Description
International Business: Competing in the Global Marketplace Edition 10
by Charles W. L. Hill EBOOK PDF Instant Download
Table of Contents
About the Author
Brief Contents
part one: Introduction and Overview
CHAPTER 1: Globalization
Opening Case: The Rise of Ecuador’s Rose Industry
Introduction
What Is Globalization
The Globalization of Markets
The Globalization of Production
Management Focus: Vizio and the Market for Flat-Panel TVs
The Emergency of Global Institutions
Drivers of Globalization
Declining Trade and Investment Barriers
The Role of Technological Change
The Changing Demographics of the Global Economy
The Changing World Output and World Trade Picture
The Changing Foreign Direct Investment Picture
Country Focus: India’s Software Sector
The Changing Nature of the Multinational Enterprise
The Changing World Order
The Global Economy of the Twenty-First Century
Management Focus: China’s Hisense—An Emerging Multinational
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
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Who Makes the Apple iPhone?
Endnotes
part two: Country Differences
CHAPTER 2: National Differences in Political Economy
Opening Case: Ghana: An African Dynamo
Introduction
Political Systems
Collectivism and Individualism
Democracy and Totalitarianism
Country Focus: Venezuela under Hugo Chávez, 1999–2013
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 Nigeria
Management Focus: Did Walmart Violate the Foreign Corrupt Practices Act?
The Protection of Intellectual Property
Product Safety and Product Liability
Management Focus: Starbucks Wins Key Trademark Case in China
Implications for Managers
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Poland’s Economy
Endnotes
CHAPTER 3: Political Economy and Economic Development
Opening Case: Political and Economic Reform in Myanmar (Burma)
Introduction
Differences in Economic Development
Map 3.1 GNI per Capita, 2011
Map 3.2 GNI PPP per Capita, 2011
Broader Conceptions of Development: Amartya Sen
Map 3.3 Average Annual Growth Rate in GDP per Capita, 2002–2011
Map 3.4 Human Development Index, 2012
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
Country Focus: Emerging Property Rights in China
Economic Progress Begets Democracy
Geography, Education, and Economic Development
States in Transition
The Spread of Democracy
Map 3.5 Political Freedom in 2012
The New World Order and Global Terrorism
The Spread of Market-Based Systems
Map 3.6 Distribution of Economic Freedom, 2013
The Nature of Economic Transformation
Deregulation
Privatization
Legal Systems
Country Focus: India’s Economic Transformation
Implications of Changing Political Economy
Implications for Managers
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Revolution in Egypt
Endnotes
CHAPTER 4: Differences in Culture
Opening Case: Why did Walmart Fail in Germany?
Introduction
What Is Culture?
Values and Norms
Culture, Society, and the Nation-State
The Determinants of Culture
Social Structure
Individuals and Groups
Social Stratification
Country Focus: Breaking India’s Caste System
Religious and Ethical Systems
Christianity
Map 4.1 World Religions
Islam
Country Focus: Islamic Capitalism in Turkey
Hinduism
Buddhism
Confucianism
Management Focus: DMG-Shanghai
Language
Spoken Language
Unspoken Language
Education
Culture and the Workplace
Cultural Change
Implications for Managers
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Culture and Business in Saudi Arabia
Endnotes
CHAPTER 5: Ethics in International Business
Opening Case: Exporting Used Batteries to Mexico
Introduction
Ethical Issues in International Business
Employment Practices
Human Rights
Management Focus: Making Apple’s iPod
Environmental Pollution
Management Focus: Unocal in Myanmar
Corruption
Management Focus: Corruption at Daimler
Moral Obligations
Ethical Dilemmas
The Roots of Unethical Behavior
Personal Ethics
Decision-Making Processes
Organization Culture
Unrealistic Performance Expectations
Leadership
Societal Culture
Philosophical Approaches to Ethics
Straw Men
Utilitarian and Kantian Ethics
Rights Theories
Justice Theories
Implications for Managers
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Working Conditions in a Chinese Factory
Endnotes
Cases: Siemens Bribery Scandal
Disaster in Bangladesh
Knights Apparel
Japan’s Economic Malaise
Indonesia: The Next Asian Giant?
part three: The Global Trade and Investment Environment
CHAPTER 6: International Trade Theory
Opening Case: Creating the World’s Biggest Free Trade Zone
Introduction
An Overview of Trade Theory
The Benefits of Trade
The Pattern of International Trade
Trade Theory and Government Policy
Mercantilism
Absolute Advantage
Country Focus: Is China a Neo-mercantilist Nation?
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 21st 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
Implications for Managers
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: The Rise of India’s Drug Industry
Appendix: International Trade and the Balance of Payments
Endnotes
CHAPTER 7: The Political Economy of International Trade
Opening Case: China Limits Exports of Rare Earth Metals
Introduction
Instruments of Trade Policy
Tariffs
Country Focus: Are the Chinese Illegally Subsidizing Auto Exports?
Subsidies
Import Quotas and Voluntary Export Restraints
Local Content Requirements
Administrative Policies
Antidumping Policies
Management Focus: U.S. Magnesium Seeks Protection
The Case for Government Intervention
Political Arguments for Intervention
Country Focus: Trade in Hormone-Treated Beef
Economic Arguments for Intervention
The Revised Case for Free Trade
Retaliation and Trade War
Domestic Politics
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 America
Implications for Managers
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: U.S. Tariffs on Tire Imports from China
Endnotes
CHAPTER 8: Foreign Direct Investment
Opening Case: Foreign Retailers in India
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
Management Focus: Foreign Direct Investment by Cemex
Theories of Foreign Direct Investment
Why Foreign Direct Investment?
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
Management Focus: DP World and the United States
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
Implications for Managers
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Walmart in Japan
Endnotes
CHAPTER 9: Regional Economic Integration
Opening Case: Tomato Wars
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 2012
Political Structure of the European Union
Management Focus: The European Commission and Intel
The Single European Act
The Establishment of the Euro
Country Focus: Creating a Single Market in Financial Services
Enlargement of the European Union
Country Focus: The Greek Sovereign Debt Crisis
Regional Economic Integration in the Americas
The North American Free Trade Agreement
Map 9.2 Economic Integration in the Americas
The Andean Community
Mercosur
Central American Common Market, CAFTA, and CARICOM
Free Trade Area of the Americas
Regional Economic Integration Elsewhere
Association of Southeast Asian Nations
Map 9.3 ASEAN Countries
Map 9.4 APEC Members
Asia-Pacific Economic Cooperation
Regional Trade Blocs in Africa
Implications for Managers
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: I Want My Greek TV!
Endnotes
Cases: Legal Outsourcing
The Global Financial Crisis and Protectionism
NAFTA and Mexican Trucking
The Rise of the Indian Automobile Industry
Logitech
part four: The Global Monetary System
CHAPTER 10: The Foreign Exchange Market
Opening Case: The Rise (and Fall) of the Japanese Yen
Introduction
The Functions of the Foreign Exchange Market
Currency Conversion
Insuring against Foreign Exchange Risk
Management Focus: Volkswagen’s Hedging Strategy
The Nature of the Foreign Exchange Market
Economic Theories of Exchange Rate Determination
Prices and Exchange Rates
Country Focus: Quantitative Easing, Inflation, and 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
Implications for Managers
Management Focus: Dealing with the Rising Euro
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Billabong
Endnotes
CHAPTER 11: The International Monetary System
Opening Case: Iceland’s Economic Recovery
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
Country Focus: The U.S. Dollar, Oil Prices, and Recycling Petrodollars
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
Pegged Exchange Rates
Currency Boards
Crisis Management by the IMF
Financial Crises in the Post–Bretton Woods Era
Country Focus: The Mexican Currency Crisis of 1995
Evaluating the IMF’s Policy Prescriptions
Implications for Managers
Management Focus: Airbus and the Euro
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Currency Trouble in Malawi
Endnotes
CHAPTER 12: The Global Capital Market
Opening Case: Declining Cross-Border Capital Flows: Retreat or Reset?
Introduction
Benefits of the Global Capital Market
Functions of a Generic Capital Market
Attractions of the Global Capital Market
Management Focus: Deutsche Telekom 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 Eurobond Market
The Global Equity Market
Foreign Exchange Risk and the Cost of Capital
Implications for Managers
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Industrial and Commercial Bank of China
Endnotes
Cases: South Korean Currency Crisis
Russian Ruble Crisis and Its Aftermath
Caterpillar: Competing in a World of Fluctuating Currencies
part five: The Strategy and Structure of International Business
CHAPTER 13: The Strategy of International Business
Opening Case: Ford’s Global Strategy
Introduction
Strategy and the Firm
Value Creation
Strategic Positioning
Operations: The Firm as a Value Chain
Global Expansion, Profitability, and Profit Growth
Expanding the Market: Leveraging Products and Competencies
Location Economies
Experience Effects
Leveraging Subsidiary Skills
Management Focus: Leveraging Subsidiary Skills at ArcelorMittal
Summary
Cost Pressures and Pressures for Local Responsiveness
Pressures for Cost Reductions
Pressures for Local Responsiveness
Management Focus: Local Responsiveness at MTV Networks
Choosing a Strategy
Global Standardization Strategy
Localization Strategy
Transnational Strategy
International Strategy
Management Focus: Evolution of Strategy at Procter & Gamble
The Evolution of Strategy
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Avon Products
Endnotes
CHAPTER 14: The Organization of International Business
Opening Case: Organizing Siemens to Compete Globally
Introduction
Organizational Architecture
Organizational Structure
Vertical Differentiation: Centralization and Decentralization
Management Focus: The International Division at Walmart
Horizontal Differentiation: The Design of Structure
Management Focus: The Rise and Fall of Dow Chemical’s Matrix Structure
Integrating Mechanisms
Control Systems and Incentives
Types of Control Systems
Incentive Systems
Control Systems, Incentives, and Strategy in the International Business
Processes
Organizational Culture
Creating and Maintaining Organizational Culture
Organizational Culture and Performance in the International Business
Management Focus: Culture and Incentives at Lincoln Electric
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
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Philips NV
Endnotes
CHAPTER 15: Entry Strategy and Strategic Alliances
Opening Case: JCB in India
Introduction
Basic Entry Decisions
Which Foreign Markets?
Timing of Entry
Management Focus: Tesco’s International Growth Strategy
Scale of Entry and Strategic Commitments
Summary
Management Focus: The Jollibee Phenomenon—A Philippine Multinational
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
Greenfield Venture or Acquisition?
Strategic Alliances
The Advantages of Strategic Alliances
The Disadvantages of Strategic Alliances
Making Alliances Work
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: General Motors in China
Endnotes
Cases: The Evolving Strategy of IBM
IKEA in 2013
General Electric’s Joint Ventures
The Globalization of Starbucks
Coca-Cola’s Strategy
part six: International Business Functions
CHAPTER 16: Exporting, Importing, and Countertrade
Opening Case: SteelMaster Buildings
Introduction
The Promise and Pitfalls of Exporting
Management Focus: FCX Systems
Improving Export Performance
An International Comparison
Information Sources
Management Focus: Exporting with a Little Government Help
Utilizing Export Management Companies
Export Strategy
Management Focus: Export Strategy at 3M
Export and Import Financing
Lack of Trust
Letter of Credit
Draft
Bill of Landing
A Typical International Trade Transaction
Export Assistance
Export-Import Bank
Export Credit Insurance
Countertrade
The Popularity of Countertrade
Types of Countertrade
The Pros and Cons of Countertrade
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Vellus Products
Endnotes
CHAPTER 17: Global Production, Outsourcing, and Logistics
Opening Case: Did Boeing Outsource Too Much Work on the 787?
Introduction
Strategy, Production, and Logistics
Where to Produce
Country Factors
Management Focus: Philips in China
Technological Factors
Product Factors
Locating Production Facilities
The Hidden Costs of Foreign Locations
Management Focus: GE Moves Manufacturing, from China to the United States
The Strategic Role of Foreign Production Sites
Management Focus: Hewlett-Packard in Singapore
Outsourcing Production: Make-or-Buy Decisions
The Advantages of Make
The Advantages of Buy
Trade-offs
Strategic Alliances with Suppliers
Managing a Global Supply Chain
The Role of Just-in-Time Inventory
The Role of Information Technology and the Internet
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Making the Amazon Kindle
Endnotes
CHAPTER 18: Global Marketing and R&D
Opening Case: Burberry’s Global Brand Strategy
Introduction
The Globalization of Markets and Brands
Market Segmentation
Management Focus: Marketing to Black Brazil
Product Attributes
Cultural Differences
Economic Development
Product and Technical Standards
Distribution Strategy
Differences between Countries
Choosing a Distribution Strategy
Communication Strategy
Barriers to International Communication
Push versus Pull Strategies
Management Focus: Unilever—Selling to India’s Poor
Global Advertising
Management Focus: Dove’s Global “Real Beauty” Campaign
Pricing Strategy
Price Discrimination
Strategic Pricing
Regulatory Influences on Prices
Configuring the Marketing Mix
Management Focus: Levi Strauss Goes Local
New-Product Development
The Location of R&D
Integrating R&D, Marketing, and Production
Cross-Functional Teams
Building Global R&D Capabilities
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Domino’s Pizza
Endnotes
CHAPTER 19: Global Human Resource Management
Opening Case: The Strategic Role of Human Resources at IBM
Introduction
The Strategic Role of International HRM
Staffing Policy
Types of Staffing Policy
Expatriate Managers
Management Focus: Managing Expatriates at Royal Dutch Shell
The Global Mind-Set
Training and Management Development
Training for Expatriate Managers
Repatriation of Expatriates
Management Focus: Monsanto’s Repatriation Program
Management Development and Strategy
Performance Appraisal
Performance Appraisal Problems
Guidelines for Performance Appraisal
Compensation
National Differences in Compensation
Management Focus: Global Compensation Practices at McDonald’s
Expatriate Pay
International Labor Relations
The Concerns of Organized Labor
The Strategy of Organized Labor
Approaches to Labor Relations
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: MMC China
Endnotes
CHAPTER 20: Accounting and Finance in the International Business
Opening Case: Tax Strategy at Google
Introduction
National Differences in Accounting Standards
International Accounting Standards
Management 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
Adjusting for Political and Economic Risk
Management Focus: Black Sea Oil and Gas Ltd.
Risk and Capital Budgeting
Financial Management: The Financing Decision
Financial Management: Global Money Management
Minimizing Cash Balances
Reducing Transaction Costs
Managing the Tax Burden
Moving Money across Borders
Chapter Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Microsoft’s Acquisition of Skype
Endnotes
Cases: Brazil’s Gol Airlines
Staffing Policy at AstraZeneca
Glossary
Photo Credits
Index
