International Business : Environments and Operations

by John Daniels; Lee H. Radebaugh

• ISBN13: 9780201846188
• ISBN10: 0201846187
• Edition: 8th
• Format: Hardcover
• Copyright: 1997-08-01
• Publisher: Addison-Wesley

Summary

John Daniels and Lee Radebaugh share their first hand knowledge of international business through this new edition of their market leading textbook. This textbook thoroughly discusses the differences faced in international environments, the overall strategies that companies can take, and the functional alternatives for operating abroad. Cited as having the widest coverage of all International Business textbooks, Daniels and Radebaugh have added the internationalization process to many chapters a nd have extensively revised the strategy chapters for this edition. To make learning (and teaching!) more interesting this book is overflowing with colorful maps, strong opening and closing cases, and current examples. Available with GLOBE (CD-ROM with electronic Atlas and exercises).

Table of Contents

Part 1 Background for International Business	2	(55)
Chapter 1 International Business: An Overview	2	(55)
Case: Euro Disney	3	(24)
Introduction	8	(6)
Modes of International Business	14	(5)
External Influences on International Business	19	(4)
Evolution of Strategy in the Internationalization Process	23	(4)
Countervailing Forces	27	(2)
Ethical Dilemmas & Social Responsibility	29	(4)
Looking to the Future	33	(1)
Summary	33	(1)
Case: Blockbuster Video	34	(6)
International Business Environment: An Atlas	40	(8)
Map Index	48	(9)
Part 2 Comparative Environmental Frameworks	57	(132)
Chapter 2 The Cultural Environments Facing Business	57	(42)
Case: Parris-Rogers International (PRI)	58	(29)
Introduction	61	(2)
The Concept of Culture	63	(3)
Behavioral Practices Affecting Business	66	(14)
Reconciliation of International Differences	80	(1)
Cultural Needs in the Internationalization Process	81	(6)
Ethical Dilemmas & Social Responsibility	87	(2)
Countervailing Forces	89	(1)
Looking to the Future	90	(1)
Summary	91	(1)
Case: John Higgins	92	(7)
Chapter 3 The Political and Legal Environments Facing Business	99	(38)
Case: The Taipan's Dilemma	100	(23)
Introduction	103	(1)
The Political Environment	104	(1)
The Political System and Its Functions	104	(1)
Basic Political Ideologies	105	(11)
The Impact of the Political System on Management Decisions	116	(1)
Formulating and Implementing Political Strategies	117	(2)
The Legal Environment	119	(4)
Ethical Dilemmas & Social Responsibility	123	(3)
Evolution of Legal and Political Strategies in the Internationalization Process	125	(1)
Countervailing Forces	126	(1)
Looking to the Future	127	(1)
Summary	128	(2)
Case: Bata, Ltd.	130	(5)
Appendix 1 Comparative Measures of Freedom	135	(2)
Chapter 4 The Economic Environment	137	(52)
Case: McDonald's Corporation	138	(27)
Introduction	141	(1)
Classifying Economic Systems	142	(5)
Classifying Countries	147	(7)
Key Macroeconomic Issues	154	(11)
Ethical Dilemmas & Social Responsibility	165	(12)
Transformation to a Market Economy	168	(8)
Adapting to Foreign Economic Environments in the Internationalization Process	176	(1)
Countervailing Forces	177	(1)
Looking to the Future	178	(1)
Summary	178	(2)
Case: Pizza Hut in Brazil	180	(9)
Part 3 Theories and Institutions: Trade and Investment	189	(182)
Chapter 5 International Trade Theory	189	(44)
Case: Sri Lankan Trade	190	(19)
Introduction	193	(2)
Mercantilism	195	(1)
Absolute Advantage	196	(4)
Comparative Advantage	200	(4)
Factor-Proportions Theory	204	(2)
The Product Life Cycle	206	(3)
Ethical Dilemmas & Social Responsibility	209	(14)
Trade Patterns	211	(4)
Independence, Interdependence, and Dependence	215	(3)
Why Companies Trade Internationally	218	(4)
Trade in the Internationalization Process	222	(1)
Countervailing Forces	223	(1)
Looking to the Future	224	(1)
Summary	225	(2)
Case: The Cashew	227	(6)
Chapter 6 Governmental Influence on Trade	233	(45)
Case: United States-Japanese Auto Trade	234	(17)
Introduction	237	(1)
The Rationale for Governmental Intervention	238	(11)
Forms of Trade Control	249	(2)
Ethical Dilemmas and Social Responsibility	251	(17)
From GATT to WTO	260	(6)
International Business Strategy in the Internationalization Process	266	(2)
Countervailing Forces	268	(1)
Looking to the Future	269	(1)
Summary	270	(1)
Case: United States-Cuban Trade	271	(7)
Chapter 7 Economic Integration and Cooperative Agreements	278	(54)
Case: Ford in Europe	279	(30)
Introduction	282	(5)
The European Union	287	(11)
North American Free Trade Agreement (NAFTA)	298	(8)
Latin American Integration	306	(3)
Ethical Dilemmas & Social Responsibility	309	(11)
Asian Integration Efforts	310	(2)
African Cooperation	312	(2)
Commodity Agreements	314	(3)
The United Nations	317	(1)
The Environment	318	(2)
Countervailing Forces	320	(1)
Looking to the Future	320	(2)
Summary	322	(1)
Case: Crystal Lake Manufacturing--A NAFTA Dilemma	323	(9)
Chapter 8 Foreign Direct Investment	332	(39)
Case: Bridgestone Tire Company	333	(22)
Introduction	335	(1)
The Meaning of Foreign Direct Investment	336	(3)
The Relationship of Trade and Factor Mobility	339	(3)
Motivations for Handling International Business through Direct Investment	342	(1)
Market-Expansion: Investments versus Trade	342	(5)
Resource-Acquisition Investments	347	(3)
Diversification-Oriented Investments	350	(1)
Political Motives	351	(1)
Buy-versus-Build Decision	352	(1)
Advantages of Foreign Direct Investment	353	(2)
Ethical Dilemmas & Social Responsibility	355	(4)
The Strategy of Direct Investment in the Internationalization Process	356	(1)
Direct Investment Patterns	357	(2)
Countervailing Forces	359	(1)
Looking to the Future	360	(1)
Summary	361	(2)
Case: Cran Chile	363	(8)
Part 4 World Financial Environment	371	(72)
Chapter 9 Foreign Exchange	371	(37)
Case: Foreign Travels, Foreign Exchange Travails: Excerpts from the Travel Journal of Lee Radebaugh	372	(25)
Introduction	374	(1)
Terms and Definitions	375	(6)
How the Foreign-Exchange Market Works	381	(12)
Convertibility	393	(1)
Exchange Restrictions	394	(1)
The Uses of the Foreign-Exchange Market in the Internationalization Process	395	(2)
Ethical Dilemmas & Social Responsibility	397	(1)
Countervailing Forces	398	(1)
Looking to the Future	398	(1)
Summary	399	(1)
Case: Ilusion Textiles and the Mexican Peso	400	(8)
Chapter 10 The Determination of Exchange Rates	408	(35)
Case: The Chinese Renminbi	409	(10)
Introduction	411	(1)
The International Monetary System	411	(3)
Exchange-Rate Arrangements	414	(5)
Ethical Dilemmas & Social Responsibility	419	(14)
The Determination of Exchange Rates	420	(8)
Forecasting Exchange-Rate Movements	428	(3)
Business Implications of Exchange-Rate Changes	431	(2)
Countervailing Forces	433	(1)
Looking to the Future	434	(1)
Summary	434	(2)
Case: The Japanese Yen	436	(7)
Part 5 The Dynamics of International Business-Government Relationships	443	(78)
Chapter 11 The Impact of the Multinational Enterprise	443	(35)
Case: Foreign Direct Investment in China	444	(23)
Introduction	448	(1)
Evaluating the Impact of the MNE	449	(3)
Economic Impact of the MNE	452	(8)
Political and Legal Impact of the MNE	460	(7)
Ethical Dilemmas & Social Responsibility	467	(3)
The Impact of the Multinational Enterprise in the Internationalization Process	469	(1)
Operational Impact of International Business Activities	470	(1)
Countervailing Forces	470	(1)
Looking to the Future	471	(1)
Summary	471	(2)
Case: Foreign Real-Estate Holdings in the United States	473	(5)
Chapter 12 International Business Negotiations and Diplomacy	478	(43)
Case: Saudi Aramco	479	(18)
Introduction	483	(1)
Governmental versus Company Strength	483	(4)
Negotiations in International Business	487	(9)
Evolution of Negotiations and Diplomacy in the Internationalization Process	496	(1)
Home-Country Involvement in Asset Protection	496	(1)
Ethical Dilemmas and Social Responsibility	497	(11)
Multilateral Agreements and Settlements: FDI	500	(1)
Multinational Agreements: IPRs	501	(4)
Role of Public Affairs	505	(3)
Countervailing Forces	508	(1)
Looking to the Future	509	(1)
Summary	510	(2)
Case: PepsiCo in India	512	(9)
Part 6 Operations: Overlaying Tactical Alternatives	521	(133)
Chapter 13 Country Evaluation and Selection	521	(47)
Case: Ford Motor Company	522	(27)
Introduction	524	(2)
Scanning for Alternatives	526	(2)
Influential Variables: Opportunities	528	(5)
Influential Variables: Risk	533	(7)
Business Research	540	(6)
Tools for Comparing Countries	546	(3)
Ethical Dilemmas & Social Responsibility	549	(9)
Diversification versus Concentration Strategies	551	(3)
Evaluation of Investment Proposals	554	(2)
Geographic Strategy in the Internationalization Process	556	(1)
Divestment Decisions	556	(2)
Countervailing Forces	558	(1)
Looking to the Future	558	(1)
Summary	559	(2)
Case: Royal Dutch Shell/Nigeria	561	(7)
Chapter 14 Collaborative Strategies	568	(40)
Case: Grupo Industrial Alfa (GIASA)	569	(24)
Introduction	572	(1)
Motives for Collaborative Arrangements	573	(4)
Types of Collaborative Arrangements	577	(11)
Problems of Collaborative Arrangements	588	(3)
Collaborative Strategies in the Internationalization Process	591	(1)
Managing Foreign Arrangements	592	(1)
Ethical Dilemmas & Social Responsibility	593	(3)
Countervailing Forces	596	(1)
Looking to the Future	597	(1)
Summary	598	(1)
Case: International Airline Alliances	599	(9)
Chapter 15 Control Strategies	608	(46)
Case: Nestle	609	(28)
Introduction	612	(2)
Planning	614	(4)
Organizational Structure	618	(6)
Location of Decision Making	624	(7)
Control in the Internationalization Process	631	(2)
Control Mechanisms	633	(4)
Ethical Dilemmas & Social Responsibility	637	(5)
Control in Special Situations	639	(2)
Legal Structures	641	(1)
Countervailing Forces	642	(1)
Looking to the Future	642	(1)
Summary	643	(2)
Case: GE's Tungsram Acquistion	645	(9)
Part 7 Operations: Managing Business Functions Internationally	654
Chapter 16 Marketing	654	(49)
Case: Marks & Spencer	655	(30)
Introduction	659	(1)
Market Size Analysis	660	(4)
Product Policy	664	(7)
Marketing in the Internationalization Process	671	(1)
Pricing	672	(6)
Promotion	678	(4)
Branding	682	(2)
Distribution	684	(1)
Ethical Dilemmas & Social Responsibility	685	(7)
Countervailing Forces	692	(1)
Looking to the Future	692	(1)
Summary	693	(1)
Case: Avon	694	(9)
Chapter 17 Export and Import Strategies	703	(42)
Case: Grieve Corporation	704	(29)
Introduction	707	(4)
Export Strategy	711	(7)
Export Intermediaries	718	(5)
Foreign Freight Forwarders	723	(3)
Export Financing	726	(5)
Countertrade	731	(2)
Ethical Dilemmas & Social Responsibility	733	(5)
The Import Strategy	735	(3)
Countervailing Forces	738	(1)
Looking to the Future	738	(1)
Summary	739	(2)
Case: Sunset Flowers of New Zealand, Ltd.	741	(4)
Chapter 18 Global Operations Management and Sourcing Strategies	745	(36)
Case: Black & Decker (B&D)	746	(21)
Introduction	750	(1)
Global Manufacturing Strategies in the Internationalization Process	750	(5)
Quality	756	(3)
Global Sourcing, Purchasing, and Supplier Relations	759	(8)
Ethical Dilemmas & Social Responsibility	767	(5)
Inventory Systems	768	(3)
Product Design	771	(1)
Countervailing Forces	772	(1)
Looking to the Future	773	(1)
Summary	774	(1)
Case: Applied Magnetics Malaysia (AMM)	775	(6)
Chapter 19 Multinational Accounting and Tax Functions	781	(42)
Case: The Coca-Cola Company	782	(23)
Introduction	786	(1)
Factors Influencing the Development of Accounting around the World	787	(8)
Harmonization of Differences	795	(1)
Transactions in Foreign Currencies	796	(3)
Translation of Foreign-Currency Financial Statements	799	(4)
Performance Evaluation and Control in the Internationalization Process	803	(2)
Ethical Dilemmas & Social Responsibility	805	(9)
Taxation	806	(6)
Non-U.S. Tax Practices	812	(2)
Planning the Tax Function	814	(1)
Countervailing Forces	814	(1)
Looking to the Future	815	(1)
Summary	815	(2)
Case: Daimler-Benz and a U.S. Listing	817	(6)
Chapter 20 The Multinational Finance Function	823	(38)
Case: LSI Logic Corp.	824	(19)
Introduction	826	(1)
The Finance and Treasury Functions in the Internationalization Process	826	(2)
External Sources of Funds	828	(1)
Eurocurrencies	829	(2)
International Bonds	831	(1)
Equity Securities	832	(4)
Offshore Financial Centers	836	(1)
Internal Sources of Funds	837	(4)
Financial-Risk Management	841	(2)
Ethical Dilemmas & Social Responsibility	843	(9)
Financial Aspects of the Investment Decision	851	(1)
Countervailing Forces	852	(2)
Looking to the Future	854	(1)
Summary	854	(2)
Case: NCR's Risk-Management Strategy	856	(5)
Chapter 21 Human Resource Management	861
Case: Dow's International Management Development	862	(29)
Introduction	864	(1)
Management Qualifications and Characteristics	865	(3)
International Managerial Transfers	868	(13)
Management Recruitment and Selection	881	(1)
International Development of Managers	882	(1)
Human Resource Management in the Internationalization Process	883	(1)
Labor-Market Differences	884	(2)
Labor Compensation	886	(2)
Comparative Labor Relations	888	(3)
Ethical Dilemmas & Social Responsibility	891	(7)
International Pressures on National Practices	894	(1)
Multinational Ownership and Collective Bargaining	895	(3)
Countervailing Forces	898	(1)
Looking to the Future	899	(2)
Summary	901	(2)
Case: Office Equipment Company (OEC)	903
Glossary	G-1
Company Index and Trademarks	I-1
Name Index	I-7
Subject Index	I-17