Global Business Today

✍ Scribed by Charles W. L. Hill

• Publisher: McGraw-Hill Education
• Year: 2021
• Tongue: English
• Leaves: 641
• Edition: 12
• Category: Library

✦ Synopsis

Global Business Today sets the standard for International Business courses and is the proven choice at both the undergraduate and graduate level. It offers a complete solution that is relevant (timely, comprehensive), practical (focused on applications of concepts), and integrated (logical flow of topics from chapter to chapter). The success of the first eleven editions (and its longer, more in-depth textbook option, International Business, now in the 13th edition) was based on the incorporation of leading-edge research, the use of the up-to-date examples and statistics to illustrate global trends and enterprise strategy, and the discussion of current events within the context of the appropriate theory. Building on these strengths, the goals for the 12th edition have focused on the following:
1. Incorporate new insights from scholarly research.
2. Make sure the content covers all appropriate issues.
3. Make sure the text is up-to-date with current events, statistics, and examples.
4. Add new and insightful opening and closing cases in most chapters.
5. Incorporate value-added global EDGE™ features in every chapter.
6. Connect every chapter to a focus on managerial implications.

✦ Table of Contents

Cover Page
Title Page
Dedication
Copyright
about the author
brief contents
the proven choice for international business
Acknowledgments
contents
part one Introduction and Overview
CHAPTER 1 Globalization
Opening Case: Detroit Bikes
Introduction
What Is Globalization?
The Globalization of Markets
The Globalization of Production
Management Focus: Boeing’s Global Production System
The Emergence of Global Institutions
Drivers of Globalization
Declining Trade and Investment Barriers
Role of Technological Change
The Changing Demographics of the Global Economy
The Changing World Output and World Trade Picture
Country Focus: India’s Software Sector
The Changing Foreign Direct Investment Picture
The Changing Nature of the Multinational Enterprise
Management Focus: The Dalian Wanda Group
The Changing World Order
Global Economy of the Twenty-First Century
The Globalization Debate
Antiglobalization Protests
Country Focus: Donal Trump’s America First Policies
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
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: How the iPhone Is Made: Apple’s Global Production System
Endnotes
part two National Differences
CHAPTER 2 National Differences in Political, Economic, and Legal Systems
Opening Case: China’s Mixed Economy
Introduction
Political Systems
Collectivism and Individualism
Country Focus: Putin’s Russia
Democracy and Totalitarianism
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 Brazil
Management Focus: Did Walmart Violate the Foreign Corrupt Practices Act?
The Protection of Intellectual Property
Product Safety and Product Liability
360° View: Managerial Implications: The Macro Environment Influences Market Attractiveness
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Kenya: An African Lion
Endnotes
CHAPTER 3 National Differences in Economic Development
Opening Case: What Ails Argentina?
Introduction
Differences in Economic Development
Broader Conceptions of Development: Amartya Sen
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
Country Focus: Property Rights in China
The Required Political System
Economic Progress Begets Democracy
Geography, Education, and Economic Development
States in Transition
The Spread of Democracy
The New World Order and Global Terrorism
The Spread of Market-Based Systems
The Nature of Economic Transformation
Deregulation
Country Focus: India’s Economic Transformation
Privatization
Legal Systems
Implications of Changing Political Economy
360° View: Managerial Implications: Benefits, Costs, Risks, and Overall Attractiveness of Doing Business Internationally
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Poland: Eastern Europe’s Economic Miracle
Endnotes
CHAPTER 4 Differences in Culture
Opening Case: Russian Culture
Introduction
What Is Culture?
Values and Norms
Culture, Society, and the Nation-State
Determinants of Culture
Social Structure
Individuals and Groups
Social Stratification
Country Focus: Determining Your Social Class by Birth
Religious and Ethical Systems
Christianity
Islam
Country Focus: Turkey: Its Religion and Politics
Hinduism
Buddhism
Confucianism
Management Focus: China and Its Guanxi
Language
Spoken Language
Unspoken Language
Education
Culture and Business
Cultural Change
360° View: Managerial Implications: Cultural Literacy and Competitive Advantage
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Culture and Business in Saudi Arabia
Endnotes
CHAPTER 5 Ethics, Corporate Social Responsibility, and Sustainability
Opening Case: Who Stitched Your Designer Jeans?
Introduction
Ethics and International Business
Employment Practices
Human Rights
Management Focus: “Emissionsgate” at Volkswagen
Environmental Pollution
Corruption
Ethical Dilemmas
The Roots of Unethical Behavior
Personal Ethics
Decision-Making Processes
Organizational Culture
Unrealistic Performance Goals
Leadership
Societal Culture
Philosophical Approaches to Ethics
Straw Men
Utilitarian and Kantian Ethics
Rights Theories
Justice Theories
360° View: Managerial Implications: Making Ethical Decisions Internationally
Management Focus: Corporate Social Responsibility at Stora Enso
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Microsoft Goes Carbon Neutral
Endnotes
part three The Global Trade and Investment Environment
CHAPTER 6 International Trade Theory
Opening Case: Trade in Services
Introduction
An Overview of Trade Theory
The Benefits of Trade
The Pattern of International Trade
Trade Theory and Government Policy
Mercantilism
Country Focus: Is China Manipulating Its Currency in Pursuit of a Neo-Mercantilist Policy?
Absolute Advantage
Comparative Advantage
The Gains from Trade
Qualifications and Assumptions
Extensions of the Ricardian Model
Country Focus: “Trade Wars Are Good and Easy to Win”
Heckscher–Ohlin Theory
The Leontiff Paradox
The Product Life-Cycle Theory
Product Life-Cycle Theory in the Twenty-First 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
360° View: Managerial Implications: Location, First-Mover Advantages, Government Policy, Investments, and Strategy
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: A Tale of Two Nations: Ghana and South Korea
Appendix: International Trade and the Balance of Payments
Endnotes
CHAPTER 7 Government Policy and International Trade
Opening Case: American and Kenya Negotiate a Trade Deal
Introduction
Instruments of Trade Policy
Tariffs
Subsidies
Country Focus: Were the Chinese Illegally Subsidizing Auto Exports?
Import Quotas and Voluntary Export Restraints
Export Tariffs and Bans
Local Content Requirements
Administrative Policies
Antidumping Policies
Management Focus: Protecting U.S. Magnesium
The Case for Government Intervention
Political Arguments for Intervention
Economic Arguments for Intervention
The Revised Case for Free Trade
Retaliation and Trade War
Domestic Policies
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 the United States
Multilateral and Bilateral Trade Agreements
The World Trading System under Threat
360° View: Managerial Implications: Trade Barriers, Firm Strategy, and Policy Implications
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: American Steel Tariffs
Endnotes
CHAPTER 8 Foreign Direct Investment
Opening Case: JCB in India
Introduction
Foreign Direct Investment in the World Economy
Trends in FDI
The Direction of FDI
Country Focus: Foreign Direct Investment in China
The Source of FDI
The Form of FDI: Acquisitions versus Greenfield Investments
Theories of Foreign Direct Investment
Why Foreign Direct Investment?
Management Focus: Burberry Shifts Its Entry Strategy in Japan
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
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
360° View: Managerial Implications: FDI and Government Policy
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Starbucks’ Foreign Direct Investment
Endnotes
CHAPTER 9 Regional Economic Integration
Opening Case: The World’s Largest Trade Deal
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
Political Structure of the European Union
Management Focus: The European Commission and Google
The Single European Act
The Establishment of the Euro
Country Focus: The Greek Sovereign Debt Crisis
Enlargement of the European Union
British Exit from the European Union (BREXIT)
Regional Economic Integration in the Americas
The North American Free Trade Agreement
The United States–Canada–Mexico Agreement (USCMA)
The Andean Community
Mercosur
Central American Common Market, CAFTA, and CARICOM
Regional Economic Integration Elsewhere
Association of Southeast Asian Nations
Regional Trade Blocs in Africa
Other Trade Agreements
360° View: Managerial Implications: Regional Economic Integration Threats
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: The Cost of Brexit
Endnotes
part four The Global Monetary System
CHAPTER 10 The Foreign Exchange Market
Opening Case: Exchange Rates and the Profitability of Korean Airlines
Introduction
The Functions of the Foreign Exchange Market
Currency Conversion
Insuring against Foreign Exchange Risk
Management Focus: Embraer and the Gyrations of the Brazilian Real
The Nature of the Foreign Exchange Market
Economic Theories of Exchange Rate Determination
Prices and Exchange Rates
Country Focus: Quantitative Easing, Inflation, and the Value of 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
360° View: Managerial Implications
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Managing Foreign Currency Exposure at 3M
Endnotes
CHAPTER 11 The International Monetary System
Opening Case: Did the IMF Help Egypt?
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
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
Country Focus: China’s Exchange Rate Regime
Pegged Exchange Rates
Currency Boards
Crisis Management by the IMF
Financial Crises in the Post–Bretton Woods Era
Country Focus: The IMF and Iceland’s Economic Recovery
Evaluating the IMF’s Policy Prescriptions
360° View: Managerial Implications: Currency Management, Business Strategy, and Government Relations
Management Focus: Airbus and the Euro
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Pakistan Takes Another IMF Loan
Endnotes
part five The Strategy and Structure of International Business
CHAPTER 12 The Strategy of International Business
Opening Case: Geely: China’s First Global Car Company
Introduction
Strategy and the Firm
Value Creation
Strategic Positioning
Management Focus: AB InBev, Beer Globally, and Creating Value
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
Profitability and Profit Growth Summary
Cost Pressures and Pressures for Local Responsiveness
Pressures for Cost Reductions
Pressures for Local Responsiveness
Management Focus: IKEA’s Global Strategy
Choosing a Strategy
Global Standardization Strategy
Management Focus: Unilever’s Global Organization
Localization Strategy
Transnational Strategy
International Strategy
Management Focus: Evolution of Strategy at Procter & Gamble
The Evolution of Strategy
Strategic Alliances
The Advantages of Strategic Alliances
The Disadvantages of Strategic Alliances
Making Alliances Work
360° View: Impact of the Macro Environment
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Red Bull: A Leader in International Strategy
Endnotes
CHAPTER 13 Entering Developed and Emerging Markets
Opening Case: Uber’s Foreign Market Strategy
Introduction
Basic Entry Decisions
Which Foreign Markets?
Management Focus: Tesco’s International Growth Strategy
Timing of Entry
Scale of Entry and Strategic Commitments
Market Entry Summary
Management Focus: The Jollibee Phenomenon
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
Management Focus: General Motors on the Upswing
Greenfield Venture or Acquisition?
Pros and Cons of Acquisitions
Pros and Cons of Greenfield Ventures
Which Choice?
360° View: Impact of the Macro Environment
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: IKEA Entering India—Finally!
Endnotes
part six International Business Functions
CHAPTER 14 Exporting, Importing, and Countertrade
Opening Case: Maine Coast Company
Introduction
The Promise and Pitfalls of Exporting
Management Focus: Embraer and Brazilian Importing
Improving Export Performance
International Comparisons
Information Sources
Management Focus: Exporting Desserts by a Hispanic Entrepreneur
Service Providers
Export Strategy
Management Focus: Two Men and a Truck
The globalEDGETM Exporting Tool
Export and Import Financing
Lack of Trust
Letter of Credit
Draft
Bill of Lading
A Typical International Trade Transaction
Export Assistance
The Export-Import Bank
Export Credit Insurance
Countertrade
The Popularity of Countertrade
Types of Countertrade
Pros and Cons of Countertrade
360° View: Impact of the Macro Environment
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Higher Education Exporting and International Competitiveness
Endnotes
CHAPTER 15 Global Production and Supply Chain Management
Opening Case: China: The World’s Manufacturing Hub in the Wake of Trade Wars and COVID-19
Introduction
Strategy, Production, and Supply Chain Management
Where to Produce
Country Factors
Management Focus: IKEA Production in China
Technological Factors
Production Factors
The Hidden Costs of Foreign Locations
Management Focus: Amazon’s Global Supply Chains
Make-or-Buy Decisions
Global Supply Chain Functions
Global Logistics
Global Purchasing
Managing a Global Supply Chain
Role of Just-in-Time Inventory
Role of Information Technology
Coordination in Global Supply Chains
Interorganizational Relationships
360° View: Impact of the Macro Environment
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Blockchain Technology and Global Supply Chains
Endnotes
CHAPTER 16 Global Marketing and Business Analytics
Opening Case: Share a Coke
Introduction
Globalization of Markets and Brands
Market Segmentation
Management Focus: Global Branding, Marvel Studios, and the Walt Disney Company
Business Analytics
International Marketing Research
Product Attributes
Cultural Differences
Economic Development
Product and Technical Standards
Distribution Strategy
Differences between Countries
Choosing a Distribution Strategy
Communication Strategy
Management Focus: Burberry’s Social Media Marketing
Barriers to International Communication
Push versus Pull Strategies
Global Advertising
Pricing Strategy
Price Discrimination
Strategic Pricing
Regulatory Influences on Prices
Configuring the Marketing Mix
Product Development and R&D
The Location of R&D
Integrating R&D, Marketing, and Production
Cross-Functional Teams
Building Global R&D Capabilities
360° View: Impact of the Macro Environment
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Marketing Sneakers
Endnotes
CHAPTER 17 Global Human Resource Management
Opening Case: The Evolution of HR Strategy at IBM
Introduction
Strategic Role of Global HRM: Managing a Global Workforce
Staffing Policy
Types of Staffing Policies
Expatriate Managers
Management Focus: AstraZeneca and Global Staffing Policy
Global Mindset
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: McDonald’s Global Compensation Practices
Expatriate Pay
Building a Diverse Global Workforce
Management Focus: Sodexo: Building a Diverse Global Workforce
International Labor Relations
The Concerns of Organized Labor
The Strategy of Organized Labor
Approaches to Labor Relations
360° View: Impact of the Macro Environment
Key Terms
Summary
Critical Thinking and Discussion Questions
Research Task
Closing Case: Global Mobility at Shell
Endnotes
Glossary
Organization Index
Name Index
Subject Index
Acronyms
Countries and Their Capitals