1. Trang chủ
  2. » Kinh Doanh - Tiếp Thị

international business completing in the global marketplace 83 charles wlhill

904 380 0

Đang tải... (xem toàn văn)

Tài liệu hạn chế xem trước, để xem đầy đủ mời bạn chọn Tải xuống

THÔNG TIN TÀI LIỆU

Thông tin cơ bản

Định dạng
Số trang 904
Dung lượng 10,21 MB

Nội dung

brief CONTENTSpart one Introduction and Overview Chapter 1 Globalization part two Country Differences Chapter 2 National Differences in Political Economy Chapter 3 Differences in Culture

Trang 3

8EInternational Business

COMPETING IN THE GLOBAL MARKETPLACE

Trang 4

8E

Trang 5

International Business

COMPETING IN THE GLOBAL MARKETPLACE

Charles W L Hill

UNIVERSITY OF WASHINGTON

Trang 6

INTERNATIONAL BUSINESS: COMPETING IN THE GLOBAL MARKETPLACE

Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221Avenue of the Americas, New York, NY, 10020 Copyright © 2011, 2009, 2007, 2005, 2003, 2000,

1997, 1994 by The McGraw-Hill Companies, Inc All rights reserved No part of this publication may bereproduced or distributed in any form or by any means, or stored in a database or retrieval system,without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, inany network or other electronic storage or transmission, or broadcast for distance learning

Some ancillaries, including electronic and print components, may not be available to customersoutside the United States

This book is printed on acid-free paper

1 2 3 4 5 6 7 8 9 0 DOW/DOW 1 0 9 8 7 6 5 4 3 2 1 0

ISBN 978-0-07-813719-8

MHID 0-07-813719-5

Vice president and editor-in-chief: Brent Gordon

Publisher: Paul Ducham

Executive editor: John Weimeister

Director of development: Ann Torbert

Development editor: Megan Richter

Vice president and director of marketing: Robin J Zwettler

Senior marketing manager: Anke Braun Weekes

Vice president of editing, design and production: Sesha Bolisetty

Senior project manager: Bruce Gin

Senior production supervisor: Debra R Sylvester

Interior designer: Cara Hawthorne, cara david DESIGN

Senior photo research coordinator: Jeremy Cheshareck

Photo researcher: Keri Johnson

Senior media project manager: Joyce Chappetto

Cover design: Cara Hawthorne, cara david DESIGN

Trang 7

Hill, Charles W L.

International business: competing in the global marketplace/Charles W L Hill.—8th ed

p cm

Includes index

ISBN-13: 978-0-07-813719-8 (alk paper)

ISBN-10: 0-07-813719-5 (alk paper)

1 International business enterprises—Management 2 Competition, International I Title.HD62.4.H55 2011

658’.049—dc22

2009033378

www.mhhe.com

Trang 8

For June & Mike Hill, my parents

Trang 9

about the AUTHOR

Charles W L Hill University of Washington

Charles W L Hill is the Hughes M Blake Professor of International Business at the School ofBusiness, University of Washington Professor Hill received his Ph.D from the University ofManchester’s Institute of Science and Technology (UMIST) in Britain In addition to the University ofWashington, he has served on the faculties of UMIST, Texas A&M University, and Michigan StateUniversity

Professor Hill has published over 50 articles in peer-reviewed academic journals, including the

Academy of Management Journal, Academy of Management Review,

Strategic Management Journal, and Organization Science He has also published two college texts:

one on strategic management and the other on international business Professor Hill has served on the

editorial boards of several academic journals, including the Strategic Management Journal and Organization Science Between 1993 and 1996 he was consulting editor at the Academy of Management Review.

Professor Hill teaches in the MBA, Executive MBA, Management, and Ph.D programs at theUniversity of Washington He has received awards for teaching excellence in the MBA, Executive MBA,and Management programs He has also taught customized executive programs

Trang 10

Professor Hill works on a consulting basis with a number of organizations His clients have includedATL, Boeing, BF Goodrich, Hexcel, House of Fraser, Microsoft, Seattle City Light, Tacoma City Light,Thompson Financial Services, and Wizards of the Coast.

Trang 11

brief CONTENTS

part one Introduction and Overview

Chapter 1 Globalization

part two Country Differences

Chapter 2 National Differences in Political Economy Chapter 3 Differences in Culture

Chapter 4 Ethics in International Business

Cases: Google in China

Mired in Corruption—Kellogg, Brown & Root in Nigeria

part three The Global Trade and Investment Environment

Chapter 5 International Trade Theory

Chapter 6 The Political Economy of International Trade Chapter 7 Foreign Direct Investment

Chapter 8 Regional Economic Integration

Cases NAFTA and the U.S Textile Industry

Martin’s Textiles

Agricultural Subsidies and Development

Boeing versus Airbus

Starbucks Foreign Direct Investment

Trang 12

part four The Global Monetary System

Chapter 9 The Foreign Exchange Market

Chapter 10 The International Monetary System

Chapter 11 The Global Capital Market

Case Argentina’s Monetary Crisis

part five The Strategy and Structure of International Business

Chapter 12 The Strategy of International Business

Chapter 13 The Organization of International Business

Chapter 14 Entry Strategy and Strategic Alliances

Cases The Global Automobile Industry in 2009

IKEA: Furniture Retailer to the World

Downey’s Soup

part six International Business Operations

Chapter 15 Exporting, Importing, and Countertrade

Chapter 16 Global Production, Outsourcing, and Logistics

Chapter 17 Global Marketing and R&D

Chapter 18 Global Human Resource Management

Chapter 19 Accounting in the International Business

Chapter 20 Financial Management in the International Business Cases Li & Fung

Castrol Oil in Vietnam

Trang 13

China Mobile

GlossaryPhoto CreditsIndex

Trang 14

The Globalization of Markets

The Globalization of Production

Management Focus

Vizio and the Market for Flat Panel TVs

The Emergence of Global Institutions

Drivers of Globalization

Declining Trade and Investment Barriers

The Role of Technological Change

Microprocessors and Telecommunications

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

China’s Hisense—An Emerging Multinational

The Changing World Order

The Global Economy of the 21st Century

The Globalization Debate

Antiglobalization Protests

Globalization, Jobs, and Income

Country Focus

Trang 15

Protesting Globalization in France

Globalization, Labor Policies, and the Environment Globalization and National Sovereignty

Globalization and the World’s Poor

Managing in the Global Marketplace

Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case Globalization at General Electric

part two Country Differences

CHAPTER 2 National Differences in Political Economy Opening Case Egypt, the Troubled Giant

Introduction

Political Systems

Collectivism and Individualism

Democracy and Totalitarianism

Different Legal Systems

Differences in Contract Law

Property Rights and Corruption

Country Focus

Corruption in Nigeria

The Protection of Intellectual Property

Product Safety and Liability

Management Focus

Trang 16

Starbucks Wins Key Trademark Case in China

The Determinants of Economic Development

Differences in Economic Development

Broader Conceptions of Development: Amartya Sen Political Economy and Economic Progress

Country Focus

Emerging Property Rights in China

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

Privatization

Legal Systems

Implications of Changing Political Economy

Implications for Managers

Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case India’s Transformation

CHAPTER 3 Differences in Culture

Opening Case McDonald’s in India

Introduction

What Is Culture?

Values and Norms

Culture, Society, and the Nation-State

The Determinants of Culture

Social Structure

Individuals and Groups

Social Stratification

Country Focus

Trang 17

Breaking India’s Caste System

Religious and Ethical Systems

Trang 18

Closing Case Wal-Mart’s Chinese Suppliers

Part Two Cases

Google in China

Mired in Corruption—Kellogg, Brown & Root in Nigeria

part three The Global Trade and Investment Environment

CHAPTER 5 International Trade Theory

Opening Case Bangladesh’s Textile Trade

Introduction

An Overview of Trade Theory

The Benefits of Trade

Trang 19

The Pattern of International Trade

Trade Theory and Government Policy

The Gains from Trade

Qualifications and Assumptions

Extensions of the Ricardian Model

Country Focus

Moving U.S White-Collar Jobs Offshore

Heckscher-Ohlin Theory

The Leontief Paradox

The Product Life-Cycle Theory

Evaluating the Product Life-Cycle Theory

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

Management Focus

The Rise of Finland’s Nokia

Implications for Managers

Trang 20

International Trade and the Balance of Payments

CHAPTER 6 The Political Economy of International Trade Opening Case The Global Financial Crisis and Protectionism

Subsidized Wheat Production in Japan

Import Quotas and Voluntary Export Restraints

Local Content Requirements

Administrative Policies

Management Focus

U.S Magnesium Seeks Protection

Antidumping Policies

The Case for Government Intervention

Political Arguments for Intervention

Economic Arguments for Intervention

Country Focus

Trade in Hormone-Treated Beef

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 America

Implications for Managers

Chapter Summary

Trang 21

Critical Thinking and Discussion Questions

Research Task

Closing Case Why Did Global Food Prices Rise?

CHAPTER 7 Foreign Direct Investment

Opening Case Spain’s Telefonica

Foreign Direct Investment in China

The Source of FDI

The Form of FDI: Acquisitions versus Greenfield Investments The Shift to Services

Theories of Foreign Direct Investment

Why Foreign Direct Investment?

Management Focus

Foreign Direct Investment by Cemex

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

Management Focus

DP World and the United States

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

Trang 22

International Institutions and the Liberalization of FDI

Implications for Managers

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 Media Industry Mergers

The Single European Act

Country Focus

Creating a Single European Market in Financial Services

The Establishment of the Euro

Enlargement of the European Union

Regional Economic Integration in the Americas

The North American Free Trade Agreement

The Andean Community

MERCOSUR

Central American Common Market, CAFTA, and CARICOM Free Trade Area of the Americas

Regional Economic Integration Elsewhere

Association of Southeast Asian Nations

Trang 23

Asia-Pacific Economic Cooperation

Regional Trade Blocs in Africa

Implications for Managers

Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case The Euro Energy Market

Part Three Cases

NAFTA and the U.S Textile Industry

Martin’s Textiles

Agricultural Subsidies and Development

Boeing versus Airbus

Starbucks Foreign Direct Investment

part four The Global Monetary System

CHAPTER 9 The Foreign Exchange Market Opening Case Caterpillar Tractor

Volkswagen’s Hedging Strategy

The Nature of the Foreign Exchange Market

Economic Theories of Exchange Rate Determination

Prices and Exchange Rates

Country Focus

Anatomy of a Currency Crisis

Summary

Exchange Rate Forecasting

The Efficient Market School

Trang 24

The Inefficient Market School

Approaches to Forecasting

Currency Convertibility

Implications for Managers

Management Focus

Dealing with the Rising Euro

Reducing Economic Exposure

Other Steps for Managing Foreign Exchange Risk

Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case Hyundai and Kia

CHAPTER 10 The International Monetary System Opening Case Economic Turmoil in Latvia

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

Country Focus

The U.S Dollar, Oil Prices, and Recycling Petrodollars

The Case for Floating Exchange Rates

The Case for Fixed Exchange Rates

Who Is Right?

Trang 25

Exchange Rate Regimes in Practice

Pegged Exchange Rates

Currency Boards

IMF Crisis Management

Financial Crises in the Post–Bretton Woods Era Mexican Currency Crisis of 1995

The Asian Crisis

Evaluating the IMF’s Policy Prescriptions

Country Focus

Turkey and the IMF

Implications for Managers

Closing Case China’s Managed Float

CHAPTER 11 The Global Capital Market

Opening Case Global Capital Markets in Crisis

Introduction

Benefits of the Global Capital Market

Functions of a Generic Capital Market

Attractions of the Global Capital Market

Management Focus

Deutsche Telekom Taps the Global Capital Market

Growth of the Global Capital Market

Global Capital Market Risks

Country Focus

Did the Global Capital Markets Fail Mexico?

The Eurocurrency Market

Genesis and Growth of the Market

Attractions of the Eurocurrency Market

Drawbacks of the Eurocurrency Market

Trang 26

The Global Bond Market

Attractions of the Eurobond Market

The Global Equity Market

Foreign Exchange Risk and the Cost of Capital

Country Focus

The Search for Capital in the Czech Republic

Implications for Managers

Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case Industrial and Commercial Bank of China

Part Four Case

Argentina’s Monetary Crisis

part five The Strategy and Structure of International Business

CHAPTER 12 The Strategy of International Business

Opening Case The Evolving Strategy of IBM

Introduction

Strategy and the Firm

Value Creation

Strategic Positioning

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

Summary

Cost Pressures and Pressures for Local Responsiveness

Pressures for Cost Reductions

Pressures for Local Responsiveness

Trang 27

Evolution of Strategy at Procter & Gamble

The Evolution of Strategy

Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case Coca Cola

Appendix Profitability, Growth, and Valuation

CHAPTER 13 The Organization of International Business

Opening Case Nestlé

The International Division at Wal-Mart

Horizontal Differentiation: The Design of Structure

Management Focus

The Rise and Fall of Dow Chemical’s Matrix Structure

Integrating Mechanisms

Control Systems and Incentives

Types of Control Systems

Incentive Systems

Control Systems, Incentives, and Strategy in the International Business

Trang 28

Organizational Culture

Creating and Maintaining Organizational Culture

Organizational Culture and Performance in the International Business

Management Focus

Culture and Incentives at Lincoln Electric

Synthesis: Strategy and Architecture

Closing Case A Decade of Organizational Change at Unilever

CHAPTER 14 Entry Strategy and Strategic Alliances

Opening Case General Electric’s Joint Ventures

Introduction

Basic Entry Decisions

Which Foreign Markets?

Timing of Entry

Management Focus

Tesco’s International Growth Strategy

Scale of Entry and Strategic Commitments

Trang 29

Franchising

Joint Ventures

Wholly Owned Subsidiaries

Selecting an Entry Mode

Core Competencies and Entry Mode

Pressures for Cost Reductions and Entry Mode

Greenfield Ventures or Acquisition?

Pros and Cons of Acquisitions

Pros and Cons of Greenfield Ventures

Greenfield or Acquisition?

Strategic Alliances

The Advantages of Strategic Alliances

The Disadvantages of Strategic Alliances

Management Focus

Cisco and Fujitsu

Making Alliances Work

Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case JCB in India

Part Five Cases

The Global Automobile Industry in 2009

IKEA: Furniture Retailer to the World

Downey’s Soup

part six International Business Operations

CHAPTER 15 Exporting, Importing, and Countertrade Opening Case MD International

Introduction

The Promise and Pitfalls of Exporting

Improving Export Performance

Trang 30

Strategy, Production, and Logistics

Where to Produce

Trang 31

Locating Production Facilities

The Strategic Role of Foreign Factories

Management Focus

Hewlett-Packard in Singapore

Outsourcing Production: Make-or-Buy Decisions

The Advantages of Make

The Advantages of Buy

Trade-offs

Strategic Alliances with Suppliers

Managing a Global Supply Chain

The Role of Just-in-Time Inventory

The Role of Information Technology and the Internet

Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case Building the Boeing 787

CHAPTER 17 Global Marketing and R&D

Opening Case Microsoft in India

Trang 32

Distribution Strategy

Differences between Countries

Choosing a Distribution Strategy

Communication Strategy

Barriers to International Communication

Management Focus

Overcoming Cultural Barriers to Selling Tampons

Push versus Pull Strategies

Regulatory Influences on Prices

Configuring the Marketing Mix

Management Focus

Levi Strauss Goes Local

New-Product Development

The Location of R&D

Integrating R&D, Marketing, and Production

Closing Case Dove—Building a Global Brand

CHAPTER 18 Global Human Resource Management Opening Case AstraZeneca

Trang 33

Expatriate Managers

Management Focus

Managing Expatriates at Royal Dutch/Shell

The Global Mind-Set

Training and Management Development

Training for Expatriate Managers

Performance Appraisal Problems

Guidelines for Performance Appraisal

Compensation

National Differences in Compensation

Expatriate Pay

Management Focus

Global Compensation Practices at McDonald’s

International Labor Relations

The Concerns of Organized Labor

The Strategy of Organized Labor

Approaches to Labor Relations

Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case Lenovo

CHAPTER 19 Accounting in the International Business Opening Case Chinese Accounting

Introduction

Country Differences in Accounting Standards

Relationship between Business and Providers of Capital Political and Economic Ties with Other Countries

Inflation Accounting

Level of Development

Trang 34

The Consequences of Different Accounting Standards

Multinational Consolidation and Currency Translation

Management Focus

Novartis Joins the International Accounting Club

Consolidated Financial Statements

Currency Translation

Current U.S Practice

Accounting Aspects of Control Systems

Exchange Rate Changes and Control Systems

Transfer Pricing and Control Systems

Separation of Subsidiary and Manager Performance

Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case Adopting International Accounting Standards

CHAPTER 20 Financial Management in the International Business Opening Case Global Treasury Management at Procter & Gamble

Introduction

Investment Decisions

Capital Budgeting

Project and Parent Cash Flows

Adjusting for Political and Economic Risk

Management Focus

Black Sea Energy Ltd

Risk and Capital Budgeting

Financing Decisions

Source of Financing

Financial Structure

Trang 35

Global Money Management: The Efficiency Objective

Minimizing Cash Balances

Reducing Transaction Costs

Global Money Management: The Tax Objective

Moving Money across Borders: Attaining Efficiencies and Reducing Taxes

Closing Case Brazil’s Gol

Part Six Cases

Trang 36

list of MAPS

Map 2.1 GNI per Capita, 2007

Map 2.2 GNI Purchasing Power Parity per Capita, 2007

Map 2.3 Growth Rate in GDP per Capita, 1998–2007

Map 2.4 The Human Development Index, 2006

Map 2.5 Political Freedom, 2006

Map 2.6 Distribution of Economic Freedom in 2007

Map 3.1 World Religions

Map 8.1 Member States of the European Union in 2009

Map 8.2 Economic Integration in the Americas

Map 8.3 ASEAN countries

Map 8.4 APEC Members

Trang 37

It is now two decades since I began work on the first edition of International Business: Competing

in the Global Marketplace By the third edition the book was the most widely used international business

text in the world Since then its market share has only increased I attribute the success of the book to anumber of goals I set out for myself when I embarked on the first edition of the book Specifically, Iwanted to write a book that (1) was comprehensive and up-to-date, (2) went beyond an uncriticalpresentation and shallow explanation of the body of knowledge, (3) maintained a tight, integrated flowbetween chapters, (4) focused on managerial implications, and (5) made important theories accessibleand interesting to students

Over the years, and through eight editions, I have worked hard to adhere to these goals It has notalways been easy An enormous amount has happened over the last two decades, both in the real world ofeconomics, politics and business, and in the academic world of theory and empirical research Often Ihave had to significantly rewrite chapters, scrap old examples, bring in new ones, incorporate new theoryand evidence into the book, and phase out older theories that are increasingly less relevant to the modernand dynamic world of international business That process continues in the current edition As notedbelow, there have been significant changes in this edition, and that will no doubt continue to be the case inthe future In deciding what changes to make, I have been guided not only by my own reading, teaching andresearch, but also by the invaluable feedback I receive from professors and students around the worldwho use the book, from reviewers, and from the editorial staff at McGraw Hill My thanks go out to all ofthem

COMPREHENSIVE AND UP-TO-DATE

To be comprehensive, an international business textbook must:

Explain how and why the world’s countries differ

Present a thorough review of the economics and politics of international trade and investment.Explain the functions and form of the global monetary system

Examine the strategies and structures of international businesses

Assess the special roles of an international business’s various functions

I have always endeavored to do all of these things in International Business In my view, many other

texts paid insufficient attention to the strategies and structures of international businesses and to theimplications of international business for firms’ various functions This omission has been a seriousdeficiency Many of the students in these international business courses will soon be working ininternational businesses, and they will be expected to understand the implications of internationalbusiness for their organization’s strategy, structure, and functions This book pays close attention to theseissues

Comprehensiveness and relevance also require coverage of the major theories It has always been mygoal to incorporate the insights gleaned from recent academic work into the text Consistent with this goal,

Trang 38

over the last six editions I have added insights from the following research:

The new trade theory and strategic trade policy

The work of Nobel Prize–winning economist Amartya Sen on economic development

The work of Hernando de Soto on the link between property rights and economic development.Samuel Huntington’s influential thesis on the “clash of civilizations.”

The new growth theory of economic development championed by Paul Romer and GeneGrossman

Empirical work by Jeffery Sachs and others on the relationship between international trade andeconomic growth

Michael Porter’s theory of the competitive advantage of nations

Robert Reich’s work on national competitive advantage

The work of Nobel Prize–winner Douglas North and others on national institutional structuresand the protection of property rights

The market imperfections approach to foreign direct investment that has grown out of RonaldCoase and Oliver Williamson’s work on transaction cost economics

Bartlett and Ghoshal’s research on the transnational corporation

The writings of C K Prahalad and Gary Hamel on core competencies, global competition, andglobal strategic alliances

Insights for international business strategy that can be derived from the resource based view ofthe firm

In addition to including leading edge theory, in light of the fast-changing nature of the internationalbusiness environment, every effort is being made to ensure that the book is as up-to-date as possible when

it goes to press Much has happened in the world since the first edition of this book was published in

1993 The Uruguay Round of GATT negotiations was successfully concluded and the World TradeOrganization was established In 2001 the WTO embarked upon another major round of talks aimed toreduce barriers to trader, the Doha Round The European Union moved forward with its post-1992agenda to achieve a closer economic and monetary union, including the establishment of a commoncurrency in January 1999 The North American Free Trade Agreement passed into law The formerCommunist states of Eastern Europe and Asia continued on the road to economic and political reform Asthey did, the euphoric mood that followed the collapse of communism in 1989 was slowly replaced with

a growing sense of realism about the hard path ahead for many of these countries The global moneymarket continued its meteoric growth By 2009 over $2 trillion per day was flowing across nationalborders The size of such flows fueled concern about the ability of short-term speculative shifts in globalcapital markets to destabilize the world economy The World Wide Web emerged from nowhere tobecome the backbone of an emerging global network for electronic commerce The world continued to

Trang 39

become more global Several Asian Pacific economies, including most notably China, continued to growtheir economies at a rapid rate Outsourcing of service functions to places like China and India emerged

as a major issue in developed Western nations New multinationals continued to emerge from developingnations in addition to the world’s established industrial powers Increasingly, the globalization of theworld economy affected a wide range of firms of all sizes, from the very large to the very small

Also, unfortunately, in the wake of the terrorist attacks on the United States that took place onSeptember 11, 2001, global terrorism and the attendant geopolitical risks emerged as a threat to globaleconomic integration and activity

Reflecting this rapid pace of change, in this edition of the book I have tried to ensure that all materialand statistics are as up-to-date as possible as of 2009 However, being absolutely up-to-date isimpossible since change is always with us What is current today may be outdated tomorrow.Accordingly, I have established a home page for this book on the World Wide Web atwww.mhhe.com/hill From this home page the reader can access regular updates of chapter material andreports on topical developments that are relevant to students of international business I hope readers findthis a useful addition to the support material for this book

BEYOND UNCRITICAL PRESENTATION AND SHALLOW EXPLANATION

Many issues in international business are complex and thus necessitate considerations of pros andcons To demonstrate both sides of issues to students, I have adopted a critical approach that presents thearguments for and against economic theories, government policies, business strategies, organizationalstructures, and so on

Therefore, I have attempted to explain the complexities of the many theories and phenomena unique tointernational business so the student might fully comprehend the statements of a theory or the reasons aphenomenon is the way it is I believe these theories and phenomena are explained in more depth in thisbook than they are in competing textbooks, the rationale being that a shallow explanation is little betterthan no explanation In international business, a little knowledge is indeed a dangerous thing

INTEGRATED PROGRESSION OF TOPICS

A weakness of many texts is that they lack a tight, integrated flow of topics from chapter to chapter.This book explains to students in Chapter 1 how the book’s topics are related to each other Integrationhas been achieved by organizing the material so that each chapter builds on the material of the previousones in a logical fashion

Trang 40

cultures We discuss ethical issues at this juncture primarily because many ethical dilemmas flow out ofnational differences in political systems, economic systems, and culture.

Part Three

Chapters 5 through 8 investigate the political economy of international trade and investment Thepurpose of this part is to describe and explain the trade and investment environment in which internationalbusiness occurs

Part Six

In Chapters 15 through 20 the focus narrows further to investigate business operations These chaptersexplain how firms can perform their key functions—manufacturing, marketing, R&D, human resourcemanagement, accounting, and finance—in order to compete and succeed in the international businessenvironment

Throughout the book, the relationship of new material to topics discussed in earlier chapters is pointedout to the students to reinforce their understanding of how the material comprises an integrated whole

FOCUS ON MANAGERIAL IMPLICATIONS

I have always believed that it is important to show students how the material covered in the text isrelevant to the actual practice of international business This is explicit in the later chapters of the book,which focus on the practice of international business, but it is not always obvious in the first half of thebook, which considers many macroeconomic and political issues, from international trade theory andforeign direct investment flows to the IMF and the influence of inflation rates on foreign exchangequotations Accordingly, at the end of each chapter in Parts Two, Three, and Four—where the focus is onthe environment of international business, as opposed to particular firms—a section titled “Implicationsfor Business” clearly explains the managerial implications of the material discussed in the chapter Forexample, Chapter 4, “International Trade Theory,” ends with a detailed discussion of the various tradetheories’ implications for international business management

In addition, each chapter begins with a case that illustrates the relevance of chapter material for the

practice of international business Chapter 2, “Country Differences in Political Economy,” for example,opens with a case that profiles the economy of Egypt

I have also added a closing case to each chapter These cases are also designed to illustrate the

relevance of chapter material for the practice of international business The closing case for Chapter 2,for example, looks at the transformation of India’s economy

Ngày đăng: 25/11/2016, 09:07

TỪ KHÓA LIÊN QUAN

w