International Business: The Challenges of Globalization (What's New in Management), 9th Edition

NOTE: This edition features the same content as the traditional text in a convenient, three-hole-punched, loose-leaf version. Student Value Editions also offer a great value; this format costs significantly less than a new textbook. Before purchasing, check with your instructor or review your course syllabus to ensure that you select the correct ISBN. For Student Value Editions that include MyLabTM or MasteringTM, several versions may exist for each title -- including customized versions for individual schools -- and registrations are not transferable. In addition, you may need a Course ID, provided by your instructor, to register for and use MyLab or Mastering platforms. For courses in international business. This package includes MyLab Management. Cultural focus helps students understand key concepts in international business International Business: The Challenges of Globalization uses the ever-present and salient subject of culture to present real-world examples and engaging features to bring international business to life and pique student interest. The 9th Edition uses a unique organizing framework that helps students to understand how the elements of international business are related and with a focus on employability skills, students understand how the concepts learned in this course will be relevant to their future careers. The material has been thoroughly updated based on ongoing changes in the international business world to ensure that it remains up-to-date with the rapid changing world. Personalize learning with MyLab Management By combining trusted authors'content with digital tools and a flexible platform, MyLab personalizes the learning experience and improves results for each student. 0134890477 / 9780134890470 International Business: The Challenges of Globalization, Student Value Edition Plus MyLab Management with Pearson eText -- Access Card Package, 9/ePackage consists of: 0134730127 / 9780134730127 International Business: The Challenges of Globalization, Student Value Edition 0134732014 / 9780134732015 MyLab Management with Pearson eText -- Access Card -- for International Business: The Challenges of Globalization Cover Title Page Copyright Page Brief Contents Contents Preface Part 1 Global Business Environment Chapter 1 Globalization Apple’s Global iMpact 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 Chapter Summary Key Terms Talk About It 1 Talk About It 2 Ethical Challenge Teaming Up Market Entry Strategy Project 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 India’s Tech King 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 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 6 Political Economy of Trade Lord of the Movies 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 Talk About It 2 Ethical Challenge Teaming Up Market Entry Strategy Project Practicing International Management Case Chapter 8 Regional Economic Integration Nestle’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 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 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 Chapter Summary Key Terms Talk About It 1 Talk About It 2 Ethical Challenge Teaming Up Market Entry Strategy Project 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 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 5 International Business Management Chapter 11 International Strategy and Organization Flying High with Low Fares 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 Toyota Races Ahead 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 Chapter Summary Key Terms Talk About It 1 Talk About It 2 Ethical Challenge Teaming Up Practicing International Management Case Endnotes Glossary Name Index Subject Index NOTE: This edition features the same content as the traditional text in a convenient, three-hole-punched, loose-leaf version. Student Value Editions also offer a great value; this format costs significantly less than a new textbook. Before purchasing, check with your instructor or review your course syllabus to ensure that you select the correct ISBN. For Student Value Editions that include MyLabTM or MasteringTM, several versions may exist for each title -- including customized versions for individual schools -- and registrations are not transferable. In addition, you may need a Course ID, provided by your instructor, to register for and use MyLab or Mastering platforms. For courses in international business. This package includes MyLab Management. Cultural focus helps students understand key concepts in international business International Business: The Challenges of Globalization uses the ever-present and salient subject of culture to present real-world examples and engaging features to bring international business to life and pique student interest. The 9th Edition uses a unique organizing framework that helps students to understand how the elements of international business are related and with a focus on employability skills, students understand how the concepts learned in this course will be relevant to their future careers. The material has been thoroughly updated based on ongoing changes in the international business world to ensure that it remains up-to-date with the rapid changing world. Personalize learning with MyLab Management By combining trusted authors’ content with digital tools and a flexible platform, MyLab personalizes the learning experience and improves results for each student. 0134890477 / 9780134890470 International Business: The Challenges of Globalization, Student Value Edition Plus MyLab Management with Pearson eText -- Access Card Package, 9/e Package consists of: 0134730127 / 9780134730127 International Business: The Challenges of Globalization, Student Value Edition 0134732014 / 9780134732015 MyLab Management with Pearson eText -- Access Card -- for International Business: The Challenges of Globalization