International business : competing in the global marketplace

Cover
Title Page
Copyright Page
Dedication
About the Author
Brief Contents
The Proven Choice For International Business
Contents
part one Introduction and Overview
	CHAPTER 1 Globalization
		Opening Case How the iPhone Is Made: Apple’s Global Production System
		Introduction
		What Is Globalization?
			The Globalization of Markets
			The Globalization of Production
		Management Focus Boeing’s Global Production System
		The Emergence of Global Institutions
		Drivers of Globalization
			Declining Trade and Investment Barriers
			Role of Technological Change
		The Changing Demographics of the Global Economy
			The Changing World Output and World Trade Picture
		Country Focus India’s Software Sector
			The Changing Foreign Direct Investment Picture
			The Changing Nature of the Multinational Enterprise
		Management Focus The Dalian Wanda Group
			The Changing World Order
			Global Economy of the Twenty-First Century
		The Globalization Debate
			Antiglobalization Protests
		Country Focus Protesting Globalization in France
			Globalization, Jobs, and Income
			Globalization, Labor Policies, and the Environment
			Globalization and National Sovereignty
			Globalization and the World’s Poor
		Managing in the Global Marketplace
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case General Motors in China
		Endnotes
part two National Differences
	CHAPTER 2 National Differences in Political, Economic, and Legal Systems
		Opening Case Kenya: An African Lion
		Introduction
		Political Systems
			Collectivism and Individualism
			Democracy and Totalitarianism
		Country Focus Putin’s Russia
		Economic Systems
			Market Economy
			Command Economy
			Mixed Economy
		Legal Systems
			Different Legal Systems
			Differences in Contract Law
			Property Rights and Corruption
		Country Focus Corruption in Brazil
		Management Focus Did Walmart Violate the Foreign Corrupt Practices Act?
			The Protection of Intellectual Property
		Management Focus Starbucks Wins Key Trademark Case in China
			Product Safety and Product Liability
		Focus on Managerial Implications: The Macro Environment Influences Market Attractiveness
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case Transformation in Saudi Arabia
		Endnotes
	CHAPTER 3 National Differences in Economic Development
		Opening Case Poland: Eastern Europe’s Economic Miracle
		Introduction
		Differences in Economic Development
			Map 3.1 GNI per Capita, 2018
			Map 3.2 GNI PPP per Capita, 2018
			Map 3.3 Average Annual Growth Rate in GDP (%), 2009–2018
			Broader Conceptions of Development: Amartya Sen
			Map 3.4 Human Development Index, 2017
		Political Economy and Economic Progress
			Innovation and Entrepreneurship Are the Engines of Growth
			Innovation and Entrepreneurship Require a Market Economy
			Innovation and Entrepreneurship Require Strong Property Rights
			The Required Political System
			Economic Progress Begets Democracy
		Country Focus Property Rights in China
			Geography, Education, and Economic Development
		States in Transition
			The Spread of Democracy
			Map 3.5 Freedom in the World, 2019
			The New World Order and Global Terrorism
			The Spread of Market-Based Systems
			Map 3.6 Index of Economic Freedom, 2019
		The Nature of Economic Transformation
			Deregulation
		Country Focus India’s Economic Transformation
			Privatization
			Legal Systems
		Implications of Changing Political Economy
		Focus on Managerial Implications: Benefits, Costs, Risks, and Overall Attractiveness of Doing Business Internationally
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case Brazil’s Struggling Economy
		Endnotes
	CHAPTER 4 Differences in Culture
		Opening Case Singapore: One of the World’ Most Multicultural Places
		Introduction
		What Is Culture?
			Values and Norms
			Culture, Society, and the Nation-State
			Determinants of Culture
		Social Structure
			Individuals and Groups
			Social Stratification
		Country Focus Determining Your Social Class by Birth
		Religious and Ethical Systems
			Map 4.1 World Religions
			Christianity
			Islam
		Country Focus Turkey: Its Religion and Politics
			Hinduism
			Buddhism
			Confucianism
		Management Focus China and Its Guanxi
		Language
			Spoken Language
			Unspoken Language
		Education
		Culture and Business
		Cultural Change
		Focus on Managerial Implications: Cultural Literacy and Competitive Advantage
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case China, Hong Kong, Macau, and Taiwan
		Endnotes
	CHAPTER 5 Ethics, Corporate Social Responsibility, and Sustainability
		Opening Case Ericsson, Sweden, and Sustainability
		Introduction
		Ethics and International Business
			Employment Practices
			Human Rights
		Management Focus “Emissionsgate” at Volkswagen
			Environmental Pollution
			Corruption
		Ethical Dilemmas
		The Roots of Unethical Behavior
			Personal Ethics
			Decision-Making Processes
			Organizational Culture
			Unrealistic Performance Goals
			Leadership
			Societal Culture
		Philosophical Approaches to Ethics
			Straw Men
			Utilitarian and Kantian Ethics
			Rights Theories
			Justice Theories
		Focus on Managerial Implications: Making Ethical Decisions Internationally
		Management Focus Corporate Social Responsibility at Stora Enso
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case Sustainability Initiatives at Natura, The Body Shop, and Aesop
		Endnotes
part three The Global Trade and Investment Environment
	CHAPTER 6 International Trade Theory
		Opening Case A Tale of Two Nations: Ghana and South Korea
		Introduction
		An Overview of Trade Theory
			The Benefits of Trade
			The Pattern of International Trade
			Trade Theory and Government Policy
		Mercantilism
		Country Focus Is China Manipulating Its Currency in Pursuit of a Neo-Mercantilist Policy?
		Absolute Advantage
		Comparative Advantage
			The Gains from Trade
			Qualifications and Assumptions
			Extensions of the Ricardian Model
		Country Focus Moving U.S. White-Collar Jobs Offshore
		Heckscher–Ohlin Theory
			The Leontief Paradox
		The Product Life-Cycle Theory
			Product Life-Cycle Theory in the Twenty-First Century
		New Trade Theory
			Increasing Product Variety and Reducing Costs
			Economies of Scale, First-Mover Advantages, and the Pattern of Trade
			Implications of New Trade Theory
		National Competitive Advantage: Porter’s Diamond
			Factor Endowments
			Demand Conditions
			Related and Supporting Industries
			Firm Strategy, Structure, and Rivalry
			Evaluating Porter’s Theory
		Focus on Managerial Implications: Location, First-Mover Advantages, and Government Policy
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case “Trade Wars Are Good and Easy to Win”
		Appendix: International Trade and the Balance of Payments
		Endnotes
	CHAPTER 7 Government Policy and International Trade
		Opening Case American Steel Tariffs
		Introduction
		Instruments of Trade Policy
			Tariffs
			Subsidies
		Country Focus Are the Chinese Illegally Subsidizing Auto Exports?
			Import Quotas and Voluntary Export Restraints
			Export Tariffs and Bans
			Local Content Requirements
			Administrative Policies
			Antidumping Policies
		The Case for Government Intervention
		Management Focus Protecting U.S. Magnesium
			Political Arguments for Intervention
			Economic Arguments for Intervention
		The Revised Case for Free Trade
			Retaliation and Trade War
			Domestic Policies
		Development of the World Trading System
			From Smith to the Great Depression
			1947–1979: GATT, Trade Liberalization, and Economic Growth
			1980–1993: Protectionist Trends
			The Uruguay Round and the World Trade Organization
			WTO: Experience to Date
			The Future of the WTO: Unresolved Issues and the Doha Round
		Country Focus Estimating the Gains from Trade for the United States
			Multilateral and Bilateral Trade Agreements
			The World Trading System under Threat
		Focus on Managerial Implications: Trade Barriers, Firm Strategy, and Policy Implications
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case The United States and South Korea Strike a Revised Trade Deal
		Endnotes
	CHAPTER 8 Foreign Direct Investment
		Opening Case Starbucks’ Foreign Direct Investment
		Introduction
		Foreign Direct Investment in the World Economy
			Trends in FDI
			The Direction of FDI
			The Source of FDI
		Country Focus Foreign Direct Investment in China
			The Form of FDI: Acquisitions versus Greenfield Investments
		Theories of Foreign Direct Investment
			Why Foreign Direct Investment?
		Management Focus Burberry Shifts Its Entry Strategy in Japan
			The Pattern of Foreign Direct Investment
			The Eclectic Paradigm
		Political Ideology and Foreign Direct Investment
			The Radical View
			The Free Market View
			Pragmatic Nationalism
			Shifting Ideology
		Benefits and Costs of FDI
			Host-Country Benefits
			Host-Country Costs
			Home-Country Benefits
			Home-Country Costs
		International Trade Theory and FDI
			Government Policy Instruments and FDI
			Home-Country Policies
			Host-Country Policies
			International Institutions and the Liberalization of FDI
	Focus on Managerial Implications: FDI and Government Policy
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case Geely Goes Global
		Endnotes
	CHAPTER 9 Regional Economic Integration
		Opening Case The Cost of Brexit
		Introduction
		Levels of Economic Integration
		The Case for Regional Integration
			The Economic Case for Integration
			The Political Case for Integration
			Impediments to Integration
		The Case against Regional Integration
		Regional Economic Integration in Europe
			Evolution of the European Union
			Map 9.1 Member States of the European Union in 2019
			Political Structure of the European Union
		Management Focus The European Commission and Google
			The Single European Act
			The Establishment of the Euro
			Enlargement of the European Union
		Country Focus The Greek Sovereign Debt Crisis
			British Exit from the European Union (BREXIT)
		Regional Economic Integration in the Americas
			The North American Free Trade Agreement
			Map 9.2 Economic Integration in the Americas
			The United States–Canada–Mexico Agreement (USCMA)
			The Andean Community
			Mercosur
			Central American Common Market, CAFTA, and CARICOM
		Regional Economic Integration Elsewhere
			Association of Southeast Asian Nations
			Regional Trade Blocs in Africa
			Map 9.3 ASEAN countries
			Other Trade Agreements
		Focus on Managerial Implications: Regional Economic Integration Threats
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case NAFTA 2.0: The USCMA
		Endnotes
part four The Global Monetary System
	CHAPTER 10 The Foreign Exchange Market
		Opening Case Managing Foreign Currency Exposure at 3M
		Introduction
		The Functions of the Foreign Exchange Market
			Currency Conversion
			Insuring against Foreign Exchange Risk
		Management Focus Embraer and the Gyrations of the Brazilian Real
		The Nature of the Foreign Exchange Market
		Economic Theories of Exchange Rate Determination
			Prices and Exchange Rates
		Country Focus Quantitative Easing, Inflation, and the Value of the U.S. Dollar
			Interest Rates and Exchange Rates
			Investor Psychology and Bandwagon Effects
			Summary of Exchange Rate Theories
		Exchange Rate Forecasting
			The Efficient Market School
			The Inefficient Market School
			Approaches to Forecasting
		Currency Convertibility
		Focus on Managerial Implications: Foreign Exchange Rate Risk
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case The Fluctuating Value of the Yuan Gives Chinese Businesses a Lesson in Foreign Exchange Risk
		Endnotes
	CHAPTER 11 The International Monetary System
		Opening Case Pakistan Takes Another IMF Loan
		Introduction
		The Gold Standard
			Mechanics of the Gold Standard
			Strength of the Gold Standard
			The Period between the Wars: 1918–1939
		The Bretton Woods System
			The Role of the IMF
			The Role of the World Bank
		The Collapse of the Fixed Exchange Rate System
		The Floating Exchange Rate Regime
			The Jamaica Agreement
			Exchange Rates since 1973
		Fixed versus Floating Exchange Rates
			The Case for Floating Exchange Rates
			The Case for Fixed Exchange Rates
			Who Is Right?
		Exchange Rate Regimes in Practice
		Country Focus China’s Exchange Rate Regime
			Pegged Exchange Rates
			Currency Boards
		Crisis Management by the IMF
			Financial Crises in the Post–Bretton Woods Era
		Country Focus The IMF and Iceland’s Economic Recovery
			Evaluating the IMF’s Policy Prescriptions
		Focus on Managerial Implications: Currency Management, Business Strategy, and Government Relations
		Management Focus Airbus and the Euro
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case Can Dollarization Save Venezuela?
		Endnotes
	CHAPTER 12 The Global Capital Market
		Opening Case Chinese IPOs in the United States
		Introduction
		Benefits of the Global Capital Market
			The Functions of a Generic Capital Market
			Attractions of the Global Capital Market
		Management Focus The Industrial and Commercial Bank of China Taps the Global Capital Market
			Growth of the Global Capital Market
			Global Capital Market Risks
		Country Focus Did the Global Capital Markets Fail Mexico?
		The Eurocurrency Market
			Genesis and Growth of the Market
			Attractions of the Eurocurrency Market
			Drawbacks of the Eurocurrency Market
		The Global Bond Market
			Attractions of the Global Bond Market
		The Global Equity Market
		Foreign Exchange Risk and the Cost of Capital
		Focus on Managerial Implications: Growth of the Global Capital Market
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case Saudi Aramco
		Endnotes
part five The Strategy and Structure of International Business
	CHAPTER 13 The Strategy of International Business
		Opening Case International Strategy in the Sharing Economy
		Introduction
		Strategy and the Firm
			Value Creation
			Strategic Positioning
		Management Focus AB InBev, Beer Globally, and Creating Value
			The Firm as a Value Chain
		Global Expansion, Profitability, and Profit Growth
			Expanding the Market
			Location Economies
			Experience Effects
			Leveraging Subsidiary Skills
			Profitability and Profit Growth Summary
		Cost Pressures and Pressures for Local Responsiveness
			Pressures for Cost Reductions
		Management Focus IKEA’s Global Strategy
			Pressures for Local Responsiveness
		Choosing a Strategy
			Global Standardization Strategy
			Localization Strategy
		Management Focus Unilever’s Responsiveness to Its Dutch–British Roots
			Transnational Strategy
			International Strategy
			The Evolution of Strategy
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case Red Bull: A Leader in International Strategy
		Endnotes
	CHAPTER 14 The Organization of International Business
		Opening Case Bird, Lime, and Organizing Globally
		Introduction
		Organizational Architecture
		Organizational Structure
			Vertical Differentiation
			Horizontal Differentiation
		Management Focus Dow—(Failed) Early Global Matrix Adopter
			Integrating Mechanisms
		Control Systems and Incentives
			Types of Control Systems
			Incentive Systems
			Control Systems and Incentives
		Processes
		Organizational Culture
			Creating and Maintaining Organizational Culture
			Organizational Culture and Performance
		Management Focus Lincoln Electric and Culture
		Synthesis: Strategy and Architecture
			Localization Strategy
			International Strategy
			Global Standardization Strategy
			Transnational Strategy
			Environment, Strategy, Architecture, and Performance
		Organizational Change
			Organizational Inertia
			Implementing Organizational Change
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case Walmart International
		Endnotes
	CHAPTER 15 Entering Developed and Emerging Markets
		Opening Case Volkswagen, Toyota, and GM in China
		Introduction
		Basic Entry Decisions
			Which Foreign Markets?
		Management Focus Tesco’s International Growth Strategy
			Timing of Entry
			Scale of Entry and Strategic Commitments
			Market Entry Summary
		Entry Modes
			Exporting
			Turnkey Projects
			Licensing
			Franchising
			Joint Ventures
			Wholly Owned Subsidiaries
		Selecting an Entry Mode
			Core Competencies and Entry Mode
			Pressures for Cost Reductions and Entry Mode
		Greenfield Venture or Acquisition?
			Pros and Cons of Acquisitions
			Pros and Cons of Greenfield Ventures
			Which Choice?
		Strategic Alliances
			Advantages of Strategic Alliances
			Disadvantages of Strategic Alliances
		Management Focus Gazprom and Global Strategic Alliances
			Making Alliances Work
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case IKEA Entering India, Finally!
		Endnotes
part six International Business Functions
	CHAPTER 16 Exporting, Importing, and Countertrade
		Opening Case Higher-Education Exporting and International Competitiveness
		Introduction
		The Promise and Pitfalls of Exporting
		Management Focus Embraer and Brazilian Importing
		Improving Export Performance
			International Comparisons
			Information Sources
		Management Focus Exporting Desserts by a Hispanic Entrepreneur
			Service Providers
			Export Strategy
		Management Focus Two Men and a Truck
			The globalEDGETM Exporting Tool
		Export and Import Financing
			Lack of Trust
			Letter of Credit
			Draft
			Bill of Lading
			A Typical International Trade Transaction
		Export Assistance
			The Export-Import Bank
			Export Credit Insurance
		Countertrade
			The Popularity of Countertrade
			Types of Countertrade
			Pros and Cons of Countertrade
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case Spotify and SoundCloud
		Endnotes
	CHAPTER 17 Global Production and Supply Chain Management
		Opening Case Blockchain Technology and Global Supply Chains
		Introduction
		Strategy, Production, and Supply Chain Management
		Where to Produce
			Country Factors
		Management Focus IKEA Production in China
			Technological Factors
			Production Factors
			The Hidden Costs of Foreign Locations
		Management Focus Amazon’s Global Supply Chains
		Make-or-Buy Decisions
		Global Supply Chain Functions
			Global Logistics
			Global Purchasing
		Managing a Global Supply Chain
			Role of Just-in-Time Inventory
			Role of Information Technology
			Coordination in Global Supply Chains
			Interorganizational Relationships
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case Procter & Gamble Remakes Its Global Supply Chains
		Endnotes
	CHAPTER 18 Global Marketing and Business Analytics
		Opening Case Marketing Sneakers
		Introduction
		Globalization of Markets and Brands
		Market Segmentation
		Management Focus Global Branding, Marvel Studios, and the Walt Disney Company
		Business Analytics
			International Marketing Research
		Product Attributes
			Cultural Differences
			Economic Development
			Product and Technical Standards
		Distribution Strategy
			Differences between Countries
			Choosing a Distribution Strategy
		Communication Strategy
		Management Focus Burberry’s Social Media Marketing
			Barriers to International Communication
			Push versus Pull Strategies
			Global Advertising
		Pricing Strategy
			Price Discrimination
			Strategic Pricing
			Regulatory Influences on Prices
		Configuring the Marketing Mix
		Product Development and R&D
			The Location of R&D
			Integrating R&D, Marketing, and Production
			Cross-Functional Teams
			Building Global R&D Capabilities
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case Fake News and Alternative Facts
		Endnotes
	CHAPTER 19 Global Human Resource Management
		Opening Case Evolution of the Kraft Heinz Company
		Introduction
		Strategic Role of Global HRM: Managing a Global Workforce
		Staffing Policy
			Types of Staffing Policies
			Expatriate Managers
		Management Focus AstraZeneca and Global Staffing Policy
			Global Mindset
		Training and Management Development
			Training for Expatriate Managers
			Repatriation of Expatriates
			Management Development and Strategy
		Management Focus Monsanto’s Repatriation Program
		Performance Appraisal
			Performance Appraisal Problems
			Guidelines for Performance Appraisal
		Compensation
			National Differences in Compensation
			Expatriate Pay
		Management Focus McDonald’s Global Compensation Practices
		Building a Diverse Global Workforce
		International Labor Relations
			The Concerns of Organized Labor
			The Strategy of Organized Labor
			Approaches to Labor Relations
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case Global Mobility at Shell
		Endnotes
	CHAPTER 20 Accounting and Finance in International Business
		Opening Case Pfizer, Novartis, Bayer, and GlaxoSmithKline
		Introduction
		National Differences in Accounting Standards
		International Accounting Standards
		Country Focus Chinese Accounting
		Accounting Aspects of Control Systems
			Exchange Rate Changes and Control Systems
			Transfer Pricing and Control Systems
			Separation of Subsidiary and Manager Performance
		Financial Management: The Investment Decision
			Capital Budgeting
			Project and Parent Cash Flows
		Management Focus Black Sea Oil and Gas Ltd.
			Adjusting for Political and Economic Risk
			Risk and Capital Budgeting
		Financial Management: The Financing Decision
		Financial Management: Global Money Management
			Minimizing Cash Balances
			Reducing Transaction Costs
			Managing the Tax Burden
		Management Focus Microsoft and Its Foreign Cash Holdings
			Moving Money across Borders
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case Shoprite: The Financial Success of a Food Retailer in Africa
		Endnotes
part seven Integrative Cases
	Globalization of BMW, Rolls-Royce, and the MINI
	The Decline of Zimbabwe
	Economic Development in Bangladesh
	The Swatch Group and Cultural Uniqueness
	Woolworths’ Corporate Responsibility Strategy
	The Trans Pacific Partnership (TPP) Is Dead: Long Live the CPTPP!
	Boeing and Airbus Are in a Dogfight over Illegal Subsidies
	FDI in the Indian Retail Sector
	Free Trade in Africa
	The Mexican Peso, the Japanese Yen, and Pokémon Go
	Egypt and the IMF
	Alibaba’s Record-Setting IPO
	Sony Corporation: Still a Leader Globally?
	Organizational Architecture at P&G
	Cutco Corporation—Sharpening Your Market Entry
	Tata Motors and Exporting
	Alibaba and Global Supply Chains
	Best Buy Doing a Turnaround Again
	Sodexo: Building a Diverse Global Workforce
	Tesla, Inc.—Subsidizing Tesla Automobiles Globally
Glossary
Indexes