International Business




New product available - 9781292016689
472 pages
09 SEP 2009


International Businessprovides a clear and concise introduction to the environment and functions of international business. It explains in straightforward language the economic and financial underpinnings of international trade, the more subtle organisational and cultural issues, and the managerial challenges which face organisations of all types and sizes. In particular, it provides up-to-the-minute coverage of recent global events ┬ the economic downturn and uncertainty in financial markets.It is written for students on undergraduate and postgraduate degree programmes, or undertaking professional qualifications. It is especially suitable for non-specialist students of business.


Preface: using this book xiiiAcknowledgements xivAbbreviations xvii1 Introduction to international business Introduction Patterns and trends in international business Globalisation The multinational enterprise (MNE) How important are the multinationals? Useful websites Useful key texts Other texts and sources Case studies1.1 Dyson relocates production to South-East Asia1.2 Happy birthday, globalisation1.3 How to play the home advantage1.4 Does a global approach benefit the company?1.5 Competing in a globalised economyBoxes1.1 Relative Unit Labour Costs (RULC)1.2 Definitions of Globalisation 1.3 Globalisation Features2 Internationalisation process Introduction Export-based methods for internationalisation Non-equity-based methods for internationalisation Equity-based methods for internationalisation Why invest abroad? Theoretical explanations Useful websites Useful key texts Other texts and sources Case studies2.1 Helping inward fdi(a) South Africa: Skills Support Programme(b) Egypt: Suppliers Development Programme2.2 Patents and the EU pharmaceuticals market2.3 Legal Process Outsourcing in India2.4 Market entry into China2.5 The Japanese keiretsu2.6 China versus South Korea2.7 Toyota wins support for its US operations 2.8 Daewoo moves into international agriculture2.9 Internationalisation may not always deliver! Boxes 2.1 ┬ Flat tax┬ regimes2.2 Government policies, exporting and fdi3 International business: theory and practice Introduction Gains from trade Sources of comparative and competitive advantageTrade and the world economy Barriers to trade Protectionist policies Regional trading arrangements Government policies and international business International institutions and world tradeThe European Union (EU)Useful websites Useful key texts Other texts and sources Case studies3.1Impacts of freer trade3.2 Intra-industry trade: Honda3.3 High cost of anti-dumping tariffs3.4 Harbours of resentment3.5 WTO to rule on US import dutiesBoxes3.1 Comparative advantage and opportunity cost3.2 Gains from trade3.3 Impacts of a tariff3.4 Impacts of a subsidy3.5 Customs Union: trade creation and trade diversion3.6 Impacts of EU policies on farms and agri-businesses3.7 IMF stabilisation programmes3.8 World Bank structural adjustment and stabilisation4 The political, legal, economic and technological environmentIntroduction Political environmentPolitical riskThe international legal environmentIntellectual property rightsEconomic systemsEconomic variables and the business environmentTechnological environmentTechnology transferUseful websites Useful key texts Other texts and sources Case studies4.1 Chinese government and EU milk products4.2 BMW after Rover4.3 Tougher scrutiny of foreign takeovers in US4.4 Intellectual Property Rights (IPR) in India: Novartis4.5 Extending copyright4.5 Intellectual property rights in China (IPR): Durex4.6 Market influences on Wellcome share price4.7 China┬ s capital markets begin to open4.8 Finance chiefs take pessimistic viewBoxes4.1 EU directives and state aid4.2 EU directives and data protection4.3 Strategic patenting4.4 Elasticity of demand4.5 Creating or destroying jobs5 International sociocultural environment 171Introduction National cultural characteristics Cultural impacts on international business National, organisational and occupational cultures Strategies for developing intercultural competence Useful websites Useful key texts Other texts and sources Case studies5.1 National culture and Japanese competitiveness 5.2 East meets West5.3 Culture of communication breaks through traditional barriers5.4 Corporate culture and Japanese competitiveness5.5 Management gurus might rethink the Dutch approach5.6 Challenges to cross-cultural team management5.7 Corporate ┬ personality┬ has a big impact on business success Boxes5.1 A clash of cultures5.2 National and organisational cultural dimensions6 International ethical and ecological environment Introduction Business ethics Ethics and the corporate culture Different ethical positions International business ethics International efforts to improve business ethics Ecological/environmental issues Global warming, ┬ carbon footprint┬ and tradable permitsUseful websites Useful key texts Other texts and sources Case studies6.1 The Body Shop6.2 Ethics and profits6.3 Bribery and international business6.4 US groups in ethical standards push6.5 Taxing and regulating smoking6.6 Organic farming6.7 Biofuels subsidies criticised 6.8 Prices no incentive for a clean upBoxes6.1 An ethical dilemma6.2 TI Corruption Perception Index6.3 Environmental impacts, taxes and regulations6.4 Stern Report and global warming6.5 The EU Emissions Trading Scheme7 International strategic issues Introduction Business strategy ┬ ideas and concepts Choice of strategy Corporate strategy in a global economy International business and the value chain International business strategies International business strategies and political perspectives Institutional strategies and international business Techniques for strategic analysis International operations management and logistical strategiesUseful websites Useful key texts Other texts and sources Case studies7.1 Strategies in practicea) Pharmaceutical sectorb) Brewing7.2 Strategic mistakes at Citibank7.3 MNE strategies in the US market7.4 US carmaking: political and economic imperatives7.5 Daimler-Benz AG and Chrysler7.6 Telematics and strategic choice7.7 Game theory in action: designing the US airwaves auction7.8 Strategic scenario analysis: AMD versus Intel7.9 Operations management system: Khan HandicraftsBoxes7.1 Mergers and acquisitions incentives7.2 Two-firm zero-sum game7.3 Lean production7.4 Inventory (stock) costs and control7.5 Economies of scope and the transport sector 8 International human resource management Introduction Human resource management function International human resource management (IHRM) International HRM approaches IHRM policies and practices Work practice in an international contextUseful websites Useful key texts Other texts and sources Case studies8.1 HRM and the external environment8.2 Islamic culture and IHRM8.3 Mindset of a Toyota manager revealed 8.4 Reward mechanisms in cross-cultural contexts8.5 IHRM and national culturesBoxes8.1 Greek national culture and decentralisation of the IHRM function 9 International marketing Introduction The principal activities of marketing International marketing Decision-making and international marketing Market selection Market-entry strategies International marketing mix International marketing planning Useful websites Useful key texts Other texts and sources Case studies9.1 Global rebranding of BP9.2 A better burger thanks to data crunching9.3 Variations in the international marketing mix9.4 India┬ s new affluent consumers9.5 Global brands9.6 Lessons for marketers who face a hard sell9.7 Love in a cold climate9.8 Indian stores in search of dramaBoxes9.1 Market segmentation9.2 Strategic pricing initiatives 9.3 Price elasticity of demand (PED) and revenue9.4 Price discrimination9.5 Promotion / advertising and demand9.6 UK internet trends in 2007/810 International finance: theory and practiceIntroduction The background to accounting Major financial accounting statements The profit and loss account (or ┬ Statement of Income┬ ) The balance sheet The cash-flow statement Published accounts Differences of approach in different countries Global accounting standards Corporate governance and international business International financial management Useful websites Useful key texts Other texts and sources 8Case studies10.1 SIV managers dig out their manuals10.2 Seniority brings a false sense of security10.3 Sum of the parts10.4 Spate of downgrades raises fears10.5 Risk needs a human touch10.6 ┬ To converge to a single set of standards is now crucial┬ Boxes10.1 Types of exchange rate10.2 Structured Investment Vehicle (SIV)10.3 Financial instruments and international trade10.4 Sarbanes-Oxley Act 2002Answers and responses Index