Ebook International business (6th edition): Part 2

(BQ) Part 2 book International business has contents: Corporate strategy and national competitiveness; production strategy, marketing strategy, human resource management strategy, political risk and negotiation strategy; international financial management, corporate ethics and the natural environment,...and other contents.

Find more at http://www.downloadslide.com Chapter 10 CORPORATE STRATEGY AND NATIONAL COMPETITIVENESS Contents Objectives of the chapter Introduction  302 ■ Active Learning Case The primary objective of this chapter is to develop two frameworks for understanding how both nations and MNEs must fashion their strategies to achieve international competitiveness In doing so, we give particular consideration to the regional economic integration of North America, although these frameworks are also relevant for other triad economies and also for emerging economy firms Worldwide operations and local strategies of ABB  301 The specific objectives of this chapter are to: The single diamond  302 The double diamond  306 Integration and responsiveness  315 ■ International Business Strategy in Action Nokia and Ericsson  310 Kodak  316 ■ Real Cases There is no global beer, only local  325 IBM  326 Examine the determinants and external variables in Porter’s “diamond” model of national competitiveness and critique and evaluate the model Present a “double-diamond” model that illustrates how firms in non-triad countries such as Canada are using their diamond to design corporate strategies for the North American market Discuss the benefits and effects of the North American Free Trade Agreement on both Mexico and Canada Describe how Mexico is using a double-diamond model to tap into the North American market Define the terms economic integration and national responsiveness and relate their importance to MNE strategies throughout the world M10_RUGM0979_06_SE_C10.indd 300 3/1/12 2:07 PM Find more at http://www.downloadslide.com CHAPTER 10 CORPORATE STRATEGY AND NATIONAL COMPETITIVENESS 301 ACTIVE LEARNING CASE Worldwide operations and local strategies of ABB Headquartered in Zurich, Switzerland, Asea Brown Boveri (ABB) is one of Europe’s major industrial firms Since the merger in 1987 that created it, ABB has been acquiring or taking minority positions in a large number of companies throughout the world In recent years it has purchased Westinghouse’s transmission and distribution operations and Combustion Engineering, the manufacturer of power generation and process automation equipment ABB Ltd (ABB) provides power and automation technologies for its utility and industrial customers It focuses on power transmission, distribution, and power-plant automation and serves electric, gas, and water utilities, as well as industrial and commercial customers ABB also delivers automation systems that measure, control, protect, and optimize plant applications across a range of industries By 2009, the conglomerate, which employs over 116,000 people worldwide, had annual revenues of $31.797 billion; 41.18 percent of its revenues comes from Europe, 19.03 percent from the Americas, and 27.31 percent from Asia The remainder, 12.48 percent, comes from Africa and the Middle East ABB operates on both local and global terms On the one hand it attempts to maintain deep local roots wherever it operates so that it can modify both products and operations for that market For example, managers are trained to adapt to cultural differences and to learn how to communicate effectively with local customers At the same time the company works to be global and to make products that can be sold anywhere in the world because their technology and quality give them a worldwide appeal A good example of a business that demonstrates ABB’s advantages is products and services In 2009, the company generates $9.370 billion revenues in power products (29.47 percent), $7.897 billion in automation products (24.84 percent), $7.150 billion in process automation (22.49 percent), $6.356 billion in power systems (20 percent), and the balance in robotics This is possible for four reasons: (1) ABB’s research and development makes it a leader in power and automation technology, enabling it to develop and build products and services throughout the world; (2) its operations are structured to take advantage of economies of scale and thus keep prices competitive; (3) it adapts to local environments and works closely with customers so that it is viewed as a national rather than a foreign company; and (4) it works closely with companies in other countries that are favored by their own government but need assistance in financing and producing equipment for that market As a result, ABB is able to capitalize on its technological and manufacturing expertise and develop competitive advantages in both triad and non-triad markets In some cases ABB has gone so far as to take an ownership position in companies located in emerging economic markets For example, the firm purchased 76 percent of Zamech, Poland’s leading manufacturer of steam turbines, transmission gears, marine equipment, and metal castings And it has bought into two other Polish firms that make a wide range of generating equipment and electric drives ABB reorganized these firms into profit centers, transferring its own expertise to local operations, and developing worldwide quality standards and controls for production In Mexico, ABB acquired FIP SA in 2001, an oil and gas production equipment company In October 2009, ABB Ltd acquired Sinai Engineering Corporation to enhance its presence and capabilities in Western Canada In January 2011, the Company acquired Baldor Electric Company (the United States) at the value of $4.2 billion, including $1.1 billion of net debt These acquisitions also need to be better incorporated into its structure ABB works hard to be a “good citizen” of every country in which it operates, while also maintaining its supranational status As a result, the company is proving that it is possible to have worldwide operations and local strategies that work harmoniously Website: www.abb.com Sources: Adapted from William Taylor, “The Logic of Global Business: An Interview with ABB’s Percy Barnevik,” Harvard Business Review, March/April 1991, pp 91–105; Carol Kennedy, “ABB: Model Merger for the New Europe,” Long Range Planning, vol 25, no (1992), pp 10–17; Edward L Andrews, “ABB Will Cut 10,000 Jobs and Switch Focus to Asia,” New York Times, October 22, 1997, p C2; Alan M Rugman, The Regional Multinationals (Cambridge: Cambridge University Press, 2005); ABB, Annual report, 2009 Thomson Reuters, Onesource, 2011; “Fortune Global 500,” Fortune, 2010 In what way does ABB’s strategy incorporate Porter’s four country-specific determinants and two external variables? Why did ABB buy Zamech? How can the company link Zamech to its overall strategic plan? How does ABB address the issues of globalization and national responsiveness? In each case, cite an example M10_RUGM0979_06_SE_C10.indd 301 3/1/12 2:07 PM Find more at http://www.downloadslide.com 302 PART THREE INTERNATIONAL BUSINESS STRATEGIES INTRODUCTION In this chapter two frameworks are developed Again it is useful to relate these to the basic firm and country model first outlined in Chapter of this textbook In this chapter we will first review the single-diamond model of Michael Porter (1990) We will apply it to analyze the international competitiveness of large economies such as the United States, Japan, and Germany We then introduce the double-diamond framework which is more suitable for somewhat smaller but open trading economies, such as Canada, New Zealand, Korea, Singapore, and, indeed, most countries in the world Both the Porter single diamond and the double diamond deal with CSAs There are rankings of countries based on the manner in which their CSAs are being utilized to improve their international competitiveness Yet, in this work on international competitiveness, the manner in which CSAs are turned into FSAs is often not made explicit The second framework outlined in this chapter is the famous economic integration and national responsiveness matrix The economic integration axis is largely explained by CSAs The national responsiveness axis is a pure FSA Indeed, only in international business can this type of FSA arise The managers of a multinational enterprise (MNE) have a network of subsidiaries and national responsiveness is relevant when making decisions about the strategy and organizational structure of such firms In contrast, purely domestic firms cannot experience FSAs in national responsiveness Together, these two frameworks provide the students with the basic insights necessary to analyze the complex nature of the strategy and structure of multinational enterprises and other firms involved in international business Some MNEs rely on their home market to generate the research, development, design, or manufacturing needed to sell their goods in international markets More and more, however, they are finding that they must focus on the markets where they are doing business as well as on strategies for tapping the resources of those markets and gaining sales entry In short, multinationals can no longer rely exclusively on the competitive advantage they hold at home to provide them with a sustainable advantage overseas In addition, many small countries realize they must rely on export strategies to ensure the growth of their economies Those that have been most successful with this strategy have managed to tap into markets within triad countries Good examples are Canada and Mexico, both of which have found the United States to be a lucrative market for exports and imports As a result, many successful business firms in these two countries have integrated themselves into the US economy, while creating what some international economists call a North American market In the future many more MNEs are going to be following this pattern of linking into the economies of triad members The basic strategy that these MNEs are following can be tied directly to the Porter model presented in Chapter 1, although some significant modifications of this model are in order We will first examine Porter’s ideas in more detail and then show how these ideas are serving as the basis for developing corporate strategies and international competitiveness in Canada and Mexico THE SINGLE DIAMOND In Chapter we identified four determinants of national competitive advantage, as set forth by Porter (see Figure 10.1) We noted that these factors can be critical in helping a country build and maintain competitive advantage We now return to Porter’s “diamond” framework in more depth, examining how his findings apply specifically to triad countries and determining how the ideas can be modified and applied to nations that are not triad members M10_RUGM0979_06_SE_C10.indd 302 3/1/12 2:07 PM Find more at http://www.downloadslide.com CHAPTER 10 CORPORATE STRATEGY AND NATIONAL COMPETITIVENESS 303 Figure 10.1 Porter’s single-diamond framework Source: Adapted with the permission of The Free Press, an imprint of Simon & Schuster Adult Publishing Group, from The Competitive Advantage of Nations by Michael E Porter Copyright © 1990, 1998 by Michael E Porter All rights reserved Determinants and external variables Porter’s “diamond” model is based on four country-specific determinants and two external variables The determinants include: Factor conditions These include (a) the quantity, skills, and cost of the personnel; (b) the abundance, quality, accessibility, and cost of the nation’s physical resources such as land, water, mineral deposits, timber, hydroelectric power sources, and fishing grounds; (c) the nation’s stock of knowledge resources, including scientific, technical, and market knowledge that affect the quantity and quality of goods and services; (d) the amount and cost of capital resources that are available to finance industry; and (e) the type, quality, and user cost of the infrastructure, including the nation’s transportation system, communications system, health-care system, and other factors that directly affect the quality of life in the country Demand conditions These include (a) the composition of demand in the home market as reflected by the various market niches that exist, buyer sophistication, and how well the needs of buyers in the home market precede those of buyers in other markets; (b) the size and growth rate of the home demand; and (c) the ways in which domestic demand is internationalized and pulls a nation’s products and services abroad Related and supporting industries These include (a) the presence of internationally competitive supplier industries that create advantages in downstream industries through efficient, early, or rapid access to cost-effective inputs; and (b) internationally competitive related industries that can coordinate and share activities in the value chain when competing or those that involve complementary products Firm strategy, structure, and rivalry These include (a) the ways in which firms are managed and choose to compete; (b) the goals that companies seek to attain as well as the motivations of their employees and managers; and (c) the amount of domestic rivalry and the creation and persistence of competitive advantage in the respective industry M10_RUGM0979_06_SE_C10.indd 303 3/1/12 2:07 PM Find more at http://www.downloadslide.com 304 PART THREE INTERNATIONAL BUSINESS STRATEGIES The four determinants of national advantage shape the competitive environment of industries However, two other variables, chance and government, also play important roles: The role of chance Chance events can nullify the advantages of some competitors and bring about a shift in overall competitive position because of developments such as (a) new inventions, (b) political decisions by foreign governments, (c) wars, (d) significant shifts in world financial markets or exchange rates, (e) discontinuities in input costs such as oil shocks, (f) surges in world or regional demand, and (g) major technological breakthroughs The role of government Government can influence all four of the major determinants through such actions as (a) subsidies, (b) education policies, (c) the regulation or deregulation of capital markets, (d) the establishment of local product standards and regulations, (e) the purchase of goods and services, (f) tax laws, and (g) antitrust regulation.1 Figure 10.1 provides an illustration of the complete system of these determinants and external variables Each of the four determinants affects the others, and all in turn are affected by the role of chance and government Critique and evaluation of the model In applying this model to international business strategy, we must first critique and evaluate Porter’s paradigm and supporting arguments First, the Porter model was constructed based on statistical analysis of aggregate data on export shares for 10 countries: Denmark, Italy, Japan, Singapore, South Korea, Sweden, Switzerland, the UK, the United States, and West Germany In addition, historical case studies were provided for four industries: the German printing press industry, the US patient monitoring equipment industry, the Italian ceramic tile industry, and the Japanese robotics industry In each case the country is either a member of the triad or an industrialized nation Since most countries of the world not have the same economic strength or affluence as those studied by Porter, it is highly unlikely that his model can be applied to them without modification Second, the government is of critical importance in influencing a home nation’s competitive advantage For example, it can use tariffs as a direct entry barrier to penalize foreign firms, and it can employ subsidies as an indirect vehicle for penalizing foreign-based firms Government actions such as these, however well intentioned, can backfire and end up creating a “sheltered” domestic industry that is unable to compete in the worldwide market.2 Third, although chance is a critical influencing factor in international business strategy, it is extremely difficult to predict and guard against In a similar vein, technological breakthroughs in computers and consumer electronics have resulted in rapid changes that, in many cases, were not predicted by market leaders Fourth, in the study of international business, the Porter model must be applied in terms of company-specific considerations and not in terms of national advantages As Porter so well notes in his book, “Firms, not nations, compete in international markets.”3 Fifth, in support of his model, Porter delineates four distinct stages of national competitive development: factor-driven, investment-driven, innovation-driven, and wealth-driven (see Figure 10.2) In the factor-driven stage, successful industries draw their advantage almost solely from the basic factors of production such as natural resources and the nation’s large, inexpensive labor pool Although successful internationally, the industries compete primarily on price In the investment-driven stage, companies invest in modern, M10_RUGM0979_06_SE_C10.indd 304 3/1/12 2:07 PM Find more at http://www.downloadslide.com CHAPTER 10 CORPORATE STRATEGY AND NATIONAL COMPETITIVENESS 305 Figure 10.2 The four stages of national development and the historical position of select nations Source: Adapted with the permission of The Free Press, an imprint of Simon & Schuster Adult Publishing Group, from The Competitive Advantage of Nations by Michael E Porter Copyright © 1990, 1998 by Michael E Porter All rights reserved efficient facilities and technology and work to improve these investments through modification and alteration In the innovation-driven stage, firms work to create new technology and methods through internal innovation and with assistance from suppliers and firms in related industries In the wealth-driven stage, firms begin to lose their competitive advantage, rivalry ebbs, and the motivation to invest declines As seen in Figure 10.2, Porter believes that Singapore is in the factor-driven stage, Korea is investment driven, Japan is innovation driven, Germany and the United States are between the innovation and wealth-driven stages, and the UK is wealth driven Because the stage of development greatly influences the country’s competitive response, the placement of countries in Figure 10.2 is critical So too is the logic that countries move from one stage to another, rather than spanning two or more stages, because there are likely to be industries or companies in all major economies that are operating at each stage Sixth, Porter contends that only outward FDI is valuable in creating competitive advantage, and inbound foreign investment is never the solution to a nation’s competitive problems Moreover, foreign subsidiaries are not recognized by Porter as sources of competitive advantage.4 These statements are questionable and have already been rejected in this text For example, scholars such as Safarian,5 Rugman,6 and Crookell7 have all demonstrated that R&D undertaken by foreign-owned firms is not significantly different from that of Canadian-owned companies Moreover, Rugman has found that the 20 largest US subsidiaries in Canada export virtually as much as they import (the rate of exports to sales is 25 percent, whereas that of imports to sales is 26 percent).8 Seventh, as seen in Figure 10.2, reliance on natural resources (the factor-driven stage) is viewed by Porter as insufficient to create worldwide competitive stature.9 However, Canada, for one, has developed a number of successful megafirms that have turned the country’s comparative advantage in natural resources into proprietary firm-specific advantages in resource processing and further refining—sources of sustainable advantage.10 Moreover, case studies of the country’s successful multinationals such as Alcan, Noranda, and Nova help illustrate the methods by which value added has been introduced by the managers of these resource-based companies.11 Eighth, the Porter model does not adequately address the role of MNEs Researchers such as Dunning12 have suggested including multinational activity as a third outside variable (in addition to chance and government) Certainly there is good reason to question whether MNE activity is covered in the “firm strategy, structure, and rivalry” determinant, M10_RUGM0979_06_SE_C10.indd 305 3/1/12 2:07 PM Find more at http://www.downloadslide.com 306 PART THREE INTERNATIONAL BUSINESS STRATEGIES and some researchers have raised the question of how the same rivalry determinant can both include multinationality for global industries and yet exclude it for multidomestic industries As Dunning notes, “There is ample evidence to suggest that MNEs are influenced in their competitiveness by the configuration of the diamond in other than their home countries, and that this in turn may impinge upon the competitiveness of home countries.”13 For example, Nestlé earns 98 percent of its sales outside Switzerland;14 thus, the Swiss diamond of competitive advantage is less relevant than that of the countries in which Nestlé operates This is true not only for MNEs in Switzerland but for 95 percent of the world’s MNEs as well For example, virtually all of Canada’s large multinationals rely on sales in the United States and other triad markets Indeed, it could be argued that the US diamond is more relevant for Canada’s industrial multinationals than Canada’s own diamond, since more than 70 percent of Canadian MNE sales take place in the United States Other nations with MNEs based on small home diamonds include Australia, New Zealand, Finland, and most, if not all, Asian and Latin American countries as well as a large number of other small countries Even small nations in the EU, such as Denmark, have been able to overcome the problem of a small domestic market by gaining access to one of the triad markets So in applying Porter’s framework to international business at large, one conclusion is irrefutable: Different diamonds need to be constructed and analyzed for different countries ✔ Active learning check Review your answer to Active Learning Case question and make any changes you like Then compare your answer to the one below In what way does ABB’s strategy incorporate Porter’s four country-specific determinants and two external variables? The strategy incorporates Porter’s country-specific determinants as part of a wellformulated global strategy designed to tap the strengths of various markets For example, the company draws on the factor conditions and demand conditions in Europe to support its power and automation business It also draws on supporting industries to help sustain its worldwide competitive advantage in that industry At the same time the company’s strategy, structure, and rivalry are designed to help it compete at the local level The strategy incorporates the external variable of government by considering relations between countries as a lubricant for worldwide economic integration It addresses the variable of chance by operating globally and thus reducing the likelihood that a war or a regional recession will have a major negative effect on operations The firm’s heavy focus on core technologies and R&D also helps minimize this chance variable THE DOUBLE DIAMOND Researchers have recently begun using Porter’s single diamond as a basis for analyzing the international competitiveness of smaller countries This approach builds on Porter’s theme of corporate strategy and process as a source of competitive advantage for a nation Canada and the double diamond Figure 10.3 illustrates how Porter’s single diamond would look if it were applied to Canada’s case.15 M10_RUGM0979_06_SE_C10.indd 306 3/1/12 2:07 PM Find more at http://www.downloadslide.com CHAPTER 10 CORPORATE STRATEGY AND NATIONAL COMPETITIVENESS 307 Figure 10.3 The single-diamond view Source: Adapted from Alan M Rugman and Joseph R D’Cruz, Fast Forward: Improving Canada’s International Competitiveness (Toronto: Kodak Canada, 1991), p 35 Two themes have recurred consistently in Canadian industrial policy: export promotion for natural resource industries and import substitution in the domestic arena The Canadian market has always been seen as too small to support the development of economies of scale required in modern industry Hence it has been the practice in Canada to provide the base for developing large-scale resource businesses that are designed to exploit the natural resources found in the country Export strategies have emphasized commodity products that have been developed in isolation from major customers In the past these strategies had been encouraged by US government policies that removed or eliminated tariffs on imports of commodities that are not produced extensively in the United States The Canadian government’s role had been to help leading Canadian-based businesses by establishing relatively low taxes on resource extraction and by subsidizing the costs of capital through grants, low-interest loans, and loan guarantees With respect to import substitution, the Canadian goal had been to use tariff and nontariff measures to provide a protected environment for developing secondary industry Under this arrangement the country’s approach to business was largely focused inwardly, relying solely on the extent and quality of natural resources as the basis for the creation of wealth By the mid-1960s, however, it had become clear that a more international focus was needed The 1967 Canada–United States Auto Pact demonstrated that significant economic benefits would result from the elimination of tariffs on trade between the two countries in autos and parts This agreement eventually became the model for the United States–Canada Free Trade Agreement.16 In the process Canadian plants gained economies of scale by producing for the North American market as a whole rather than for the Canadian market alone For corporate strategy, the result of North American economic integration has been the development of a Canadian–US “double diamond,” which shows that the two countries are integrated for strategy purposes into a single market (see Figure 10.4) M10_RUGM0979_06_SE_C10.indd 307 3/1/12 2:07 PM Find more at http://www.downloadslide.com 308 Part Three  International Business Strategies Figure 10.4  Canadian–US double diamond Source: Adapted from Alan M Rugman and Joseph R D’Cruz, “The ‘Double Diamond’ Model of International Competitiveness: the Canadian Experience,” Management International Review, vol 33, Special Issue (1993), p 32 Under this new arrangement, Canadian businesses are now in direct competition with firms operating in a diamond of their own in the United States.17 To survive this rivalry with leading US firms, Canadian businesses have to develop competitive capabilities of a high order.18 They can no longer rely on their country’s home diamond and natural resource base Innovation and cost competitiveness are equally important, and this requires strategies that are designed to access the US diamond Now Canadian managers need a “double-diamond perspective” for their strategic decisions The double diamond is, of course, relevant for other small, open economies such as Finland and Sweden The case International Business Strategy in Action: Nokia and Ericsson provides an example The Free Trade Agreement has also created a series of unique pressures on the Canadian subsidiaries of US multinationals, many of which were created for the purpose of overcoming Canadian tariff barriers that were designed to encourage the development of local operations These subsidiaries are now unnecessary, and many of them are currently in direct competition with their US-based parent If they cannot compete successfully, future business will go south of the border.19 Meanwhile, major Canadian companies are working to develop competitive positions in the United States as well as worldwide.20 A good example is Magna International, Canada’s leading diversified automotive supplier headquartered in Aurora, Ontario, Canada The company designs, develops and manufactures automotive systems, assemblies, modules and components, and engineers and assembles complete vehicles, primarily for sale to original equipment manufacturers (OEMs) of cars and light trucks in three geographic segments: North America, Europe and rest of world (primarily Asia, and South America) It is Canada’s largest automobile part manufacturer and also one of the world’s 500 largest companies The firm has now established a significant manufacturing and product development presence in the United States As at September 2010, the company had 245 manufacturing divisions and 80 product development, engineering, and sales centers in 25 countries In 2009, Magna derives 18.6 percent of its total revenues from Canada, 21.6 percent from the United States, 6.7 percent from Mexico (North America 46.9 percent) Western Europe 38.8 percent, the United Kingdom 4.3 percent, other European countries 5.6 percent (Europe 48.5 percent) and the remainder from rest of world.21 M10_RUGM0979_06_SE_C10.indd 308 27/03/15 1:44 PM Find more at http://www.downloadslide.com CHAPTER 10 CORPORATE STRATEGY AND NATIONAL COMPETITIVENESS 309 Bombardier Inc provides another example Beginning as a Canadian manufacturer of snow-going equipment, the company has now grown into a multinational firm with interests in aviation, transportation, and financial services In the aviation/aerospace business, Bombardier has major operations in Canada and the United States, among other locations, and manufactures a line of business aircraft, commercial aircraft, including regional jets, turboprops and single-aisle mainline jets and amphibious aircraft The company’s transportation operations are located throughout North America and Europe and manufacture passenger trains, mass transit railcars, and engines It also provides bogies, electric propulsion, control equipment and maintenance services, as well as complete rail transportation systems and rail control solutions.22 Other major Canadian firms are following suit, operating from a North American perspective in order to lay the groundwork for becoming globally competitive.23 This involves viewing the United States and Canada as home-based markets and integrating the use of both “diamonds” for developing and implementing strategy In particular, this requires: Developing innovative new products and services that simultaneously meet the needs of the US and Canadian customer, recognizing that close relationships with demanding US customers should set the pace and style of product development Drawing on the support industries and infrastructure of both the US and Canadian diamonds, realizing that the US diamond is more likely to possess deeper and more efficient markets for such industries Making free and full use of the physical and human resources in both countries.24 Strategic cluster A network of businesses and supporting activities located in a specific region, where flagship firms compete globally and supporting activities are home based M10_RUGM0979_06_SE_C10.indd 309 Strategic clusters in the double diamond The primary advantage of using the double diamond is that it forces business and government leaders to think about management strategy and public policy in a more productive way Rather than viewing the domestic diamond as the unit of analysis, managers from smaller countries are encouraged to always be outward looking Doing well in a double diamond is the first step toward global success Once a country has recognized the benefit of the double-diamond perspective, it should first identify successful and potentially viable clusters of industries within its borders and then examine their linkages and performances across the double diamond A strategic cluster is a network of businesses and supporting activities located in a specific region, where the flagship firms compete globally and the supporting activities are home based, although some can be foreign owned In addition, some of the critical business inputs and skills may come from outside the country, with their relevance and usefulness being determined by the membership of the strategic cluster A successful strategic cluster will have one or more large MNEs at its center Whether these are home or foreign owned is irrelevant so long as they are globally competitive They are the flagship firms on which the strategic cluster depends Ideally, they operate on a global basis and plan their competitive strategies within the framework of global competition A vital component of the cluster is companies with related and supporting activities, including both private- and publicsector organizations In addition, there are think tanks, research groups, and educational institutions Some parts of this network can even be based outside the country, but the linkages across the border and the leadership role of the nation’s flagships result in worldclass competitive multinationals.25 Currently Canada has several strategic clusters One is the auto assembly and auto parts industry in south-western Ontario, led by the Big Three US auto multinationals with their related and affiliated suppliers and distributors There are linkages to various high-tech firms and research groups that span the border, as does the auto assembly industry itself Other strategic clusters are based in banking and financial services in Toronto, advanced 3/1/12 2:07 PM Find more at http://www.downloadslide.com INDEX distribution, retailing and customer orientation 583–4 diversification stategies 593 economic profile 540 economy capital markets 587–9 characteristics of 574–8 government role in 572–3 restructuring 586–91 electronics industry 260 exports and imports 9, 576, 578 FDI outwards 644 FDI in USA 321 firm strategy 20 foreign direct investment in 570–1, 575, 576, 591 GDP 572 HRM practices 593 industrial democracy 449 industry groups air conditioning industry 20 amusement park 37 automobile industry 85–92, 152, 592–3, 596–9 computer industry 319 consumer electronics industry 95 insurance industry 77 motorcycle industry 24, 250 retail industry 570, 589, 590–1, 712 robotics industry 304 soft drink industry 375 steel 593 technology 81 telecommunications industry 244, 245, 260 toy market industry 96–7, 712 information gathering 251 international trading companies (sogo shosha) 580 kaizen 376, 385, 579 labor relations practices 447 Large-Scale Retail Store Law 570, 590 lifetime employment 706 management style 586 benkyokai 586 manufacturing co-prosperity pyramid 581 cost controls 375 off-shore 592–3 quality control (kaizen) 376, 385, 579 strengths 579 market barriers, to foreign SMEs 352 mergers and acquisitions 589–91 Ministry for Economy, Trade and Industry (METI) 572 Ministry of Finance (MOF) 572–3 Z02_RUGM0979_06_SE_IND.indd 751 Ministry of International Trade and Industry (MITI) 110–11, 572, 573 multi-national enterprises, global sourcing 371 multinationals in 66, 584–6 negotiation behaviors 483 personnel evaluation 293 Plaza Accord and 587 ports 492–3, 584 privatization 110 remuneration 586 research and development (R&D) 338, 579 trade data 575 trade relations with China 578, 593 triad power, as a 8, 13 USA port sanctions 493 Japan Harbor Transportation Association (JHTA) 492–3 Japan Post Holdings Japan Telecom 123, 244, 245 Japanese Agricultural Standard (JAS) 181 Japanese Industrial Standard (JIS) 181 Jardine Matheson 566, 644 Jarillo, J Carlos 298, 330, 727 Javalgi, Rajshekhar (Raj) G 99, 359 Javidan, M 161, 162 Jayaratne, Saliya 568 Jean, Ruey-Jer 726 Jefferson, Gary 698 Jensen, Nathan M 131 Jensen, Orberg Peter 397 Jepma, C J 666 Jiabao, Wen 675 Jiang, Y 495 Jiang Zemin 106 Jimenez, Alfredo 495 Jimenez, Nadia H 428 Jin, Uk Kim 330 Jing, Li 398, 698 Jintao, Hu 675 Johanson, Jan 63, 330, 344–5, 357, 428 Johnson, Debra 567 Johnson, Robert 231 Joint Commission International (JCI) 664, 665 joint ventures international (IJVs) 260–1 Jones, Alex S 460 Jones, Bodil 460 Jones, D T 601 Jones, Geoffrey 32 Jones, Marion V 359 Jones, Oswald 359 Jordan 644 Jordan, Andrew J 566 Jospin, Lionel 118 Jowell, R 161 751 Jrapko, Alicia 726 Juarez, Ben 328 Juarez Valdez, Luis F 532 Judge, William Q 667 Jugos del Valle 632 Jumex 632 Jun, Sunkyu 461 Jung, J C 270, 603 Jung, Li 533 Jwa, Sung-Hee 667 Kaderabkova, Anna 568 Kahancova, Marta 567 Kahle, Kathleen M 532 kaizen (continuous improvement) 376, 385, 579 Kajima 584 Kalotay, Kálmán 666 Kaminski, Matthew 130 Kamprad, Ingvar 411 Kanenburg, Hans van 397 Kangaroo Computer 638 Kanso, Ali M 428 Kanter, Rosabeth Moss 725 Kapner, Suzanne 62 Kappen, Philip 298 Karavis, Lambros 297 Karstadt 372 Kasoff, Mark J 636 Kato, Takao 602 Kaufman, Leslie 269 Kawasaki 24, 683 Kaynak, Erdener 428 Keane, Michael P 635 Keating, Robert J 495 Keeley, James 698 Keillor, Bruce D 495 Keim, Gerald 495 keiretsu system (corporate groups) 93, 152, 352, 386–91, 570, 571, 574, 579–82, 656 kinyu (horizontal type) 579, 580 zaibatsu (pre-war conglomerates) 580 Keizer, A B 602 Keller, John J 130 Kellermans, Franz W 269 Kelley, Wiliam 603 Kellogg’s 410 Kelly, John 339 Kennedy, C R., Jr 494 Kenney, Martin 697 Kenworthy, Thomas P 299 Kenya flower industry 649–51 Fairtrade 651 port problems 493 Kenya Flower Council 650, 651 Kequan Li 697 3/6/12 11:17 AM Find more at http://www.downloadslide.com 752 INDEX Kern, D 494 Kerwin, Katie 396 Ketchen, David J 270 Ketkar, S 603 Keupp, Marcus M 298 Keys, J Bernard 459 Khanna, Tarun 32 Kharas, Homi J 667 Khodorkovsky, Mikhail 104, 491 Khoury, T 239 Kia 648 Kibaki, Mwai 650 Kidd, John B 567 Kim, D 357, 358 Kim, H 602 Kim, L 666 Kim, Min-Young 329 Kim, W Chan 269, 270, 726 Kimm, A 603 kinesics 291 King, Thomas R 532 Kingdee 688 Kirin 326, 582–3 Kirkman, Bradley L 461 Kirkpatrick, David 725 Kirpalani, Manek 359 Kirton, John 635, 636, 726, 727 Kita Kushu Coca-Cola Bottling 526 KLM-Northwest alliance 498 Kmart 372 Knight, G A 130, 357, 358, 359 knowledge management 368–9 Kobayashi, K 603 Kobayashi, Mami 603 Kobrin, Stephen J 131, 495 Kodak 80, 81, 259, 316–17, 391, 570, 679 Kodak China 463–5, 467, 476, 480, 488, 641 Kodak (Wuxi) 463, 464 Kogut, Bruce 63, 298, 533, 727 Kohli, Ajay K 427 Kohli, F C 662 Koka, Balaji R 191 Kola Real Group 407, 408–9 Kolding, Eivind 724 Kolk, Ans 131, 727 Kompare, D 162 Konka 688, 693 Kono, T 602 Korn Ferry 457, 458 Kostova, T 162, 298, 668 Kotabe, Masaaki 269, 397, 398, 428, 532 Kotabe, Mike 603 Kotha, Suresh 495 Kotlarsky, Julia 494 Kotler, Philip 330, 427 Kotulla, Thomas 429 Koutzevol, Nadejda 667 Koza, Mitchell 269 Z02_RUGM0979_06_SE_IND.indd 752 Kraar, Louis 396 Kraimer, Maria L 461 Krauss, Clifford 130 Kravchenko, Olga 130 Krishnan, M S 359 Kristensen, P H 162 Krivogorsky, Victoria 667 Kudina, A 238, 239, 330, 568 Kuhne & Nagel 555 Kulatilaka, Nalin 533 Kumar, Rajesh 495 Kumar, Sameer 667, 698 Kumar, V 236, 238, 397 Kundu, Sumit K 98, 357, 397 Kunii, Irene 327 Kupka, Bernd 459 Kuwait 259, 644 Kyläheiko, Kalevi 268 Kynge, James 698 Kyushu Oil 29 L M Ericsson 310 La Cruz del Campo 123 Labatt 325 Labianca, Giuseppe 359 labor relations/unions 444–9 in Canada 614–15 codetermination 448–9 industrial democracy 448–9 in Mexico 624 shop floor participation 448 work councils 448 Laboratoire Pharmaceutique Algerien 633 Lafarge 79–80 Lagerström, Katarina 357, 358 Lai, Si Tsui-Auch 698 Lall, Sanjaya 666 Lam, Kevin 162 Lam, Mark N 696 Lambert, Douglas M 99 Lamont, Bruce T 297 Lampel, Joseph 270 Land Rover 547, 548 Lander, Diane M 494 Landers, Peter 62 Landesman, Earl 396 Landler, Mark 62, 665, 726 Landry, John T 428 Lane, Christopher 297 Lane, P J 163 language 351, 482 Canadian (French-English) bilingual policy 613 culture and 135 fluency in other languages 431, 437, 450 training 449–50 LaPorta, Rafael 533 Larimo, Jorman 495 Laroche, Michel 568 Latin America computer industry 481–2 emerging economies 642, 643, 648–9 multi-national enterprises 649 oil industry privatization 530 Latin American Integration Association (LAIA) 625, 711 Lattemann, Christoph 727 Latvia, market-driven economy 106 Lavin, Douglas 190 Law, Kenneth S 461 Lawler, John J 461 Lawton, Thomas C 567 Lazarova, Mila B 461 Le, Kwon 667 Leadbeater, Charles 666 leadership styles 148 cultural differences and 145–6 least-developed countries (LDCs) 649 leather footwear industry 20, 371 Lebedev, Platon 104 Lechner, Christopher 269 Lee, Dave 329 Lee, Hung-Wen 459 Lee, I H 357 Lee, In Hyeock 668 Lee, Seung-Hyun 131, 533, 603 Leggio, Karyl B 494 Lei, David 268 Lenovo 172, 639, 655, 688, 693, 722 Lentronics 247 Lentz, Patrick 429 Leong, Siew Meng 330 Leonidou, Leonidas 429 Leontief, Wassily 170 Lessard, Donald R 231, 532 Leung, Kwok 162, 231 Levi Strauss 54–5 Levie, J 358 Levin, Doron P 190 Levitas, Edward 270 Levy, David L 397 Levy, Orly 298 Lewin, Arie 269 Lewis, David 63 Lexmark 316 LG Electronics 644 LG Group 525, 657, 712 LG International 658, 659 Li, D 62, 235, 236, 238, 532 Li and Fung 381, 384 Li, Guey-Huey 298 Li, Ji 162 Li, Jing 232, 698, 699 Li Ka-shing 566 Li, Kai 698 Li, L 235, 236, 238, 298 Li, Mingzhi 667, 698 Li, Peter Ping 667 3/6/12 11:17 AM Find more at http://www.downloadslide.com INDEX Li, Quan 131 Li, Shaomin 727 Li, Yong 698 Liang, Xin 98 Lianxi Zhou 359 Liaoning Dalian Daxue Brewery 680 liberalization policies, emerging countries 643 Liberia 509 Libertel 244 LIBOR (London interbank offered rate) 217 licence agreements 6, 42 licensee 42 licensor 42 Licht, G 358 Lichtenstein, B 358 Lieberthal, G 667, 698 Lieberthal, Kenneth 269, 396, 667, 698 Liechenstein 509 Lien, Yung-Chih 667 Lienert, Dan 32 Liesch, Peter W 130 lifetime employment 706 Light, D A 161 Liker, Jeffrey K 398, 603 Lim, Dominic 330 Lim, Hendry 667 Lim, Lewis K S 428 Lin, Hao-Chieh 698 Lincoln, E J 603 Lincoln, J R 161 Linde AG 713 Linden, Dana Weschler 190 Ling, Zhijun 698 Ling-yee, Li 231 LinkedIn 458 Linsu, Kim 666 Litan, Robert 567 Lithuania, market-driven economy 106 Liu, Hong 269 Liu, Juliana 532 Liu, J W 358 Liu, Runjuan 191 Liu, Xiaohui 698 Liu, Xin 697 Lloyds TSB 228, 663 local strategy, soft drink industry 4–5 localization of management 125, 431 of production 124–5, 367–8 of products 123–4 of profits 124 locations comparision of international factors 549, 550 evaluation of 548–9 Z02_RUGM0979_06_SE_IND.indd 753 Lockett, Nigel 358 Lockheed 679 Loess, Kurt H 461 logistics international 380–3 air shipping 381 choice criteria 381–2 costs of 382 definition of 392 distribution systems and 415–17 ocean shipping 380–1 packaging 382 predictability and 382 storage 383 time and 381 transportation 380–2 London Stock Exchange 220, 530 London, Ted 298, 667, 698 Lopez, L E 357 Lopez-de-Silanes, Florencio 533 Lopez-Duerte, Cristina 231 Lorange, Peter 269 L’Oreal Group 716 Louviere, Jordan J 428 Lovas, B 396, 397 Lovett, Steve 635 Lowe, Kevin B 461 Lowson, Robert 567 Loyka, Jeffrey J 429 Lu, Jiangyong 698 Lubatkin, M 601 Lublin, Joann S 297 Lubove, Seth 269 Lucas, louise 297 Lucent Technologies 123, 525, 688 Lucky Film Corp 464 Lukoil 648 lumber industry 108, 109 Lund, Reinhard 460 Lundan, Sarianna M 63 Lundvall, B-A 356–7 Luo, Xueming 359 Luo, Yadong 131, 667, 698 Luthans, Fred 269, 297, 459, 460 Luxembourg 508 luxury goods industry 295 LVMH 295, 479 Lyles, M A 358 McAleer, M 495 McCarthy, Daniel J 131, 667, 668 McCaw 627 McCormick, Stephen 532 McCulloch, W H 161 McDermott, Gerald A 727 McDonald, Frank 461 McDonald’s 19, 138–9, 370, 701 McDonald’s France 138 753 McDonald’s Japan 97 McDonnell Douglas 72, 374 McDougall, P P 357 McGaughey, S 358 McGinn, Daniel 427 McGrath, Michael E 396 McGregor, Richard 190 McGuire, J 602, 603 McIlveen, John 327 McKay, Betsy 297 McKinney, Joseph A 427 McKinsey & Company 249 McKinsey, James O 249 McLaren, Julie 697 Maclaren, Virginia 635 McManus, John 667, 698 McSweeny, B 161, 162 McWilliams, Gary 726 Macy’s 372 Maddox, R C 162 Madhavan, Ravindranath 191 Madsen, Tage Koed 428 Madslien, Jorn 268, 297, 532 Maersk Group 512, 723–5 Magna International 85, 308, 309, 608, 616, 617 Magnusson, Paul 130 Magretta, Joan 396, 427 Mahindra-British Telecom venture 663 Mahnke, Volker 297, 299 MAI see Multilateral Agreement on Investment Majerbi, Basma 231 Majiluf, Nicolas S 269 Mak, Billy S C 231 Makhija, Mona 495, 533 Makino, Shige 99, 460, 495, 568, 602, 603, 698 Makita 256 Makridakis, Spyros G 566 Malaysia 657 automobile industry 87 Malkin, Elisabeth 635 Malnight, T W 396, 398 Maloney, Mary M 461 management cultural differences and 136–7, 145–6 localization of 125 see also strategic management managers business 283 for internationalization, by nationality 432 product 283 regional 283 resource 283 training and development 437–8 3/6/12 11:17 AM Find more at http://www.downloadslide.com 754 INDEX Manchester United 160 Manea, Julia 566, 667 Mannesmann 245 Manolopoulos, Dimitris 428 Mansfield, Edward D 494 Mansfield, J 131 manufacturing of goods 373–8 co-prosperty pyramid 581 continuous process improvement (kaizen) 376, 385, 579 contract manufacturing 52–3 cost reduction 557 costs of, controlling 373–5 delayed differentiation 557 European Union and 557–9 factory networks 558 hourly compensation costs 544–5 labor costs 446 modular manufacturing 373–4 production network 376–7 quality 375–6 research and development 558–9, 579 strategy implementation and 262 supply chain, greening of 373 Manulife Financial Corp 616, 617 maquiladora industry 78, 185, 314, 374, 627 Mar, Pamela C M 602 Marchionne, Francesco 190 market entry – modes of, SMEs 352 market forecasting cluster analysis 403 estimation by analogy 403 regression analysis 403 trend analysis 403 market penetration 418–19 market-driven economy definition of 107 in the former Soviet Union 106 marketing “four Ps” 261–2 marketing strategy 261–2, 399–429 basic need and potential 402 business-to-business (B2B) concept 723–5 business-to-consumer (B2C) concept 721–2 competitive environment 404 consumer tastes and 172, 174, 414 direct marketing 557 distribution systems and 415–17 financial and economic conditions 402–3 growth and 402 market assessment 402–4 market indicators 402 market intensity 402 market size 402 place strategy and 415–17, 422 Z02_RUGM0979_06_SE_IND.indd 754 political and legal forces 403 product strategies and 405–9 promotion 410–13 sociocultural forces 403–4 strategic management and 417–22 see also local strategy; regional strategy Markides, Constantinos C 533 Marks & Spencer 372, 557, 651 Markusen, J R 191 Marlboro 556 Marriott 370 Marsh, Peter 269, 697 Marshall, Alfred 358 Marshall, Andrew 231 Marshall Islands 509 Marshall, Matt 269 Marshall, R S 162 Martin, J 358 Martin, Oscar 298 Martin, X 603 Martinez, Jon I 298, 330, 727 Martinez, Zaida L 32 Marubeni 46 Maruti Suzuki India (MSI) 87 masculinity 141 Mason, Todd 634 Mast Industries 384 Matalan 372 Mathews, Anna Wilde 98 Mathews, J A 349, 358, 667, 697, 698 Mathis, John 533 matrix structures 282–4, 287, 288 clarity 284 consistency 284 continuity 284 Matsushita 74–5, 284, 579, 580 Matsushita Electric Industrial 260, 580 Mattel 374 Matthews, Linda 636 Matulich, Erika 397 Mauborgne, Renée A 270, 726 Mavuno Group 651 max.mobil 288 Mayerhofer, Helene 459 Mayhew, Malcolm 62 Maynard, Jean-Pierre 328, 634 Mayrhofer, Ulrike 567 Maytag 377 Mazda 84, 592, 694, 707 MCI World 538 Mead, R 162 medical procedures, international comparison of costs 664 medical tourism 664–5 Mediobanca 44 Mediterranean Shipping Co 723 Mehdorn, Martmut 555 meishi (business card) 157, 158–9 Melcher, Richard A 396, 427 Melin, Leif 268 Mellahi, Kamel 699 Mendenhall, Mark E 603 mental maps 350–1 definition 350 mercantilism 167 Mercedes 275, 414 Merchant, Hemant 269, 270 Merchant, K 666 Mercosur 625, 711 Mercosur 121 Meredith, Robyn 61, 532 mergers and acquisitions cross-cultural differences 136 culture clash effects on 151–4 of Japanese firms 589–91 MNEs decision making and 288 oil industry 29–30 strategic alliances and 122–3 in triad economies 92–3 Merriden, Trevor 566 Merrill Lynch 511 Meschi, Peirre-Xavier 270 Messerlin, Patrick A 567 Metalurgica Gerdau 649 Metro 47 Metzger, Robert O 130 Mexicana 110 Mexico 623–30 airline industry privatization 110 automobile industry 88, 374, 627, 629–30 brewing industry 710 business environment 626–30 cement industry 79–80 competitiveness (double diamond model) 311–14, 324, 628, 630 economic data 609 economy 623–4, 648, 649 exports and imports FDI, in Canada and USA 312 film industry 314 foreign direct investment in 624 free trade area 606–8 labor relations 624 maquiladora industry 78, 185, 314, 374, 624, 627, 649 medical tourism 664 NAFTA and 606–8, 615, 625, 627–8, 630 peso crisis (1994) 228–9 petroleum industry 628–9 regional trade agreements 625–6 soft drink industry 407, 408–9 telecommunications industry 627, 648–9 3/6/12 11:17 AM Find more at http://www.downloadslide.com INDEX trade data 607 trade with USA and Canada 312–14, 606–8, 615 see also North American Free Trade Agreement Meyer, Klaus E 298, 330, 667, 698 Meyer, Marc H 359 Mezias, John M 461 MG 694–5 Michael, Steven C 428 Michailova, Snejina 298 Microelectronics & Computer Technology Corporation 111 Microsoft 123, 173–4, 316, 319, 393, 526, 657, 663, 680, 688, 701 Middle East, emerging economies 644 Midgley, David F 329, 330 Miele 571 Millennium Steel 22 Miller 325 Miller, Darius P 532 Miller, Edwin L 459, 461 Miller, Janis L 269 Miller, Jeffrey B 696 Miller, Kent D 231, 494 Miller, Scott 62 Milliman, John 461 Millington, Andrew I 567, 697 Millman, Joel 328 Minbaeva, Dana 298 Minder, Raphael 62 Ming-Hong Lai, George 98 Minton, Bernadette A 532 Mintzberg, Henry 246, 270 Miroshnik, V 602 Mirus, Rolf 99 Mishra, Chandra S 533 mission, basic 46–7 Missoni 44 Mitari, Fujito 601 Mitchell, Terence 460 Mitchell, Willi 428, 699 Mitchener, Brad 296 Mitsubishi 250, 254, 275, 386–91, 580, 582, 583, 584, 592, 679 Mitsubishi Bank 80 Mitsubishi Electric 418–19 Mitsubishi Kinyokai (Friday Club) 580 Mitsui 386–91, 580 Mittal Steel 22, 644 mixed economies 107, 112 Mixon, Franklin G 668 Miyajima, Hideaki 602 Miyoshi, H 602 MNEs see multinational enterprises (MNEs) Mobil 525 Modelo 325, 326 Z02_RUGM0979_06_SE_IND.indd 755 Modén, Karl-Markus 533 Moen, Oystein 428 Moffat, Susan 97, 460 Moffett, Michael H 231 Mohr, Alexander T 270, 461 Mohri, F Bill 328 Moitra, Deependra 667, 698 Mol, M J 603 Mole, J 162 Mole, Kevin F 359 Molina, Henry 359 Möllering, Guido 698 Molson Coors Brewing 325, 326 Molz, E 130 Monaco, tax haven 508, 509 monetary exchange controls 176 foreign currency options 230 monetary exchange rates definition of 172 fixed rates 176, 222, 223 quotations (Continental or American basis) 230 quotations (indirect or direct quotes) 230 spot rate 205 Monplaisir, Leslie 398 Montgomery, David B 698 Moody’s Investors Services 471 Moon, Hwy-Chang 329, 330 Moore, Karl 63, 328 Morck, Randall 32, 533, 696 Morgan, G 162 Morgan, Gareth 298 Morgan, Glenn 62, 603 Morgan Stanley 511 Morgan-Thomas, Anna 359 Morgukis-Yakushev, Sergey 461 Morley, Michael J 460 Morris, R W 97 Morris, Shad S 461 Morrison, Allen J 271, 298, 330, 727 Morrison, Scott 97 Mors, M L 357 Morschett, Dirk 99 Mortimore, Michael 97 Motel chain 564 Mothe, Caroline 130 motorcycle industry 24, 123, 250 Motorola 17, 134, 356, 393, 394, 538, 627, 630, 678, 680, 681, 688 Mountain Equipment Co-op (MEC) 266–7 Mourdoukoutas, Panos 602 Mowery, David C 359 MTN Group (South Africa) 649 MtSpace 332 MTU Aero Engines 45 755 Mucchielli, Jean-Louis 190, 601, 726 Muche, Thomas 231 Mudambi, Ram 298, 330, 494, 495, 667, 697 Mudambi, Susan M 270 Mudd, Shannon 533 Mueller, Rene Dentiste 428 Muethel, Miriam 162 Muller, A 131, 238 Muller, Joah 396 Multilateral Agreement on Investments 117–18 multinational enterprises (MNEs) 6, 36–70 capital budgeting 518–21 capital markets and 215 centralization vs decentralization of decision making 289–90 characteristics of 40–3, 58 competitiveness 19–21, 28 cost factors 77–8, 79–80 definition of 7, 38, 58 Dunning’s eclectic theory 67–70 economic environment 710–13 in emerging economies 67 and the environment 715–20 in Europe 65 and FDI 117 financial markets and 225 financial strategy 262 financing, international, in 522–3 flagship firms 707 from Africa 651 from Asia-Pacific 644 from Central and Eastern Europe 648 from Latin America 649 goal setting 257–8 grossing over $125 billion 7–8 internalization of control 44 international expansion 46 in Japan 66, 584–6 location of 17–18 money markets and 214–15 network linkages 707, 708 performance measures 263–4 political environment 709–10 reasons for firms becoming 43–5, 58 regional strategies 17–19, 83–93 sales of 50 largest firms in North America 618–19, 620 sales of top 100 economies 56–7 strategic alliances 18, 122–3, 260–1 strategic management 703–5 strategic philosophy of 45 technology, impact of 15–16 triad-based, foreign assets of largest 75–6 in U.S 64 3/6/12 11:17 AM Find more at http://www.downloadslide.com 756 INDEX multinational enterprises (MNEs) (continued) vertical integration 254–5 virtual integration 255 worldwide by country 39 multinationality and performance – regional aspects 233–9 gravity model 234–5 recent research on S curve 233–4 regional versus total sales 234 Multitech 638 Munogen 23 Murray, G 358, 495 Murray, Janet Y 397 Murray, Matt 268 Murthi, Narayana 662 Musteen, Martina 98 Myers, Hayley 428 Myers, Matthew B 397 Myers, Stewart C 531 MySpace 421 Nachum, Lilach 236, 238, 298, 428 NAFTA see North American Free Trade Agreement Nagahira, A 603 Naik, Gautam 130, 269 Nakane, C 161, 601 Nakata, C 163 Nakata, Y 602 Nakos, G 358 Nan Zhou 162 Nanjing Automotive Corporation (NAC) 694–5 Naoumova, Irina 667 Napier, Nancy 461 Narula, Rajneesh 63, 298, 330, 697 Naspers 651 Nasser, Jacques 548 Nath, Raghu 297 Nathan, Maria 461 National Australia Bank 200 National Center for Manufacturing Sciences (USA) 111 National Presto 188 nationalization 108 NatSteel 22 Natwest Bank 227–8 Naughton, Keith 327 Naumov, Alexander I 131 Nauru 509 Navarra, Peter 698 Navarra, Pietro 298, 495 Nebus, James 494, 727 NEC 284, 310, 579, 580, 630 Negishi, Mayumi 130 negotiation strategies 476–85 acceptance zones 482–3 Z02_RUGM0979_06_SE_IND.indd 756 bargaining tactics 483 corruption and transparency 484–5 cultural differences and 479–80, 482 developing effective 489 participant behaviors 478–82 Nehrt, Chad 727 Neiman-Marcus 372 Nell, Phillip C 298 Nelson, R 357 Nelson, Richard Alan 428 Nelson, Richard R 359, 666 Nemak 630 neo-mercantilism 167 Nestlé 18, 47–8, 153, 306, 703–4 Netherlands codetermination 448 flower industry 19, 650, 651 work councils 448 Neusoft 688 neutral 142 New York Stock Exchange (NYSE) 212, 530 newly-industrialized countries (NICs) 652 newsprint 127 Ng, Lilian 231 Nguyen, Ouyen T K 33, 99 Nicaragua, democracy 105 Nicouland, Brigitte 427, 567 Nielson, Sabina 461 Nieto, Maria 398 Nigeria Chinese investment in 687 oil industry 649 Nijssen, Edwin J 429 Nike 373, 395, 410–11 Nintendo 264, 409 Nippon Mitsubishi Oil 29 Nippon Steel 584 Nippon Sunhome Company 273 Nippondenso 80 Nissan 85, 526–7, 589, 592–3, 596–9, 624, 630, 644 Nitsch, Detlev 568 NKK 593 Nobeoka, K 601, 603 Nohria, Nitin 355–7, 357, 369, 396, 398, 725 Nokia 310, 538, 680, 688 Nolan, P 698 Nomani, Asra Q 190 non-governmental organizations (NGOs) corporate social responsibility and 701–2 definition of 115 political power and 116 non-triad countries see emerging economies Nonaka, I 603 Noranda 305 Norburn, David 268, 429 Nordas, H K 494 Nordström, K A 139, 161 Nortel Networks 247, 688 North America sales of largest firms 618–19, 620 triad power, as a see also Canada; Mexico; USA North American Free Trade Agreement (NAFTA) 5, 44, 179, 324, 325, 612, 615, 623, 630, 657, 718 Chapter 11 provisions 117 definition of 13, 621 economic blocs 78 environmental laws 626 free trade areas 113, 185, 606–8 intra-regional exports 9, 10 lumber industry rulings 109 members of 9, 710, 711 Mexico 625, 627–8, 630 trade barriers and 608 trade complaints 189 trade and investment frameworks 713–14 US-Canada trade and 610, 613 North Face 267 North Korea 107 Northern Rock 200, 212 Northwest Airlines 498, 610 Norway, organizational epigram 292 Norwich Union 663 Nova 305 NovaMin Technology 633 Novartis 21, 680–1 Novotel 563–4 NTT 260, 573 Obama, Barack 606 Occidental Petroleum 678 O’Connell, D 494 O’Connor, Simon 666 Oddou, G 603 O’Donnell, Sharon 461 O’Driscoll, Anthony 231 OECD see Organization for Economic Cooperation and Development Oetzel, Jennifer 130 Oh, Chang Hoon 63, 99, 130, 190, 234, 238, 239, 330, 398, 533, 568, 667, 668 Oh, Kyeungrae 131 Ohlin, Bertil 652, 696 Ohmae, Kenichi 359, 727 3/6/12 11:17 AM Find more at http://www.downloadslide.com INDEX oil industry 530–1 in Argentina 530–1 mergers and acquisitions 29–30, 530–1 in Russia 491–2 state-owned enterprises 30 Ojah, Kalu 398 Okazaki, Shintaro 429, 567 Old Mutual 530 Oliff, Michael D 397 Olivetti 44 Olympus 379 Oman 644 Omnitel 245 Omura, Glenn S 397 One2One 288, 539 OneGmbH 539 Oneworld alliance 612 Onex Corporation 608, 616 Ontario Beer Can Tax 127–8 OPEC see Organization of Petroleum Exporting Countries open innovation 421 Openheimer, Nicky 479 Oracle 356, 663, 688, 701 Orange (France Telecom) 649 Orange (UK) 244, 538, 539 Orascom (Egypt) 649 Ordanini, Andrea 429 Orejas, Diana 635 Organization for Economic Cooperation and Development 116, 572 definition of 15 multilateral agreement on investment (MAI) 619 tax havens and 508, 509 Organization of Petroleum Exporting Countries 176, 322 members of 176, 711 organization structures choosing 293 export department 276 global area structure 280–1, 286, 287 global functional structure 282, 286, 287 global product structure 279–80, 287 imperialist 150, 151 independent/federalist 150, 151 international division 276, 278–9, 287, 288 marketing department 275–6 matrix structure 282–4, 287, 288 mixed structure 285, 287 overseas subsidiaries 276 transnational network 285–6 organization styles 147–8 organization types ethnocentric firms 151, 247, 248 geocentric firms 151, 248 Z02_RUGM0979_06_SE_IND.indd 757 polycentric firms 151, 247, 248 regiocentric firms 247, 248 organizational epigrams 291, 292 organizational processes communicating 290–1 controlling 291–3 decision making 289–90 organized labor see labor relations/unions organizing strategy 272–99 Orkut 332 Orlik, Tim 696 Orser, Barbara 359 Ortega, Bob 634 Osegowitsch, T 234, 235, 237, 238 Oserian Development Company 649–51, 656 Oshri, Ilan 494 Ostrovsky, A 494 Ostry, Sylvia 130, 131, 191, 330 Ouchi, William G 297, 601 outdoor equipment industry 266–7 outsourcing 53 to China 188–9 to India 456–7, 661–3 see also global sourcing overseas operations 525–6 Oviatt, B M 357 Oxelheim, Lars 231, 533 Oxfam 116, 508 Oxford Instruments Co Ltd 670–1, 681, 685, 691 Oyon, Daniel 533 P&O Princess Cruises 439 Pabst Brewing 679 Pace Foods 628 Packard Bell 639 Pak, Kelvin 269 Pak, Yong Suhk 667, 668 Palazzo, Guido 727 Paliwoda, Stanley 567 Palm 365 Palmeri, Christopher 396 Palmié, Maximilian 298 Palmisano, Sam 339 Pan, Yigang 296, 495, 699 Panasonic 95, 338, 659, 712 Pangarkar, Nitin 667 Papanastassiou, Marina 428, 568, 601 Paparoidamis, Nicholas 461 Papu, Ravi 429 Parboteeah, K Praveen 162 Park Chung Hee 658 Park, Hyeon J 298, 461 Park, P T 603 Park, Young-Ryeol 667, 668 Parkhe, Arvind 98, 270, 298 Parmalat 153–4 757 particularism 141 Patagonia 267 Patel, Pari 398 patient monitoring equipment industry 304 Paukku, Markus 271 Pauly, Peter H 231 Pavitt, Keith 398 Payne, Adrian 268, 429 Peace, R D 601 Pearce, Robert 428, 566, 568, 667 Pecotich, Anthony 32 Pedersen, Torben 298, 329, 397, 567 Pelkmans, Jacques 568 Pemex 624, 628 Pendleton, Andrew 460 Peng, M W 99, 239, 246, 270, 495, 667 Peninslar and Orient (P&O) Steam Navigation Company 439–40 Penrose, Edith 357, 359 Pentax 379 Pepsi Cola (PepsiCo) 76, 556, 624, 632 Perez Companc 649 Pérez-Nordtvedt, Liliana 635 performance measures costs 263 management performance 264 methods of measurement 263–4 MNE/host-country relations 264 new product growth 264 return on investment (ROI) 263–4, 475, 489 sales growth 263 Perlitz, M 494 Perlmutter, H V 151, 161 Pernod personal computers see computer industry Peru, soft drink industry 408 PEST (political, economic, social or sociocultural and technological) analysis 465–7, 488 Peteraf, M A 358 Peterson, Mark F 163 Peterson, Richard B 725 Peterson, Thane 634 Petrobas 649 Petroleos de Venezuela 649 Petroleos Mexicanos (Pemex) 624, 628 petroleum industry 628–9 Petronas 644 Pettigrew, Andrew M 162, 494 Peugeot 85, 256, 413, 679 Pfizer 134, 384, 413, 633, 680 Phan, P 357 pharmaceutical industry 20–1, 133–4, 152, 277–8, 335, 384, 633–4, 680–1 regional strategy 18 3/6/12 11:17 AM Find more at http://www.downloadslide.com 758 INDEX Pharmacia 133–4, 152 Phatak, Arvind 298 Phelan, Steven E 99 Philipp Holzmann 447 Philips Electronics NV 45, 95, 123, 284, 285, 338, 384, 393, 558, 630, 657 Philips, John 97 Phillips China 525 Phillips, Margaret E 460 Phillips Petroleum 29, 628 photo and printer industry 55, 177, 259, 316–17, 463–5 Piekkari, Rebecca 298 Piercy, Nigel F 427, 567 Piesse, Jenifer 231, 495, 667 Pinder, Jeanne B 725 Ping Li, Peter 698 Pinkse, Jonatan 727 Pirelli 44 Pisano, G 357 Pitelis, Christos 99 Pitt, Leyland F 428 Pitta, Julie 269 Pizza Hut 19 place strategy 415–17, 422 Plaza Accord 587 Podnar, Kiement 567 Poland 648 market-driven economy 106 research and development 356 retail industry 24 political ideology 106 political risk 462–96 agents of 470 assessment 471–6 combination strategies 486–8 definition of 467, 488 deregulation and 468, 489 effects of 470 integrative techniques 486 macro 469, 488–9 micro 469–70, 489 protective and defensive techniques 486 rating services 471–2 sources of 470, 471, 489 see also country risk analysis Political Risk Services (ICRG) 471 political systems 106–7 political union 113 Pollack, Andrew 190, 269, 327, 396, 494 Pollock, Timothy 725 polycentric firms 151, 247, 248 Porter, Eduardo 460 Porter, Michael E 19–21, 32, 62, 269, 270, 327, 330, 358, 396, 577, 594, 602, 656, 666 Z02_RUGM0979_06_SE_IND.indd 758 Porter’s “diamond” framework of national competitiveness 6, 19–21, 302–6, 323, 457, 662 Porter’s value chain analysis 255–7 portfolio investment 75 ports, problems with 492–3, 584 POSCO 658 positioning of goods, European Union 556 Power Corp 617 Powers, Thomas L 429 Prahalad, C.K 269, 270, 297, 330, 355, 359, 396, 460, 668 Pratt & Whitney 45 Preble, J E 269 Premier Auto Group (PAG) 547–8 Premji, Axim 662 Prescott, John E 191, 548, 566 Prestowitz, Clyde 668, 698 PricewaterhouseCoopers (PwC) corruption perceptions index (CPI) 484 opacity index 472 pricing of goods and services 413–15 antidumping (AD) laws 182, 189, 414, 560–1, 562 consumer tastes 414 currency fluctuations 414 dumping and 177, 182, 414 effective pricing 420 European Union and 556 factors affecting 422 government controls 413–14 market diversity 414 price escalation factors 415 quality of product and 414 tax laws and consumer debt 414 Pringle, David 97 printing press industry 304 privatization 108, 110 of oil industry 530 reasons for 126 Procter & Gamble (P&G) 273–4, 279, 286, 288, 293, 626, 679, 701 Procter, William 273 product managers 283 product modification 422 culturally driven 406–7 Demand-Flow Technology (DFT) 378 economics of 406 little or no 405 local laws and 407 moderate to high 405–9 product life cycle (PLC) and 407–9 production process best practices 364, 392 process mapping 364, 378, 380 “Six Sigma” process (zero defects) 17, 364–5, 380 training programs 364 work-out 364 production strategy 363–98 alliances and acquisitions 385–91 concurrent engineering 369–70 continuous improvement (kaizen) 376, 385 Demand-Flow Technology (DFT) 378 generation of goods and services 370–80 global production systems 383–4 global sourcing 370–3 innovation and 366–70 inventory control 378 just-in-time (JIT) inventory 378 localization of 124–5, 367–8 logistics 380–3 manufacturing of goods 373–8 modular integrated robotized system (MIRB) 369 product modification 405–9 product/service balance 379 product/services development 366–70 research and development (R&D) 366–70 service orientation and 378–80 speed-to-market 369–70 strategic management and 384–91 systems 376–8 technology and product design 384–5 time-to-market accelerators 369 production systems definition of 376 layout 377 location 376 production systems location 377 material handling 378 profits, localization of 124 Prokesch, Steven 396 promotion strategy 422 advertising 410–12 advertising – comparative 412 advertising media 412 definition of promotion 410 nature of the product and 410 personal selling 412–13 Protzman, Ferdinand 130, 396 proxemics 291 Prudential Insurance 421, 530, 640, 663 PSA 648 PSA Peugeot-Citroën 256, 260 psychic distance 139 Public Institutions Index 472 Puck, Jonas F 270 3/6/12 11:17 AM Find more at http://www.downloadslide.com INDEX Pudelko, Markus 603 Puffer, Sheila M 131, 667 Pun, Ngai 698 Punnett, Betty Jane 461 purchasing power parity (PPP) 208, 230 Purda, Lynnette D 232 Purolator 178 put option 230 Putin, Vladimir 104, 491 Puumalainen, Kaisu 268 Qi, Yaxuan 533 Qian, Gongming 162, 239 Qian, Z 239 Quelin, Berthe 130 Quer, Diego 698 Quester, Pascale G 429 Quinn, James Brian 398 Quintanilla, Carl 130 quotas 175, 180–1 effects on foreign exchange 210 RACE 111 Radebaugh, Lee H 231 Radio Mobil 288 Radosevic, Slavo 568 Ragozzino, Roberto 495, 533 Rahman, Aminur 131 Rahman, Manzur 635 railway industry 555–6 Raisch, S 357 Rajaratnam, Dan 532 Raju, Ramalinga 662 Ramadorai, S 662 Ramamurti, R 99, 495, 668 Ramsey, Jase 461 Ramstetter, Eric D 191 Ranbaxy 23 Randoy, Trond 231, 533 Rangan, Subramanian 533 Rangan U Srinivasa 495 Rasheed, Abdul A 635 Rässler, Susanne 231 Rau, P A 269 Raymond, Vernon 666 Red Flag 688 Redding, G 604, 668, 698 Reddy, Prasada 398 Reed, John 666 regiocentric firms 247, 248 regional managers 283 regional strategy automobile industry 84–92 multinational enterprises 17–19, 83–93 triads and 17–19 regionalization Rehder, Robert R 398 Z02_RUGM0979_06_SE_IND.indd 759 Reibstein, Larry 130, 396 Reich, Robert B 269 Reiche, B Sebastian 461 Reichel, A 269 Reitman, Valerie 532 religion see culture, religion and Remes, Jaana K 667, 698 Remmers, Lee 231 Renault 86, 256, 556, 589, 596–9 Renault-Nissan alliance 87, 152, 589, 592, 596–9 RenRen 332 repatriation 436–7 repatriation agreement 436 Repsol 530–1 Research on Advanced Communications in Europe 111 research consortia 111 research and development (R&D) 366–70, 558–9, 579, 680–1, 688 Research in Motion (RIM) 310, 311, 616, 617 resource managers 283 retail industry 24, 30–1, 83–4, 85, 416, 420, 565–6, 570, 589, 590–1 return on investment (ROI) 263–4, 475, 489 Reuer, Jeffrey J 231, 232, 495, 533 Reuters 663 Revzin, Philip 130 Reynaud, Emmanuelle 568 Reynolds, Nina L 429 RFT 526 Rhinesmith, Steven H 459 Rhodes, Mark 428 Rhoen, A 666 Rhone-Poulenc 277, 278 Ricardo, David 652 Ricart, Joan 270 Riccio, Edson Luiz 270 Richman, Louis S 396 Richter, Frank-Jürgen 602 Richter, N 237, 238 Ricklefs, Roger 634 Ricoh 259 Riding, Allan 359 Rienda, Laura 698 RIM 608 ringi (decision making) 289 risk analysis see country risk analysis; foreign exchange risk; political risk Rita, Paulo 568 Ritz Carlton 365 RJR Nabisco 679 Roath, Anthony S 191, 299 Robert, Michael B 268 Robertson, Christopher J 230 759 Robin, Donald P 191 Robock, Stefan H 269 robotics industry 304 Robson, Matthew J 461 Roche 21 Rockwell International 450 Roddick, Anita 716 Rodrigues, Carl 494 Rodrigues, Suzana B 697 Rodriguez, Jesús Alici 398 Rodriguez, Peter 231, 666, 697 Roehl, Tom 298 Rogers, Adam 427 Rolls-Royce 45, 677, 679 ROLM 525 Rondinelli, Dennis 398 Rongji, Zhu 675 Ronkainen, Ilkka, A 428 Roos, D 601 Roos, Johann 269 Rose, Elizabeth L 231, 603 Rosenbluth, F M 603 Rosenzweig, Philip M 299, 727 Rosneft 491, 648 Ross, Alice 531 Roth, Katharina 429 Roth, Kendall 162, 271, 299, 330, 428, 460, 461, 668 Roth, Lukas 533 Roth, Martin S 428 Rothaermel, Frank T 495 Rover 22, 23 Royal Bank of Scotland 227–8 Royal Caribbean 439 Royal Dutch/Shell Group 7, 29, 76, 418–19, 618, 716 Royer, Susanne 459, 460 Roza, Marja 359 Rubera, Gaia 429 Rubio, Luis 635 Rufin, Carlos 494, 495, 727 Rugman, Alan M 32, 33, 61, 62, 63, 70, 97, 98, 99, 130, 131, 189, 190, 191, 232, 233, 234, 235, 236–7, 238, 239, 271, 299, 305, 321, 326, 327, 328, 329, 330, 345, 357, 359, 394, 397, 398, 429, 533, 566, 567, 568, 601, 602, 603, 606, 608, 618, 635, 636, 666, 667, 668, 696–7, 699, 707, 725, 726, 727 Ruimin, Zhang 690 Runtagh, Hellene S 397 Rusetski, Alexander 428 Russia 648 EU membership? 122 foreign investment in 104–5, 106, 125, 259 joint ventures 259 3/6/12 11:17 AM Find more at http://www.downloadslide.com 760 INDEX Russia (continued) mixed economy 112 political risk in 491–2 privatization 110 relations with UK 104–5 relations with USA 105 Ruysseveldt, Joris Van 459 Ryder 370 Saab 86 Saarenketo, Sami 268 SAB Miller 325, 326 SAB (South African Breweries) 325 Sadorsky, Perry 726 Safarian, A E 63, 131, 305, 327, 635 St John, Caron H 269 Sakakibara, M 602 Sakarya, S 494 Sako, M 460, 602, 603 Sakura Bank 580 Salomon 267 Salter, Ammon 359 Salter, Stephen 162 Saltvedt, Thina M 231 Sam Coca-Cola Bottling 526 Sam Han, Kang 162 Sambamurthy, V 297 Sambharya, Rakesh B 297 Samiee, Saeed 429 Sammartino, A 234, 235, 237, 238 Sampler, Jeff 726 Sampson, Gary P 191 Samsung 310, 525–6, 630, 641, 654, 659 Samsung Electronics 644, 658, 659, 663 Samuelson, Paul 652 San Martin, Sonia 428 Sanderson, Stuart 666, 697 Sanger, David E 297, 725 SanLu 679–80 Sanmina-SCI 327, 393 Sanofi-Aventis 277–8 Santillan-Salgado, Roberto J 269 Santor, Eric 231 Santoro, M 238 Sanwa 580 Sapienza, H J 358 Sapp, Syephen 495 Sappi 651 Sapporo 582, 583 Sarala, Riika M 163 Sarathy, Sarathy 190 Sargent, John 636 Sarkar, M B 533 Sasol 651 Satyam 457, 662 Saudi Arabia 259, 644 Saunders, John 427 Sauvant, Karl 495, 668 Z02_RUGM0979_06_SE_IND.indd 760 Savers, Gabrielle 726 Sawyer, W Charles 191 Saxenian, Annalee 358 Scandinavia MNEs, decision making process 289 shop floor participation 448 works councils 448 Scandura, Terri A 461 scenario analysis 475 Schenzler, Christoph 532 Scherer, Andreas Gorg 727 Schermerhorn, John R Jr 482, 494 Schifrin, Matthew 427 Schlegelmilch, Bodo B 297, 397, 429 Schlender, Brenton R 327, 602 Schmenner, R 397 Schmid, Stefan 429 Schmitt, N 190 Schneider, S C 163 Scholl, Wolfgang 449, 460 Scholnick, Barry 191 Scholz, Christian 567 Schonberger, Richard J 377, 396 Schott, Jeffrey J 635 Schout, Adriaan J 566 Schramm-Klein, Bernhard 99 Schramm-Klein, Hanna 99 Schuchman, Lisa 532 Schuler, Randall S 459, 460, 461 Schulz, Heiner 667, 698 Schumpeter, J A 347, 358 Schweiger, David M 271 Scientific-Atlanta 627 Scotland, clothing industry 373 Scott, B 231 Scott, Edith E 698 Scottish & Newcastle plc 680 Scullion, Hugh 460 Seagram 679 Sears Roebuck 624 Sechin, Igor 491 secular totalitarianism 107 Seetoo, Dah-Hsian 298 Seetours (Germany) 439 Sega 318–19 Seiyu 589, 590–1 Seman, Michael 636 Sematech (USA) 111 semi-conductor industry 252–3, 335, 384, 630, 656 Sen, Amartya 131 Senbet, Lemma W 532 sensitivity analysis 475 Serapio, Manuel G., Jr 398 Sethi, Deepal 99 SetJam 355–6 SFR 245 Shaffer, Margaret A 461 Shah, Reshma H 567 Shanghai Automotive Industry Corporation (SAIC) 694 Shanghai Pudong Development Bank 693 Shantou Era Photo Materials 463, 464 Shapiro, Alan C 232 Shapiro, D L 163 Shapiro, Daniel M 635 Shari, Michael 396 Sharma, Piyush 429 Sharp 584 Sharpe, Diana 603 Shaver, J Myles 428 Shaxson, Nicholas 531 Shay, Jeffrey P 461 Shell Oil 420, 421, 521, 719 Shen, Jie 459 Shenkar, Oded 99, 163, 270, 461, 495, 533 Shi, Xinping 495 Shih, Stan 638 Shih, Tsui-Yii 359 shipbuilding industry 257 shipping industry 723–5 Shleifer, Andrei 533 shoe industry 20, 371 Shoham, Aviv 667 Short Brothers 611 Shrimsley, Robert 190 Shuen, A 357 Shum, Wai Cheong 232 Sibneft 491 Siddall, Peter 297 Sie, Ting 231 Siemens 45, 46, 310, 356, 447, 491, 525, 639, 657, 680, 683, 704 Sierra Designs 267 Sikand, Kiranjit 429 Simintiras, Antonis C 429 Simison, Robert L 297 Simmonds, Kenneth 269 Simmonds, Paul G 297 Simon, Bernard 297 Simon, D G 163 Sinai Engineering Corp 301 Singapore 657 medical tourism 664 Porter diamond model of competitiveness 304, 305 Singapore Investment Corporation (GIC) 512 Singh, Jagdip 429 Singh, Jitendra V 299, 668, 727 Single European Act (SEA) 119, 541 Single European Market (SEM) 541 Singtel 644 Sinkovics, Rudolf R 299, 726 Sinopec 8, 29 3/6/12 11:17 AM Find more at http://www.downloadslide.com INDEX Sivakumar, K 163 “Six Sigma” process 17, 364–5, 380 SK 658, 659 Skandia 529–30 Skilling, Jeff 249 Slangen, Arjen 98, 99 Slater, Robert W 268 Sleuwaegen, Leo 567 Slocum, John W., Jr 268 Slovakia 648 Sluyterman, Keetie E 427 small-and-medium-sized enterprises (SMEs) 17, 28, 340–52 born global firms 344 born regional 345, 346 challenges for internalization 349–52 definition of 17 definitions 341 comparison of various countries 341 dynamic capabilities 347–8 industry clusters 348 international activities 342–7 international business theory 344–7 international new ventures 344 internationalization process 344–7 limitations 349 investment capital – lack of 347–8 specialist expertise – lack of 348 location decision, human capital 356 market barriers, in Japan 352 market entry – modes of 352 market location – selection of 349–51 mental maps 350–1 research study of 158–9 scope of internationalization 345 Smeets, Roger 98 SMEs see small-and-medium-sized enterprises (SMEs) Smid, Peter 533 Smith, Adam 652, 665, 705 Smith, Craig S 130 Smith, Geri 634 Smith, P B 161, 163 SMS Electronics 342–3 Snell, Scott A 461 Snoj, Boris 428 Snyder, Francis G 567 Sobek, Durward K II 398 social networking sites 332–3 socialization process 134 Society for International Healthcare Accreditation (SOFIHA) 664 Soenen, Luc 231 Sofitel 564 soft drink industry 4–5, 375, 407, 408–9, 632 Softbank 244 software industry, India 656 Z02_RUGM0979_06_SE_IND.indd 761 Softwood Lumber Agreement (USA-Canada) 109 Sogo 592 Solberg, Carl Arthur 359, 429 Solectron 52–3, 74, 327, 394 Solnik, Bruno 533 Solocha, Andrew 636 Soloway, Julie A 636, 727 Sony 53, 60–1, 76, 123, 284, 338, 367, 393, 409, 526, 584, 585, 594, 654, 712 Sony-Ericsson 394 Soskin, Mark D 636 Sougata, R 533 South Africa FDI inwards/outwards 649 multinational enterprises (MNEs) in 651 South Korea 644, 657 automobile industry 87, 658–9 chaebols 641, 658–9 information gathering 250–1 international new ventures 346 Porter diamond model of competitiveness 304, 305 retail industry 31 Southern African Development Community (SADC) 711 Southwest Airlines 701 sovereign wealth funds 511–12 Spain, automobile industry 377 Spar, Debora L 131, 726 Sparrow, Paul R 453, 459, 460 special drawing rights (SDRs) 223–4 Spence, Martine 359 Spencer, Jennifer W 299 Spencer Stuart 458 Speyer, Bernhard 190 Spiegel 712 Spiess, Matthias 346 Spindle, William 396 Spreadshirt.com 346, 348, 421 Sprint 310, 538 Squibb 679 Srinvasan, Narasimham 429 SSA Global 663 Stahl, Benjamin 298 Stahl, Günter K 460 Stalk, G Jr 586, 602 Standard Chartered 663 Standard and Poor’s Ratings Group 471 Stanley Works 376 Star Alliance 612 Starbucks 59–60 Starobin, Paul 130 Stasavage, D 495 State Grid Stauffer Basic Chemicals 278 761 steel industry 22, 254, 644 Steen, John 130 Steenkamp, Jan-Benedict E M 429 Steensman, H Kevin 495 Stein, Peter 696 Steinhoff International 651 Steinmetz, Greg 130, 460 Stella Artois 325 Stephan, Andreas 461 Stern, Gabriella 327 Stevens, M J 603 Stevenson, Richard W 190, 494 Stevensson, Simon 231 Stewart, Alice C 495 Stewart, J Gordon 396 Stewart, Thomas A 396 Stiefel Laboratories 633 Stiglitz, J E 727 Stockstrom, C 603 Stonehill, Arthur 231, 533 Storey, David J 359 Story, Jonathan 699 Stoves 124 Strange, Roger 98, 231, 232, 298, 495, 667 Strange, Susan 232 strategic alliances acquisitions and 122–3, 385–91 definition of 18, 122 European Union and 554, 555–6 financial management and 526 international joint ventures (IJVs) 260–1 strategy implementation and 260 strategic business units (SBUs) 254 strategic clusters 309–11 strategic control and evaluation 262–4, 265, 524 see also performance measures strategic fit 235–6 strategic management definition of 26 economic integration and 122–5 international finance and 524–7 marketing strategy and 417–22 multinational enterprises and 46–9 organizing strategy and 287–93 performance measures 263–4 political risk and 485–8 process 46–9, 58 production strategy and 384–91 resource-based view 246 strategic fit and 706 strategic planning competitive advantage matrix and 50–2 definition of 247, 264 internal and external analyses 47 3/6/12 11:17 AM Find more at http://www.downloadslide.com 762 INDEX strategic planning (continued) mission statement 46–7 process 264–5 strategy formulation 250–8 buyers and 251 competitive intelligence 250 competitive scope 256 cost strategy 256 definition of 250 differentiation strategy 256 external environmental assessment 250–3 focus strategy 256 goal setting 257–8 information assessment 251–3 information gathering 250–1 internal environmental assessment 254–7 new entrants – threat of 252 personnel competencies 254–5 physical resources 254–5 rivalry 252–3 substitute goods and services 252 suppliers and 251 value chain analysis 255–7 strategy implementation 258–62 definition of 258, 265 financing 262 functional strategies 261–2 location 258–60 manufacturing 262 marketing 261–2 ownership 260–1 partnerships 260 Struck, Doug 328 Stulz, Rene M 231, 532 Subramanian, Annapoornima 666 Sugiura, Hideo 130 Suh-kyung Yoon 396 Sukpanich, N 237, 238, 668 Sull, Donald N 699 Sullivan, Daniel 239, 299 Sullivan, Jeremiah J 725 Sullivan, Michael J 603 Sullivan-Taylor, B 329, 696 Sully de Luque, Mary 162 Sumitomo 580 Sumitomo Bank 580 Sumitomo Chemical 584 Sun Microsystems 688 Sun, Pei 699 Sundaram, Anant 533 Suntory 582, 583 Suzuki 24, 87, 694 SVA 688 Swamidass, Paul M 398 Swaminathan, Vanitha 567 Z02_RUGM0979_06_SE_IND.indd 762 Sweden codetermination 448 competitiveness 19 furniture industry 411–12 insurance industry 529–30 mobile phone industry 310 Porter diamond model of competitiveness 304 Sweetman, Mathew 667, 698 Swift, Jonathan S 459 Switzerland pharmaceutical industry 20–1 Porter diamond model of competitiveness 304, 306 tax haven 508–9 Swoboda, Berhard 99 Syed, Saira 696 Sykes, Richard 633 T-Mobile 288, 539 Taggart, James H 568 Tagliabue, John 269 Tahir, R 495 Tait, Nikki 297 Taiwan 657 computer industry 365, 638–9 Microprocessor Training Center 638 semi-conductor industry 656 Takahashi, Dean 725 Takahashi, Ikuo 602 Takeuchi, H 602, 603 “taking a position” 230 Tallman, S 63, 270, 271, 299 Tamburri, Rosanna 634 Tan, Chin Tiong 330 Tan, Hui 238, 697 Tang, Gordon Y N 232 Tanikawa, Miki 269 tariffs 186 ad valorem duty 177 as barriers to globalization 44, 88 compound duty 177 countervailing duty (CVD) laws 189, 321, 560–1, 562 customs union and 113 customs valuation 181 definition of 177 dumping of goods and 177, 182 effects on foreign exchange 210 export 177 import 177, 179 specific duty 177 transit 177 see also trade barriers Tata Consultancy Services (TCS) 457, 654, 659–60, 662 Tata Group 22–3, 548, 644, 659 Tata, Jamsetji Nusserwanji 22 Tata Motors 85, 87, 93 Tata Tea Limited 152, 659 Tatoglu, Ekrem 270 Tavares, Jorge 297 taxation consumer debt and 414 human resource management and 442 pricing of goods and services and 414 tax havens 504–5, 506, 507, 508–9 Taylor, Alex III 327, 396, 531 Taylor, Charles R 429, 567 Taylor, Marilyn 494 Taylor, Robert 699 Taylor, Sully 298, 461 TCL 688 Teague, Paul 566 technology development communication technology 15–16 Demand-Flow Technology (DFT) 378 production process programs 17 Teece, David J 270, 357 Teegen, Hildy J 269, 667, 697, 727 Telecom Italia 44, 539 Telecom S A 649 telecommunications industry 15–16, 110, 122–3, 244–5, 260, 288, 310, 538–9, 627, 648–9, 679, 680, 681, 688 Teleflower Auction (TFA) 651 Telefonica 648–9 Telekom 538 telemarketing 413 Telkom Kenya 539 Tellijohn, Andrew 427 Telluride International Energy 525 Telmex 627 Temasek 512 Templeman, John 427, 532 Tencent QQ 332 Tenev, Stoyan 696 Terazono, E 602 Terry, Edith 666 Tesco 54, 76, 84, 565, 571, 641, 651 Tetley Tea 22 Texaco 583 Texas Instruments (TI) 310, 638, 660, 663 Thailand automobile industry 87 medical tourism 665 Thakur, Manab 271 The Body Shop 714, 716–17 Theil, Rita 568 theocratic totalitarianism 107 Theodosiou, Marios 429 3/6/12 11:17 AM Find more at http://www.downloadslide.com INDEX Thies, M F 603 Thomas, D A 161 Thomas, David C 163, 461 Thomas Hedley & Sons 273 Thomas, Howard 725 Thomas, L G III 603 Thomson Reuters Corporation 76 Thorn, Kaye 460 Thornton, Emily 396 Thun, Eric 699 Tidd, Joe 358, 359 Tierney, Christine 32 Tihanyi, Laszlo 231 Tilley, Fiona 359 time, cultural attitudes towards 142 Time magazine 254 TNT 178 Todd, Patricia R 359 Tomas, M 270, 495 Tomassen, Sverre 99 Tomlinson, Richard 32, 97 Tong, Tony W 232 Top Group 688 Torbiorn, Ingemar 459 Toshiba 584, 592, 630, 638 Total 8, 29 Total Oil Nigeria 649 totalitarianism 107 Townsend, Janell D 429 toy market industry 96–7 Toy, Stewart 396 Toyne, Brian 32, 397 Toyota 7, 40, 85, 87, 89–91, 124, 260, 376, 378, 384, 385, 527, 578, 579, 580, 581, 584, 594, 618, 626, 644, 654, 680, 694 Toyota-PSA 648 Toys “R” Us 96–7, 570, 712 TPG 385 Trachtenberg, Jeffrey A 427 trade barriers 175–80, 186 agricultural policy 182 antidumping (AD) laws 182, 189, 321, 323, 560–1, 562 “buy national” restrictions 181 cartels and 176 countervailing duty (CVD) laws 189, 321, 323, 560–1, 562 customs valuation 181 embargo 175 environmental regulations and 127–8 exchange controls 176 financial limits 176 foreign investment controls 176 non-tariff 176, 180–3, 186 price fixing 176 price-based 175 quantity limits 175 Z02_RUGM0979_06_SE_IND.indd 763 quotas 175, 180–1 reasons for 175 technical barriers 181 see also tariffs trade, international 164–98 adjustment assistance 179 complaints 189 countertrade 183, 186 creation 112–13 definition of 8, 166 diversion 113 European Union free trade 541 foreign trade zones 383 free trade zones 184–5, 186 investment frameworks/agreements 713–14 paradigms of economics – out of date 117 port problems 492–3 regulation 15, 28 in services 183–4, 186 technical barriers 181 trade flows 192 see also tariffs; trade barriers; trade theory, international trade theory, international 167–72, 186 absolute advantage theory 167–8, 652 comparative advantage theory 168–70, 652 factor endowment theory 170 factor endowment theory (HOS model) 652–3, 696 Flying Geese model 653–5 Hecksher-Ohlin theory 170, 652–3 Leontief paradox 170 mercantilism 167 neo mercantilism 167 product life cycle and 170–2 training and development cultural assimilators 451, 452 managerial 437–8 most popular programs 438 standardized training programs 438 tailor-made training programs 438 Tran, Yen 299 transaction cost economics (TCE) 345 transnationals network 285–6 top 50 from developing economies 644, 645–7 transparency corruption and 484–5 definition 485 Transparency International (TI) 484 Trautmann, Thomas 131 Trautnitz, Georg 98, 532 Trebilcock, Michael J 131, 567 763 Treece, James B 532, 725 Trejos, Sandra R 190 Trevino, Len J 634, 667, 668 Trevor-Roberts, E 162 triad economies 8, 13–14, 71–99 definition of 13, 74 economic profile 540 market access to 657–60 mergers and acquisitions 92–3 non-triad economies and 640–1 regional strategies 17–19 trade with China 165–6 Triandis, Harry C 163, 460 TRIMS see Agreement on Trade-Related Investment Measures TRIPS see Agreement on Trade-Related Aspects of Intellectual Property Rights Trompenaars, Fons 141–3, 146, 155, 161, 162, 494 TRW Inc 374 Tsai, Terence 668 Tsang, Eric W K 99, 668 Tschirky, H 603 Tse, David K 461, 697 Tsing Tao 325, 326 Tsinghua Solar 681 Tsingtao 680 Tsui-Auch, Lai Si 602 Tulder, R van 238, 727 Tung, Rosalie 163, 459, 461, 698 Tuppura, Anni 268 Turkey, EU membership negotiations 13, 542–3 Turner, John N 328 Tüselmann, Heinz 461 TV Globo 426–7 twin factories 78 Twitter 332 UBS 512 Ucbasaran, Deniz 359 Ueltschy, Linda C 568 UFSoft 688 Uhlenbruck, Klaus 666, 667, 697 UK automobile industry 377 British Monopolies and Mergers Commission cruise ship industry 439 Export Credits Guarantee Department (ECGD) 521 geographic business concentrations 348 Porter diamond model of competitiveness 304, 305 privatization 110 retail industry 31 3/6/12 11:17 AM Find more at http://www.downloadslide.com 764 INDEX UK (continued) telecommunications industry 244–5 work councils 448 Ulgado, Francis M 636 Ultimate Products 343 UNCED Kyoto Summit (1997) 115, 116 Rio Summit (1992) 115 Underwood, Laurie 698 Underwriters Laboratories Inc 438 Ungson, G R 495 Unilever 46, 47, 284 Union Carbide 437 Union Carbide Agrochemical Products 278 United Airlines 498, 499, 523 United Nations and tax havens 508 United States-Canada Free Trade Agreement 78, 189, 307, 325, 621, 713 universalism 141 Upjohn 133–4, 152, 413 UPS 178, 555, 693 US Soybeans 312 USA anti-dumping and countervailing duty laws 174 anti-trust policy 172, 173 automobile industry 85–92, 308 balance of current account (2006) – overview 183–4 balance of payments 196–8 clothing industry 373 communication 290–1 competition (double diamond model) 307–11 competitiveness 320–2 computer industry 319 computer software industry 296 discrimination against investors on grounds of national security 512 economic data 609 economic profile 540 exports and imports fast-food industry 19 foreign direct investment by USA 10–12, 312 and Canada 610 in Canada and Mexico 312 from Japan 321 in USA 10–12, 312 USA diamond, linkage to 311–14 foreign exchange markets 202, 203–7 Foreign Sales Corporation Act 179 free trade with Canada 80, 109, 189, 306, 307–11, 321 geographic business concentrations 348 inward FDI 321 Z02_RUGM0979_06_SE_IND.indd 764 lobbyists 321 maquiladora industry 78, 185 multinational enterprises (MNEs) 64 control 291–3 decison-making process 289 and NAFTA 606–8, 613, 623 negotiation behaviors 483 organizational epigram 292 outsourcing and job losses 188, 456 overseas operations 525 patient monitoring equipment industry 304 personnel evaluation 292 Porter diamond model of competitiveness 304, 305 research consortia 111 retail industry 30–1, 76, 83–4, 85, 290, 416, 420 shop floor participation 448 Small Business Administration 341 SMEs 341, 342 definition 341 subprime mortgage market 200, 212 telecommunications industry 244, 245 trade adjustment assistance 179 trade with Canada and Mexico 312–14, 606–8, 613, 615 trade data 607 trade policy 179 Trading-with-the-Enemy Act 179 triad power, as a 13 Wall Street crash (2001) 212 see also North American Free Trade Agreement USAir 498 Ushijima, T 602 Vaara, Eero 163 Vachani, Sushil 726, 727 Vahlne, Jan-Erik 63, 139, 161, 330, 344–5, 357, 428 Van den Bosch, Frans A J 359 Vandermerwe, Sandra 398 Vanhaverbeke, Wim 359 Vanuatu 509 Vapola, Terhi Johanna 271 Veale, Roberta 429 Veiga, J E 601 Venaik, Sunil 163, 329, 330 Venezuela, soft drinks industry 408 VenFin 649 Verbeke, Alain 33, 63, 99, 131, 163, 191, 233, 234, 235, 238, 239, 271, 299, 327, 328, 329, 330, 345, 357, 398, 429, 533, 566, 567, 568, 636, 726, 727 Verizon Wireless 244, 245, 261 Vermeulen, Freek 270 Vernon, Guy 459 Vernon, Raymond 170–1 Versace 44 vertical integration 254–5 Very, P 601 Vesey, Joseph T 396 Vietnam 710 Vikkula, Kaisa 533 Virgin Atlantic 499 Virgin Media 421 virtual integration 255 Vishny, Robert 533 Viswanathan, Nanda K 427 Vivendi Universal 93 Vivitar 316 Vkontakte 332 Vodafone 76, 244–5, 253, 256, 261, 264, 421, 539, 546, 649 Vodafone Airtouch (VA) 244 Voice Stream 288 Voigt, K 161 Volberda, Henk W 359 Volkswagen (VW) 8, 23, 85, 86, 87, 256, 319, 373, 374, 400–1, 404, 407, 409, 413, 415, 417, 446, 447, 599, 624, 630, 648, 679, 694 Voll, Johannes C 99 Vologda Textile Enterprise 110 Volvo 86, 377, 525, 547, 548 Von Glinow, Mary Ann 131, 163, 461, 494 Voss, Hinrich 697 Wacker-Chemie 447 Wade, Uwe 231 Wal-Mart 7, 30–1, 76, 83–4, 85, 173, 290, 372, 416, 420, 565, 570, 589, 590–1, 624, 644, 674, 678 Wald, John K 533 Waldkirch, Andreas 636, 726 Walker, Andrew 32 Walker, Lucy 190 Walker, Marcus 98 Walker, Michael 635 Wallace, Wanda 533 Walsh, J P 161 Walsh, Kathleen 697 Walt Disney Company 37–8, 41, 43, 45, 49, 318 Walter, Jorge 269 Walters, Peter G 429 Walton, Sam 30 Wan, Wiliam P 299, 602 Wanadoo 539 Wang, Anita Qingli 696 Wang, Denis Y L 495 Wang, J L 696 Wang, J T 639 Wang, Ning 697 Ward, Allen C 398 Warner, Fara 532 3/6/12 11:17 AM Find more at http://www.downloadslide.com INDEX Wartzman, Rick 634 Waverman, Leonard 329, 330 WD-40 Co 376 Webb, Molly 666 Weber, Max 135, 145, 147, 161 Wederspahn, G 161 Weighted Country Risk Assessment Model 472–4, 489 Weinberg, Neil 531 Weinstein, Bernard L 636 Weintraub, Sydney 131, 636 Welch, D 358 Welch, David 396 Welch, Denice E 461 Welch, Jack 364–5 Welch, L 358 Weller, Christian E 460 Wells, Louis T 171 Werk für Fernsehelektronik 525–6 Werner, Steve 397 Wernerfelt, B 357 West, Joel 163, 359 Westheasd, Paul 359 Westinghouse 301 Westney, Eleanor D 299, 602 Wheatley, Jonathan 635 Whirlpool 123–4, 689 White, Erin 427 white goods, China 688, 689–90 White, Gregory L 460 White, Joseph B 532 Whitley, R D 162, 602, 603 Whitney Gibson, Jane 297 Wickens, Barbara 634 Wickramasekera, Rumintha 359 Wilkinson, Barry 697 Willcocks, Leslie P 494 Willey, Keith 296 Williamson, Oliver E 70, 99, 357, 359 Williamson, Peter 602, 696, 699 Wilsdon, James 666, 698 Wilson, David C 329, 357 Wilson, Graham 567 Wilton Group 343 Wind, Yoram 397 Wines, Michael 130 Wipro Spectramind 663 Wipro Technologies 23, 457, 654, 662 Wisner, Priscilla S 636 Witt, M A 604 Wolf, Joachim 299 Wolf, Martin 62, 601 Womack, J P 601 Wong, Fanny 328, 634 Wood, Nancy 634 Woodard, Kim 696 Woolfson, Karen 97 work councils 448 Z02_RUGM0979_06_SE_IND.indd 765 working conditions 527 in Canada 615 workplace environment see cultural differences; culture World Bank 5, 224 country risk analysis online 471–2 Doing Business 471–2, 549 Multilateral Investment Guarantee Agency (MIGA) 472 World Business Environment Survey 484 World Competitiveness Report 657 World Economic Forum (WEF) 472, 484 World Flowers 651 World Trade Organization (WTO) Agreement on Trade-Related Investment Measures (TRIM) 696 anti-global mobilizers and 115, 715, 717–18, 719–20 antidumping laws 182, 189, 414 definition of 15 Doha Round 15, 709 Government Procurement Agreement 181 import quota prohibitions 181 Japan ports dispute 493 lumber industry rulings 109 membership for China 672–3 perceived roles and outcomes 717–18 trade dispute resolution 15, 508, 715 Woronoff, jon 396 Worthy, Ford S 396 Wray, Richard 566 Wright, Chris 665 Wright, Mike 232, 359, 667, 698 Wright, Richard W 727 Wu, Pei-Chuan 461 Wu, Wei-ping 359 Wu, Yuning 697 Wyk, Jay Van 668, 699 Wymbs, C 236, 238 Xerox 259, 385, 394, 679 Xiamen Fuda Photographic Materials 463, 464 Xiao, Geng 697 Xiaolian, Li 296 Xiaoping, Deng 671 Yamazaki, Yoshitaka 461 Yamin, Mo 32 Yan, Yanni 269 Yanadori, Yoshio 602 Yang, Deli 429 Yanjing 326, 680 Yao Lu 533 Yau, Jot 191 Yavas, Ugur 461 Yaziji, Michael 130, 727 765 Yeh, Kuang 727 Yeniyurt, Sengun 429 Yeung, Bernard 32, 99, 428, 533, 696 Yip, George S 33, 99, 238, 239, 271, 330, 398, 568, 727 Yiu, D 495 Yizheng, Shi 699 Yong Gao, Gerald 699 Yong Keun Yoo 162 Yoshikawa, Toru 602 Yoshimura, Noboru 297 Yost, Kevin 532 Young Peyton, H 601 Young, S 359 Young, Scott T 269 Young, Stephen 190, 358, 726 YPF (Yacimientos Petroliferos Fiscales) 530–1 Yu, Jisun 330 Yu, Xiaoyun 698 Yuan Ding, Kim 494–5 Yuan, Wenlong 63, 271, 330 Yukos 104, 491–2 Yung-Chih, Lien 495 Yusuf, Shahid 668, 699 Zabriskie, John 133, 134 Zaheer, Srilata 298, 299, 330 Zahra, Shaker A 299, 358, 360, 725, 727 Zambrano, Lorenzo 79 Zamech 301, 314 Zander, I 349, 358 Zander, Udo 63, 298 Zara 55–6 Zeira, Yoram 461 Zellmer-Bruhn, Mary 461 Zelner, Bennet A 495 Zeng, Ming 696, 699 Zhang, Chun 191 Zhang, Gaiyan 191 Zhang, Jinxuan 698 Zhao, Longkai 698 Zhao, Minyuan 696 Zhejiang Shiliang Brewery 680 Zheng, Ping 697 Zheng Zhao 699 Zhibin Gu, George 699 Zhonghua, W 604 Zhongxing Telecom 688 Zhou, Changhui 397 Zhou, Nan 461 Zhu, Mingxia 429 Zhu Rongji 463, 464, 476 Zignago, Soledad 190, 397 Zucchella, Antonella 359 Zuckerberg, Mark 332 Zutter, Chad J 231 Zwager Hans and Peter 650 3/6/12 11:17 AM ... 20 00 20 01 20 02 2003 20 04 20 05 20 06 20 07 20 08 20 09 118,616.8 118,347 .2 126 ,614.9 131,474.8 163,083.5 183,543.7 1 92, 231.6 22 9,180 .2 243,111.6 24 9,714.3 2, 571.1 2, 066.4 2, 026 .6 2, 366.3 2, 143.5 2, 698.0... 4, 425 .2 4,908.4 3,491.0 4,635.5 1 32, 4 72. 0 1 52, 601.0 166,473.0 187,953.0 21 4,931.0 23 1,836.0 20 5,134.0 25 0,6 42. 0 23 9,170.0 25 9,7 92. 0 39,3 52. 0 39,3 52. 0 56,303.0 56,851.0 63,384.0 73,687.0 82, 965.0... 82, 965.0 91,046.0 89,610.0 97,897.0 7,4 62 7,336 7, 829 9, 022 7,5 92 3,595 5,310 7,688 9,444 11,361 94.7 104.8 115 .2 165.6 23 8.5 27 6 .2 199.1 26 5 .2 268 .2 256.1 Note: Data are in millions of US $