International Business: Environments And Operations

by Daniels, John; Radebaugh, Lee; Sullivan, Daniel

• ISBN13: 9780131869424
• ISBN10: 0131869426
• Edition: 11th
• Format: Hardcover
• Copyright: 2007-01-01
• Publisher: Pearson College Div

Summary

For undergraduate and graduate courses in International Business.This exciting revision of the classic best-seller provides the most panoramic, authoritative and current review of international business. The world has changed and so has the book.

Table of Contents

Preface	xxvii
About the Authors	xxxvii
Part I BACKGROUND FOR INTERNATIONAL BUSINESS	2	(42)
Globalization and International Business	2	(42)
Case: The Globalization of Professional Sports	3	(3)
Why Are Globalization and International Business Important?	6	(2)
The Forces Behind Globalization	8	(6)
Increase in and Expansion of Technology	9	(1)
Liberalization of Cross-Border Trade and Resource Movements	10	(1)
Development of Services That Support International Business	11	(1)
Growing Consumer Pressures	11	(1)
Increased Global Competition	11	(1)
Changing Political Situations	12	(1)
Expanded Cross-National Cooperation	12	(2)
Criticisms of Globalization	14	(2)
Threats to National Sovereignty	14	(1)
Economic Growth	15	(1)
Growing Income Inequality	15	(1)
Why Companies Engage in International Business	16	(1)
To Expand Sales	16	(1)
Point---Counterpoint: Is Offshoring Good or Bad?	17	(1)
Acquire Resources	18	(1)
Minimize Risk	18	(1)
Modes of International Business	18	(3)
Merchandise Exports and Imports	18	(1)
Service Exports and Imports	19	(1)
Investments	20	(1)
International Companies and Terms to Describe Them	21	(1)
Why International Business Differs from Domestic Business	21	(4)
Physical and Societal Factors	22	(2)
The Competitive Environment	24	(1)
Looking to the Future: Is Globalization Inevitable?	25	(1)
Summary	26	(1)
Case: Carnival Cruise Lines	27	(3)
Chapter Notes	30	(2)
An Atlas	32	(8)
Map Index	40	(4)
Part II COMPARATIVE ENVIRONMENTAL FRAMEWORKS	44	(156)
The Cultural Environments Facing Business	44	(42)
Case: The Java Lounge---Adjusting to Saudi Arabian Culture	45	(3)
Introduction	48	(1)
Cultural Awareness	49	(1)
Identification and Dynamics of Cultures	50	(5)
The Nation as a Point of Reference	50	(2)
Cultural Formation and Dynamics	52	(1)
Language as a Cultural Stabilizer	53	(2)
Religion as a Cultural Stabilizer	55	(1)
Does Geography Matter? Birds of a Feather Flock Together	55	(3)
Behavioral Practices Affecting Business	58	(11)
Social Stratification Systems	58	(2)
Work Motivation	60	(3)
Relationship Preferences	63	(1)
Risk-Taking Behavior	64	(1)
Information and Task Processing	65	(1)
Communications	66	(3)
Dealing with Cultural Differences	69	(4)
Accommodation to Foreigners	70	(1)
Cultural Distance: Usefulness and Limitations	71	(1)
Culture Shock	72	(1)
Company and Management Orientations	72	(1)
Point---Counterpoint: Does International Business Lead to Cultural Imperialism?	73	(4)
Strategies for Instituting Change	75	(2)
Looking to the Future: What Will Happen to National Cultures?	77	(1)
Summary	78	(1)
Case: Charles Martin in Uganda	79	(3)
Chapter Notes	82	(4)
The Political and Legal Environments Facing Business	86	(32)
Case: China's Business Environment	87	(4)
Introduction	91	(1)
The Political Environment	91	(8)
Individualism and Collectivism	92	(1)
Political Ideology	93	(1)
Democracy	93	(2)
Totalitarianism	95	(1)
Trends in Political Systems	96	(3)
Looking to the Future: Will Democracy Survive?	99	(2)
Political Risk	99	(2)
Point---Counterpoint: Political Risk Management	101	(1)
The Legal Environment	102	(2)
Diffusion of Legal Systems	103	(1)
Legal Issues in International Business	104	(7)
Operational Concerns	105	(3)
Strategic Concerns	108	(1)
Intellectual Property Rights	108	(3)
Summary	111	(1)
Case: Global Software Piracy	112	(4)
Chapter Notes	116	(2)
The Economic Environment	118	(42)
Case: McDonald's and Russia's Economic Transition	119	(3)
Introduction	122	(1)
International Economic Analysis	123	(1)
Elements of the Economic Environment	124	(7)
Gross National Income	125	(1)
Improving the Power of GNI	126	(5)
Features of an Economy	131	(7)
Inflation	131	(2)
Unemployment	133	(1)
Debt	134	(1)
Income Distribution	135	(1)
Poverty	136	(1)
The Balance of Payments	137	(1)
Point---Counterpoint: Trade Deficits--Advantage or Crisis	138	(1)
Integrating Economic Analysis	139	(11)
Types of Economic Systems	140	(3)
Freedom, Markets, and Transition	143	(1)
Economic Freedom: Idea, Performance, and Trends	143	(3)
Transition to a Market Economy	146	(2)
The Means of Transition	148	(2)
Looking to the Future: The Future of Transition	150	(1)
Summary	151	(1)
Case: Meet the BRICs	152	(3)
Chapter Notes	155	(5)
Globalization and Society	160	(40)
Case: Environmental Challenges for Newmont Mining in Indonesia	161	(3)
Introduction	164	(1)
Evaluating the Impact of FDI	165	(2)
Trade-offs Among Constituencies	166	(1)
Cause-Effect Relationships	166	(1)
Individual and Aggregate Effects	166	(1)
Potential Contributions of MNEs	167	(1)
Economic Impact of the MNE	167	(4)
Balance-of-Payments Effects	167	(3)
Growth and Employment Effects	170	(1)
Foundations of Ethical Behavior	171	(3)
Cultural Foundations for Ethical Behavior	172	(1)
Legal Foundations for Ethical Behavior	173	(1)
Ethics and Bribery	174	(4)
Point---Counterpoint: Is Bribery Ever Justified?	178	(2)
Ethical Behavior and Environmental Issues	180	(2)
Global Warming	180	(2)
Does Geography Matter? The Amazon	182	(1)
Ethical Dilemmas and Pharmaceutical Sales	183	(3)
Ethical Dimensions of Labor Conditions	186	(3)
Corporate Codes of Ethics	189	(2)
Looking to the Future: Will FDI Be Welcome and Will Foreign Investors Act More Responsibly as the Twenty-First Century Progresses?	191	(1)
Summary	191	(1)
Case: Anglo American in South Africa	192	(4)
Chapter Notes	196	(4)
Part III THEORIES AND INSTITUTIONS; TRADE AND INVESTMENT	200	(104)
International Trade and Factor Mobility Theory	200	(38)
Case: Costa Rican Trade, Foreign Investment, and Economic Transformation	201	(3)
Introduction	204	(1)
Interventionist Theories	205	(1)
Mercantilism	205	(1)
Neomercantilism	206	(1)
Free Trade Theories	206	(7)
Theory of Absolute Advantage	207	(2)
Comparative Advantage	209	(2)
Some Assumptions and Limitations of the Theories of Specialization	211	(2)
Theories Explaining Trade Patterns	213	(5)
How Much Does a Country Trade?	213	(1)
What Types of Products Does a Country Trade?	213	(4)
With Whom Do Countries Trade?	217	(1)
Does Geography Matter? Variety Is the Spice of Life	218	(1)
The Dynamics of Trade	219	(4)
Product Life Cycle (PLC) Theory	219	(2)
The Porter Diamond	221	(2)
Point---Counterpoint: Should Countries Follow Strategic Trade Policies?	223	(1)
Factor Mobility	224	(5)
Why Production Factors Move	225	(1)
Effects of Factor Movements	226	(1)
The Relationship of Trade and Factor Mobility	227	(2)
Looking to the Future: Will Conditions for Trade Change?	229	(1)
Summary	230	(1)
Case: LUKoil	231	(4)
Chapter Notes	235	(3)
Governmental Influence on Trade	238	(28)
Case: Textile and Clothing Trade	239	(2)
Introduction	241	(1)
Conflicting Results of Trade Policies	241	(2)
Economic Rationales for Governmental Intervention	243	(7)
Unemployment	243	(1)
Infant-Industry Argument	244	(2)
Industrialization Argument	246	(2)
Economic Relationships with Other Countries	248	(2)
Noneconomic Rationales for Government Intervention	250	(1)
Maintenance of Essential Industries	250	(1)
Prevention of Shipments to ``Unfriendly'' Countries	251	(1)
Point---Counterpoint: Should Countries Eliminate the Use of Trade Sanctions?	251	(2)
Maintenance or Extension of Spheres of Influence	252	(1)
Protecting Activities that Help Preserve the National Identity	253	(1)
Instruments of Trade Control	253	(6)
Tariffs	253	(2)
Nontariff Barriers: Direct Price Influences	255	(1)
Nontariff Barriers: Quantity Controls	256	(3)
Dealing with Governmental Trade Influences	259	(1)
Looking to the Future: The Battle of Different Interests	260	(1)
Summary	261	(1)
Case: U.S.--Cuban Trade	261	(3)
Chapter Notes	264	(2)
Cross-National Cooperation and Agreements	266	(38)
Case: Toyota in Europe	267	(2)
Introduction	269	(1)
The World Trade Organization (WTO)	269	(3)
GATT: The Predecessor	269	(2)
The WTO	271	(1)
The Rise of Bilateral Agreements	272	(1)
Regional Economic Integration	272	(2)
The Effects of Integration	273	(1)
Major Regional Trading Groups	274	(1)
The European Union	274	(9)
The EU's Organizational Structure	274	(3)
The Single European Act	277	(2)
EU Expansion	279	(1)
Trade Disputes Between the EU and the U.S.	280	(1)
Implications of the EU for Corporate Strategy	280	(1)
Main Challenges Facing the EU	281	(2)
North American Free Trade Agreement (NAFTA)	283	(4)
Rules of Origin and Regional Content	284	(1)
Special Provisions of NAFTA	284	(1)
Impact of NAFTA	285	(1)
NAFTA Expansion	286	(1)
Implications of NAFTA for Corporate Strategy	286	(1)
Regional Economic Integration in the Americas	287	(3)
Point---Counterpoint: Is CAFTA a Good Idea?	290	(1)
Regional Economic Integration in Asia	291	(2)
Regional Economic Integration in Africa	293	(1)
Commodity Agreements	294	(3)
Producers' Alliances and ICCAs	294	(2)
The Organization of Petroleum Exporting Countries (OPEC)	296	(1)
Looking to the Future: Will the WTO Overcome Bilateral and Regional Integration Efforts?	297	(1)
Summary	297	(1)
Case: Wal-Mart de Mexico	298	(3)
Chapter Notes	301	(3)
Part IV WORLD FINANCIAL ENVIRONMENT	304	(66)
Global Foreign Exchange and Capital Markets	304	(36)
Case: Western Union	305	(1)
Introduction	306	(1)
Major Characteristics of the Foreign-Exchange Market	307	(3)
Brief Description of Foreign-Exchange Instruments	307	(1)
The Size, Composition, and Location of the Foreign-Exchange Market	308	(2)
Does Geography Matter? Foreign Exchange Trades	310	(1)
Major Foreign-Exchange Instruments	311	(7)
The Spot Market	311	(2)
The Forward Market	313	(3)
Options	316	(1)
Futures	316	(1)
Foreign-Exchange Convertibility	316	(2)
How Companies Use Foreign Exchange	318	(1)
The Foreign-Exchange Trading Process	319	(4)
Commercial and Investment Banks	321	(2)
Global Capital Markets	323	(8)
Eurocurrencies	323	(1)
International Bonds: Foreign, Euro, and Global	324	(2)
Equity Securities and the Euroequity Market	326	(5)
Point---Counterpoint: Speculation in Capital Markets	331	(1)
Looking to the Future: The Future of Foreign Exchange and Global Capital Markets	332	(1)
Summary	332	(1)
Case: HSBC and the Peso Crisis in Argentina	333	(4)
Chapter Notes	337	(3)
The Determination of Exchange Rates	340	(30)
Case: El Salvador and the U.S. Dollar	341	(2)
Introduction	343	(1)
The International Monetary Fund	343	(2)
IMF Assistance	344	(1)
Special Drawing Rights (SDRs)	344	(1)
Evolution to Floating Exchange Rate	345	(1)
Exchange-Rate Arrangements	345	(5)
From Pegged to Floating Currencies	345	(2)
The Euro	347	(3)
Point---Counterpoint: Should Africa Develop a Common Currency?	350	(3)
Black Markets	351	(1)
The Role of Central Banks	351	(2)
The Determination of Exchange Rates	353	(6)
Floating Rate Regimes	353	(1)
Managed Fixed Rate Regime	354	(2)
Purchasing-Power Parity	356	(1)
Interest Rates	357	(1)
Other Factors in Exchange-Rate Determination	358	(1)
Forecasting Exchange-Rate Movements	359	(2)
Fundamental and Technical Forecasting	359	(1)
Factors to Monitor	360	(1)
Business Implications of Exchange-Rate Changes	361	(2)
Marketing Decisions	361	(1)
Production Decisions	362	(1)
Financial Decisions	362	(1)
Looking to the Future: Changing Times Will Bring Greater Exchange-Rate Flexibility	363	(1)
Summary	363	(1)
Case: The Chinese Yuan---To Revalue or Not to Revalue, That Is the Question	364	(4)
Chapter Notes	368	(2)
Part V GLOBAL STRATEGY STRUCTURE AND IMPLEMENTATION	370	(188)
The Strategy of International Business	370	(40)
Case: Zara---Value Creation in the Global Apparel Industry	371	(4)
Introduction	375	(2)
Industry, Strategy, and Firm Performance	377	(4)
The Idea of Industry Structure	378	(1)
Industry Change	379	(1)
Strategy and Value	380	(1)
Creating Value	380	(1)
The Firm as a Value Chain	381	(4)
Using the Value Chain	383	(1)
Configuration	383	(2)
Does Geography Matter? Labor Costs and Location Decisions	385	(6)
Coordination	386	(4)
Value Chains and Change	390	(1)
Point---Counterpoint: Value Chains--Real or Virtual?	391	(1)
Global Integration versus Local Responsiveness	392	(4)
Pressures for Global Integration	392	(1)
Globalization of Markets	392	(1)
Efficiency Gains of Standardization	393	(1)
Pressures for Local Responsiveness	393	(2)
Interaction	395	(1)
Strategy Types	396	(5)
International Strategy	396	(1)
Multidomestic Strategy	397	(1)
Global Strategy	398	(1)
Transnational Strategy	399	(2)
Looking to the Future: New Strategy Types?	401	(1)
Summary	402	(1)
Case: The Globalization of eBay	402	(5)
Chapter Notes	407	(3)
Country Evaluation and Selection	410	(40)
Case: Carrefour	411	(4)
Introduction	415	(1)
Scanning and Detailed Examination Compared	416	(2)
What Information Is Important?	418	(11)
Opportunities	418	(5)
Risks	423	(6)
Does Geography Matter? Don't Fool with Mother Nature	429	(1)
Collect and Analyze Data	430	(3)
Problems with Research Results and Data	430	(1)
External Sources of Information	431	(2)
Internal Generation of Data	433	(1)
Point---Counterpoint: Should Companies Forego Direct Investments in Violent Areas?	433	(1)
Country Comparison Tools	434	(3)
Grids	435	(1)
Matrices	436	(1)
Allocating Among Locations	437	(3)
Reinvestment versus Harvesting	437	(1)
Interdependence of Locations	438	(1)
Geographic Diversification versus Concentration	438	(2)
Noncomparative Decision Making	440	(1)
Making Final Country Selections	441	(1)
Looking to the Future: Will the Prime Locations Change?	441	(1)
Summary	442	(1)
Case: FDI in South Africa	443	(3)
Chapter Notes	446	(4)
Export and Import Strategies	450	(32)
Case: Grieve---A Small-Business Export Strategy	451	(3)
Introduction	454	(1)
Export Strategy	455	(6)
Strategic Advantages of Exports	456	(1)
Characteristics of Exporters	456	(1)
Stages of Export Development	457	(1)
Pitfalls of Exporting	458	(1)
Designing an Export Strategy	459	(2)
Import Strategy	461	(4)
Strategic Advantages of Imports	461	(2)
The Role of Customs Agencies	463	(1)
Import Documentation	464	(1)
Point---Counterpoint: A Dirty Dilemma: Exporting Hazardous Waste	465	(1)
The Export Process	466	(6)
Indirect Selling	466	(1)
Export Management Companies	467	(1)
Export Trading Companies	468	(1)
Foreign Trading Companies	468	(1)
Direct Selling	469	(1)
Direct Selling Through the Internet	470	(1)
Export Documentation	470	(1)
Foreign Freight Forwarders	471	(1)
Looking to the Future: The Technology of Trade	472	(2)
Sources of Assistance	473	(1)
Countertrade	474	(2)
Barter	475	(1)
Buybacks	475	(1)
Offset Trade	475	(1)
Summary	476	(1)
Case: Alibaba.com	477	(2)
Chapter Notes	479	(3)
Direct Investment and Collaborative Strategies	482	(36)
Case: Cisco Systems	483	(2)
Introduction	485	(1)
Why Exporting May Not Be Feasible	486	(2)
Cheaper to Produce Abroad	486	(1)
Transportation Costs	487	(1)
Lack of Domestic Capacity	487	(1)
Need to Alter Products and Services	487	(1)
Trade Restrictions	488	(1)
Country of Origin Effects	488	(1)
Noncollaborative Foreign Equity Arrangements	488	(3)
Foreign Direct Investment and Control	489	(1)
Methods for Making FDI	490	(1)
Motives for Collaborative Arrangements	491	(3)
General Motives for Collaborative Arrangements	492	(1)
International Motives for Collaborative Arrangements	493	(1)
Types of Collaborative Arrangements	494	(1)
Some Considerations in Collaborative Arrangements	495	(1)
Point---Counterpoint: Should Countries Limit Foreign Control of Key Industries?	495	(8)
Licensing	497	(1)
Franchising	498	(2)
Management Contracts	500	(1)
Turnkey Operations	500	(1)
Joint Ventures	501	(2)
Equity Alliances	503	(1)
Problems of Collaborative Arrangements	503	(2)
Collaboration's Importance to Partners	504	(1)
Differing Objectives	504	(1)
Control Problems	504	(1)
Partners' Contributions and Appropriations	505	(1)
Differences in Culture	505	(1)
Managing Foreign Arrangements	505	(4)
Dynamics of Collaborative Arrangements	506	(1)
Finding Compatible Partners	507	(1)
Negotiating Process	508	(1)
Contractual Provisions	508	(1)
Performance Assessment	508	(1)
Looking to the Future: Why Innovation Breeds Collaboration	509	(1)
Summary	509	(1)
Case: International Airline Alliances	510	(4)
Chapter Notes	514	(4)
The Organization of International Business	518	(40)
Case: Johnson & Johnson	519	(3)
Introduction	522	(1)
The Causes of Change	523	(2)
Organization in the International Business	525	(1)
Organizational Structure	526	(10)
Vertical Differentiation: Centralization versus Decentralization	526	(2)
Horizontal Differentiation: The Design of the Formal Structure	528	(1)
Functional Structure	528	(1)
Divisional Structures	528	(3)
Matrix Structure	531	(1)
Mixed Structure	532	(1)
Contemporary Structures	532	(1)
Network Structure	533	(2)
Virtual Organization	535	(1)
Project Structure	535	(1)
Point---Counterpoint: Hierarchies or Hyperarchies?	536	(1)
Coordination and Control Systems	537	(6)
Coordination Systems	537	(3)
Control Systems	540	(1)
Control Mechanisms	540	(3)
Organization Culture	543	(4)
The Growing Importance of Culture	543	(2)
Challenges and Pitfalls	545	(1)
Strategy and Organization Culture	545	(2)
Looking to the Future: The Role and Rise of Corporate Universities	547	(1)
Organization in Special Situations	547	(1)
Acquisitions	547	(1)
Shared Ownership	548	(1)
Dynamic Nature of Performance	548	(1)
The Role of Legal Structures	548	(1)
Branch and Subsidiary Organizations	549	(1)
Types of Subsidiaries and Operating Form	549	(1)
Summary	549	(1)
Case: GE Hungary	550	(5)
Chapter Notes	555	(3)
Part VI MANAGING INTERNATIONAL OPERATIONS	558	(187)
Marketing Globally	558	(40)
Case: Avon	559	(4)
Filling Global Needs and Wants	563	(1)
Marketing Strategies	564	(3)
Marketing Orientations	564	(2)
Targeting and Segmenting Markets	566	(1)
Product Policy	567	(1)
Reasons for Making Product Alterations	567	(1)
Point---Counterpoint: Should First World Governments Regulate Their Companies' Marketing in Third World Countries?	568	(4)
Alteration Costs	571	(1)
Extent and Mix of the Product Line	571	(1)
Product Life-Cycle Considerations	571	(1)
Pricing	572	(5)
Governmental Intervention	572	(1)
Greater Market Diversity	573	(1)
Price Escalation in Exporting	573	(1)
Currency Value and Price Changes	574	(1)
Fixed versus Variable Pricing	575	(2)
Company to Company Pricing	577	(1)
Promotion	577	(2)
The Push-Pull Mix	577	(1)
Standardization of Advertising Programs	578	(1)
Branding	579	(3)
Language Factors	580	(1)
Brand Acquisitions	581	(1)
Country-of-Origin Images	581	(1)
Generic and Near-Generic Names	582	(1)
Distribution	582	(1)
Does Geography Matter? Is Necessity the Mother of Invention?	582	(5)
Difficulty of Standardization	583	(1)
Choosing Distributors and Channels	584	(1)
Hidden Costs in Distribution	585	(1)
The Internet and Electronic Commerce	586	(1)
Managing the Marketing Mix	587	(2)
Looking to the Future; Will the ``Haves'' and the ``Have-Nots'' Meet the ``Have Somes''?	589	(1)
Summary	590	(1)
Case: NeoPets	591	(3)
Chapter Notes	594	(4)
Global Manufacturing and Supply Chain Management	598	(32)
Case: Samsonite's Global Supply Chain	599	(2)
Introduction	601	(2)
Global Manufacturing Strategies	603	(4)
Manufacturing Compatibility	604	(2)
Manufacturing Configuration	606	(1)
Coordination and Control	606	(1)
Information Technology and Global Supply Chain Management	607	(1)
Quality	608	(3)
Total Quality Management	609	(1)
Quality Standards	610	(1)
Supplier Networks	611	(4)
Make or Buy Decision	614	(1)
Point---Counterpoint: Should Firms Outsource Innovation?	615	(3)
Supplier Relations	616	(1)
The Purchasing Function	617	(1)
Inventory Management	618	(4)
Just-in-Time Systems	618	(2)
Foreign Trade Zones	620	(1)
Transportation Networks	621	(1)
Looking to the Future: The Role of China in the Supply Chain	622	(1)
Summary	622	(1)
Case: Denso Corporation and Global Supplier Relations	623	(4)
Chapter Notes	627	(3)
International Accounting Issues	630	(40)
Case: Parmalat---Europe's Enron	631	(3)
Introduction	634	(1)
Factors Influencing the Development of Accounting Worldwide	635	(13)
Accounting Objectives	639	(2)
Cultural Differences in Accounting	641	(1)
Classification of Accounting Systems	642	(3)
International Accounting Standards and Global Convergence	645	(3)
Looking to the Future: Will IASB GAAP Become the Global Accounting Standard?	648	(1)
Transactions in Foreign Currencies	649	(2)
Recording of Transactions	649	(1)
Correct Procedures for U.S. Companies	650	(1)
Translation of Foreign Currency Financial Statements	651	(2)
Translation Methods	651	(2)
Disclosure of Foreign-Exchange Gains and Losses	653	(1)
Environmental Reports	653	(1)
Performance Evaluation and Control	654	(3)
Foreign Exchange in the Budget Process	654	(2)
Budgeting and Currency Practices	656	(1)
Point---Counterpoint: Should Local Subsidiary Management Be Held Responsible for Exchange Rate Changes?	657	(1)
Transfer Pricing and Performance Evaluation	657	(2)
The Balanced Scorecard	659	(1)
Summary	660	(1)
Case: Vivendi Universal	661	(6)
Chapter Notes	667	(3)
The Multinational Finance Function	670	(34)
Case: Nu Skin Enterprises in Asia	671	(2)
Introduction	673	(1)
The Treasury and Finance Functions	673	(2)
Capital Structure	675	(1)
Offshore Financial Centers	676	(3)
Point---Counterpoint: Offshore Financial Centers Should Be Shut Down	679	(1)
Capital Budgeting in a Global Context	680	(1)
Internal Sources of Funds	681	(3)
Global Cash Management	682	(1)
Multilateral Netting	683	(1)
Cash Flow Aspects of Imports and Exports	684	(1)
Foreign-Exchange Risk Management	685	(5)
Translation Exposure	686	(1)
Transaction Exposure	686	(1)
Economic Exposure	686	(1)
Exposure-Management Strategy	687	(3)
Taxation of Foreign Source Income	690	(7)
Foreign Branch	691	(1)
Foreign Subsidiary	691	(2)
Transfer Prices	693	(1)
Tax Credit	694	(1)
Non-U.S. Tax Practices	694	(2)
Value-Added Tax	696	(1)
Tax Treaties: The Elimination of Double Taxation	696	(1)
Looking to the Future: Technology and Cash Flows	697	(1)
Summary	698	(1)
Case: Dell Mercosur	699	(3)
Chapter Notes	702	(2)
Human Resource Management	704	(41)
Case: A Career in International Business	705	(1)
Introduction	706	(2)
The Strategic Function of International HRM	708	(2)
Staffing Policies	710	(6)
The Ethnocentric Approach	711	(1)
The Polycentric Approach	712	(2)
The Geocentric Approach	714	(1)
Summary	715	(1)
Expatriate Selection	716	(2)
Technical Competence	716	(1)
Adaptiveness	717	(1)
Leadership Ability	718	(1)
Expatriate Failure	718	(1)
Expatriate Preparation and Development	719	(2)
General Country Understanding	719	(1)
Cultural Sensitivity	720	(1)
Practical Skills	720	(1)
Training Gaps and Trends	720	(1)
Point---Counterpoint: Learning a Foreign Language--Still Useful?	721	(1)
Expatriate Compensation	722	(5)
Types of Compensation Plans	722	(1)
Key Aspects of Expatriate Compensation	723	(2)
Complications Posed by Nationality Differences	725	(2)
Expatriate Repatriation	727	(2)
Managing Repatriation	729	(1)
International Labor Relations	729	(3)
Labor's Concerns About MNEs	730	(1)
Product and Resource Flows	731	(1)
Value Activity Switching	731	(1)
Scale and Complexity of MNEs	731	(1)
Labor's Actions Toward MNEs	732	(2)
Labor's Success and Struggle	733	(1)
Looking to the Future: Which Countries Will Have the Jobs of the Future?	734	(2)
Trends in the Relationship Between MNEs and Labor	735	(1)
Summary	736	(1)
Case: Tel-Comm-Tek (TCT)	737	(3)
Chapter Notes	740	(5)
Glossary	745	(16)
Photo Credits	761	(2)
Company Index and Trademarks	763	(5)
Name Index	768	(9)
Subject Index	777