page 309
Corporate-Level Strategies......Page 310
Business-Level Strategies......Page 311
Department-Level Strategies......Page 313
Centralization versus Decentralization......Page 314
Coordination and Flexibility......Page 315
International Division Structure......Page 316
International Area Structure......Page 317
Global Matrix Structure......Page 318
Work Teams......Page 319
A Final Word......Page 320
Chapter Summary......Page 321
Ethical Challenge......Page 322
Teaming Up......Page 323
Practicing International Management Case: IKEA’s Global Strategy......Page 324
Analyzing International Opportunities......Page 325
Rovio Soars Globally......Page 326
Step 1: Identify Basic Appeal......Page 327
Step 2: Assess the National Business Environment......Page 329
Step 3: Measure Market or Site Potential......Page 333
Step 4: Select the market or Site......Page 336
Government Agencies......Page 339
Internet......Page 341
Problems with Secondary Research......Page 342
Interviews and Focus Groups......Page 343
Surveys......Page 344
A Final Word......Page 345
Key Terms......Page 346
Teaming Up......Page 347
Practicing International Management Case: Singapore Rises to Prominence in the World Market......Page 348
Selecting and Managing Entry Modes......Page 349
License to Thrill......Page 350
Why Companies Export......Page 351
Developing an Export Strategy: A Four-Step Model......Page 352
Degree of Export Involvement......Page 353
Avoiding Export and Import Blunders......Page 354
Countertrade......Page 355
Advance payment......Page 356
Documentary Collection......Page 357
Letter of Credit......Page 358
Manager’s Briefcase: Collecting International Debts......Page 359
Licensing......Page 360
Franchising......Page 361
Turnkey projects......Page 363
Joint Ventures......Page 365
Strategic Alliances......Page 367
Selecting Partners for Cooperation......Page 368
Culture Matters: Negotiating Market Entry......Page 369
International Experience......Page 370
Chapter Summary......Page 371
Talk About It 2......Page 372
Teaming Up......Page 373
Practicing International Management Case: Game: Competing in Africa’s Playing Fields......Page 374
Developing and Marketing Products......Page 375
It’s a Cross-Cultural McWorld!......Page 376
Laws and Regulations......Page 377
Brand and Product Names......Page 378
National Image......Page 379
Shortened Product Life Cycles......Page 380
Push and Pull Strategies......Page 381
International Advertising......Page 382
Blending Product and Promotional Strategies......Page 384
Culture Matters: Localizing Websites......Page 386
Designing Distribution Channels......Page 387
Special Distribution Problems......Page 388
Worldwide Pricing......Page 389
Factors That Affect Pricing Decisions......Page 390
A Final Word......Page 391
Key Terms......Page 392
Teaming Up......Page 393
Practicing International Management Case: Psychology of GlobalMarketing......Page 394
Managing International Operations......Page 395
Toyota Races Ahead......Page 396
Facilities Location Planning......Page 397
Process Planning......Page 399
Make-or-Buy Decision......Page 400
Fixed Assets......Page 403
Quality Improvement Efforts......Page 404
Shipping and Inventory Costs......Page 405
Financing Business Operations......Page 406
Issuing Equity......Page 407
Internal Funding......Page 409
Capital structure......Page 410
Chapter Summary......Page 411
Key Terms......Page 412
Teaming Up......Page 413
Practicing International Management Case: Toyota’s Strategy for Production Efficiency......Page 414
Hiring and Managing Employees......Page 415
Leaping Cultures......Page 416
Ethnocentric Staffing......Page 417
Geocentric Staffing......Page 419
Manager’s Briefcase: Growing Global......Page 420
Selecting Human Resources......Page 421
Reverse Culture Shock......Page 422
Training and Development......Page 423
Methods of Cultural Training......Page 424
Compiling a Cultural Profile......Page 425
Managerial Employees......Page 426
Nonmanagerial Workers......Page 427
Importance of Labor Unions......Page 428
Chapter Summary......Page 429
Key Terms......Page 430
Teaming Up......Page 431
Practicing International Management Case: Challenges in Global Staffing......Page 432
Endnotes......Page 433
Glossary......Page 438
Name Index......Page 446
Subject Index......Page 449