International Business Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it International Business Mike W Peng and Klaus E Meyer Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it This is an electronic version of the print textbook Due to electronic rights restrictions, some third party content may be suppressed Editorial review has deemed that any suppressed content does not materially affect the overall learning experience The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest International Business Mike Peng and Klaus Meyer Publishing Director: Linden Harris Publisher: Brendan George Editorial Assistant: Charlotte Green Content Project Editor: Adam Paddon Production Controller: Tom Relf Marketing Manager: Amanda Cheung Typesetter: S4Carlisle Publishing Services Cover design: Adam Renvoize © 2011, Cengage Learning EMEA ALL RIGHTS RESERVED No part of this work covered by the copyright herein may be reproduced, transmitted, stored or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, or applicable copyright law of another jurisdiction, without the prior written permission of the publisher While the publisher has taken all reasonable care in the preparation of this book, the publisher makes no representation, express or implied, with regard to the accuracy of the information contained in this book and cannot accept any legal responsibility or liability for any errors or omissions from the book or the consequences thereof Products and services that are referred to in this book may be either trademarks and/or registered trademarks of their respective owners The publishers and author/s make no claim to these trademarks For product information and technology assistance, contact emea.info@cengage.com For permission to use material from this text or product, and for permission queries, email clsuk.permissions@cengage.com This work is adapted from Global Business by Mike W Peng published by South-Western Higher Education, a division of Cengage Learning, Inc © 2009 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library ISBN: 978-1-4080-1956-6 Cengage Learning EMEA High Holborn House, 50-51 Bedford Row London WC1R 4LR Cengage Learning products are represented in Canada by Nelson Education Ltd For your lifelong learning solutions, visit www.cengage.co.uk Purchase your next print book, e-book or e-chapter at www.cengagebrain.co.uk Printed by Seng Lee, Singapore 10 – 13 12 11 Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it To our students: past, present and future Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it BRIEF CONTENTS PART ONE FOUNDATIONS Globalizing Business Formal Institutions: Economic, Political and Legal Systems Informal Institutions: Culture, Religion and Languages Firm Resources: Competitiveness and Growth 127 129 Investing Abroad Directly Exchange Rates 163 199 PART THREE GLOBALIZATION European Integration 225 227 Global Integration and Multilateral Organizations 10 65 97 PART TWO BUSINESS ACROSS BORDERS Trading Internationally 35 Corporate Social Responsibility 261 295 PART FOUR THE FIRM ON THE GLOBAL STAGE 11 Starting International Business 12 Foreign Entry Strategies 13 Competitive Dynamics 14 Building Global Strategies 327 329 359 389 421 PART FIVE OPERATIONS IN THE GLOBAL MNE 15 Structuring and Organizing MNEs 16 International Human Resource Management 17 International Marketing and Supply Chain Management PART SIX INTEGRATIVE CASES 453 455 487 519 545 Integrative Cases 1-10 Glossary 629 Index 640 vii Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it CONTENTS List of boxed features xi Preface xvii Acknowledgements xxii Scholarly journals xxiv About the authors xxvi Guided tour xxviii About the website xxx Religions 80 Ethics 82 Debates and Extensions 85 Implications for Practice 88 FIRM RESOURCES: COMPETITIVENESS AND GROWTH 97 Identifying Resources 100 Appraising Resources: The VRIO Framework 106 Applying Resource Analysis: Benchmarking 112 Debates and Extensions 116 Implications for Practice 119 PA R T O N E FOUNDATIONS 1 GLOBALIZING BUSINESS European and Global Business Why Study International Business? A Unified Framework 10 Understanding Globalization 13 A Glance at the Global Economy 21 Implications for Practice 24 FORMAL INSTITUTIONS: ECONOMIC, POLITICAL AND LEGAL SYSTEMS 35 An Institution-Based View of IB 38 Political Systems 41 Economic Systems 45 Legal Systems 47 Debates and Extensions 54 Implications for Practice 57 INFORMAL INSTITUTIONS: CULTURE, RELIGION AND LANGUAGES 65 Where Informal Institutions Come From? 68 Cultures 68 Languages 77 PA R T T W O BUSINESS ACROSS BORDERS 127 TRADING INTERNATIONALLY 129 Why Nations Trade? 132 Theories of International Trade 134 National Institutions and International Trade 147 Debates and Extensions 153 Implications for Practice 156 INVESTING ABROAD DIRECTLY 163 The FDI Vocabulary 166 Why Firms Become MNEs by Engaging in FDI? 171 Ownership Advantages 173 Location Advantages 173 Internalization Advantages 179 National Institutions and FDI 183 Benefits and Costs of FDI 185 Debates and Extensions 187 Implications for Practice 190 viii Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 636 www.downloadslide.com GLOSSARY OF KEY TERMS Nearshoring Offshoring to a nearby location, i.e within Europe Non-equity mode A mode of entry (exports and contractual agreements) that tends to reflect relatively smaller commitments to overseas markets Non-governmental organizations (NGOs) Organizations, such as environmentalists, human rights activists and consumer groups that are not affiliated with governments Nontariff barrier (NTB) Trade barriers that rely on nontariff means to discourage imports Normative pillar The mechanism through which norms influence individual and firm behaviour Normative view A view that firms ought to be selfmotivated to ‘do it right’ because they have societal obligations North American Free Trade Agreement (NAFTA) A free trade agreement among Canada, Mexico and the USA Obsolescing bargain Refers to the deal struck by MNEs and host governments, which change their requirements after the initial FDI entry Offer rate The price offered to sell a currency Offshore outsourcing Outsourcing to another firm doing the activity abroad Offshoring Moving an activity to a location abroad OLI paradigm A theoretical framework positing that ownership (O), locational (L) and internationalization (I) advantages combine to induce firms to engage in FDI Oligopoly A market form in which a market or industry is dominated by a small number of sellers (oligopolists) Operation collaboration A form of strategic alliance that includes collaboration in operations, marketing or distribution Oportunistic behaviour Seeking self-interest with guile Opportunity cost Given the alternatives (opportunities), the cost of pursuing one activity at the expense of another activity Optimal currency area A theory establishing criteria for the optimal size of an area sharing a common currency Organizational (team embedded) knowledge Knowledge held in an organization that goes beyond the knowledge of theindividual members Organizational culture Employees’ shared values, traditions and social norms within an organization Organizational fit The similarity in cultures, systems and structures Original brand manufacturer (OBM) A firm that designs, manufactures and markets branded products Original design manufacturer (ODM) A firm that both designs and manufactures products Original equipment manufacturer (OEM) A firm that executes the design blueprints provided by other firms and manufactures such products Outbound logistics Sales and the coordination of intermediaries on the customer side Out-group Individuals and firms not regarded as part of ‘us’ Outsourcing Turning over an organizational activity to an outside supplier that will perform it on behalf of the firm Ownership advantages Resources of the firm that are transferable across borders, and enable the firm to attain competitive advantages abroad Parent (home) country national (PCN) An employee who comes from the parent country of the MNE and works at its local subsidiary Partial acquisition Acquisition of an equity stake in another firm Patent race A competition of R&D units where the first one to patent a new technology gets to dominate a market Patents Legal rights awarded by government authorities to inventors of new technological ideas, who are given exclusive (monopoly) rights to derive income from such inventions Path dependency The present choices of countries, firms and individuals are constrained by the choices made previously Pegged exchange rate An exchange rate of a currency attached to that of another currency Performance appraisal The evaluation of employee performance for promotion, retention or termination purposes Philanthropy Donations for purposes that benefit the wider society Place The location where products and services are provided Political risk Risk associated with political changes that may negatively impact on domestic and foreign firms Political system A system of the rules of the game on how a country is governed politically Political union The integration of political and economic affairs of a region Pollution haven Countries with lower environmental standards Polycentric approach An emphasis on the norms and practices of the host country Post–Bretton Woods system A system of flexible exchange rate regimes with no official common denominator Power distance The extent to which less powerful members within a country expect and accept that power is distributed unequally Predatory pricing An attempt to monopolize a market by setting prices below cost and intending to raise prices to cover losses in the long run after eliminating rivals President of the Commission The head of the EU’s executive, similar to a national prime minister Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it GLOSSARY OF KEY TERMS www.downloadslide.com President of the European Council The person chairing the meetings of the European Council Price The expenditures that customers are willing to pay for a product Price elasticity How demand changes when prices change Price leader A firm that has a dominant market share and sets ‘acceptable’ prices and margins in the industry Primary resources The tangible and intangible assets as well as human resources that a firm uses to choose and implement its strategies Primary stakeholder groups The constituents on which the firm relies for its continuous survival and prosperity Principle of non-discrimination A principle that a country cannot discriminate among its trading partners (a concession given to one country needs to be made available to all other GATT/WTO members) Prisoners’ dilemma In game theory, a type of game in which the outcome depends on two parties deciding whether to cooperate or to defect Privatization The change of ownership from state to the private owners Proactive strategy A strategy that endeavours to more than is required in CSR Product The offerings that customers purchase Product life cycle theory A theory that accounts for changes in the patterns of trade over time by focusing on product life cycles Project management contract A contract to manage the whole of a project from inception to conclusion Promotion Communications that marketers insert into the marketplace Property rights The legal rights to use an economic property (resource) and to derive income and benefits from it Protectionism The idea that governments should actively protect domestic industries from imports and vigorously promote exports Psychological contract An informal understanding of expected delivery of benefits in the future for current services Purchasing power parity (PPP) A conversion that determines the equivalent amount of goods and services different currencies can purchase This conversion is usually used to capture the differences in cost of living in different countries Purchasing power parity (PPP) hypothesis Hypothesis suggesting that, in the long run, baskets of goods would cost the same in all currencies (‘law of one price’) R&D contract A subcontracting of R&D between firms Race to the bottom Countries competing for foreign direct investment by lowering environmental standards Reactive strategy A strategy that would only respond to CSR causes when disasters and outcries break out Recruitment The identification, selection and hiring of staff Reduce mobility Assumption that a resource used in producing a product for one industry can be shifted and put to use in another industry Regional economic integration Efforts to reduce trade and investment barriers within one region Regulatory pillar The coercive power of governments Relationship orientation A focus to establish, maintain and enhance relationships with customers Relative PPP hypothesis Hypothesis suggesting that changes in exchange rates will be proportional to differences in inflation rates Repatriation The process of facilitating the return of expatriates Repeated game A game played over several periods of time Resource (factor) endowments The extent to which different countries possess various resources (factors), such as labour, land and technology Resource mobility The ability to move resources from one part of a business to another Resource-based view A leading perspective in global business that posits that firm performance is fundamentally driven by firm-specific resources Resources The tangible and intangible assets a firm uses to choose and implement its strategies Returnees Returning expatriates Reverse culture shock Culture shock experience by persons returning to their country of origin Risk management The identification, assessment and management of risks Sales agent An intermediary receiving commission for sales Scale of entry The amount of resources committed to foreign market entry Scenario planning A technique generating multiple scenarios of possible future states of the industry Schengen Agreement The agreement that laid the basis for passport-free travel Schengen Area The area covered by the Schengen Agreement Schengen Visa Visa giving non-citizens access to the Schengen Area Schuman plan A plan in the 1950s that outlined the path for European Integration Secondary stakeholder groups Those who influence or affect, or are influenced or affected by, the corporation, but they are not engaged in transactions with the corporation and are not essential for its survival Secular society A society where religion does not dominate public life Servicing foreign visitors Supplying services to customers coming from abroad Single European Act (SEA) The agreement that established the basis for the single European market Single market The EU’s term of its common market Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 637 638 www.downloadslide.com GLOSSARY OF KEY TERMS Small- and medium-sized enterprises (SMEs) Firms with fewer than 500 employees Social capital The informal benefits individuals and organizations derive from their social structures and networks Social complexity The socially complex ways of organizing typical of many firms Sovereign wealth fund A state-owned investment fund composed of financial assets such as stocks, bonds, real estate or other financial instruments Sporadic (or passive) exporting The sale of products prompted by unsolicited inquiries from abroad Spot market rate The exchange rate for immediate payment Spread The difference between the offered price and the bid price Stabilization Policies to combat macroeconomic imbalances Staged acquisition Acquisition where ownership transfer takes places over stages Stage models Models depicting internationalization as a slow stage-by-stage process an SME must go through Stakeholder Any group or individual who can affect or is affected by the achievement of the organization’s objectives Standards in advertising Formal rules designed by governments to protect consumers Standards of engagement (code of conduct, code of ethics) Written policies and standards for corporate conduct and ethics Strategic alliances Collaborations between independent firms using equity modes, non-equity contractual agreements, or both Strategic fit The effective matching of complementary strategic capabilities Strategic hedging Organizing activities in such a way that currencies of revenues and expenditures match Strategic trade policy A trade policy that conditions or alters a strategic relationship between firms Strategic trade theory A theory that suggests that strategic intervention by governments in certain industries can enhance their odds for international success Subcontracting A contract that involves outsourcing of an intermediate stage of a value chain Subsidiarity The EU takes action only if it is more effective than actions taken at lower levels Subsidiary initiative The proactive and deliberate pursuit of new opportunities by a subsidiary to expand its scope of responsibility Subsidy Government payments to (domestic) firms Sunk cost Up-front investments that are non-recoverable if the project is abandoned Supply chain Flow of products, services, finances and information that passes through a set of entities from a source to the customer Supply chain management Activities to plan, organize, lead and control the supply chain Sustainability The ability to meet the needs of the present without compromising the ability of future generations to meet their needs Survival strategies A strategy designed to ensure survival by ensuring liquidity and positive cash flow SWOT analysis An analytical tool for determining a firm’s strengths (S), weaknesses (W), opportunities (O) and threats (T) Synergies Value created by combining two organization that together are more valuable than the two organizations separately Taboo An item or activity considered unclean by a religion Tacit collusion Firms indirectly coordinate actions by signalling their intention to reduce output and maintain pricing above competitive levels Tacit knowledge Knowledge that is non-codifiable, and whose acquisition and transfer require hands-on practice Tangible assets Assets that are observable and easily quantified Tariff barrier Trade barriers that rely on tariffs to discourage imports Tender A competition for a major contract Theory of absolute advantage A theory suggesting that under free trade, each nation gains by specializing in economic activities in which it has absolute advantage Theory of comparative advantage A theory that focuses on the relative (not absolute) advantage in one economic activity that one nation enjoys in comparison with other nations Theory of mercantilism A theory that holds the wealth of the world (measured in gold and silver) is fixed and that a nation that exports more and imports less would enjoy the net inflows of gold and silver and thus become richer Theory of national competitive advantage of industries (or ‘diamond’ model) A theory that suggests that the competitive advantage of certain industries in different nations depends on four aspects that form a ‘diamond’ Third country national (TCN) An employee who comes from neither the parent country nor the host country Third-party logistics (3PL) A neutral intermediary in the supply chain that provides logistics and other support services Tit-for-Tat A strategy of matching the competitors move being either aggressive or accommodative Total cost of ownership Total cost needed to own a product, consisting of initial purchase cost and follow-up maintenance/service cost Totalitarianism (dictatorship) A political system in which one person or party exercises absolute political control over the population Trade deficit An economic condition in which a nation imports more than it exports Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it GLOSSARY OF KEY TERMS www.downloadslide.com Trade diversion A change in trade pattern away from comparative advantages due to trade barriers Trade embargo Politically motivated trade sanctions against foreign countries to signal displeasure Trade surplus An economic condition in which a nation exports more than it imports Trademarks Exclusive legal rights of firms to use specific names, brands, and designs to differentiate their products from others Trade-Related Aspects of Intellectual Property Rights (TRIPS) A WTO agreement governing intellectual property rights Training The specific preparation to a particular job Transaction costs The costs associated with economic transactions Transnational strategy A strategy that endeavours to be cost efficient, locally responsive and learning driven simultaneously around the world Treaties of Rome The first treaties establishing European integration, which eventually led to the EU Triad Three regions of developed economies (North America, Western Europe and Japan) Triple bottom line Firms’ economic, social and environmental performance Turnkey project A project in which clients pay contractors to design and construct new facilities and train personnel Uncertainty avoidance The extent to which members in different cultures accept ambiguous situations and tolerate uncertainty Union of South American Nations (UNASUR) An initiative to further economic and political integration in South America Uppsala model A model of internationalization processes focusing on learning processes Upstream vertical FDI A type of vertical FDI in which a firm engages in an upstream stage of the value USA-Dominican Republic-Central America Free Trade Agreement (CAFTA) A free trade agreement between the USA and five Central American countries and the Dominican Republic Value chain A chain of activities vertically related in the production of goods and services Varieties of capitalisms view A scholarly view suggesting that economies have different inherent logics on how markets and other mechanisms coordinate economic activity Vertical FDI A type of FDI in which a firm moves upstream or downstream in different value chain stages in a host country Virtual communities of practice Communities of practice interacting via the internet Voluntary export restraint (VER) An international agreement in which exporting countries voluntarily agree to restrict their exports VRIO framework The resource-based framework that focuses on the value creation (V), rarity (R), imitability (I) and organizational (O) aspects of resources Waves of globalization The pattern of globalization arising from a combination of long-terms trends and pendulum swings Wholly owned subsidiaries (WOS) A subsidiary located in a foreign country that is entirely owned by the parent multinational World Bank International organization that provides loans for specific projects in developing countries to support their economic development World Trade Organization (WTO) The organization underpinning the multilateral trading system Worldwide (or global) mandate The charter to be responsible for one MNE function throughout the world Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 639 www.downloadslide.com INDEX 3PL (third-party logistics) 529 absolute advantage, theory of 135–6 absorptive capacity 470 accountancy 456–7 ACFTA (ASEAN-China Free Trade Agreement) 277–8 acquisition dynamics 379–80 acquisition premiums 438 acquisitions 431 alliances 434–5 foreign subsidiaries 371, 375–6 global firms 430–35 horizontal 435–6 institutions 435–40 motives for 432–5 organization 440 resources 437–40 value-creation 438–9 value-destruction 437–8 vertical 436–7 adaptability 528 adaptation strategy 428–9 Adidas 308–9 administrative practices 150 advertising 530–31 Africa, Regional economic integration 278–9 agglomeration 176–7 aggregation strategy 427–8 agility 527–8 AGRANA 570–77 agriculture and foreign direct investment 177 Airbus 262–4 aircraft industry 432, 553–60 airline industry 12, 106 AKZO Nobel Decorative Coatings 481–2 alignment 528–9 alliances and acquisitions 434–5 ANDC (AKZO Nobel Decorative Coatings) 481–2 Andean Community 276 Angola 393 anti-competitive practices 411–12 anti-dumping and competition 412–13 anti-dumping duties 150, 151 anti-dumping laws 403–5 anti-globalization protests 25 anti-trust laws 399–400 anti-trust policy 399–400 ANZCERTA (Australia-New Zealand Closer Economic Relations Trade Agreement) 280 apple juice 151 appreciation of currency 202 appropriability 112 arbitrage strategies 429–30 Argentina 212 Arla 66–7 artefacts of culture 68 ASEAN (Association of South-East Asian Nations) 277–8 ASEAN-China Free Trade Agreement 277–8 asset specificity 179 Association of South-East Asian Nations 277–8 Australia-New Zealand Closer Economic Relations Trade Agreement 280 automotive components 175, 372–3 automotive industry 12, 178, 366 Avon 121–3 balance of payments 206–7 balance of trade 134 bandwagon effect 208 banks 24, 285–6 Baosteel 610–18 bargaining power 188 base of the pyramid 19 Basel Committee 285–6 Basel II 286 BEE (Black Economic Empowerment) 36–7 beer 415–17, 603–10 benchmarking 112–14 Better Generation 351–3 Bharti Airtel 193–5 bid rates 216 Big Four accountancy firms 456–7 bilateral trade agreements 280 Black Economic Empowerment 36–7 blue ocean strategy 392 Boeing 262–4 Bologna Process 242 BoP (balance of payments) 206–7 born globals 344–6 Brazil 140 see also BRIC economies Bretton Woods system 209–10 brewing industry 415–17 BRIC economies 17 bridge building 341 build–operate–transfer contracts 340 business unit JVs 434 C&A 525 Cadbury 374–5 CAFTA (USA-Dominican RepublicCentral America Free Trade Agreement) 276 Canada 158–60 capabilities 100, 103–6 see also resources and capabilities capacity to punish 396–7 capital and financial account 206 capital flight 208 capitalism 46 captive offshoring 115 cartels 395, 401 case law 47 causal ambiguity 110 Central and Eastern Europe (CEE) 178, 236–9 centralization of power: 43 centres of excellence 425–6, 460 CER (Australia-New Zealand Closer Economic Relations Trade Agreement) 280 child labour 303 Chile 317 China see also BRIC economies apple juice 151 Baosteel 610–18 collectivism 87 corruption 551–2 Dhangtu Beer 603–10 Dow Chemical Company 306 intellectual property rights 53 joint ventures 603–10 mergers and acquisitions 443–4 outsourcing 118 party invitations 93 recruitment 500 RM Group 625–8 steel industry 610–18 World Trade Organization 268 Cisco 390–91 civil law 47, 48, 50 civilization 72 classical trade theories 134–9, 154–6 cleaning equipment and services 446–8 climate change 283–5 clinical trials 590–91 cluster approach to culture 71–2 640 Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it INDEX CME (coordinated market economies) 46–7 Coca-Cola 13, 477, 524–6 codes of conduct 82, 309 cognitive pillar 39 collectivism 75, 86–8 collusion 394–7, 400–401 collusive price setting 399 Comecon 237 command economies 45 common currencies 211–12 common law 47–8, 50 common markets 230 communities of practice 467–8 commuter assignments 505–6 comparative advantage, theory of 136–40 compensation 501 competition anti-dumping 412–13 attacks 392 awareness, motivation, capability (AMC) framework 392 blue ocean strategy 392 competitive dynamics 391–4 counter-attacks 392 global recession 407–10 institutions 398–405 organization 407 overwhelming rivals 411–12 resources 405–7 competition policy 399–400 competitive advantage 424–6 competitor analysis 391 concentration ratio 396 confectionery 374–5 consortiums 340 consumers 518 container shipping 530 contender strategies 412 context approach to culture 70 contingency plans 410 contract licensing 337 contract work 505 contracts 48, 337–41 cooperation 397–8 coordinated market economies 46–7 CoP (communities of practice) 467–8 Copenhagen Accord 285 Copenhagen Criteria 235 copyrights 52 core perspectives 11–13 corporate governance 52–4 corporate language 78 corporate social responsibility 297–8 accommodative strategy 313 defensive strategy 313 explicit 310 financial performance 315–16 implicit 311–12 institutional differences 310–12 political activity 317–18 proactive strategy 314–15 www.downloadslide.com reactive strategy 312–13 and society 316–17 strategies 312–15 corporate sponsorship 320–22 corporate sustainability 586–7 corruption 83–5, 545–52 cosmopolitans 26 Council of Europe 231 Council of the European Union 249 counter party risk 218 country managers 461 country-of-origin effect 534–5 crawling bands 211 cross-border services 336 cross-market retaliation 397 CSR see corporate social responsibility cultural convergence 15, 86 cultural distance 347 cultural intelligence 88–90 culture 68–77 clusters 71–2 context 70 dimensions 72–7 organizational 102 social groups 86 culture shock 494–6 reverse 498–9 currency appreciation 202 currency boards 211, 212 currency depreciation 202–3 currency exchange markets 203–9 currency hedging 215, 218–19 currency risk 213–17 currency risk diversification 214 currency swaps 216 current account 206 customs unions 230 cyberspace 348 Dallas Instruments 510–11 Danisco 422–3 Danone 383–5 De Beers 393 deadweight loss 147 defender strategies 411 Dell 4–5, delocalization 79 democracy 42–5 Denmark 66–7 dental products 591–6 DenTek 591–6 depreciation of currency 202–3 design and build contracts 340 development aid 283 Dhangtu Beer 603–10 diamond model 143–4 diamonds 393 dictatorship 42 dimension approach to culture 72–7 direct democracy 43 direct exports 333 direct selling 121–3 Directorate General (EU) 249 641 dissemination risks 181 distributed power generation 351–3 distribution channels 526–7 distributors 335 divestments 440 dodger strategies 412 Doha Round 269–71 dollar (US) 217–18 domestic markets 6–7 domestic outsourcing 115 Dow Chemical Company 306 downstream vertical FDI 167 due diligence 439 dumping 403–5, 412–13 see also antidumping dynamic capabilities 118–19 EADS (European Aeronautic Defence and Space Company) 488–9 EBRD (European Bank for Reconstruction and Development) 283 ECB (European Central Bank) 244 ECJ (European Court of Justice) 250 economic development 9, 54–5 economic forecasting 410 economic freedom 45 economic systems 45–7 economic transition 237 economic unions 230 economies of scale 424–5 ECSC (European Coal and Steel Community) 231 efficiency seeking 363 El Salvador 307 elections 42–3, 44 Embraer 432 emerging economies 7–8, 17, 21 energy industry 289–91 entrepreneurial teams 332 entrepreneurs 332 entrepreneurship 11 entry barriers 397 entry modes see modes of entry entry strategies 362, 376–8 see also modes of entry environmental standards 304–6 Erasmus Programme 242 ethical imperialism 83 ethical relativism 83 ethics 82–5, 577–91 ethnocentric approach to people management 490 ethnocentrism 68 EU see European Union Euro 229, 244–6, 247 European Aeronautic Defence and Space Company 488–9 European Bank for Reconstruction and Development 283 European Central Bank 244 European Coal and Steel Community 231 Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 642 INDEX European Commission 249 European Constitution 236 European Convention on Human Rights 231 European Council 249 European Court of Human Rights 231 European Court of Justice 250 European Parliament 249 European Union 229–30 common agricultural policy (CAP) 233 competition policy 248 Council of the European Union 249 deepening 235–6 democratic processes 250–51 Directorate General 249 enlargement 231–5, 251–2 European Commission 249 European Constitution 236 European Council 249 European Court of Justice 250 European Parliament 249 four freedoms of the EU single market 239 free moving people 241–4 institutional framework 239–48 international trade 6–7 Lisbon Treaty 236 Maastricht Treaty 236 Members of the European Parliament 249 origins 230–31 political system 248–51 President of the Commission 249 President of the European Council 249 Single European Act (SEA) 235–6 single market 239–41 United Kingdom 252–3 eurozone 244 exchange rate risk 213–17 exchange rates 200–202, 562–9 executive search companies 501 expatriate assignments expatriate stress 494 expatriates 490, 491–9 expatriation 506, 510–11 experiential knowledge 343 explicit collusion 395 explicit CSR 310 explicit knowledge 464 export intermediaries 334–5 exports 132, 179, 332–6 expropriation 188 extender strategies 411–12 factor endowment theory 138 fashion retail 525 FDI see foreign direct investment federal democracy 43 femininity 75 financial assets 101 first-mover advantages 141–2, 367–8 www.downloadslide.com first-past-the-post elections 42 fixed exchange rates 211, 212–13 flexible exchange rate policy 210 floating exchange rate policy 210 food 93 food industry 570–77 football 465 footloose plants 307 Ford 366, 477 foreign-born bosses 477–8 foreign direct investment 166–73 agriculture 177 costs and benefits 185–7 exporting 179 incentives 184–5 licensing 180–81 meaning of multinational enterprises 169–73 national institutions 183–5 offshore outsourcing 181–2 regulation 183–4 restrictions 183, 184 foreign entry strategies see entry strategies foreign exchange rates see exchange rates foreign portfolio investment 167 foreign subsidiaries 362 acquisitions 371, 375–6 joint-ventures 373, 375 location 364–6 modes of entry 368–78 partial acquisitions 375–6 resources 370–71 strategic alliances 376 strategic objectives of establishing 362–3 timing of entry 366–8 wholly-owned 369–71 formal institutions 38, 57–8 Fortune Global 500, 25 forward discount 216 forward exchange rates 206 forward premiums 216 forward transactions 206, 214–16 four freedoms of the EU single market 239 Four Tigers 17 FPI ( foreign portfolio investment) 167 France 44 franchising 338–40 free floats 210 free trade 135, 150–53 Free Trade Area of the Americas 277 free trade areas 230, 274 FTAA (Free Trade Area of the Americas) 277 game theory 395–6 GATS (General Agreement on Trade in Services) 267 GATT (General Agreement on Tariffs and Trade) 266–7 GCC (Gulf Cooperation Council) 278 GDP (gross domestic product) 7, GE (General Electric) 28–30 General Agreement on Tariffs and Trade 266–7 General Agreement on Trade in Services 267 General Electric 28–30 geocentric approach to people management 491 geographic area structures 461 Germany Baosteel 614–15 beer 415–17 elections 44 Global Beverage 603–10 global business models 426–30 global economic crisis 20–21, 26, 407–10 global economic integration 264 global economic pyramid 17 global economy 21–4 global firms see also multinational enterprises acquisitions 430–35 competitive advantage 424–6 knowledge management 464–72 global key accounts 426 global mandates 471–2 global matrix 462–3 global product divisions 461–2 global risks 25–6 global sourcing 425 global standardization strategy 460 global virtual teams 506 Global Vitamin Cartel 401 globalfocusing 440–42 globalization 8, 13–27 in 1900 18 acceleration of 17 anti-globalization protests 25 history of 15–18 meaning of 14–15 views on 26–7 waves of 17 GNI (gross national income) GNP (gross national product) gold standard 209 Greenfield operations 370–71 gross domestic product 7, gross national income gross national product Grupo Antolin 175 guanxi 58 Gulf Cooperation Council 278 Haier 176, 392–3 Hainan Airlines 106 harmonized sector 240 HCNs (host country nationals) 490 headhunter companies 501 Heckscher-Ohlin theory 138 Helsinki Declaration of the World Medical Association 587–8 hidden champions 440 high-context cultures 70 Hofstede’s dimensions of culture 72–7 Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it INDEX www.downloadslide.com holiness 82 home replication strategy, 458–9 Honda 498–9 Honest Films 520 Honeywell Canada 472 Hong Kong collectivism 87–8 currency boards 212 economic freedom 45 rules of the game 11 horizontal FDI 167 horizontal mergers and acquisitions 435–6 host country nationals 490 HRM see human resource management Huawei 390–91 hubris 433–4 human resource management 489–90 Baosteel 615–16 institutions 502–4 resources 504 human resources 102 Hungary 200–201 hypernorms 317–18 Hyundai 110 I-advantages (internalization advantages) 173 IB (international business) IMF (International Monetary Fund) 209, 271–3, 274 imitability 109–11, 406, 439 immersion approach to expatriate training 494 implicit CSR 311–12 import quotas 149 import tariffs 147 imports 132, 332–6 in-groups 87 inbound logistics 527 India see also BRIC economies corruption 546, 550 elections 44 retail outlets 531 indirect exports 334 individualism 75 Indonesia 551 infant industry argument 152 inflation 205 informal institutions 38, 58, 67–8 innovation, reverse 29–30 innovation seeking 363 inpatriation 506–7, 510–11 institution-based view of international business 37–41 institutional distance 347 institutional frameworks 38, 57 institutional transition, 40 institutions 11, 37, 38–41 acquisitions 435–40 competition 398–405 economic development 54–5 implications for practice 57–8 internationalization 346–7 locational advantages 177–8 political risk 55–6 instrumental view of stakeholders 300–301 intangible assets 102 integration-responsiveness framework 467–58 integrative cases AGRANA 570–77 aircraft industry 553–60 Baosteel 610–18 beer 603–10 corruption 545–52 dental products 591–6 DenTek 591–6 Dhangtu Beer 603–10 ethics 577–91 food industry 570–77 foreign exchange hedging 562–9 Global Beverage 603–10 joint ventures 591–6, 597–602, 603–10 LG-Nortel 597–602 Novo Nordisk 577–91 offshoring 577–91 RM Group 618–28 Rolls Royce 553–60 steel industry 610–18 Vanguard Security Corporation 562–9 Intel 403 intellectual property rights 52, 53 interest rate parity 205 internalization 173, 179–82 internalization advantages 173 international business international divisions 461 International Monetary Fund 209, 271–3, 274 international new ventures 344–6 international strategy 458–9 internationalization cyberspace 348 entry modes 347–8 institutions 346–7 process models 343–4 supporting resources 343–6 internet and globalization 14 internet marketing 526 intra-firm trade 179 INV (international new ventures) 344–6 investor psychology 208–9 IPRs (intellectual property rights) 52, 53 Ireland 215 ITT 317 Japan 281 joint ventures 167, 373, 375, 383–5 business unit JVs 434 integrative cases 591–6, 597–602, 603–10 Kärcher 446–8 Kaspersky Lab 330–31 643 knowledge governance 468–71 knowledge management 464–72 knowledge spillovers 177 Kone Elevators 78 Kyoto Protocol 284 L-advantages see locational advantages L/C see letters of credit labour standards 306–9 languages 77–80 late-mover advantages 367–8 Latvia 201 legal certainty 50 legal costs 48 legal systems 47–54 leniency programmes 400 letters of credit 333 Lev Leviev Group 393 LG-Nortel 597–602 Li & Fung Group 538–40 liability of outsidership 12–13 liberal market economies 46–7 liberalization 16, 237 licensing 180–81, 337 lingua franca 78 Lisbon Treaty 236 LME (liberal market economies) 46–7 lobbying 253 local content requirements 149, 183 local responsiveness 458 localization strategy 459 location-bound resources 173 locational advantages 171 agglomeration 176–7 institutions 177–8 markets 174 resources 175–6 subsidiaries 364 long-term orientation 76 low-context cultures 70 Maastricht Criteria 244 Maastricht Treaty 236 Malaysia 549 managed floats 210 management contracts 341 Manpower 505 Markel Corporation 221–2 market commonality 397 market division collusion 400–401 market economies 45 market failure 179 market orientation 533–4 market seeking 363 market segmentation 521–3 market transparency 397 marketing 517, 532–3 marketing mix 519–27 markets and locational advantages 174 M&As (mergers and acquisitions) see acquisitions; mergers masculinity 75 Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 644 INDEX Members of the European Parliament (MEPs) 249 mercantilism 134–5 Mercosur 276 mergers 431 horizontal 435–6 organization 440 remedial actions 437 vertical 436–7 mergers and acquisitions see acquisitions; mergers Mexico 307 Microsoft 403 Microsoft Word 13 mimetic behaviour 346 MNE see multinational enterprises mobile phones 20, 441 modern trade theories 134, 139–46 modes of entry 347–8, 368–76 see also entry strategies; foreign subsidiaries monetary unions 230 multi-tier branding 523 multidomestic strategy 459 multilateral organizations 264 political activity 317–18 multilateral trade system 264–71 multimarket competition 397 multinational enterprises 21, 24 see also global firms foreign direct investment 169–73 globalization 14 headquarters relocation 476–7 home country institutions 473 host country institutions 473–4 host governments 188–9 knowledge management 465–7 meaning of multiple-embedded 467–8 organizational structures 457–64 resources 474–5 Spanish 164–6 subsidiary mandates 471–2 top management teams 475–6 multiple-embedded multinational enterprises 467–8 mutual recognition 240 NAFTA (North American Free Trade Agreement) 274–6 Namibia 393 national competitive advantage theory 143–4 natural resource seeking 363 NaturEner 49–50 nearshoring 116 Netherlands 130–31 Netscape 403 NGOs (non-governmental organizations) 25 Nokia 255–7, 441 non-governmental organizations 25 nontariff barriers 148–50 normative pillar 38–9 www.downloadslide.com normative view of stakeholders 301 North American Free Trade Agreement 274–6 notebooks 4–5 Novo Nordisk 577–91 NTBs (nontariff barriers) 148–50 O-advantages (ownership advantages) 171, 173 obsolescing bargain 188 OECD (Organisation for Economic Co-operation and Development) 85 offer rates 216 offshore outsourcing 115, 181–2 offshoring 115–18, 577–91 OLI paradigm 171–3 oligopoly 391 online shopping 87–8 operational collaborations 434–5 opportunistic behaviour 40 opportunity costs 137 optimum currency area 246 Organisation for Economic Co-operation and Development 85 organization 112 organizational culture 102 organizational fit 439 organizational knowledge 464 out-groups 87–8 outbound logistics 527 outsourcing 114–15, 118 see also offshore outsourcing ownership advantages 171, 173 parent country nationals 490 partial acquisition of foreign subsidiaries 375–6 party invitations 91–3 passive exporting 333 patent races 406 patents 52 PCNs (parent country nationals) 490 Pearl River Piano 360–61 pegged exchange rates 211, 212–13 people management 490–91, 499–502 see also human resource management PepsiCo 12, 374, 477 performance appraisal 501 philanthropy 310 physical assets 101 pianos 360–61 pigs 158–60 place 526 Poland 200, 374–5 political risk 45, 55–6 political systems 41–5 political unions 230 pollution havens 304–5 polycentric approach to people management 490 Porter Diamond 143–4 post-Bretton Woods system 210–12 power distance 72, 75 power generation 351–3 PPP (purchasing power parity) 79, 204–5 predatory pricing 402–3 President of the Commission 249 President of the European Council 249 price 523–4 price elasticity 523 price leaders 396 primary resources 100, 101–3 primary stakeholder groups 299 principle of non-discrimination 266 prisoners’ dilemma 395 privatization 237, 238 product 519–23 product life cycle theory 139–41 productivity 206–7 products and services 519–23 project management contracts 341 promotion 524–6 property rights 50–52 proportional representation 42 protectionism 135 psychological contracts 498 purchasing power parity 7, 9, 204–5 rarity 109, 405, 439 R&D contracts 340–41 recruitment 499–501 regional economic integration 264 regional managers 461 regulatory pillars 38–9 relationship building 58 relationship orientation 533–4 relative PPP hypothesis 205 religions 80–82 repatriation 497–9 repeated games 396 representative democracy 43 reputational resources 102 resource-based view of global business 100, 119–20 resource endowments 138 resource mobility 146 resources and capabilities 12–13, 100–12 resources and locational advantages 175–6 retention 501–2 returnees 497 reverse culture shock 498–9 reverse innovation 29–30 risk diversification 426 risk management 21 RM Group 618–28 Rolls Royce 553–60 Rotterdam 130–31 rules of the game 11, 37 Russia 59–61, 372–3 see also BRIC economies Ryanair 12 SAFTA (South Asian Free Trade Area) 278 sales agents 335 Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it INDEX salmon 302–3 SAP 98–100 Saudi Arabia 92–3 scale of entry 379 Scandinavia A/S 342 scenario planning 410 Schengen Agreement 243–4 Schuman plan 231 seals 14 secondary stakeholder groups 299–300 secular societies 82 services 336–7 see products and services servicing foreign visitors 336–7 ShareNet 469–70 shipping 530 Siemens 469–70 signalling 397–8 Single European Act (SEA) 235–6 Slovakia 201–2 small-and-medium-sized enterprises (SMEs) 331–2 social capital 471 social complexity 111 social groups 86 Sony 477 sourcing 538–40 South Africa 36–7, 317–18 South Asian Free Trade Area 278 Southwest Airlines 12 sovereign wealth funds 189–90 Spain 164–6, 247 sponsorship 320–22 sporadic exporting 333 spot market rate 205 spot transactions 214 spreads 216 stabilization 237 stages models 343–4 stakeholders 298–304 standards in advertising 530–31 standards of engagement 309 standards of ethics 309 Starbucks 296–7 steel industry 610–18 strategic alliances 376, 434 strategic fit 439 strategic hedging 214 strategic positioning 409–10 strategic trade policy 143 strategic trade theory 141–3 subcontracting 340 subsidiaries see foreign subsidiaries subsidiarity 240 subsidiary initiatives 471–2 subsidiary mandates 471–2 subsidies 148–9 sunk costs 188 supply chain management 517, 526–9, 530–31, 532–3, 538–40 supply chains 517 survival strategies 407–9 sustainability 298 www.downloadslide.com SWFs (sovereign wealth funds) 189–90 synergies 432–3 taboo 82 tacit collusion 394–5 tacit knowledge 181 tangible assets 101 tariff barriers 147–8 tariffs 366 TCNs (third country nationals) 491 team-embedded knowledge 464 technological resources 102 telecoms industry 193–5, 390–91 tenders 341 third country nationals 491 third-party logistics (3PL) 529 tipping 545–7 tit-for-tat 396 TNI (transnationality index) 24 total cost of ownership 524 totalitarianism 42 tourism 338 trade barriers 17 trade deficits 134, 153–4 trade diversion 280, 282 trade embargoes 152–3 Trade-Related Aspects of Intellectual Property Rights 267 trade surpluses 134, 153–4 trade theories absolute advantage 135–6 classical 134, 154–6 comparative advantage 136–9 evaluation 144–6 mercantilism 134–5 national competitive advantage theory 143–4 product life cycle theory 139–41 strategic trade theory 141–3 trademarks 52 trading 132–4 transaction costs 39–40 transnational strategy 460 transnationality index 24 Treaties of Rome 231 triple bottom line 298 TRIPS (Trade-Related Aspects of Intellectual Property Rights) 267 turnkey projects 340 ultrasound machines 29–30 UNASUR (Union of South American Nations) 277 uncertainty 39 uncertainty avoidance 75–6 unified framework for global business 10–13 Union of South American Nations 277 United Kingdom 44, 252–3 United States apple juice 151 645 dollar 217–18 elections 44 foreign direct investment 184 intellectual property rights 53 Mandatory Country of Origin Labelling (COOL) legislation 158–60 tipping 545–7 trade disputes with Canada 158–60 wind farms 49–50 working poor 307 Uppsala model 343 upstream vertical FDI 167 USA-Dominican Republic-Central America Free Trade Agreement 276 value chains 103 value creation 108–9, 405, 438–9 Vanguard Security Corporation 562–9 varieties-of-capitalism view 46 VERs (voluntary export restraints) 149 vertical FDI 167 vertical mergers and acquisitions 436–7 Vietnam 366 virtual communities of practice 468 Vitamin Cartel 401 Volkswagen 178 voluntary export restraints 149 VRIO framework 106–12 Wahaha 383–5 Wal-Mart 107–8 Wärtsilä Corporation 289–91 waves of globalization 17 Wedel 374–5 wholly-owned subsidiaries 369–71 wind farms 49–50 Wolters 415–17 World Bank 209, 282–3 World Medical Association, Helsinki Declaration 587–8 World Trade Organization 262–4, 265–71 China 268 dispute settlement mechanism 269 Doha Round 269–71 General Agreement on Trade in Services 267 principle of non-discrimination 266 shrimp-turtle case 270 Trade-Related Aspects of Intellectual Property Rights 267 worldwide mandates 471–2 WOS (wholly-owned subsidiaries) 369–71 WTO see World Trade Organization Zara 516–17 ZF Kama 372–3 Zoomlion 79 Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com Copyright 2011 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it ... and Extensions 116 Implications for Practice 119 PA R T O N E FOUNDATIONS 1 GLOBALIZING BUSINESS European and Global Business Why Study International Business? A Unified Framework 10 Understanding... horizon and equip you with an understanding of businesses in different parts of the world As an international manager you will need to understand both, the regional and the global dimensions of business. .. solid and innovative book We hope you enjoy studying and working with this book and, in the process, become as enthusiastic about international business as we are Happy reading! Mike W Peng and