You are here

International Business
Share

International Business

Second Edition


December 2007 | 616 pages | SAGE Publications, Inc
Written by two leading international business scholars, the Second Edition of International Business takes a truly global perspective that goes beyond the United States, presents the latest concepts, tools and events and adopts integrated and problem-solving approaches for all chapters.

The book highlights the role of culture, politics and legal issues in international business and illustrates how they influence institutions, structures and processes that permeate all functions of business. This is the only international business textbook that offers dedicated discussion of small and mid-size international firms (where many students are likely to be employed) in addition to large multinational enterprises. It is also the only text to offer chapters on corruption, e-commerce, and international entrepreneurship.

The book offers a highly integrated and action-focused approach to the field that helps the reader make explicit connections across concepts and functions, develops the skill to address various IB issues and problems, and most importantly, broadens understanding of the global business environment and its repercussions for executives. In addition to superior internal integration of the various issues discussed in the book (for example this may be the only IB text where the chapter on finance and accounting has specific references to culture and how it affects those functions), the book provides easy to understand links to functional business areas, thus enabling better integration within the BA or MBA business curriculum.

This book is suitable for both undergraduate and graduate business students taking such courses as international business, international Management, Global Business, Global Business Strategy, Multinational Management, Foreign Direct Investment.

 
CHAPTER 1 - International Business in an Age of Globalization
OPENING CASE The Coca-Cola Company

 
An Age of Globalization

 
What Does Globalization Mean for You?

 
The Face of Globalization

 
Who Benefits from Globalization?

 
Globalization and the Monopoly Power of Large Corporations

 
Globalization and the Environment

 
Globalization: The Social Balance

 
Globalization and International Business

 
What is International Business?

 
International Versus Domestic Business

 
Why Do Firms Expand Internationally?

 
The Structure of This Book

 
 
PART ONE Concepts and Theories in International Business
 
CHAPTER 2 - International Trade Theory and Application
OPENING CASE The Banana War

 
International Trade Theories

 
The Mercantilist Doctrine

 
Absolute Advantage Theory

 
Comparative Advantage Theory

 
Heckscher-Ohlin Theorem

 
The Leontief Paradox

 
Human Skills and Technology-Based Views

 
The Product Life-Cycle Model

 
Linder’s Income-Preference Similarity Theory

 
The New Trade Theory

 
INDUSTRY BOX The Global Automotive Industry

 
Theory Assessment

 
International Trade Patterns

 
International Trade Volume and Growth

 
Service Trade

 
Trade Measurement

 
Major Exporters and Importers

 
U.S. Trade Partners

 
Trade Balance

 
Opposition to Free Trade

 
The Sovereignty Argument

 
The Lowest-Common-Denominator Argument

 
Trade Reciprocity

 
Types of Trade Barriers

 
Tariff Barriers

 
Tariffs

 
Quotas

 
COUNTRY BOX The United States and Steel Imports

 
Export Controls

 
Dumping and Anti-Dumping

 
Non-Tariff Barriers

 
Administrative Barriers

 
Production Subsidies

 
Emergency Import Protection

 
Foreign Sales Corporations

 
Embargoes and Boycotts

 
Technical Standards

 
Corruption

 
Barriers to Service Trade

 
 
CHAPTER 3 - Foreign Direct Investment Theory and Application
OPENING CASE “The McDonald’s of Thai Food”

 
Definition and Types of Foreign Direct Investment

 
FDI Versus Foreign Portfolio Investment

 
Types of FDI

 
Entry Mode

 
The Strategic Logic Behind FDI

 
How MNEs Benefit from Foreign Direct Investment

 
Enhancing Efficiency from Location Advantages

 
Improving Performance from Structural Discrepancies

 
Increasing Return from Ownership Advantages

 
Ensuring Growth from Organizational Learning

 
The Impact of FDI on the Host (Recipient) Country

 
Employment

 
FDI Impact on Domestic Enterprises

 
Current Theories on FDI

 
Product Life-Cycle Theory

 
Monopolistic Advantage Theory

 
Internalization Theory

 
The Eclectic Paradigm

 
New Perspectives on FDI

 
The Dynamic Capability Perspective

 
The Evolutionary Perspective

 
INDUSTRY BOX MNEs and FDI in the Automotive Industry

 
The Integration-Responsiveness Perspective

 
Patterns of FDI

 
FDI Outflows

 
FDI Inflows

 
Inflows into Developing Countries

 
The Transnationality of Host Economies

 
FDI via Mergers and Acquisitions (M&As)

 
Intra-Regional Patterns

 
The Investment Environment

 
COUNTRY BOX FDI in Israel

 
FDI Decision Criteria

 
The Lost Continent: FDI in Africa

 
 
CHAPTER 4 - The Multinational Enterprise
OPENING CASE Johnson & Johnson

 
What Is a Multinational Enterprise?

 
The Degree of Internationalization

 
History of the MNE

 
The World’s Largest MNEs

 
The Industry Composition of MNEs

 
The Growth of Service MNEs

 
The Image of the MNE

 
The MNE in the Public Eye

 
The Borderless Corporation: Myth or Reality?

 
The Competitive Advantage of the MNE

 
MNE’s Capabilities

 
The MNE from Emerging/Developing Economies (DMNE)

 
The Largest Developing Country MNEs

 
Obstacles Facing MNEs from Developing Economies

 
DMNE Advantage in Global Markets

 
Typical Features of DMNEs

 
COUNTRY BOX Asian MNEs in China

 
The Small and Medium-Size International Enterprise (SMIE)

 
What is an SMIE?

 
Obstacles to SMIE Internationalization

 
SMIE Advantages in Internationalization

 
SMIE Internationalization Features

 
INDUSTRY BOX Investment Banking and the SMIE

 
Born International

 
 
PART TWO Endowments and Environments of International Business
 
CHAPTER 5 - Country Competitiveness
OPENING CASE Singapore’s Competitive Advantage in the Hard Disk Drive Industry

 
Defining Country Competitiveness

 
Country Competitiveness and MNEs

 
Country-Level Determinants

 
Science, Education, and Innovation

 
Macroeconomic Soundness

 
Finance

 
Internationalization

 
Industry-Level Determinants

 
INDUSTRY BOX E-Commerce as an Element of Country Competitiveness

 
Firm-Level Determinants

 
Individual-Level Determinants

 
COUNTRY BOX Italy: Can Berlusconi Renew the Nation?

 
Government Role

 
 
CHAPTER 6 - The Cultural Environment
OPENING CASE The Goodyear-Sumitomo Alliance

 
What Is Culture?

 
Culture and International Business

 
Culture Does Not Explain Everything

 
Correlates of Culture

 
Language

 
Religion

 
National Culture Classifications

 
Hofstede’s Dimensions of Culture

 
COUNTRY BOX Korea—Power Distance in the Cockpit

 
Schwartz’s Classification

 
Trompenaars and Hampden-Turner’s Classification

 
Other Dimensions of Culture

 
National Culture Clustering

 
Corporate Culture

 
Classifications of Corporate Culture

 
Other Layers of Culture

 
Key Cultural Issues

 
Cultural Etiquette

 
Cultural Stereotypes

 
Cultural Distance

 
Convergence and Divergence

 
INDUSTRY BOX Cultural Industries

 
 
CHAPTER 7 - The Political and Legal Environment
OPENING CASE Burger King Israel

 
The Political Environment

 
The Institutional Context

 
The MNE-Government Relationship

 
The MNE Relationship with the Host Government

 
The MNE and its Home Government

 
Coalition Building and Influence Tactics

 
INDUSTRY BOX EU Retaliation Against U.S. Steel Tariffs

 
Political Risk

 
The Measurement of Political Risk

 
Regional-Level Politics

 
Micro-Region Political Processes

 
The Legal Environment

 
The Institutional Context

 
COUNTRY BOX Indonesia: Manufacturers Life in Indonesia

 
Legal Jurisdiction

 
Regional Jurisdiction

 
National Jurisdiction

 
Legal Issues of Interest to the MNE

 
Rule of Origin Laws

 
Competition Laws

 
Marketing and Distribution Laws

 
Product Liability Laws

 
Treaties

 
Patent Laws

 
 
PART THREE Global Markets and Institutions
 
CHAPTER 8 - International Economic Integration and Institutions
OPENING CASE M’s Response to European Market Integration

 
International Economic Integration

 
Global-Level Cooperation Among Nations

 
The World Trade Organization (WTO)

 
COUNTRY BOX China: China Joins the WTO

 
The International Monetary Fund (IMF)

 
The World Bank Group

 
Other International Economic Organizations

 
Regional-Level Cooperation Among Nations

 
Postwar Regional Integration

 
North America: The North American Free Trade Agreement (NAFTA)

 
Europe: The European Union (EU)

 
Asia Pacific

 
Latin America

 
Africa and the Middle East

 
Regionalization vs. Globalization

 
Commodity-Level Cooperation Among Nations

 
Organization of Petroleum Exporting Countries (OPEC)

 
The Multifiber Arrangement (MFA)

 
Strategic Responses of MNEs

 
INDUSTRY BOX Siemens Sharpens its Focus to Respond to the Single Market

 
 
CHAPTER 9 - The International Monetary System and Financial Markets
OPENING CASE The Mexican Crisis During and

 
History of the International Monetary System

 
The Gold Standard Period (–)

 
The Inter-War Years and World War II (–)

 
The Bretton Woods System (–)

 
The Post-Bretton Woods System (–Present)

 
Contemporary Exchange Rate Systems

 
Fixed-Rate System

 
Crawling Peg System

 
COUNTRY BOX Hong Kong: Can the Hong Kong Dollar Retain the Fixed Peg to the U.S. Dollar?

 
Target-Zone Arrangement

 
Managed Float System

 
Independent Float System

 
Advantages and Disadvantages of the Floating System

 
Determination of Foreign Exchange Rates

 
Purchasing Power Parity (PPP)

 
Interest Rate Parity (IRP)

 
Implications for MNEs: Foreign Exchange Forecasting

 
The Balance of Payments

 
Current Account

 
Capital Account

 
Official Reserves Account

 
International Foreign Exchange Market

 
Landscape of the International Foreign Exchange Market

 
Market Participants and Functions

 
Foreign Exchange Rate Quotations

 
Transaction Forms

 
Foreign Exchange Arbitrage

 
Black Market and Parallel Market

 
International Capital Markets

 
International Money Markets

 
International Bond Markets

 
INDUSTRY BOX Foreign Companies Borrow in Cheap U.S. Bond Market

 
International Stock Markets

 
International Loan Markets

 
The Asian Financial Crisis

 
The Financial Perspective

 
The Political/Institutional Perspective

 
The Managerial Perspective

 
 
PART FOUR International Business Strategies
 
CHAPTER 10 - International Entry Strategies
OPENING CASE DuPont’s Entry Strategies into China

 
International Location Selection (Where)

 
Locational Determinants

 
COUNTRY BOX Federal Express Selects Subic Bay

 
Decision Framework

 
Timing of Entry (When)

 
Early-Mover Advantages

 
Early-Mover Disadvantages

 
Decision Framework

 
Entry Mode Selection (How)

 
Entry Mode Choices

 
Trade-Related Entry Modes

 
Transfer-Related Entry Modes

 
FDI-Related Entry Modes

 
Decision Framework

 
Greenfield Investment, Acquisition, and Merger

 
The Evolutionary Entry Path

 
INDUSTRY BOX Unilever’s Acquisitions in Latin America

 
 
CHAPTER 11 - Organizing and Structuring Global Operations
OPENING CASE Aetna

 
International Strategy and Organization Design

 
Global Integration and Local Responsiveness

 
MNE Strategy and Design

 
Subsidiary Roles and Imperatives

 
MNE Organizational Structures

 
The National Subsidiary Structure

 
The International Division Structure

 
The Global Functional Structure

 
The Global Geographic Structure

 
COUNTRY BOX Regional Headquarters in Asia: The EU Versus Asia

 
The Global Product Structure

 
INDUSTRY BOX Global Product Design at the Ford Motor Company

 
The Global Matrix Structure

 
The Mixed Structure

 
Integrating Global Operations

 
Tools for Global Integration

 
The Transition Challenge

 
The Role of Corporate Headquarters

 
 
CHAPTER 12 - Building and Managing Global Strategic Alliances (GSAs)
OPENING CASE Motorola and Siemens AG in Germany

 
Defining Global Strategic Alliances

 
Types of GSAs

 
Rationales for Building GSAs

 
Challenges Facing GSAs

 
Building Global Strategic Alliances

 
Selecting a Local Partner

 
Negotiating Alliance Contracts

 
Structuring Global Strategic Alliances

 
COUNTRY BOX Spain: Fujitsu in Spain: Barriers to Alliance Management

 
Managing Global Strategic Alliances

 
Managing Inter-Partner Learning

 
Exercising Managerial Control

 
Heightening Cooperation

 
Thinking Ahead of Exit

 
INDUSTRY BOX Experience of Building GSAs in Corning and Emerson

 
 
CHAPTER 13 - Managing Global Research and Development (R&D)
OPENING CASE Managing Global R&D at Nestlé

 
Why Globalize R&D?

 
Benefits and Challenges of Global R&D

 
COUNTRY BOX India: R&D Centers of Global Companies in India

 
Designing and Structuring Global R&D

 
Type of Foreign R&D Units

 
Selecting R&D Location

 
INDUSTRY BOX Ford Locates its R&D Center in Aachen, Germany

 
Structuring Global R&D Activities

 
Managing and Operating Global R&D

 
Human Resource Management

 
Autonomy Setting

 
Global Planning

 
Communication Improvement

 
Technology Transfer Across Borders

 
 
PART FIVE Functional IB Areas
 
CHAPTER 14 - Financial Management for Global Operations
OPENING CASE Minimizing Exposure in RTZ

 
Why Learn Financial Management?

 
International Trade Finance

 
International Trade Payment

 
Export Financing

 
Financing for Global Business

 
Intercompany Financing

 
Equity Financing

 
Debt Financing

 
Local Currency Financing

 
Financing Decisions

 
Managing Foreign Exchange Risk and Exposure

 
Foreign Exchange Risk and Exposure

 
Transaction and Economic Exposures

 
Managing Transaction Exposure

 
Managing Economic (Operating) Exposure

 
INDUSTRY BOX Netting in Philips

 
Global Coordination of Exposure Management

 
COUNTRY BOX Latin America: Eight Hedging Techniques in Latin America

 
Working Capital Management

 
Cash Management

 
Foreign Receivable Management

 
 
CHAPTER 15 - International Accounting for Global Operations
OPENING CASE Compaq Won the Case

 
Country Differences in Accounting

 
Why Accounting Systems Differ Among Countries

 
INDUSTRY BOX Accounting Diversity in Volvo

 
National Accounting Zones

 
International Accounting Harmonization

 
International Accounting Standards

 
COUNTRY BOX Australia: Accounting in Australia

 
Foreign Currency Translation

 
Commonly Used Translation Methods

 
Harmonization of Translation Methods

 
International Accounting Information Systems

 
Transfer Pricing and Taxation Strategies

 
Why Transfer Pricing?

 
Transfer Pricing Techniques

 
Transfer Pricing Regulations and Penalties

 
Tax Havens, Treaties, and Strategies

 
Tax Havens

 
Tax Treaties

 
Other Tax Strategies for MNEs

 
 
CHAPTER 16 - Global Marketing and Supply Chain
OPENING CASE Domino’s Pizza

 
The International Marketing Challenge

 
Assessing Market Potential

 
Globalization and Localization in International Markets

 
Globalization Forces

 
Localization Forces

 
Product Adaptation

 
COUNTRY BOX The Kimchi Doctors

 
Country-of-Origin Effect

 
Branding

 
Channel Decisions

 
Promotion

 
Marketing Alliances

 
The Global Supply Chain

 
The Globalization of Supply Chains

 
Global Sourcing

 
Customizing the Supply Chain

 
Packaging

 
Transportation Modes

 
INDUSTRY BOX Global Logistics at Wal-Mart

 
Crossing National Borders

 
 
CHAPTER 17 - Global Human Resource Management
OPENING CASE BP Amoco

 
Strategic IHRM

 
Staffing the MNE

 
The Globalization of Boards of Directors

 
INDUSTRY BOX The Globalization of the Board of Directors in Different Industries

 
COUNTRY BOX The Globalization of Boards Across the Globe

 
Staffing the MNE Ranks

 
Country-Specific Issues

 
The Expatriate Workforce

 
Types and Distribution of Expatriates

 
Using Expatriates: Pros and Cons

 
Expatriate Failure

 
Expatriate Selection

 
Preparing for Foreign Assignment

 
Compensation

 
Culture and Compensation

 
Repatriation

 
HRM in International Affiliates

 
Human Resource Problems in Foreign Affiliates

 
Preparing for an Assignment in a Foreign Affiliate

 
 
PART SIX Emerging Issues in International Business
 
CHAPTER 18 - Global Internet and E-Commerce
OPENING CASE Otis Elevator

 
Internet and E-Commerce Diffusion

 
Comparative Internet Demographics

 
E-Commerce around the Globe

 
COUNTRY BOX Nepal: The Internet in Nepal

 
E-Readiness

 
Connectivity

 
Information Security

 
E-Business Climate

 
National E-Readiness

 
Cross-Border E-Commerce

 
The Impact of E-Commerce on International Business

 
Global E-Commerce Challenges

 
Standardization Forces

 
Localization Challenges

 
Taxation Issues

 
INDUSTRY BOX Taxing Digitized Products

 
 
CHAPTER 19 - Ethics and Corruption in the Global Marketplace
OPENING CASE Shell Group

 
Ethics and Corruption in International Business

 
Definition and Magnitude of Corruption

 
The Origins of Corruption

 
Drawbacks of Corruption

 
Corruption Rankings

 
Types of Corrupt Practices

 
Smuggling

 
Money Laundering

 
Piracy and Counterfeiting

 
INDUSTRY BOX Piracy in the Global Software Industry

 
Bribe Paying

 
The Foreign Corrupt Practices Act (FCPA)

 
The Globalization of the Fight Against Corruption

 
COUNTRY BOX China: Counterfeiting and Piracy in China

 
 
CHAPTER 20 International Entrepreneurship
OPENING CASE Japanese Entrepreneurs in Hawaii

 
Defining International Entrepreneurship

 
Comparative Entrepreneurship

 
Culture and Entrepreneurship

 
Funding New Ventures

 
Cross-Border Entrepreneurship

 
Internationalizing the Born Global Enterprise

 
INDUSTRY AND COUNTRY BOXES Israeli Start-Ups in the Global Market Place

 
Chapter Summary

 
 
APPENDIX The OECD Guidelines for Multinational Enterprises
 
Glossary
 
Organization Index
 
Name Index
 
Subject Index

"Offering an integrated, 'reader friendly', practical, and 'real-world' approach to the analysis and conduct of doing business in a global market.  International Business is an ideal classroom text book for college courses and a welcome, core addition to Business School and Academic Libarary Reference Collections."  —THE MIDWEST BOOK REVIEW

Able Greenspan
The Midwest Book Review

Very similar to our current text.

Mr Thomas Cottam
Newcastle Business School, Northumbria University
December 30, 2013

this book has provided good case studies and relevant real case example. Have a few in our library

Ms Yus aznita Ustadi
Faculty of Admin & Policy Studies, Mara University of Technology
December 14, 2011

Very detailed information - good for supplementary reading

Dr Anja Kirsch
Lehrstuhl für Personalpolitik (Dept of Human Resource Management and Labor Politics), Freie Universität Berlin
September 20, 2011

Very well structured book, which helps us to follow our intended introduction to international business from the macro to the micro level by covering all essential topics.

Ms Anna Strutzenberger
Department of International Management, Johannes Kepler University of Linz
October 12, 2010

Oded Shenkar

Oded Shenkar is Ford Motor Company Chair in Global Business Management and Professor of Management and Human Resources at the Fisher College of Business, the Ohio State University; and has taught in China, Japan, Israel and the UK. He holds B.A. and MSc.soc degrees in East Asian Studies and Sociology from the Hebrew University of Jerusalem, and M.Phil and PhD degrees from Columbia University. In addition to strategic alliances, his main areas of interest are cross-border investment and the impact of culture on international business. He has published numerous articles in the Academy of Management Review, the Academy of Management Journal,... More About Author

Yadong Luo

Purchasing options

Please select a format:

ISBN: 9781412949064
$115.00