International business : the new realities

Cover
International Business
About the Authors
Brief Contents
Contents
Preface
Part 1 Foundation Concepts
	Introduction: What Is International Business?
		Facebook: A Global Phenomenon
		What Are the Key Concepts in International Business?
			The Nature of International Trade
			The Nature of International Investment
			Services as Well as Products
			The International Financial Services Sector
		How Does International Business Differ from Domestic Business?
			The Four Risks in Internationalization
		Who Participates in International Business?
			Multinational Enterprise (MNE)
			Governments and Nongovernmental Organizations (NGOs)
		Global Trend: UNIQLO: A Japanese international Success
		Why Do Firms Internationalize?
		Why Study International Business?
			Facilitator of the Global Economy and Interconnectedness
			Contributor to National Economic Well-Being
			A Competitive Advantage for the Firm
			A Competitive Advantage for You
			An Opportunity to Support Sustainability and Corporate Citizenship
		You Can Do It | Recent Grad in IB: Ashley lumb
		Closing Case: internationalization at Harley-Davidson
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
	Globalization of Markets and the Internationalization of the Firm
		Bangalore: IT’s Global Destination
		Why Globalization Is Not New
			Phases of Globalization
		Market Globalization: An Organizing Framework
		Dimensions of Market Globalization
		Drivers of Market Globalization
		Technological Advances
			Information Technology
			Communications
			Manufacturing
			Transportation
		Societal Consequences of Market Globalization
		Global Trend: Globalization and E-Business in the online World
			Contagion: Rapid Spread of Monetary or Financial Crises
			Loss of National Sovereignty
			Offshoring and the Flight of Jobs
			Effect on the Poor
			Effect on Sustainability and the Natural Environment
			Effect on National Culture
			Globalization and Africa
		Firm-level Consequences of Market Globalization: Internationalization of the Firm’s Value Chain
		Closing Case: Debating the Merits of Globalization
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
	Organizational Participants That Make International Business Happen
		The Emergence of Born Global Firms
		Four Types of Participants in International Business
		Participants Arranged by Value-Chain Activity
			Illustrating the International Value Chain Using Nokia
		Focal Firms in International Business
			The Multinational Enterprise (MNE)
			Small and Medium-Sized Enterprises
			Born Global Firms
		International Entry Strategies of Focal Firms
			A Framework for Classifying International Entry Strategies
			Other Types of International Entry Strategies
		Distribution Channel Intermediaries in International Business
			Intermediaries Based in the Foreign Market
			Intermediaries Based in the Home Country
			Online Intermediaries
		Facilitators in International Business
		Global Trend: online Retailers Surge Ahead
		Governments in International Business
		Closing Case: DHl, FedEx, and UPS: Shifting Fortunes in the Global logistics Services industry
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ internet Exercises
Part 2 The Environment of International Business
	The Cultural Environment of International Business
		Culture and Management: Google in China
		The Nature of Cross-Cultural Risk
		Characteristics of Culture
			What Culture Is Not
			Socialization and Acculturation
			The Many Dimensions of Culture
		Lenses to Understand Culture
			High- and Low-Context Cultures
			Hofstede’s Research on National Culture
			Cultural Metaphors
			Idioms
		Subjective and Objective Dimensions of Culture
			Values and Attitudes
			Deal versus Relationship Orientation
			Example: Contrasting Mexico and the United States
			Manners and Customs
			Perceptions of Time
			Perceptions of Space
			Religion
			Symbolic Productions
			Material Productions and Creative Expressions of Culture
		Language: A Key Dimension of Culture
		Cultural Change
			Technology, the Internet, and Culture
			Globalization’s Effect on Culture: Are Cultures Converging?
		Context of International Business
			Culture and the Services Sector
		Overcoming Cross-Cultural Risk: Managerial Guidelines
		You Can Do It | Recent Grad in IB: Zhibo (Lawrence) Yu
		Global Trend: Minimizing Cross-Cultural Bias with Critical Incident Analysis
		Closing Case: Hollywood’s Influence on Global Culture
		Chapter Essentials: Key Terms
		Summary
		Test your Comprehension
		Apply your Understanding
		GlobalEDGE™ internet Exercises
	Ethics, Sustainability, and Corporate Social Responsibility in International Business
		Corporate Social Responsibility at Coca-Cola
		Ethical Challenges in International Business
			Intellectual Property Violations
			Bribery
			Corruption
		Key Aspects of International Ethics
			The Value of Behaving Ethically
			Variation in Ethical Standards Among Countries
			An Ethical Dilemma
			Linking Ethics, Corruption, and Responsible Behavior
		Corporate Social Responsibility
			The Value of CSR
		The Role of Sustainability in International Operations
		Global Trend: Global Corporate Social Responsibility Rises to the Top of the MNE Agenda
		Corporate Governance and Its Implications for Managers
			Code of Conduct
			Deciding What Constitutes Ethical Behavior
		A Framework for Making Ethical Decisions
			Embracing CSR and Sustainability
			A Global Consensus
		Closing Case: Corruption at Siemens
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ internet Exercises
	Theories of International Trade and Investment
		Apple’s Comparative and Competitive Advantages
		Why Do Nations Trade?
			Classical Theories
		How Can Nations Enhance Their Competitive Advantage?
			Contemporary Theories
		Global Trend: Moving from Comparative to National Competitive Advantages
		Why and How Do Firms Internationalize?
			Company Internationalization
		How Can Internationalizing Firms Gain and Sustain Competitive Advantage?
			FDI-Based Explanations
			Non-FDI-Based Explanations
		Closing Case: Hyundai: leading the Way in the Global Auto Industry
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
	Political and Legal Systems in National Environments
		The Political and Legal Realities of Doing Business in China
		The Nature of Country Risk
			How Prevalent Is Country Risk?
		Political and Legal Environments in International Business
		Political Systems
			Totalitarianism
			Socialism
			Democracy
			Democracy’s Link to Economic Freedom and Openness
			The Relationship between Political Systems and Economic Systems
		Legal Systems
			Common Law
			Civil Law
			Religious Law
			Mixed Systems
		Participants in Political and Legal Systems
			Government
			International Organizations
			Regional Economic Blocs
			Special Interest Groups
			Competing Firms
		Types of Country Risk Produced by Political Systems
			Government Takeover of Corporate Assets
			Embargoes and Sanctions
			Boycotts against Firms or Nations
			Terrorism
			War, Insurrection, and Violence
			Example: Country Risk in the Middle East
		Types of Country Risk Produced by Legal Systems
			Country Risk Arising from the Host-Country Legal Environment
			Country Risk Arising from the Home-Country Legal Environment
		Global Trend: Evolving legal Aspects of E-Commerce
		Managing Country Risk
			Proactive Environmental Scanning
			Strict Adherence to Ethical Standards
			Alliances with Qualified Local Partners
			Protection Through Legal Contracts
		Closing Case: Political, legal, and Ethical Dilemmas in the Global Pharmaceutical industry
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
	Government Intervention in International Business
		Qatar Welcomes New Foreign Investment
		The Nature of Government Intervention
		Rationale for Government Intervention
			Defensive Rationale
			Offensive Rationale
		Instruments of Government Intervention
			Tariffs
			Nontariff Trade Barriers
			Investment Barriers
			Subsidies and Other Government Support Programs
		Consequences of Government Intervention
		Evolution of Government Intervention
			General Agreement on Tariffs and Trade
		Global Trend: The World Trade Organization and Collapse of the Doha Round
			Intervention and the Global Financial Crisis
		How Firms Can Respond to Government Intervention
			Strategies for Managers
		Closing Case: Government Intervention at Airbus and Boeing
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
	Regional Economic Integration
		Evolution of the European Union
		Regional Integration and Economic Blocs
		Levels of Regional Integration
		The Leading Economic Blocs
			The European Union (EU)
			European Free Trade Association (EFTA)
			North American Free Trade Agreement (NAFTA)
		Global Trend: Troubles in the European Union
			El Mercado Comun del Sur (MERCOSUR)
			The Caribbean Community (CARICOM)
			Comunidad Andina de Naciones (CAN)
			Association of Southeast Asian Nations (ASEAN)
			Asia Pacific Economic Cooperation (APEC)
			Australia and New Zealand Closer Economic Relations Agreement (CER)
			Economic Integration in the Middle East and Africa
		Advantages of Regional Integration
		Success Factors for Regional Integration
		Ethical Dilemmas and Drawbacks of Regional Integration
			Sustainability of Firms and National Assets
		Management Implications of Regional Integration
		Closing Case: H&M: Choosing between Global and Regional Free Trade
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
	Understanding Emerging Markets
		The New Global Challengers: MNEs from Emerging Markets
		Advanced Economies, Developing Economies, and Emerging Markets
			Advanced Economies
			Developing Economies
			Emerging Market Economies
		What Makes Emerging Markets Attractive for International Business
		Global Trend: China’s Evolving opportunities and Challenges
			Emerging Markets as Target Markets
			Emerging Markets as Manufacturing Bases
			Emerging Markets as Sourcing Destinations
		Assessing the True Potential of Emerging Markets
			Per-Capita Income as an Indicator of Market Potential
			Middle Class as an Indicator of Market Potential
		Risks and Challenges of Emerging Markets
			Political Instability
			Weak Intellectual Property Protection
			Bureaucracy, Red Tape, and Lack of Transparency
			Poor Physical Infrastructure
			Partner Availability and Qualifications
			Dominance of Family Conglomerates
		Success Strategies for Emerging Markets
			Customize Offerings to Unique Emerging Market Needs
			Partner with Family Conglomerates
		You Can Do It | Recent Grads in IB: Andrew & Jamie Waskey
			Target Governments in Emerging Markets
			Skillfully Challenge Emerging Market Competitors
		Corporate Social Responsibility, Sustainability, and the Crisis of Global Poverty
			Foster Economic Development with Profitable Projects
			Microfinance to Facilitate Entrepreneurship
		The Special Case of Africa
		Closing Case: Prowling for Success: The Revival of Jaguar land Rover
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
	The International Monetary and Financial Environment
		The European Union and the Euro
		Exchange Rates and Currencies in International Business
			Convertible and Nonconvertible Currencies
			Foreign Exchange Markets
			Currency Risk
		How Exchange Rates Are Determined
			Economic Growth
			Inflation and Interest Rates
			Market Psychology
			Government Action
		Emergence of the Modern Exchange Rate System
			The Bretton Woods Agreement
			The Modern Exchange Rate System
		The Monetary and Financial Systems
			International Monetary System
			Global Financial System
		Global Trend: Global Financial Crisis
		Key Players in the Monetary and Financial Systems
			The Firm
			National Stock Exchanges and Bond Markets
			Commercial Banks
		You Can Do It | Recent Grads in IB: Maria Keeley
			Central Banks
			The Bank for International Settlements
			International Monetary Fund
			The World Bank
		The Global Debt Crisis
		Closing Case: AiG and Global Financial Contagion
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
Part 3 Strategy and Opportunity Assessment
	Strategy and Organization in the International Firm
		IKEA’s Global Strategy
		Strategy in International Business
		Building the Global Firm
			Visionary Leadership
			Organizational Culture
			Organizational Processes
			The Distinction between Multidomestic and Global Industries
		The Integration-Responsiveness Framework
			Pressures for Global Integration
			Pressures for Local Responsiveness
		Strategies Based on the Integration-Responsiveness Framework
		Organizational Structure
			Centralized or Decentralized Structure?
		Organizational Structures for International Operations
			Export Department
			International Division Structure
			Geographic Area Structure (Decentralized Structure)
			Product Structure (Centralized Structure)
			Functional Structure (Centralized Structure)
			Global Matrix Structure
		Closing Case: lenovo—The Global Challenger from an Emerging Market
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
	Global Market Opportunity Assessment
		Estimating Demand in Emerging Markets
		Task One: Analyze Organizational Readiness to Internationalize
		Task Two: Assess the Suitability of Products and Services for Foreign Markets
		Task Three: Screen Countries to Identify Target Markets
			Screening Countries for Exporting
		Global Trend: Global Macro Trends That Affect international Business
			Country Screening for Foreign Direct Investment
			Country Screening for Sourcing
		Task Four: Assess Industry Market Potential
			Data Sources for Estimating Industry Market Potential
		Task Five: Choosing Foreign Business Partners
		You Can Do It | Recent Grad in IB: Javier Estrada
			Criteria for Choosing a Partner
			Searching for Prospective Partners
		Task Six: Estimate Company Sales Potential
			Practical Approaches to Estimating Company Sales Potential
			In Conclusion
		Closing Case: Advanced Biomedical Devices: Assessing Readiness to Export
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
Part 4 Entering and Operating in International Markets
	Exporting and Countertrade
		Li-Ning: Athletic Apparel Entering the U.S. Again
		An Overview of Foreign Market Entry Strategies
		Characteristics of Internationalization
			Diverse Motives for Pursuing Internationalization
			The Nature of Internationalization
		Exporting as a Foreign Market Entry Strategy
			Exporting and the Global Economy
			Exporting: A Popular Entry Strategy
			Service Sector Exports
			Advantages and Disadvantages of Exporting
		Global Trend: The Emergence of SME Exporters
			A Systematic Approach to Exporting
			Importing
		Managing Export-Import Transactions
			Documentation
			Shipping and Incoterms
		Payment Methods in Exporting and Importing
			Cash in Advance
			Letter of Credit
			Open Account
		Export-Import Financing
			Commercial Banks
			Factoring, Forfaiting, and Confirming
			Distribution Channel Intermediaries
			Buyers and Suppliers
			Intracorporate Financing
			Government Assistance Programs
			Multilateral Development Banks (MDBs)
		Identifying and Working with Foreign Intermediaries
			Working with Foreign Intermediaries
			When Intermediary Relations Go Bad
		Countertrade: A Popular Approach for Emerging Markets and Developing Economies
			Magnitude and Drivers of Countertrade
			Types of Countertrade
			Risks of Countertrade
			Why Consider Countertrade?
		Closing Case: Barrett Farm Foods: A Small Firm’s international Launch
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
	Foreign Direct Investment and Collaborative Ventures
		Huawei’s Investments in Africa
		International Investment and Collaboration
			Trends in Foreign Direct Investment and Collaborative Ventures
		Motives for FDI and Collaborative Ventures
			Market-Seeking Motives
			Resource- or Asset-Seeking Motives
			Efficiency-Seeking Motives
		Characteristics of Foreign Direct Investment
		You Can Do It | Recent Grad in IB: Jennifer Knippen
			Challenges of FDI
			Corporate Social Responsibility, Sustainability, and FDI
			Most Active Firms in FDI
			Service Firms and FDI
			Leading Destinations for FDI
			Factors to Consider in Choosing FDI Locations
		Types of Foreign Direct Investment
			Greenfield Investment versus Mergers and Acquisitions
			The Nature of Ownership in FDI
			Vertical versus Horizontal Integration
		Global Trend: FDi in the Global Economy
		International Collaborative Ventures
			Equity Joint Ventures
			Project-Based, Nonequity Ventures
			Differences between Equity and Project-Based, Nonequity Ventures
			Consortium
			Cross-Licensing Agreements
		Managing Collaborative Ventures
			Understand Potential Risks in Collaboration
			Pursue a Systematic Process for Partnering
			Ensure Success with Collaborative Ventures
		The Experience of Retailers in Foreign Markets
			Challenges of International Retailing
			International Retailing Success Factors
		Closing Case: DaimlerChrysler: A Failed Global Merger
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
	Licensing, Franchising, and Other Contractual Strategies
		Harry Potter: The Magic of Licensing
		Contractual Entry Strategies
			Unique Aspects of Contractual Relationships
		Licensing as an Entry Strategy
			Trademark and Copyright Licensing
			Know-How Licensing
			The World’s Top Licensing Firms
		Advantages and Disadvantages of Licensing
			Advantages of Licensing
			Disadvantages of Licensing
		Franchising as an Entry Strategy
			Who Are the Top Global Franchisors?
		Global Trend: internationalization of Franchising: Emerging Markets
		Advantages and Disadvantages of Franchising
			The Franchisor Perspective
			The Franchisee Perspective
			Managerial Guidelines for Licensing and Franchising
		Other Contractual Entry Strategies
			Turnkey Contracting
			Build-Operate-Transfer Arrangements (BOT)
			Management Contracts
			Leasing
			The Special Case of Internationalization by Professional Service Firms
		Infringement of Intellectual Property: A Global Problem
		Guidelines for Protecting Intellectual Property
		Closing Case: Subway and the Challenges of Franchising in China
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
	Global Sourcing
		Global Sourcing of Pharmaceutical Drug Trials
		Outsourcing, Global Sourcing, and Offshoring
			Decision 1: Outsource or Not?
			Decision 2: Where in the World Should Value-Adding Activities Be Located?
			Global Sourcing
			Offshoring
			Scope of Global Sourcing
			Diversity of Countries That Initiate and Receive Outsourced Work
		Global Trend: China and india: Chief Rivals in the Global Sourcing Game
			Strategic Choices in Global Sourcing
		Benefits of Global Sourcing
			Cost Efficiency
			Ability to Achieve Strategic Goals
		Risks of Global Sourcing
		Strategies for Minimizing the Risks of Global Sourcing
		Implementing Global Sourcing Through Supply-Chain Management
			Information and Communications Technology
			Logistics and Transportation
			Transportation Modes
		Global Sourcing, Corporate Social Responsibility, and Sustainability
			Potential Harm to Local and National Economy from Global Sourcing
			Public Policy on Global Sourcing
		Closing Case: Wolverine World Wide
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
Part 5 Functional Area Excellence
	Marketing in the Global Firm
		Emaar Properties: Entry to the Egyptian Market
		Global Market Segmentation
		Standardization and Adaptation of International Marketing
			Standardization
			Adaptation
		You Can Do It | Recent Grad in IB: John Dykhouse
			Standardization and Adaptation: A Balancing Act
		Global Branding and Product Development
			Global Branding
			Global Product Development
		Global Trend: Growing Role for Marketing in Developing Economies
		International Pricing
			Factors That Affect International Pricing
			A Framework for Setting International Prices
			Managing International Price Escalation
			Managing Pricing Under Varying Currency Conditions
			Transfer Pricing
			Gray Market Activity (Parallel Imports)
		International Marketing Communications
			International Advertising
			International Promotional Activities
		International Distribution
			Global Account Management
		Closing Case: H&M: international Marketing Success Story
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
	Human Resource Management in the Global Firm
		Etisalat Egypt: Attracting and Maintaining the Best Employees
		The Strategic Role of Human Resources in International Business
			Differences between Domestic and International HRM
			Key Tasks in International Human Resource Management
		International Staffing Policy
			Recruiting, Selecting, and Developing Talent
			Cultivating Global Mind-Sets
			Cultural Intelligence
			Expatriate Assignment Failure and Culture Shock
		Preparation and Training of International Employees
			Preparing Employees for Repatriation
			Charting Global Careers for Employees
		International Performance Appraisal
		Compensation of Employees
		International Labor Relations
			Distinctive Features of Labor Around the World
			Cost, Quality, and Productivity of Labor
			Workforce Reduction and Employee Termination
			International Labor Trends
			Firm Strategy in International Labor Relations
		Diversity in the International Workforce
			Women in International Business
		Global Trend: Corporate Social Responsibility and Sustainability in international Human Resource Management
			Success Strategies for Women Managers in International Business
		Closing Case: Evolving Human Resource Challenges at Sony
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
	Financial Management and Accounting in the Global Firm
		A Small Firm Rides the Waves of Foreign Exchange
		Key Tasks in International Financial Management
		Task One: Decide on the Capital Structure
		Task Two: Raise Funds for the Firm
			Financial Centers
			Sources of Funds for International Operations
		Global Trend: Emerging Markets as investment Destinations
		Task Three: Manage Working Capital and Cash Flow
			Methods for Transferring Funds Within the MNE
			Multilateral Netting
		Task Four: Perform Capital Budgeting
			Net Present Value Analysis of Capital Investment Projects
		Task Five: Manage Currency Risk
			Three Types of Currency Exposure
			Foreign-Exchange Trading
			Types of Currency Traders
			Exchange-Rate Forecasting
			Managing Exposure to Currency Risk Through Hedging
			Hedging Instruments
			Best Practice in Minimizing Currency Exposure
		Task Six: Manage the Diversity of International Accounting and Tax Practices
			Transparency in Financial Reporting
			Trends Toward Harmonization
			Consolidating the Financial Statements of Subsidiaries
			International Taxation
			Managing International Finance to Minimize Tax Burden
		Closing Case: international Financial operations at Tektronix
		Chapter Essentials: Key Terms
		Summary
		Test Your Comprehension
		Apply Your Understanding
		GlobalEDGE™ Internet Exercises
Glossary
Notes
Author Index
Company Index
Subject Index