International Business and Access Code Card

by Wild, Kenneth L.

• ISBN13: 9780131024113
• ISBN10: 0131024116
• Edition: 2nd
• Format: Hardcover
• Copyright: 2003-01-01
• Publisher: Pearson (Manual)

Summary

This is a cross-functional international business text geared for both 2&4 yr. schools, it is often taught at the jr./sr. level in 4 yr. schools. This text integrates functional areas to take a more strategic or managerial perspective. This text covers the topic of culture earlier than most competing texts. This book has a "Complete Pack" visit www.prehnall.com/custombusiness.

Table of Contents

Preface	xi
About the Authors	xxv
Special Features	xxvii
PART ONE GLOBAL BUSINESS ENVIRONMENT	2	(36)
International Business Today	2	(36)
A Global Mindset	6	(2)
Tolerance, Knowledge, and Skills	6	(1)
Maintaining a Global Mindset	7	(1)
The Global Business Environment	8	(4)
National Business Environments	8	(1)
International Business Environment	9	(2)
International Business Management	11	(1)
Ethics and Social Responsibility	11	(1)
Global Manager: The Keys to Success	12	(2)
Globalization	14	(3)
Globalization of Markets	14	(2)
Globalization of Production	16	(1)
Forces Driving Globalization	17	(2)
Falling Barriers to Trade and Investment	17	(1)
Technological Innovation	17	(2)
The Backlash Against Globalization	19	(2)
Key Players in International Business	21	(1)
Multinational Corporations	21	(1)
World Business Survey: The Global Market for Culture	22	(2)
Entrepreneurs and Small Businesses	24	(1)
A Final Word	24	(1)
Entrepreneurial Focus: Untapped Potential: Four Myths That Keep Small Businesses from Export Success	25	(13)
Summary	26	(1)
Questions for Review	27	(1)
Questions for Discussion	27	(1)
In Practice	27	(1)
Projects	28	(1)
Business Case 1: MTV: Going Global with a Local Beat	28	(1)
A Question of Ethics	29	(1)
Appendix: World Atlas	29	(9)
PART TWO NATIONAL BUSINESS ENVIRONMENTS	38	(98)
Culture in Business	38	(36)
What Is Culture?	40	(3)
National Culture and Subcultures	41	(2)
Components of Culture	43	(1)
Aesthetics	43	(1)
Entrepreneurial Focus: Give Your Web Site a Local Feel	44	(1)
Values and Attitudes	44	(1)
World Business Survey: Generation Gap	45	(4)
Manners and Customs	49	(1)
Global Manager: A Globetrotter's Guide to Manners	49	(16)
Social Structure	50	(2)
Religion	52	(6)
Personal Communication	58	(3)
Education	61	(2)
Physical and Material Environments	63	(2)
Classifying Cultures	65	(4)
Kluckhohn--Strodtbeck Framework	65	(1)
Hofstede Framework	66	(3)
A Final Word	69	(5)
Summary	70	(1)
Questions for Review	71	(1)
Questions for Discussion	71	(1)
In Practice	72	(1)
Projects	72	(1)
Business Case 2: Asian Values Under Fire	72	(1)
A Question of Ethics	73	(1)
Politics and Law in Business	74	(34)
Political Systems	76	(9)
Politics and Culture	76	(1)
Political Participation	77	(1)
Political Ideologies	77	(7)
Political Systems in Times of Change	84	(1)
Political Risk	85	(1)
World Business Survey: Doubting Democrats	85	(4)
Types of Political Risk	85	(4)
Global Manager: Your Global Security Checklist	89	(4)
Managing Political Risk	90	(3)
Legal Systems	93	(2)
Types of Legal Systems	94	(1)
Global Legal Issues	95	(5)
Standardization	95	(1)
Intellectual Property	95	(4)
Product Safety and Liability	99	(1)
Taxation	99	(1)
Antitrust Regulations	100	(1)
Entrepreneurial Focus: The Long Arm of the Law	100	(1)
Business and International Relations	101	(2)
The United Nations	101	(2)
A Final Word	103	(5)
Summary	104	(1)
Questions for Review	105	(1)
Questions for Discussion	105	(1)
In Practice	106	(1)
Projects	106	(1)
Business Case 3: Intellectual Property Rights in Asia	107	(1)
A Question of Ethics	107	(1)
Economic Systems and Development	108	(28)
Economic Systems	110	(3)
Centrally Planned Economy	110	(3)
Global Manager: Guidelines for Good Guanxi	113	(6)
Mixed Economy	114	(2)
Market Economy	116	(3)
Development of Nations	119	(7)
National Production	120	(2)
Purchasing Power Parity	122	(2)
Human Development	124	(1)
Classifying Countries	124	(2)
Economic Transition	126	(1)
Obstacles to Transition	126	(1)
World Business Survey: Young Voices	127	(3)
Focus on Russia	129	(1)
A Final Word	130	(6)
Summary	131	(1)
Questions for Review	132	(1)
Questions for Discussion	132	(1)
In Practice	133	(1)
Projects	133	(1)
Business Case 4: Business Administration, Havana Style	134	(1)
A Question of Ethics	135	(1)
PART THREE INTERNATIONAL TRADE AND INVESTMENT	136	(112)
International Trade	136	(28)
Overview of International Trade	138	(4)
Benefits of International Trade	139	(1)
Volume of International Trade	140	(1)
International Trade Patterns	140	(2)
World Business Survey: Who Owns the High Seas?	142	(2)
Trade Dependence and Independence	143	(1)
Global Manager: Building Good Relations in the Pacific Rim	144	(1)
Theories of International Trade	145	(10)
Mercantilism	145	(2)
Absolute Advantage	147	(2)
Comparative Advantage	149	(2)
Factor Proportions Theory	151	(1)
International Product Life Cycle	152	(2)
New Trade Theory	154	(1)
Entrepreneurial Focus: Five Common Fulfillment Mistakes	155	(4)
National Competitive Advantage	156	(3)
A Final Word	159	(5)
Summary	159	(2)
Questions for Review	161	(1)
Questions for Discussion	161	(1)
In Practice	161	(1)
Projects	162	(1)
Business Case 5: DHL Worldwide Express: First in Asia and the World	162	(1)
A Question of Ethics	163	(1)
Business--Government Trade Relations	164	(28)
Why Do Governments Intervene in Trade?	166	(5)
Political Motives	166	(3)
Economic Motives	169	(1)
Cultural Motives	170	(1)
Methods of Promoting Trade	171	(2)
Subsidies	171	(1)
Export Financing	172	(1)
Entrepreneurial Focus: Ex-Im Bank: Experts in Export Financing	173	(3)
Foreign Trade Zones	174	(1)
Special Government Agencies	175	(1)
Global Manager: Surfing the Regulatory Seas	176	(1)
Methods of Restricting Trade	176	(5)
Tariffs	177	(1)
Quotas	178	(2)
Embargoes	180	(1)
Local Content Requirements	180	(1)
Administrative Delays	180	(1)
Currency Controls	181	(1)
Global Trading System	181	(4)
General Agreement on Tariffs and Trade (GATT)	181	(2)
World Trade Organization (WTO)	183	(2)
World Business Survey: Striking Back	185	(1)
A Final Word	186	(6)
Summary	186	(2)
Questions for Review	188	(1)
Questions for Discussion	188	(1)
In Practice	189	(1)
Projects	189	(1)
Business Case 6: Unfair Protection or Valid Defense?	190	(1)
A Question of Ethics	191	(1)
Foreign Direct Investment	192	(26)
Patterns of Foreign Direct Investment	194	(3)
Growth of Foreign Direct Investment	194	(3)
Worldwide Flows of FDI	197	(1)
Entrepreneurial Focus: Cowboy Candy Rides into Manchuria	197	(1)
Explanations for Foreign Direct Investments	198	(2)
International Product Life Cycle	198	(1)
Market Imperfections (Internalization)	199	(1)
Eclectic Theory	199	(1)
Market Power	200	(1)
Management Issues in the FDI Decision	200	(3)
Control	200	(1)
Purchase-or-Build Decision	201	(1)
Production Costs	202	(1)
Global Manager: Investing Abroad? Be Prepared for Surprises	203	(2)
Customer Knowledge	204	(1)
Following Clients	204	(1)
Following Rivals	205	(1)
Government Intervention in Foreign Direct Investment	205	(2)
Balance of Payments	206	(1)
World Business Survey: Ups and Downs of Current Accounts	207	(3)
Reasons for Intervention by the Host Country	208	(1)
Reasons for Intervention by the Home Country	209	(1)
Government Policy Instruments and FDI	210	(2)
Host Countries: Restriction	210	(1)
Host Countries: Promotion	211	(1)
Home Countries: Restriction	211	(1)
Home Countries: Promotion	211	(1)
A Final Word	212	(6)
Summary	212	(2)
Questions for Review	214	(1)
Questions for Discussion	214	(1)
In Practice	215	(1)
Projects	215	(1)
Business Case 7: Mercedes-Benz: Footloose in Tuscaloosa	216	(1)
A Question of Ethics	217	(1)
Regional Economic Integration	218	(30)
What Is Regional Economic Integration?	220	(2)
Levels of Regional Integration	220	(2)
Effects of Regional Economic Integration	222	(3)
Benefits of Regional Integration	222	(1)
Drawbacks of Regional Integration	223	(2)
Integration in Europe	225	(4)
European Union	225	(4)
European Free Trade Association (EFTA)	229	(1)
Central European Free-Trade Area	229	(1)
Integration in the Americas	229	(1)
North American Free Trade Agreement (NAFTA)	229	(1)
Entrepreneurial Focus: Czech List	230	(7)
Andean Community	233	(1)
The Latin American Integration Association (ALADI)	234	(1)
Southern Common Market (MERCOSUR)	234	(1)
Central America and the Caribbean	235	(1)
Free Trade Area of the Americas (FTAA)	236	(1)
World Business Survey: Corruption Perceptions in the FTAA	237	(2)
Transatlantic Economic Partnership (TEP)	238	(1)
Integration in Asia	239	(1)
Association of Southeast Asian Nations (ASEAN)	239	(1)
Asia Pacific Economic Cooperation (APEC)	240	(1)
Global Manager: The Ins and Outs of ASEAN	240	(1)
Integration in the Middle East and Africa	241	(1)
Gulf Cooperation Council (GCC)	241	(1)
Economic Community of West African States (ECOWAS)	241	(1)
A Final Word	242	(6)
Summary	242	(3)
Questions for Review	245	(1)
Questions for Discussion	245	(1)
In Practice	246	(1)
Projects	246	(1)
Business Case 8: Tainted Trade: Increasing Imports Brings Increase in Illness	246	(1)
A Question of Ethics	247	(1)
PART FOUR THE INTERNATIONAL FINANCIAL SYSTEM	248	(62)
International Financial Markets	248	(30)
International Capital Market	250	(3)
Purposes of National Capital Markets	250	(2)
Purposes of the International Capital Market	252	(1)
Entrepreneurial Focus: Where Microcredit Is Due	253	(2)
Forces Expanding the International Capital Market	253	(1)
World Financial Centers	254	(1)
Main Components of the International Capital Market	255	(3)
International Bond Market	255	(1)
International Equity Market	256	(1)
Eurocurrency Market	257	(1)
World Business Survey: Ranking the Top Investment Banks	258	(1)
Foreign Exchange Market	259	(2)
Functions of the Foreign Exchange Market	259	(2)
How the Foreign Exchange Market Works	261	(7)
Quoting Currencies	261	(4)
Spot Rates	265	(1)
Forward Rates	265	(2)
Swaps, Options, and Futures	267	(1)
Foreign Exchange Market Today	268	(3)
Trading Centers	268	(1)
Important Currencies	268	(1)
Institutions of the Foreign Exchange Market	269	(2)
Global Manager: Five Strategies for More Effective Foreign Exchange Management	271	(1)
Currency Convertibility	271	(1)
Goals of Currency Restriction	271	(1)
Policies for Restricting Currencies	271	(1)
A Final Word	272	(6)
Summary	272	(2)
Questions for Review	274	(1)
Questions for Discussion	274	(1)
In Practice	274	(1)
Projects	275	(1)
Business Case 9: Argentina Stares into the Abyss	275	(1)
A Question of Ethics	276	(2)
International Monetary System	278	(32)
How Exchange Rates Influence Business Activities	280	(2)
Global Manager: Exporting Against the Odds: Key Strategies for Success	282	(1)
Desire for Stability and Predictability	282	(1)
What Factors Determine Exchange Rates?	283	(8)
Law of One Price	283	(1)
Purchasing Power Parity	284	(7)
Forecasting Exchange Rates	291	(1)
Efficient Market View	291	(1)
Inefficient Market View	291	(1)
Forecasting Techniques	292	(1)
Difficulties of Forecasting	292	(1)
Evolution of the International Monetary System	292	(6)
Early Years: The Gold Standard	293	(2)
Bretton Woods Agreement	295	(2)
A Managed Float System Emerges	297	(1)
Today's Exchange-Rate Arrangements	298	(1)
European Monetary System	298	(2)
World Business Survey: Euro Attitudes	300	(4)
Recent Financial Crises	300	(3)
Future of the International Monetary System	303	(1)
A Final Word	304	(6)
Summary	304	(2)
Questions for Review	306	(1)
Questions for Discussion	306	(1)
In Practice	307	(1)
Projects	307	(1)
Business Case 10: Banking on Forgiveness	308	(1)
A Question of Ethics	309	(1)
PART FIVE INTERNATIONAL BUSINESS MANAGEMENT	310	(163)
Planning and Organizing International Operations	310	(28)
International Planning and Strategy	312	(4)
Strategy Formulation	312	(1)
Identify Company Mission and Goals	312	(2)
Identify Core Competency and Value-Creating Activities	314	(2)
Entrepreneurial Focus: Know Yourself, Know Your Product	316	(2)
Formulate Strategies	317	(1)
World Business Survey: Invest and Prosper	318	(7)
Global Manager: Competing with Giants	325	(1)
International Organizational Structure	326	(7)
Centralization versus Decentralization	326	(1)
Coordination and Flexibility	327	(1)
Types of Organizational Structure	328	(3)
Work Teams	331	(2)
A Final Word	333	(5)
Summary	333	(1)
Questions for Review	334	(1)
Questions for Discussion	335	(1)
In Practice	335	(1)
Projects	335	(1)
Business Case 11: The IKEA Key to Pricing	336	(1)
A Question of Ethics	337	(1)
Analyzing International Opportunities	338	(30)
Screening Potential Markets and Sites	340	(3)
Step 1: Identify Basic Appeal	341	(1)
Step 2: Assess the National Business Environment	342	(1)
World Business Survey: Global Business Climates	343	(6)
Step 3: Measure Market or Site Potential	348	(1)
Global Manager: Global E-Commerce Issues	349	(5)
Step 4: Select the Market or Site	353	(1)
Conducting International Research	354	(7)
Difficulties of Conducting International Research	355	(1)
Sources of Secondary International Data	356	(4)
Methods of Conducting Primary International Research	360	(1)
Entrepreneurial Focus: Is the World Your Oyster?	361	(1)
A Final Word	362	(6)
Summary	363	(1)
Questions for Review	364	(1)
Questions for Discussion	365	(1)
In Practice	365	(1)
Projects	365	(1)
Business Case 12: Researching Vietnam's Potential	366	(1)
A Question of Ethics	367	(1)
Selecting and Managing Entry Modes	368	(32)
Exporting, Importing, and Countertrade	370	(1)
World Business Survey: Land of Opportunity	370	(10)
Why Companies Export	371	(1)
Developing an Export Strategy: A Four-Step Model	371	(1)
Degree of Export Involvement	372	(2)
Avoiding Export and Import Blunders	374	(1)
Countertrade	375	(1)
Export/Import Financing	376	(4)
Entrepreneurial Focus: Global Collection Guidelines	380	(1)
Contractual Entry Modes	380	(6)
Licensing	380	(2)
Franchising	382	(2)
Management Contracts	384	(1)
Turnkey Projects	385	(1)
Investment Entry Modes	386	(6)
Wholly Owned Subsidiaries	386	(1)
Joint Ventures	387	(3)
Strategic Alliances	390	(1)
Selecting Partners for Cooperation	391	(1)
Global Manager: Negotiating the Terms of Market Entry	392	(1)
Strategic Factors in Selecting an Entry Mode	393	(2)
Cultural Environment	393	(1)
Political and Legal Environments	393	(1)
Market Size	393	(1)
Production and Shipping Costs	393	(1)
International Experience	394	(1)
A Final Word	395	(5)
Summary	395	(1)
Questions for Review	396	(1)
Questions for Discussion	397	(1)
In Practice	397	(1)
Projects	398	(1)
Business Case 13: The Brave New World of Telecommunication Joint Ventures	398	(1)
A Question of Ethics	399	(1)
Developing and Marketing Products	400	(26)
Globalization and Marketing	402	(2)
Standardization Versus Adaptation	402	(2)
Developing Product Strategies	404	(4)
Laws and Regulations	404	(1)
Cultural Differences	404	(1)
Brand and Product Names	404	(2)
National Image	406	(1)
Counterfeit Goods and Black Markets	407	(1)
Shortened Product Life Cycles	408	(1)
Creating Promotional Strategies	408	(1)
Push and Pull Strategies	408	(1)
Global Manager: Managing an International Sales Force	408	(4)
International Advertising	410	(2)
World Business Survey: Web Ads Grab Attention	412	(4)
Blending Product and Promotional Strategies	412	(4)
Designing Distribution Strategies	416	(2)
Designing Distribution Channels	416	(1)
Influence of Product Characteristics	417	(1)
Special Distribution Problems	417	(1)
Developing Pricing Strategies	418	(2)
Worldwide Pricing	418	(1)
Dual Pricing	419	(1)
Factors That Affect Pricing Decisions	419	(1)
A Final Word	420	(6)
Summary	421	(1)
Questions for Review	422	(1)
Questions for Discussion	423	(1)
In Practice	423	(1)
Projects	424	(1)
Business Case 14: Fair Game or Out-of-Bounds?	424	(1)
A Question of Ethics	425	(1)
Launching and Managing Production	426	(24)
Production Strategy	428	(1)
Capacity Planning	428	(1)
Facilities Location Planning	429	(1)
World Business Survey: The Gap in Minimum Wages	429	(4)
Process Planning	432	(1)
Facilities Layout Planning	432	(1)
Aquiring Physical Resources	433	(4)
Make-or-Buy Decision	433	(3)
Raw Materials	436	(1)
Fixed Assets	436	(1)
Key Production Concerns	437	(1)
Quality-Improvement Efforts	437	(1)
Shipping and Inventory Costs	438	(1)
Global Manager: Linking TQM and ISO 9000 Standards	438	(1)
Reinvestment Versus Divestment	439	(1)
Financing Business Operations	439	(3)
Borrowing	440	(1)
Issuing Equity	440	(2)
Entrepreneurial Focus: Get Global Cash: Overseas Investors Await You	442	(3)
Internal Funding	443	(1)
Capital Structure	444	(1)
A Final Word	445	(5)
Summary	445	(1)
Questions for Review	446	(1)
Questions for Discussion	447	(1)
In Practice	447	(1)
Projects	448	(1)
Business Case 15: TPS: The Benchmark in Production Efficiency	448	(1)
A Question of Ethics	449	(1)
Hiring and Managing Employees	450	(23)
International Staffing Policy	453	(2)
Ethnocentric Staffing	453	(1)
Polycentric Staffing	454	(1)
Entrepreneurial Focus: Growing Global	455	(1)
Geocentric Staffing	456	(1)
Recruiting and Selecting Human Resources	456	(4)
Human Resource Planning	456	(1)
Recruiting Human Resources	457	(1)
Selecting Human Resources	458	(1)
Culture Shock	459	(1)
Reverse Culture Shock	459	(1)
Global Manager: A Shocking Ordeal	460	(1)
Training and Development	461	(2)
Methods of Cultural Training	461	(1)
Compiling a Cultural Profile	462	(1)
Nonmanagerial Worker Training	463	(1)
Employee Compensation	463	(2)
Managerial Employees	463	(1)
Nonmanagerial Workers	464	(1)
Labor--Management Relations	465	(1)
World Business Survey: Long Time, No Work	466	(2)
Importance of Labor Unions	466	(2)
A Final Word	468	(5)
Summary	468	(1)
Questions for Review	469	(1)
Questions for Discussion	469	(1)
In Practice	470	(1)
Projects	470	(1)
Business Case 16: Expatriation or Discrimination?	470	(1)
A Question of Ethics	471	(2)
AcrossFrontiers Video Cases	473	(21)
Notes, Sources, and Credits	494	(11)
Glossary	505	(6)
Name/Company Index	511	(6)
Subject Index	517