International business

Cover
Contents in Brief
Contents in Detail
List of Illustrations
Preface
About the Authors
Guide to the Case Studies
Guided Tour
Acknowledgments
Part One: The World of International Business
	Chapter 1: Regional and Global Strategy
		Objectives of the chapter
		Active Learning Case: Coke goes worldwide with a local strategy
		Overview of the book
			Country and firm factors
			International competitiveness and firm strategy
			Globalization
			Regionalization
		Introduction
		World business: a brief overview
			Exports and imports
			Foreign direct investment
			The triad
		Today's international environment
			International trade regulation
			Technology
			Small and medium-sized enterprises (SMEs
		International Business Strategy in Action: Amazon.com is not a global business
		Globalization and strategic management
			Regional triad strategies
			Maintaining economic competitiveness
			Multinationals in action
		International Business Strategy in Action: Tata
		The study of international business
			From general to strategic emphasis
		Framework for this book
			Key points
			Key terms
			Review and discussion questions
		Real Case
			Big oil gets bigger
			Wal-Mart
		Endnotes
		Additional bibliography
		Appendix to Chapter 1
	Chapter 2: The Multinational Enterprise
		Objectives of the chapter
		Active Learning Case: Disneyland in Europe
		Introduction
		The nature of MNEs
			Characteristics of MNEs
			Why firms become MNEs
			The strategic philosophy of MNEs
		International Business Strategy in Action: Italian family firms
		Strategic management and MNEs
			Strategic management of MNEs:
 an introduction
		International Business Strategy in Action: Nestle
		A framework for global strategies:
 the FSA–CSA matrix
			The FSA–CSA matrix
		It's regional, not flat
		Multinationals in action
			Solectron
			BMW
			Levi Strauss
			Canon
			Zara
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Starbucks
			Sony
		Endnotes
		Additional bibliography
		Appendix A to Chapter 2
		Appendix B to Chapter 2
	Chapter 3: The Triad and International  Business
		Objectives of the chapter
		Active Learning Case: Boeing versus Airbus
		Introduction
		Reasons for FDI
			Increase sales and profits
			Enter rapidly growing markets
			Reduce costs
			Gain a foothold in economic blocs
			Protect domestic markets
			Protect foreign markets
			Acquire technological and managerial know-how
		International Business Strategy in Action: Aflac
		International Business Strategy in Action: Lafarge and Cemex: concrete multinationals
		FDI and trade by triad members
			The triad's domination of FDI and trade
			Triad FDI clusters
		Multinationals in action: Regional business strategy
			The world's regional automotive industry
			Mergers and acquisitions
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Panasonic and Philips
			Toys "R" Us in Europe and Japan
		Endnotes
		Additional bibliography
Part Two: The Environment of International Business
	Chapter 4: International Politics
		Objectives of the chapter
		Active Learning Case: How risky is foreign investment in Russia
		Introduction
			Political ideologies and economics
			Government control of assets
			Government–business cooperation
		International Business Strategy in Action: Softwood lumber: not-so-free trade
		Economic integration
			Trade creation and trade diversion
			Levels of economic integration
			Economic integration: an overall perspective
			Ethics, environment, MNEs,
 and the civil society
			The European Union (EU
			Other examples of economic integration
		International Business Strategy in Action: Non-governmental organizations and political  power
		Economic integration and strategic
 management
			Strategic alliances and acquisitions
			Localization of business operations
		Key points
		Key terms
		Review and discussion questions
		Real Case
			How environmental regulations can be used as trade barriers
			Embraer vs. Bombardier
		Endnotes
		Additional bibliography
	Chapter 5: International Culture
		Objectives of the chapter
		Active Learning Case: Culture clash at Pharmacia and Upjohn
		Introduction
		What is culture
		The importance of culture in different business
 contexts
			Culture has always been important
		International Business Strategy in Action: McDonald's
		National stereotypes and key dimensions of culture
			Culture at two levels
			Hofstede's four dimensions of culture
			Trompenaars' seven dimensions of culture
			The GLOBE project's nine dimensions of culture
			Applying the national culture frameworks
			"The way we do things here": the implications of cultural differences for organizations and managers
		Cross-cultural management
			Organization
			Leadership
			Communication
			The corporate response
			Multinational organization structures: imperialist or independent?
			Culture clash in cross-border M&A
 and joint ventures
		International Business Strategy in Action: Danone and Parmalat—going international,  staying local
		Culture embodied in national institutions
			France: cultural and social characteristics that
 create a national distinctiveness
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Do not throw your meishi !
			Sport can be local and global: Manchester United
		Endnotes
		Additional bibliography
	Chapter 6: International Trade
		Objectives of the chapter
		Active Learning Case: Trade of the triad and China
		Introduction
		International trade theory
			Theory of absolute advantage
			Theory of comparative advantage
			Factor endowment theory
			International product life cycle theory
			Other important considerations
		International Business Strategy in Action: Microsoft shows the world is not flat
		Barriers to trade
			Reasons for trade barriers
			Commonly used barriers
			Tariffs
			US trade policy
		International Business Strategy in Action: The courier wars
		Non-tariff barriers to trade
			Quotas
			"Buy national" restrictions
			Customs valuation
			Technical barriers
			Antidumping legislation, subsidies, and
 countervailing duties
			Agricultural products
			Export restraints
		Other economic developments
			Countertrade
			Trade in services
			Free trade zones
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Job losses and offshoring to China
			Dumping on trade complaints
		Endnotes
		Additional bibliography
		Appendix to Chapter 6: Balance of payments
	Chapter 7: International Financial Markets  and Institutions
		Objectives of the chapter
		Active Learning Case: Barclays Bank international financial dealings
		Introduction
		Foreign exchange markets
			Foreign exchange markets in the United States
		Determination of the exchange rate
			Purchasing power parity
			International Fisher effect
			Combined equilibrium relationships
			Other factors determining exchange rates
		Protecting against exchange risk
			Alternatives to minimize exchange risk
		International Business Strategy in Action: Wall Street and world financial markets
		Foreign money and capital markets
			MNEs and national money markets
			MNEs and national capital markets
		Regional money and capital markets
			The eurocurrency market
			Eurocurrency interest rates
			Other market characteristics
			Criticisms of the euromarkets
			Eurobonds and euroequities
		International Business Strategy in Action: AngloGold Ashanti
		The IMF system
			Unresolved problems with the IMF system
		MNEs and international financial markets
 and institutions
		Key points
		Key terms
		Review and discussion questions
		Real Case
			HSBC
			World financial crises
		Endnotes
		Additional bibliography
		Appendix to Chapter 7: Regional aspects of
 multinationality and performance
Part Three: International Business Strategies
	Chapter 8: Multinational Strategy
		Objectives of the chapter
		Active Learning Case: Vodafone and the triad telecom market
		Introduction
		Strategic orientations
		International Business Strategy in Action: Arthur Andersen, Accenture, and McKinsey
		Strategy formulation
			External environmental assessment
			Internal environmental assessment
			Goal setting
		Strategy implementation
			Location
			Ownership
			Functional strategies
		International Business Strategy in Action: Fuji Xerox and Xerox
		Control and evaluation
			Common methods of measurement
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Mountain Equipment Co-op: a small business
			Benetton
		Endnotes
		Additional bibliography
	Chapter 9: Organizing Strategy
		Objectives of the chapter
			Active Learning Case: Procter & Gamble
		Active Learning Case: Procter & Gamble
		Introduction
		Organization structures
			Early organization structures
			The international division
			Global organization structures
		International Business Strategy in Action: Sanofi-Aventis
		International Business Strategy in Action: Making matrix work
		Strategic management and organizing strategy
			Analysis of key structural variables
			Coordination
		Key points
		Key terms
		Review and discussion questions
		Real Case
			LVMH: organizing luxury products in theinternational arena
			Command Alkon: a small business
		Endnotes
		Additional bibliography
	Chapter 10: Corporate Strategy and National Competitiveness
		Objectives of the chapter
		Active Learning Case: Worldwide operations and local strategies of ABB
		Introduction
		The single diamond
			Determinants and external variables
			Critique and evaluation of the model
		The double diamond
			Canada and the double diamond
			Mexico and the double diamond
		International Business Strategy in Action: Nokia and Ericsson
		Integration and responsiveness
			Integration versus national responsiveness
			Balancing the trade-offs
			Competitiveness in the triad
		International Business Strategy in Action: Kodak
		Key points
		Key terms
		Review and discussion questions
		Real Case
			There is no global beer, only local
			IBM
		Endnotes
		Additional bibliography
	Chapter 11: Innovation, Entrepreneurship,  and "Born Global" Firms
		Objectives of the chapter
		Active Learning Case: Facebook: Global and local
		Introduction
		International dimensions of innovation
		The location of innovation activities in the MNE
			The innovative MNE as a differentiated
 network
		International Business Strategy in Action: Innovation networks at IBM
		International small-and-medium-sized
 enterprises (SMEs
			What are small firms
			The international activities of SMEs
		International business theory and international new ventures
		International Business Strategy in Action: Spreadshirt: open innovation
		Dynamic capabilities and small firms
			Life cycles, networks, and clusters
		The practical challenges for internationalizing
 SMEs
			How do SME managers know which markets
 to enter
			Modes of entry and adaptation for success in
 foreign markets
		Key points
		Key terms
		Review and discussion questions
		Real Case
			GE Healthcare in India: locally driven innovation
			SetJam: the mini multinational
		Endnotes
		Additional bibliography
		www resources
Part Four: Functional Area Strategies
	Chapter 12: Production Strategy
		Objectives of the chapter
		Active Learning Case: The GE production process and Six Sigma
		Introduction
		Research, development, and innovation
			Speed-to-market
		Generation of goods and services
			Global sourcing
			Manufacturing of goods
			Developing a strong service orientation
		International Business Strategy in Action: Gap Inc.: a successful "Hollow Corporation"
		International Business Strategy in Action: The dark side of outsourcing: Boeing's problems with its 787
		International logistics
			Transportation
			Packaging
			Storage
		Different kinds of global production systems
		Strategic management and production
 strategy
			Technology and production design
			Continuous improvement
			Alliances and acquisitions
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Flextronics
			Nike
		Endnotes
		Additional bibliography
	Chapter 13: Marketing Strategy
		Objectives of the chapter
		Active Learning Case: Volkswagen in the United States
		Introduction
		International market assessment
			Initial screening: basic need and potential
			Second screening: financial and economic
 conditions
			Third screening: political and legal forces
			Fourth screening: socio-cultural forces
			Fifth screening: competitive environment
			Final selection
		Product strategies
			Little or no modification
			Moderate to high modification
		International Business Strategy in Action: Kola Real Group
		Promotion
			Nature of the product
			Advertising
			Personal selling
		International Business Strategy in Action: IKEA in international markets
		Pricing
			Government controls
			Market diversity
			Currency fluctuations
			Price escalation forces
		Place
			Different distribution systems
			Choosing the best distribution system
		Strategic management and marketing strategy
			Ongoing market assessment
			Internet marketing and "open innovation"
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Bang & Olufsen
			Brazilian soap operas: a world market
		Endnotes
		Additional bibliography
	Chapter 14: Human Resource Management  Strategy
		Objectives of the chapter
		Active Learning Case: The Coca-Cola Company thinks local
		Introduction
		Selection and repatriation
			International screening criteria and selection
 procedures
			Repatriation of expats
		Training and development
			Types of training
		International Business Strategy in Action: P&O, Carnival, and Dubai Port World
		Compensation
			Common elements in an international
 compensation package
			Compensation trends and comparisons
		Labor relations
			Labor relations practices
			Industrial democracy
			Industrial democracy in action
		International Business Strategy in Action: German management and unions
		Strategic management and IHRM strategies
			Language training
			Cultural adaptation
			Competitive compensation
			Specially designed HRM programs
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Offshoring to India
			Executive search firms
		Endnotes
		Additional bibliography
	Chapter 15: Political Risk and Negotiation  Strategy
		Objectives of the chapter
		Active Learning Case: Kodak in China: changing the rules of the game
		Introduction
			Generic PEST analysis
		Political risk
			Deregulation and political risk
			The nature of political risk
			Sources of political risk
		Country analysis and political risk assessment
			Online risk information resources
			Quantifying risk vulnerability
			Accounting for country risk
		Negotiation strategies
			Behavioral characteristics of the participants
 in negotiations
			Transparency and corruption: politically
 sensitive political risk
		International Business Strategy in Action: Political risk for De Beers
		International Business Strategy in Action: Dell goes to Brazil
		Strategic management and political risk
			Use of integrative and protective/defensive
 techniques
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Yukos and the Russian oligarchs
			Problems with ports
		Endnotes
		Additional bibliography
		www resources
	Chapter 16: International Financial  Management
		Objectives of the chapter
		Active Learning Case: British Airways
		Introduction
		Determining parent–subsidiary relationships
			Polycentric solution
			Ethnocentric solution
			Geocentric solution
		Managing global cash flows
			Internal funds flows
			Funds positioning techniques
			Multilateral netting
			Managing cash
		International Business Strategy in Action: Tax havens
		International Business Strategy in Action: Sovereign wealth funds
		Exchange risk management
			Transaction risk
			Translation risk
			Economic risk
			An example of exchange risk management
			Developing forecasting and reporting
 systems
		Capital budgeting in the MNE
			Use of NPV
			Institutional features
		International financing in the MNE
			Financial structure
		Control: identifying objectives, evaluating
 affiliate performance, and making performance
 consistent with goals
		Strategic international finance
			Establishing overseas operations
			Reducing financial risk
			Alliances
			Cost cutting
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Skandia
			Repsol's acquisition of YPF
		Endnotes
		Additional bibliography
Part Five: Regional Strategies
	Chapter 17: European Union
		Objectives of the chapter
		Active Learning Case: France Telecom
		The EU environment
			Emergence of a Single European Market
			The competitive status of the EU
		Conducting a strategic analysis
			Using competitive intelligence
			Evaluating locations
		International Business Strategy in Action: Ford and Volvo
		Strategy issues
			Overall strategic analysis for the EU
			Exporting
			Strategic acquisitions and alliances
			Marketing considerations
			Manufacturing considerations
			Management considerations
			Barriers to EU market access
		International Business Strategy in Action: Deutsche Bahn: more than a railway
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Accor budget hotels
			Carrefour
		Endnotes
		Additional bibliography
	Chapter 18: Japan
		Objectives of the chapter
		Active Learning Case: Doing business in Japan
		Introduction
		Political, social, and cultural characteristics
			A traditionally strong government role in the
 economy
			Distinctive cultural characteristics
		Economic characteristics
			Japan and China: the new Asian powerhouse
		Business characteristics
			Manufacturing strengths
			Strong applied R&D
			Keiretsu
			Distribution, retailing, and customer
 orientation
		International Business Strategy in Action: Kirin Beer goes international
		Japanese corporations
		A changing nation
			Restructuring capital markets
			Deregulation, increased M&A, and inward FDI
		International Business Strategy in Action: Wal-Mart takes Seiyu
		Restructuring corporations
			The decline of manufacturing and distribution
 keiretsu
			The growth of outward FDI and offshore
 manufacturing
			The decline of lifetime employment and
 changing HRM practices
			Diversification strategies
		Conclusions
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Renault and Nissan: no pain, no gain
			Canon Group
		Endnotes
		Additional bibliography
		www resources
	Chapter 19: North America
		Objectives of the chapter
		Active Learning Case: NAFTA
		Introduction
		Canada
			Canada's economy
			Differences in the business environment
			Canada's multinationals
			Multilateral agreement on investment (MAI)
			Business opportunities in Canada
			Franchising
		International Business Strategy in Action: Bombardier
		Mexico
			Mexico's economy
			Mexico and NAFTA
			Regional trade agreements
			Doing business in Mexico
		International Business Strategy in Action: Mexico and NAFTA
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Jumex of Mexico
			GlaxoSmithKline in the United States
		Endnotes
		Additional bibliography
	Chapter 20: Emerging Economies
		Objectives of the chapter
		Active Learning Case: Acer Taiwan goes international
		Introduction
		Triad firms and emerging economy firms:
 why the mutual interest
		An overview of emerging economies, by region
			Asia–Pacific and the Middle East
			Central and Eastern Europe
			Latin America and the Caribbean Africa
			International Business Strategy in Action: From Oserian to Tesco: the Kenyan cut flower industry
		Shifting patterns of comparative and competitive
 advantage
			Flying Geese model
			Emerging economies as sources of innovation
		Market access to the triad
		International Business Strategy in Action: Korean chaebols: Hyundai and Samsung
		Key points
		Key terms
		Review and discussion questions
		Real Case
			The Indian IT, software, and services industry
			Bumrungrad International in Thailand
		Endnotes
		Additional bibliography
		www resources
	Chapter 21: China
		Objectives of the chapter
		Active Learning Case: Oxford Instruments in China
		Introduction
		Unprecedented scale, scope, and speed  of growth
		The role of government
		MNE investment into China
		Foreign R&D investment
		International Business Strategy in Action: Airbus in China
		Getting into China
		Outward investment and the new multinationals
 from China
		International Business Strategy in Action: Haier abroad
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Citigroup in China
			Nanjing Auto makes the MG
		Endnotes
		Additional bibliography
		www resources
	Chapter 22: Corporate Ethics and the Natural  Environment
		Objectives of the chapter
		Active Learning Case: The environment, NGOs, and MNEs
		Introduction
		Developing effective strategies
			Going where the action is
		International Business Strategy in Action: 3M
		International business research frameworks
			Theories of international business
			Practical applications of the theory
		The five partners business network framework
			Forging new business networks
		Coping with changing environments
			Political environment
			Economic environment
		The trade and investment framework
		Environment and MNEs
			The pattern of MNE responses
		International Business Strategy in Action: Is The Body Shop an ethical business
		Key points
		Key terms
		Review and discussion questions
		Real Case
			Dell: B2C
			Maersk Group
		Endnotes
		Additional bibliography
Glossary
Index