International Business: Perspectives from Developed and Emerging Markets

Cover
Half Title
Title Page
Copyright Page
Dedication
Brief Contents
Detailed Contents
Feature Topics
List of Photographs and Exhibits
About the Authors
Preface
Acknowledgments
Part One Introduction to International Business
	Chapter 1 Competing in the Global Marketplace
		The Nature of International Business
		Globalization: A Dynamic Context for International Business
			Types of Economies in the Global Marketplace: The Arrived, the Coming, and the Struggling
		Globalization Drivers
			Lowering the Barriers of National Borders: Making Trade and Cross-border Investment Easier
			Locate and Sell Anywhere to Anybody: It’s No Longer Only for Manufacturing but Services as Well
			The Rise of Emerging Markets and Emerging Market Multinationals
			Information Technology and the Internet: A Necessary Tool for Globally Dispersed Companies
			Increasing Global Products, Services, and Customers
			Can I Buy It in Germany and Use It in India? The Need for Global Standards
		Business Ethics, Environmental Sustainability, and Responsibility
		Plan of the Book
		International Business: A Strategic Approach
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			Pros and Cons of Globalization
			Chapter Internet Activity
			Key Concepts
		Case 1 McDonald’s in India: No Hamburgers Please
			Discussion Questions
		Notes
	Chapter 2 Strategy and the MNC
		Strategic Choices for MNCs
		The Value Chain and Competitive Advantage for the Multinational Company
		Global Integration: Where Can We Do Things Best or Cheapest?
		The Transnational Strategy
		International Strategy
		The Local Responsiveness Strategy: How Far to Go?
		Multidomestic and Regional Strategies
		A Brief Summary and Caveat
		Choosing a Multinational Strategy: How to Solve the Global–Local Dilemma
		Global Markets
			Do Your Customers From Different Countries Have Similar Needs?
			Are There Global Customers?
			Can You Transfer Marketing Activities to Other Countries?
		Globalization Cost Drivers
			Are There Global Economies of Scale?
			Are There Global Sources of Low-cost Raw Materials or Components?
			Are There Cheaper Sources of Skilled Labor?
			Are Product Development Costs High?
		Governments
			Do Many Countries Have Favorable Trade Policies for the Industry?
			Do Many Countries Have Regulations that Restrict Operations in the Industry?
		The Competition
			What Strategies Do Your Competitors Use?
			What Is the Volume of Imports and Exports in the Industry?
		A Caveat
		How to Make the Transnational or International Choice
		Diversity and Inclusion Brief
			Hiring Diverse Local Talent in an MNC’s Transnational Strategy
		Company-Situation Analysis and the Multinational Strategy Choice
		Risks in an International Environment
		Multinational Responses to Crises
			Multinational Responses to Russia and the Ukraine War
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			Identifying the Value-chain and Multinational Strategies
			Chapter Internet Activity
			Key Concepts
		Case 2 Jollibee Foods Corporation
			Discussion Questions
		Notes
Part Two The Global Context of Multinational Competitive Strategy
	Chapter 3 Global and Regional Economic Integration: An Evolving Competitive Landscape
		Dropping Barriers to World Trade: GATT and the WTO
			Is Free Trade Working?
			Are RTAs Friend or Foe to World Trade?
				Types of Regional Trade Agreements
				Motivations for Regional Trade Agreements
				Are Regional Trade Agreements Good for Business?
			Regional Trade Agreements: A Look Inside
				European Union
				History and Organization of the EU
				United States, Mexico, Canada Agreement – Formerly NAFTA
				Asia-Pacific Economic Cooperation
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			Understanding the WTO Debate
			Chapter Internet Activity
			Key Concepts
		Case 3 What Happens to Emerging Markets if the Euro Crashes?
			Discussion Questions
		Notes
	Chapter 4 Global Trade and Foreign Direct Investment
		History of Trade Theory
			Mercantilism: Early Thinking
		Foundations of Modern Trade Theory
			Absolute Advantage: The World According to Adam Smith
			Comparative Advantage: The World According to David Ricardo
				Comparative Advantage and Production Gains
				Comparative Advantage and Consumption Gains
		The Heckscher–Ohlin Theory and the Role of Factor Endowments
			The Leontief Paradox
			Updating the HO Theory
		The Product Life Cycle: A Technology Innovation View
		New Trade Theory
			Michael Porter and the Competitive Advantage of Nations
			Firm Strategy, Structure, and Rivalry
			Related and Supporting Industries
			Demand Conditions
			Factor Endowments
		Evaluating Trade Theories: What Do They Tell Us?
		Arguments Against Free Trade
			Free Trade as a Threat to National Sovereignty
			Protecting Infant Industries
			Fair Trade
			Protecting the Environment
			Job Loss
		Foreign Direct Investment
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			A Simulation of International Trade
			Chapter Internet Activity
			Key Concepts
		Case 4 Vietnam: FDI Magnet?
			Discussion Questions
		Notes
	Chapter 5 Foreign Exchange and Capital Markets
		The Foreign Exchange Market
		Types of Foreign Exchange Transactions
		The History of Exchange-rate Systems
			The Gold Standard
			The Bretton Woods Agreement
			Exchange Rates in Practice: Purchasing Power Parity
			Managing the Exchange-Rate Market: Risks and Hedging
		Global Capital Markets
			What Are Capital Markets?
			The Bond Market
			The Stock Market
		Global Financial Markets
			Global Banking
			The International Bond Market
		Diversity and Inclusion Brief
			How to Participate in Financing When Interest Is Forbidden?
			Global Stock (Equity) Market
				An Alternative Way to List on a Foreign Exchange
			A Changing Future for the World’s Stock Markets
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			Formulating a Hedging Strategy
			Chapter Internet Activity
			Key Concepts
		Case 5 Weak or Strong Dollar: Which Is Better for Emerging Markets?
			Discussion Questions
		Notes
Part Three The Institutional and Cultural Context of Multinational Competitive Strategy
	Chapter 6 Culture and International Business
		National Culture
			National Culture Components
		National Culture: Hofstede and the Global Organizational Behavior and Leadership Studies
			Hofstede’s Model of National Culture
			The Global Leadership and Organizational Behavior Studies Model of Culture
		National Culture and Business Culture
		National Culture: Some Cautions and Caveats
		National Culture: Cross-cultural Training
			Culture Training Methods
			Culture Training: Best Practices
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			Designing a Cross-cultural Training Program
			Chapter Internet Activity
			Key Concepts
		Case 6 A Clash Of Cultures
			Discussion Questions
		Notes
	Chapter 7 The Strategic Implications of Economic, Legal, and Religious Institutions for International Business
		Social Institutions
		Economic Systems
			International Business Implications of Economic Systems
		Legal Systems
			Types of Legal Systems
			Other Aspects of the Legal Environment: The “Doing Business” Project
		Political and Social Risk
		Religion
			Buddhism
			Christianity
			Hinduism
			Islam
			Judaism
			Confucianism
		Dealing with Institutional Voids
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			Chapter Internet Activity
			Key Concepts
		Case 7 Islamic Finance: A Growing Niche in the Global Financial Market
			Discussion Questions
		Notes
Part Four Multinational Operational and Functional Strategies
	Chapter 8 Entry Strategies for MNCs
		MNC Entry Strategies
		Exporting
			Active Export Strategies
			Which Way to Go – Passive or Direct?
		Licensing and Franchising
			International Franchising: A Special Licensing Agreement
			When to Choose a Licensing Entry Strategy
			When to Choose Franchising
			The Impact of Covid 19 Pandemic on Franchising
			Some Disadvantages of Licensing and Franchising
		International Strategic Alliances
			When to Choose Strategic Alliances
				The Local Partner’s Knowledge of Their Market
				Local Government Regulations and Requirements
				Sharing Risks among Partners
				Sharing Technology
				Economies of Scale
		Foreign Direct Investment
			FDI Advantages and Disadvantages
		Selecting the Entry Strategy: Some General Strategic Considerations
			Strategic Intent
			Company Capabilities
			Local Government Regulations
			Target Market and Product Characteristics
			Cultural and Geographic Distance
			Political and Financial Risks of the Investment
			Need for Control
		Entry Strategies and Multinational Strategies
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			Identifying the Value-chain Activities and Entry Strategies
			Chapter Internet Activity
			Key Concepts
		Case 8 Frito-Lay with Chinese Characters
			Discussion Questions
		Notes
	Chapter 9 International Marketing and Supply-chain Management for MNCs
		Market Research – The Knowledge Advantage
		Understanding Global Demand – Segmentation
		Products and Brands – Global or Local?
			Global and Local Branding
		Delivering Products across the Globe – Distribution and Supply Chains
			Retailing in Global Markets
			Wholesaling in Global Markets
			Global Supply-Chain Management
		Pricing – Global or Local?
		Talking to Customers across the Globe – Marketing Communications
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			Test Your Cross-cultural Advertisements
			Chapter Internet Activity
			Key Concepts
		Case 9 Walmart’s Formula for Success May Not Be Universal
			Discussion Questions
		Notes
	Chapter 10 International Financial Management and Accounting for MNCs
		International Financial Management for MNCS
			The Cost of Capital and Project Valuation
			MNC Capital Structure
			Cost of Capital for the MNC
				Access to International Capital Markets
			How MNCs Decide on the Mixture of Debt and Equity in Their Capital Structure
				Company Factors
				Country Factors
		International Accounting for MNCs
			Why Are the Financial Reporting Standards Important for International Business?
			Accounting for Exchange Rates
			Foreign Currency Transactions
			Foreign Currency Translation
			Foreign Currency Translation Rules for US Firms and for International Accounting Standards
			Major International Managerial Accounting Issues: Transfer Pricing and International Taxation
			Transfer Pricing
				Why Have Transfer Pricing?
				Factors Affecting Transfer Pricing
			International Taxation
				Tax Planning Strategies for the MNC
			Social Responsibility Reporting and Accounting
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			Making NPV Decisions
			Chapter Internet Activity
			Key Concepts
		Case 10 International Capital Budgeting
			Discussion Questions
		Notes
	Chapter 11 Organizational Structures for MNCs
		Organizational Design: Challenges, Forms, and Basic Designs
			The Functions of Organizational Design
		Organizational Designs for Multinationals
			The Export Department
			The International Division
			Worldwide Geographic Structure
			Worldwide Product Structure
			The Matrix and the Transnational Network Structure
			Choosing the Appropriate Structure: Strategy and Structure
		Coordination Mechanisms
			Coordination and Integration
			Teams
			Global Virtual Teams
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			Building a Knowledge Management System
			Chapter Internet Activity
			Key Concepts
		Case 11 San Miguel Corporation: From Beer to Planes, Trains, Roads and More
			Discussion Questions
		Notes
	Chapter 12 International Human Resource Management
		International Human Resource Management: The International Setting
			Recruitment and Selection
			Training and Development
			Performance Appraisal
			Compensation
		Labor Relations
		Expatriates
			Cost of Expatriates
			Expatriate Failure
			Ensuring Expatriate Success
			The Future: Non-traditional and Women Expatriates?
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			Chapter Internet Activity
			Key Concepts
		Case 12 An American Expat in Costa Rica
			Discussion Questions
		Notes
	Chapter 13 E-commerce and the MNC
		E-commerce: Definitions, Types, and Importance
		Internet and E-commerce Structure
		E-commerce and Globalization
			Global E-commerce Opportunities and Threats
		Key Cross-cultural and Global E-commerce Issues
			Cross-cultural E-commerce Adoption and Diffusion
			Cross-cultural Consumer Trust in E-commerce
			Cross-cultural Web Design
		Building a Successful Global E-commerce Strategy
			Important Aspects of a Successful E-commerce Strategy
		Cyber and E-commerce Security
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			Designing an International Website
			Chapter Internet Activity
			Key Concepts
		Case 13 Alibaba: The Imperial Dragon of E-commerce
			Discussion Questions
		Notes
Part Five Ethical Management in the International Context
	Chapter 14 Managing Ethical and Social Responsibility in an MNC
		International Ethics and Social Responsibility
		Key Global Ethics Issues
			Labor Rights
			Environmental Pollution
			Corruption and Bribery
		Dealing with Global Ethics
			Multinational Approach to Global Ethics: Ethical Relativism vs Ethical Universalism
			Pressures Supporting Ethical Universalism
		Building the Socially Responsible Company
			Stakeholder Analysis
			Code of Conduct
			Successful Implementation of Codes of Conduct
			Ethics Monitoring and Enforcement
			Other Key Elements of the Successful Socially Responsible Multinational
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			Determining Key Areas of Corporate Social Responsibility
			Chapter Internet Activity
			Key Concepts
		Case 14 Blood Diamonds: Are There More Socially Responsible Solutions?
			Discussion Questions
		Notes
	Chapter 15 International Entrepreneurship
		Entrepreneurship: Types and Factors Leading to Entrepreneurship
			Factors Encouraging Entrepreneurship
			Barriers to Entrepreneurship: Women, Minority, and Immigrant Entrepreneurs
		Corporate Entrepreneurship and Born Globals
		Building Entrepreneurship
		Multinationals and Entrepreneurship
		Chapter Review
			Discussion Questions
			International Business Skill Builder
			Building a Knowledge Management System
			Chapter Internet Activity
			Key Concepts
		Case 15 A Bold Franchise Move
			Discussion Questions
		Notes
Index