- Cover
- Title Page
- Copyright Page
- Brief Contents
- Contents
- Dedication Page
- Preface
- Acknowledgments
- About the Authors
- Part 1 Global Business Environment
- Chapter 1 Globalization
- Ray-Ban: Looking Good Again
- 1.1 Key Players in International Business
- Multinational Corporations
- Entrepreneurs and Small Businesses
- manager’s briefcase: The Keys to Global Success
- 1.2 What Is Globalization?
- Globalization of Markets
- global sustainability: Three Markets, Three Strategies
- Globalization of Production
- 1.3 Forces Driving Globalization
- Falling Barriers to Trade and Investment
- Technological Innovation
- Measuring Globalization
- 1.4 Debate about Jobs and Wages
- Against Globalization
- For Globalization
- Summary of the Jobs and Wages Debate
- 1.5 Debate about Income Inequality
- Inequality within Nations
- Inequality between Nations
- Global Inequality
- 1.6 Debate about Culture, Sovereignty, and the Environment
- Globalization and Culture
- culture Matters: The Culture Debate
- Globalization and National Sovereignty
- Globalization and the Environment
- 1.7 Developing Skills for Your Career
- The Global Business Environment
- The Road Ahead for International Business
- bottom line for business
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Market EntryStrategy Project
- Chapter Summary
- Practicing International Management Case
- Appendix World Atlas
- Part 2 National Business Environments
- Chapter 2 Cross-Cultural Business
- Hold the Pork, Please!
- 2.1 What Is Culture?
- National Culture
- Subcultures
- Physical Environment
- Need for Cultural Knowledge
- culture Matters: Creating a Global Mindset
- 2.2 Values and Behavior
- Values
- Attitudes
- Aesthetics
- Appropriate Behavior
- MANAGER’S BRIEFCASE: A Globetrotter’s Guide to Meetings
- 2.3 Social Structure and Education
- Social Group Associations
- Social Status
- Social Mobility
- Education
- 2.4 Religion
- Christianity
- Islam
- Hinduism
- Buddhism
- Confucianism
- Judaism
- Shinto
- 2.5 Personal Communication
- Spoken and Written Language
- GLOBAL SUSTAINABILITY: Speaking in Fewer Tongues
- Body Language
- 2.6 Culture in the Global Workplace
- Perception of Time
- View of Work
- Material Culture
- Cultural Change
- Studying Culture in the Workplace
- bottom line for business
- Chapter Summary
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Market Entry Strategy Project
- Practicing International Management Case
- Chapter 3 Political Economy and Ethics
- PepsiCo’s Global Challenge
- 3.1 Political Systems
- Totalitarianism
- GLOBAL SUSTAINABILITY: From Civil War to Civil Society
- Democracy
- MANAGER’S BRIEFCASE: Your Global Security Checklist
- 3.2 Economic Systems
- Centrally Planned Economy
- Mixed Economy
- Market Economy
- 3.3 Legal Systems
- culture Matters: Playing by the Rules
- Common Law
- Civil Law
- Theocratic Law
- 3.4 Global Legal Issues
- Intellectual Property
- Product Safety and Liability
- Taxation
- Antitrust Regulations
- 3.5 Ethics and Social Responsibility
- Philosophies of Ethics and Social Responsibility
- Bribery and Corruption
- Labor Conditions and Human Rights
- Fair Trade Practices
- Environment
- bottom line for business
- Chapter Summary
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Market Entry Strategy Project
- Practicing International Management Case
- Chapter 4 Economic Development of Nations
- Foxconn: Contracting for Growth
- 4.1 Economic Development
- Classifying Countries
- National Production
- Purchasing Power Parity
- Human Development
- 4.2 Economic Transition
- Managerial Expertise
- Shortage of Capital
- Cultural Differences
- Sustainability
- 4.3 Political Risk
- GLOBAL SUSTAINABILITY: Public Health Goes Global
- Conflict and Violence
- Terrorism and Kidnapping
- Property Seizure
- Policy Changes
- Local Content Requirements
- 4.4 Managing Political Risk
- Adaptation
- Information Gathering
- Political Influence
- International Relations
- The United Nations
- 4.5 Emerging Markets and Economic Transition
- China’s Profile
- Chinese Patience and Guanxi
- China’s Challenges
- culture Matters: Guidelines for Good Guanxi
- Russia’s Profile
- Russia’s Challenges
- MANAGER’S BRIEFCASE: Russian Rules of the Game
- bottom line for business
- Chapter Summary
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Market Entry Strategy Project
- Practicing International Management Case
- Part 3 International Trade and Investment
- Chapter 5 International Trade Theory
- From Bentonville to Beijing
- 5.1 Benefits, Volume, and Patterns of International Trade
- Benefits of International Trade
- Volume of International Trade
- International Trade Patterns
- culture Matters: Business Culture in the Pacific Rim
- 5.2 Mercantilism
- How Mercantilism Worked
- Flaws of Mercantilism
- 5.3 Theories of Absolute and Comparative Advantage
- Absolute Advantage
- Comparative Advantage
- 5.4 Factor Proportions Theory
- Labor Versus Land and Capital Equipment
- Evidence on Factor Proportions Theory: The Leontief Paradox
- 5.5 International Product Life Cycle
- Stages of the Product Life Cycle
- Limitations of the Theory
- MANAGER’S BRIEFCASE: Five Fulfillment Mistakes
- 5.6 New Trade Theory
- First-Mover Advantage
- 5.7 National Competitive Advantage
- Factor Conditions
- GLOBAL SUSTAINABILITY: Foundations of Development
- Demand Conditions
- Related and Supporting Industries
- Firm Strategy, Structure, and Rivalry
- Government and Chance
- bottom line for business
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Market Entry Strategy Project
- Chapter Summary
- Practicing International Management Case
- Chapter 6 Political Economy of Trade
- Regulating the Global Textile and Clothing Trade
- 6.1 Why do Governments Intervene in Trade?
- Political Motives
- GLOBAL SUSTAINABILITY: Managing Security in the Age of Globalization
- Economic Motives
- Cultural Motives
- culture Matters: Myths of Small Business Exporting
- 6.2 Instruments of Trade Promotion
- Subsidies
- Export Financing
- Foreign Trade Zones
- MANAGER’S BRIEFCASE: Experts in Export Financing
- Special Government Agencies
- 6.3 Instruments of Trade Restriction
- Tariffs
- Quotas
- Embargoes
- Local Content Requirements
- Administrative Delays
- Currency Controls
- 6.4 Global Trading System
- General Agreement on Tariffs and Trade (GATT)
- World Trade Organization (WTO)
- bottom line for business
- Chapter Summary
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Market Entry Strategy Project
- Practicing International Management Case
- Chapter 7 Foreign Direct Investment
- Das Auto
- 7.1 Pattern of Foreign Direct Investment
- Ups and Downs of FDI
- culture Matters: The Cowboy of Manchuria
- Worldwide Flows of FDI
- 7.2 Theories of Foreign Direct Investment
- International Product Life Cycle
- Market Imperfections (Internalization)
- Eclectic Theory
- Market Power
- 7.3 Management Issues and Foreign Direct Investment
- Control
- Purchase-or-Build Decision
- Production Costs
- MANAGER’S BRIEFCASE: Surprises of Investing Abroad
- Customer Knowledge
- Following Clients
- Following Rivals
- GLOBAL SUSTAINABILITY: Greening the Supply Chain
- 7.4 Why Governments Intervene in FDI
- Balance of Payments
- Reasons for Intervention by the Host Country
- Reasons for Intervention by the Home Country
- 7.5 Government Policy Instruments and FDI
- Host Countries: Promotion
- Host Countries: Restriction
- Home Countries: Promotion
- Home Countries: Restriction
- bottom line for business
- Chapter Summary
- Key Terms
- TALK ABOUT IT 1
- Ethical Challenge
- Teaming Up
- Market Entry Strategy Project
- Practicing International Management Case
- Chapter 8 Regional Economic Integration
- NestlÉ’s Global Recipe
- 8.1 Levels of Integration and the Debate
- Free Trade Area
- Customs Union
- Common Market
- Economic Union
- Political Union
- The Case for Regional Integration
- The Case Against Regional Integration
- 8.2 Integration in Europe
- European Union
- culture Matters: Czech List
- European Free Trade Association (EFTA)
- 8.3 Integration in the Americas
- North American Free Trade Agreement
- Central American Free Trade Agreement (CAFTA-DR)
- Andean Community (CAN)
- Southern Common Market (MERCOSUR)
- Central America and the Caribbean
- Free Trade Area of the Americas (FTAA)
- 8.4 Integration in Asia and Elsewhere
- Association of Southeast Asian Nations (ASEAN)
- Asia Pacific Economic Cooperation (APEC)
- MANAGER’S BRIEFCASE: The Ins and Outs of ASEAN
- Closer Economic Relations (CER) Agreement
- Gulf Cooperation Council (GCC)
- Economic Community of West African States (ECOWAS)
- African Union (AU)
- bottom line for business
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Market Entry Strategy Project
- Chapter Summary
- Practicing International Management Case
- Part 4 The International Financial System
- Chapter 9 International Financial Markets
- Wii Is the Champion
- 9.1 Importance of the International Capital Market
- Purposes of National Capital Markets
- Purposes of the International Capital Market
- GLOBAL SUSTAINABILITY: Big Results from Microfinance
- Forces Expanding the International Capital Market
- World Financial Centers
- 9.2 International Capital Market Components
- International Bond Market
- International Equity Market
- Eurocurrency Market
- 9.3 The Foreign Exchange Market
- Functions of the Foreign Exchange Market
- 9.4 Currency Quotes and Rates
- Quoting Currencies
- Spot Rates
- Forward Rates
- Swaps, Options, and Futures
- 9.5 Market Instruments and Institutions
- Trading Centers
- Important Currencies
- Interbank Market
- Securities Exchanges
- Over-the-Counter Market
- MANAGER’S BRIEFCASE: Managing Foreign Exchange
- Instruments for Restricting Currencies
- bottom line for business
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Market Entry Strategy Project
- Chapter Summary
- Practicing International Management Case
- Appendix Calculating Percent Change in Exchange Rates
- Chapter 10 International Monetary System
- Euro Rollercoaster
- 10.1 Importance of Exchange Rates
- Desire for Predictability and Stability
- Efficient versus Inefficient Market View
- Forecasting Techniques
- Difficulties of Forecasting
- culture Matters: The Long Arm of the Law
- 10.2 What Factors Determine Exchange Rates?
- Law of One Price
- Purchasing Power Parity
- 10.3 Fixed Exchange Rate Systems
- The Gold Standard
- Bretton Woods Agreement
- 10.4 System of Floating Exchange Rates
- Today’s Exchange-Rate Arrangements
- MANAGER’S BRIEFCASE: Adjusting to Currency Swings
- European Monetary System
- Recent Financial Crises
- Future of the International Monetary System
- bottom line for business
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Market Entry Strategy Project
- Chapter Summary
- Practicing International Management Case
- Part 5 International Business Management
- Chapter 11 International Strategy and Organization
- Lidl UK: Britain’s Fastest-Growing Discount Supermarket
- 11.1 Company Analysis
- Company Mission and Goals
- Core Competency and Value-Creation
- MANAGER’S BRIEFCASE: Ask Questions before Going Global
- 11.2 Strategy Formulation
- Two International Strategies
- Corporate-Level Strategies
- Business-Level Strategies
- Department-Level Strategies
- 11.3 Issues of Organizational Structure
- Centralization versus Decentralization
- Coordination and Flexibility
- 11.4 Types of Organizational Structure
- International Division Structure
- International Area Structure
- Global Product Structure
- Global Matrix Structure
- Work Teams
- A Final Word
- Chapter Summary
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Practicing International Management Case
- Chapter 12 Analyzing International Opportunities
- Starbucks Causes Global Jitters
- 12.1 Basic Appeal and National Factors
- Step 1: Identify Basic Appeal
- Step 2: Assess the National Business Environment
- MANAGER’S BRIEFCASE: Conducting Global e-Business
- 12.2 Measure and Select the Market or Site
- Step 3: Measure Market or Site Potential
- Step 4: Select the Market or Site
- 12.3 Secondary Market Research
- International Organizations
- Government Agencies
- Industry and Trade Associations
- Service Organizations
- Internet
- Problems with Secondary Research
- 12.4 Primary Market Research
- Trade Shows and Trade Missions
- culture Matters: Is the World Your Oyster?
- Interviews and Focus Groups
- Surveys
- Environmental Scanning
- Problems with Primary Research
- A Final Word
- Chapter Summary
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Practicing International Management Case
- Chapter 13 Selecting and Managing Entry Modes
- License to Thrill
- 13.1 Exporting, Importing, and Countertrade
- Why Companies Export
- Developing an Export Strategy: A Four-Step Model
- Degree of Export Involvement
- Avoiding Export and Import Blunders
- Countertrade
- 13.2 Export/Import Financing
- Advance Payment
- Documentary Collection
- Letter of Credit
- Open Account
- MANAGER’S BRIEFCASE: Collecting International Debts
- 13.3 Contractual Entry Modes
- Licensing
- Franchising
- Management Contracts
- Turnkey Projects
- 13.4 Investment Entry Modes
- Wholly Owned Subsidiaries
- Joint Ventures
- Strategic Alliances
- 13.5 Strategic Factors in Selecting an Entry Mode
- Selecting Partners for Cooperation
- culture Matters: Negotiating Market Entry
- Cultural Environment
- Political and Legal Environments
- Market Size
- Production and Shipping Costs
- International Experience
- A Final Word
- Chapter Summary
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Practicing International Management Case
- Chapter 14 Developing and Marketing Products
- Wings for Life
- 14.1 Developing Product Strategies
- Laws and Regulations
- Cultural Differences
- Brand and Product Names
- National Image
- Counterfeit Goods and Black Markets
- Shortened Product Life Cycles
- 14.2 Creating Promotional Strategies
- Push and Pull Strategies
- MANAGER’S BRIEFCASE: Managing an International Sales Force
- International Advertising
- Blending Product and Promotional Strategies
- culture Matters: Localizing Websites
- 14.3 Designing Distribution Strategies
- Designing Distribution Channels
- Influence of Product Characteristics
- Special Distribution Problems
- 14.4 Developing Pricing Strategies
- Worldwide Pricing
- Dual Pricing
- Factors That Affect Pricing Decisions
- A Final Word
- Chapter Summary
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Practicing International Management Case
- Chapter 15 Managing International Operations
- Amazon: From a Garage to the Globe
- 15.1 Production Strategy
- Capacity Planning
- Facilities Location Planning
- Process Planning
- Facilities Layout Planning
- 15.2 Acquiring Physical Resources
- Make-or-Buy Decision
- Raw Materials
- Fixed Assets
- 15.3 Key Production Concerns
- Quality Improvement Efforts
- Shipping and Inventory Costs
- MANAGER’S BRIEFCASE: World-Class Standards
- Reinvestment versus Divestment
- 15.4 Financing Business Operations
- Borrowing
- Issuing Equity
- Internal Funding
- culture Matters: Financing Business from Abroad
- Capital Structure
- A Final Word
- Chapter Summary
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Practicing International Management Case
- Chapter 16 Hiring and Managing Employees
- Leaping Cultures
- 16.1 International Staffing Policies
- Ethnocentric Staffing
- Polycentric Staffing
- Geocentric Staffing
- 16.2 Recruiting and Selecting Human Resources
- Human Resource Planning
- MANAGER’S BRIEFCASE: Growing Global
- Recruiting Human Resources
- Selecting Human Resources
- Culture Shock
- Reverse Culture Shock
- culture Matters: A Shocking Ordeal
- 16.3 Training and Development
- Methods of Cultural Training
- Compiling a Cultural Profile
- Nonmanagerial Worker Training
- 16.4 Employee Compensation
- Managerial Employees
- Nonmanagerial Workers
- 16.5 Labor–Management Relations
- Importance of Labor Unions
- A Final Word
- Key Terms
- TALK ABOUT IT 1
- TALK ABOUT IT 2
- Ethical Challenge
- Teaming Up
- Chapter Summary
- Practicing International Management Case
- Endnotes
- Glossary
- Name Index
- Subject Index