| Preface |
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xii | |
| About the Authors |
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xvi | |
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SECTION ONE THE INTERNATIONAL ENVIRONMENT |
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1 | (160) |
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An Introduction to International Management |
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2 | (23) |
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Chapter Learning Objectives |
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2 | (1) |
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Opening Case: Trained Manpower and Low Cost Attract Global Giants |
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2 | (1) |
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The International Management Setting |
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3 | (2) |
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What Is International Business? |
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5 | (1) |
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What Is International Management? |
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6 | (1) |
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International Companies and Entry Modes |
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7 | (2) |
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7 | (2) |
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Foreign Market Entry Modes |
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9 | (1) |
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Why Firms Seek to Engage in International Business |
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9 | (7) |
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9 | (2) |
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11 | (2) |
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13 | (3) |
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Strategic Objectives and Sources of Competitive Advantage |
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16 | (3) |
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17 | (1) |
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17 | (1) |
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Practical Insight 1.1: Dell Computer's Supply Chain Extends into China |
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18 | (1) |
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18 | (1) |
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The Environment of International Management |
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19 | (1) |
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20 | (2) |
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22 | (1) |
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22 | (1) |
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Minicase: Want to Be More Efficient, Spread Risk, and Learn and Innovate at the Same Time? Try Building a ``World Car'' |
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22 | (3) |
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The Global Macroeconomic Environment |
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25 | (30) |
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Chapter Learning Objectives |
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25 | (1) |
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Opening Case: High-tech Transnationals Take ``Stateless'' to the Next Level |
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25 | (2) |
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27 | (1) |
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The General Agreement on Tariffs and Trade and the World Trade Organization |
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28 | (2) |
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28 | (1) |
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The World Trade Organization |
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29 | (1) |
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Settlement of Disputes by the WTO |
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29 | (1) |
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Country-Level Economic Integration |
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30 | (2) |
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The Effects of Economic Integration |
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32 | (2) |
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Static Effects of Economic Integration |
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32 | (1) |
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Dynamic Effects of Economic Integration |
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33 | (1) |
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Supply-Side Economics Effects |
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33 | (1) |
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Major Regional Economic Agreement Initiatives |
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34 | (8) |
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The North American Free Trade Agreement |
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34 | (2) |
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Practical Insight 2.1: Is This NAFTA's Fault? |
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36 | (1) |
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Association of Southeast Asian Nations |
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37 | (1) |
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38 | (1) |
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39 | (3) |
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Will Regional Trade Blocs Promote Global Free Trade? |
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42 | (2) |
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44 | (6) |
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Specific Drivers of Globalization |
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44 | (3) |
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Practical Insight 2.2: Back-Room Operations in India |
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47 | (1) |
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The Two Sides of Globalization |
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47 | (3) |
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Country-Specific Economic Environments and Country Competitiveness |
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50 | (2) |
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52 | (1) |
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52 | (1) |
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53 | (1) |
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Minicase: A Global European Consumer? |
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53 | (2) |
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The Political and Legal Environments |
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55 | (53) |
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Chapter Learning Objectives |
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55 | (1) |
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Opening Case: A Love-Hate Relationship with Chavez |
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55 | (2) |
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Macro-Level Environments and Uncertainties |
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57 | (2) |
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Practical Insight 3.1: Changing Political Risk Forecast in Kenya in 2008 |
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59 | (1) |
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59 | (3) |
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The Players in the Political System |
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59 | (2) |
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The Concepts of Legitimacy and Consensus |
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61 | (1) |
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61 | (1) |
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The Global Political System |
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62 | (1) |
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The Interaction between International Politics and International Economics |
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62 | (5) |
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The Influence of the International Political System on the International Economic System |
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65 | (1) |
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Political Concerns and Economic Policy |
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66 | (1) |
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International Economic and Political Relations |
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67 | (1) |
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Political Risk and the International Firm |
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67 | (9) |
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The Nature of Political Risk |
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68 | (1) |
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69 | (1) |
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The Scope of Political Risk |
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70 | (1) |
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Assessing Host-Country Political Risk |
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71 | (2) |
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73 | (1) |
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73 | (1) |
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Religious Influences on Government |
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73 | (1) |
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Civil Strife in the Host Country |
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73 | (2) |
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75 | (1) |
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A Global Framework for Assessing Political Risk |
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76 | (1) |
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Managing International Political Risk |
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77 | (3) |
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77 | (2) |
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79 | (1) |
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Practical Insight 3.2: OPIC Hedges against Politically Imposed Risk to Multinational Corporations |
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80 | (1) |
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Understanding Laws in the International Context |
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80 | (2) |
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81 | (1) |
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The Requirements of an Effective Legal System |
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81 | (1) |
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82 | (1) |
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82 | (2) |
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The Nature of International Law |
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82 | (1) |
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The Role of the World Court and the WTO |
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83 | (1) |
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International Law and the Risk of Intellectual Property Theft |
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84 | (6) |
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International Law Creation |
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84 | (1) |
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84 | (1) |
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International Treaties and Conventions |
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85 | (1) |
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Examples of Commercial Treaties |
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85 | (5) |
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Practical Insight 3.3: Did Spark Spark a Copycat? |
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90 | (1) |
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Laws of Regional Trade Blocs |
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90 | (2) |
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92 | (3) |
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92 | (1) |
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93 | (2) |
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Practical Insight 3.4: Profit and the Prophet: Indonesian Bank Offers No-Interest Services |
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95 | (1) |
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Host-Country-Specific Laws |
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95 | (1) |
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The Foreign Corrupt Practices Act and Antibribery Provisions |
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96 | (5) |
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97 | (1) |
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Basic Provisions Prohibiting Foreign Corrupt Payments |
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97 | (1) |
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Payment by Intermediaries |
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97 | (1) |
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97 | (1) |
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Practical Insight 3.5: Siemens Braces for a Slap from Uncle Sam; China's New Posture on Commercial Bribery |
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98 | (1) |
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Antibribery Provisions---Elements of an Offense |
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98 | (1) |
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99 | (1) |
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Permissible Payments and Affirmative Defenses |
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100 | (1) |
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Sanctions against Bribery |
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100 | (1) |
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The OECD Convention on Combating Bribery |
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101 | (1) |
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Practical Insight 3.6: Asia-Pacific Countries Strengthen Co-operation in the Fight against Corruption |
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102 | (1) |
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102 | (2) |
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104 | (1) |
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104 | (1) |
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Minicase: Leadership Changes in China and Russia |
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104 | (4) |
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108 | (53) |
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Chapter Learning Objectives |
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108 | (1) |
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Opening Case: Cross Culture in Business and Everyday Life |
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108 | (3) |
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111 | (6) |
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Practical Insight 4.1: Yankee, We Want You. Yankee, Go Home |
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112 | (2) |
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Difference between Learning a New Language and Learning a New Culture |
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114 | (1) |
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Culture and Its Effects on Organizations |
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114 | (3) |
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The Dimensions of Culture |
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117 | (22) |
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Kluckhohn and Strodtbeck's Framework |
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117 | (1) |
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Practical Insight 4.2: Coping with Culture Shock |
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118 | (2) |
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120 | (7) |
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127 | (2) |
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Ronen and Shenkar's Framework |
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129 | (1) |
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130 | (1) |
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131 | (1) |
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132 | (1) |
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Cultural Dimensions from the GLOBE Studies |
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133 | (1) |
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Practical Insight 4.3: How to Do Business in Islamic Countries |
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134 | (2) |
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Hooker's Framework for Cultural Differences |
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136 | (1) |
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137 | (1) |
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137 | (1) |
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137 | (1) |
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Practical Insight 4.4: Signs in English All Over the World |
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138 | (1) |
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Culture and Management Styles in Selected Countries |
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139 | (2) |
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Cultural Patterns of Japan |
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139 | (1) |
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Cultural Patterns of Germany |
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140 | (1) |
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Cultural Patterns of China |
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140 | (1) |
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Cultural Patterns of Mexico |
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141 | (1) |
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141 | (1) |
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142 | (1) |
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142 | (1) |
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Minicase: The Controversy over the Islamic Head Scarf: Women's Rights and Cultural Sensibilities |
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142 | (6) |
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Case I: Hong Kong Disneyland |
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148 | (13) |
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SECTION TWO MANAGING INTERNATIONAL STRATEGIC PLANNING AND IMPLEMENTATION |
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161 | (168) |
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Strategies for International Competition |
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162 | (40) |
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Chapter Learning Objectives |
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162 | (1) |
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Opening Case: Maytag---Three Countries, One Dishwasher |
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162 | (2) |
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The Roots of International Strategy |
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164 | (1) |
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Strategically Expanding Overseas |
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165 | (3) |
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Facilitators of International Expansion |
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165 | (1) |
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Practical Insight 5.1: Global Internet Initiatives |
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166 | (1) |
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Where to Expand Internationally |
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167 | (1) |
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Strategic Planning for Foreign Market Entry |
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168 | (3) |
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Managing a Portfolio of Country Subsidiaries |
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171 | (3) |
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Host-Country Attractiveness versus Competitive-Strength Matrix |
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171 | (2) |
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The International Risk versus Return Portfolio |
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173 | (1) |
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Modern International Strategic Orientations |
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174 | (4) |
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Global versus Multidomestic Strategic Orientations |
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174 | (2) |
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The Transnational Orientation Imperative |
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176 | (1) |
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The Value Chain Configuration and Strategic Orientations of Firms |
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176 | (2) |
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Worldwide Dispersal and Reintegration of Value Chain Activities |
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178 | (5) |
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The Functional Scope of Value Chain Dispersal and Integration Strategies |
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178 | (1) |
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179 | (1) |
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180 | (1) |
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Practical Insight 5.2: Dispersal of the Value Chain across Continents: India as a Center for Backroom Operations |
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181 | (1) |
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181 | (2) |
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Merging Strategic Orientations and Functional Integration Strategies |
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183 | (1) |
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Firm-Level Strategies for International Competitiveness |
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183 | (8) |
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Core Competency Leveraging |
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183 | (2) |
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185 | (2) |
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187 | (3) |
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Practical Insight 5.3: Cheese Katsu Burger Anyone? |
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190 | (1) |
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Strategies That Fit the Emerging Market Environments |
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191 | (4) |
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The Mammoth Middle-Class Market |
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191 | (2) |
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How Can MNCs Capitalize on the Middle-Class Market Segment? |
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193 | (1) |
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Practical Insight 5.4: Tata Unveils the World's Cheapest Car |
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194 | (1) |
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195 | (1) |
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196 | (1) |
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196 | (1) |
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Minicase: CIENA's Globalization Decision (2000-2007) |
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196 | (6) |
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Analyzing and Managing Foreign Modes of Entry |
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202 | (47) |
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Chapter Learning Objectives |
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202 | (1) |
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Opening Case: Tata Cummins Limited (1993-2008)---an IJV Success Story! |
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202 | (2) |
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Environmental Influences on the Foreign Entry Mode Decision |
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204 | (2) |
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206 | (2) |
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206 | (1) |
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207 | (1) |
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208 | (2) |
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208 | (1) |
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209 | (1) |
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209 | (1) |
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209 | (1) |
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Practical Insight 6.1: The Arab World Wants Its MTV |
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210 | (1) |
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210 | (1) |
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211 | (4) |
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215 | (2) |
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216 | (1) |
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Advantages and Disadvantages of Franchising |
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217 | (1) |
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Equity-Based Ventures through Foreign Direct Investment |
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217 | (1) |
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The International Collaboration Imperative |
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218 | (1) |
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Equity International Joint Ventures |
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219 | (9) |
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Conditions Influencing the IJV Choice |
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221 | (1) |
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Motives for Equity International Joint Ventures |
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222 | (1) |
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Practical Insight 6.2: The Great Indian Beer Rush |
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223 | (1) |
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Advantages of Equity International Joint Ventures |
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224 | (1) |
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Disadvantages of Equity International Joint Ventures |
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225 | (2) |
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The Importance of Having the Right IJV Partner |
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227 | (1) |
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Negotiating the International Joint Venture |
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227 | (1) |
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International Strategic Alliances |
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228 | (4) |
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Rationale for International Strategic Alliances |
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229 | (1) |
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Risks of International Strategic Alliances |
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229 | (1) |
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Practical Insight 6.3: Successful Alliance between Renault and Nissan |
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230 | (2) |
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Making International Collaborative Initiatives Work |
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232 | (2) |
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Mode of Foreign Entry and Control Implications |
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234 | (1) |
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Factors Influencing the Entry Mode Choice by International Firms |
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235 | (3) |
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Determinants of Foreign Mode of Entry |
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236 | (2) |
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Theory of Multinational Investment |
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238 | (5) |
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The O-L-I Framework and Internationalization |
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239 | (3) |
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An Alternative View on the Evolution of an International Company |
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242 | (1) |
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243 | (1) |
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244 | (1) |
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244 | (1) |
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Minicase: Tommy Hilfiger in India, 2007 |
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244 | (5) |
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Organizing and Controlling International Operations |
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249 | (40) |
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Chapter Learning Objectives |
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249 | (1) |
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Opening Case: The Americanization of a Japanese Icon |
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249 | (3) |
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The Strategy-Structure Linkage for the International Firm |
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252 | (3) |
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Pre-International Division Phase |
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255 | (1) |
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International Division Structure |
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256 | (2) |
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Global Hierarchical Structures |
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258 | (5) |
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The Global Product Structure |
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259 | (1) |
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The Global Area Structure |
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260 | (2) |
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Practical Insight 7.1: Rogue Wave Software Announces New International Structure and Strategy |
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262 | (1) |
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Multidimensional Global Structures |
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263 | (8) |
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The International Matrix Structure |
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264 | (2) |
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Heterarchical Structures and Transnational Mind-Sets |
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266 | (1) |
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Practical Insight 7.2: AIS Goes ``Matrix'': New Structure Hailed for Its Efficiency |
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267 | (3) |
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Practical Insight 7.3: No-Cubicle Culture: Hearing Aid Maker Oticon Removed All Office Boundaries |
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270 | (1) |
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Global Strategy, Structure, and Organizational Control |
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271 | (1) |
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The Managerial Control Process |
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271 | (4) |
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272 | (2) |
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Problems of Control in a Global Firm |
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274 | (1) |
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International Environments and Control Systems |
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275 | (4) |
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276 | (1) |
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Political Risk and Host-Country Restrictions |
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276 | (1) |
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Host-Country Economic Factors |
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277 | (1) |
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A Comprehensive Framework of International Control |
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278 | (1) |
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Designing an Effective International Control System |
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279 | (3) |
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Parent-Subsidiary Relationships and Strategic Control Mechanisms |
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280 | (2) |
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282 | (2) |
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284 | (1) |
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284 | (1) |
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Minicase: A Guide for Multinationals |
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284 | (5) |
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Managing Technology and Knowledge |
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289 | (40) |
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Chapter Learning Objectives |
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289 | (1) |
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Opening Case: Transferring Knowledge in Global Corporations |
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289 | (2) |
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291 | (3) |
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Practical Insight 8.1: At China's Gates: Microsoft Boss Conquers a Key Asian Market |
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292 | (2) |
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Technology and Technology Transfer |
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294 | (2) |
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The Role of Strategy and Cultural Issues |
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296 | (2) |
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Knowledge in Organizations |
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298 | (2) |
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The Process of Knowledge Management |
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300 | (3) |
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Managing the Knowledge Life Cycle |
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303 | (3) |
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Practical Insight 8.2: Acer's Shih on Taiwan's Future: ``Knowledge Is Our Business'' |
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305 | (1) |
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Integration of Strategic Processes with Knowledge Management |
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306 | (3) |
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The Learning Organization |
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309 | (1) |
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309 | (1) |
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310 | (1) |
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310 | (1) |
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Minicase: He Loves to Win. At I.B.M., He Did |
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311 | (6) |
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Case II: Nora-Sakari: A Proposed JV in Malaysia |
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317 | (12) |
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SECTION THREE MANAGING PEOPLE AND PROCESSES ACROSS BORDERS AND CULTURES |
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329 | (140) |
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Communicating across Borders and Cultures |
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330 | (30) |
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Chapter Learning Objectives |
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330 | (1) |
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Opening Case: Understanding Others |
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330 | (2) |
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332 | (1) |
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The Cross-Cultural Communication Process |
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332 | (2) |
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The Medium of Communication |
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334 | (6) |
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334 | (1) |
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Practical Insight 9.1: The Great English Divide |
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335 | (2) |
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Computer-Mediated Communication |
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337 | (1) |
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338 | (2) |
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Environmental Context of Communication |
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340 | (1) |
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Practical Insight 9.2: The Relative Importance of Encoding Messages in Words |
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341 | (1) |
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Barriers to Effective Communication |
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341 | (9) |
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Practical Insight 9.3: Culture Clashes Harm Offshoring |
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342 | (3) |
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Selective Perceptions and Stereotypes |
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345 | (1) |
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Practical Insight 9.4: Crossing the Cultural Chasm |
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346 | (1) |
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Importance of Self-Disclosure |
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346 | (1) |
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Etiquette in Communication |
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347 | (2) |
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349 | (1) |
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Truthfulness in Communication |
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349 | (1) |
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Elaborate versus Succinct Communication |
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349 | (1) |
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Practical Insight 9.5: Ad Citing Kashmir Stirs Fury in India |
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350 | (1) |
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350 | (1) |
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The Role of Information Technology in Communication across Borders and Cultures |
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350 | (3) |
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Practical Insight 9.6: Potential Hot Spots in Cross-Cultural Communication |
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351 | (1) |
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Practical Insight 9.7: The Way to Reach an Italian? Not E-Mail |
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352 | (1) |
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Guidelines for Managing across Borders and Cultures |
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353 | (1) |
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354 | (1) |
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354 | (1) |
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354 | (1) |
|
Minicase: Johannes van den Bosch Sends an Email |
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|
355 | (5) |
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Negotiation and Decision Making across Borders and Cultures |
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|
360 | (32) |
|
Chapter Learning Objectives |
|
|
360 | (1) |
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Opening Case: Political Impact on Global Negotiation |
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|
360 | (1) |
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361 | (2) |
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Practical Insight 10.1: Culture Shock: If You Don't Learn to Bridge the Gap, You May Risk Alienating Potential Business Partners |
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363 | (1) |
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363 | (5) |
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364 | (1) |
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365 | (1) |
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365 | (1) |
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365 | (1) |
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Making Concessions and Reaching Agreement |
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365 | (1) |
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Practical Insight 10.2: Building Trust with the Japanese |
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366 | (2) |
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Environmental Context of International Negotiations |
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368 | (8) |
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368 | (1) |
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369 | (2) |
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371 | (1) |
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Practical Insight 10.3: How to Avoid Being the ``Ugly American'' When Doing Business Abroad |
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372 | (2) |
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Negotiating with the Chinese |
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374 | (2) |
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Using the Internet to Manage Negotiations |
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376 | (1) |
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Managing Negotiation and Conflict |
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376 | (2) |
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Ethics in International Negotiations |
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378 | (1) |
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379 | (1) |
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The Decision-Making Process |
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379 | (4) |
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Practical Insight 10.4: A Whole World of Ethical Differences |
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380 | (3) |
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Practical Insight 10.5: Culture Quiz |
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383 | (1) |
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Internal and External Factors |
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383 | (1) |
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Sources of Errors in Decision Making across Borders and Cultures |
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384 | (1) |
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Different Approaches to Heuristics and Biases |
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384 | (1) |
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385 | (1) |
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Implications for Managers |
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385 | (2) |
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Practical Insight 10.6: A Cultural Dilemma |
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386 | (1) |
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387 | (1) |
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387 | (1) |
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387 | (1) |
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Minicase: Conflict Resolution for Contrasting Cultures |
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387 | (5) |
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Motivating and Leading across Borders and Cultures |
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392 | (44) |
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Chapter Learning Objectives |
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392 | (1) |
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Opening Case: My Way or the Highway at Hyundai and Kia |
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392 | (3) |
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395 | (1) |
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Theories of Work Motivation |
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396 | (9) |
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397 | (1) |
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Practical Insight 11.1: Employee Motivation the Ritz-Carlton Way |
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398 | (4) |
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402 | (3) |
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The Meaning of Working across Nations and Cultures |
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405 | (2) |
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Applying Cultural Frameworks |
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407 | (5) |
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The Role of Cultural Variations in Work Motivation and Job Satisfaction |
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408 | (3) |
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Practical Insight 11.2: Treat Employees Right in Tough Times |
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411 | (1) |
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Motivation in International and Global Corporations |
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412 | (1) |
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413 | (1) |
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Perspectives on Leadership |
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414 | (3) |
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414 | (1) |
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415 | (1) |
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416 | (1) |
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416 | (1) |
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Transformational Perspectives |
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417 | (1) |
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Leadership across Cultures and Borders |
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417 | (6) |
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Functions of Leadership across Borders and Cultures |
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418 | (1) |
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Leadership in Guilt versus Shame Cultures |
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418 | (1) |
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The GLOBE Project on Leadership |
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419 | (4) |
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Non-Western Styles of Leadership |
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423 | (1) |
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423 | (1) |
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423 | (1) |
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Leadership in the Arab World |
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423 | (1) |
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Leading in an Increasingly Interconnected World |
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424 | (1) |
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Implications for the Practice of Global Leadership |
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424 | (4) |
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Practical Insight 11.3: Remote Leadership |
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425 | (1) |
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Practical Insight 11.4: A Leader's Real Job Description |
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426 | (1) |
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Practical Insight 11.5: India's Got a Job for You |
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427 | (1) |
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428 | (1) |
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428 | (1) |
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429 | (1) |
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Minicase: All Eyes on the Corner Office |
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429 | (7) |
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International Human Resources Management |
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436 | (33) |
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Chapter Learning Objectives |
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436 | (1) |
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Opening Case: How to Avoid Culture Shock |
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436 | (2) |
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What Is International Human Resources Management? |
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438 | (3) |
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Managing and Staffing Subsidiaries |
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439 | (2) |
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441 | (7) |
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Recruitment and Selection |
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441 | (1) |
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442 | (1) |
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443 | (1) |
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Compensation and Benefits |
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444 | (1) |
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444 | (1) |
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445 | (1) |
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Practical Insight 12.1: The Right Perks |
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446 | (2) |
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448 | (2) |
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449 | (1) |
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450 | (4) |
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450 | (1) |
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450 | (1) |
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Practical Insight 12.2: Staying Safe on Foreign Assignments |
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451 | (2) |
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Managing Dual-Career Expatriates |
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453 | (1) |
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453 | (1) |
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International Human Resources Management and Competitive Advantage |
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454 | (2) |
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Practical Insight 12.3: Culture Shock in America? |
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455 | (1) |
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456 | (1) |
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456 | (1) |
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456 | (1) |
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Minicase: Cracks in a Particularly Thick Glass Ceiling |
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456 | (3) |
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Case III: Christina Gold Leading Change at Western Union |
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459 | (10) |
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SECTION FOUR SOCIAL INITIATIVES |
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469 | (54) |
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470 | (15) |
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Chapter Learning Objectives |
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470 | (1) |
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Opening Case: Beyond the Green Corporation |
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470 | (4) |
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The Foundation of Global Social Enterprise |
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474 | (1) |
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Global Development and Emerging-Nation Objectives |
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475 | (1) |
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Micro-Enterprise Collaboration and Global Development |
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475 | (4) |
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Practical Insight 13.1: Taking Tiny Loans to the Next Level |
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476 | (3) |
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Innovation and Knowledge from Global Enterprise Initiatives |
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479 | (1) |
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Practical Insight 13.2: Minetti of Argentina |
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480 | (1) |
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Global Enterprise Networks and Sustainability |
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480 | (2) |
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482 | (1) |
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482 | (1) |
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482 | (1) |
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Minicase: Rise of the Asian D-School: More Students Are Opting for Programs---and Jobs---at Home |
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482 | (3) |
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Ethics and Social Responsibility for International Firms |
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485 | (38) |
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Chapter Learning Objectives |
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|
485 | (1) |
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Opening Case: Scandals and Corruption---A Historical Perspective |
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485 | (2) |
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Business Ethics and Corporate Social Responsibility Defined |
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487 | (2) |
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Moral Philosophies of Relevance to Business Ethics |
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489 | (5) |
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489 | (2) |
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Deontology: The Theory of Rights |
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491 | (1) |
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491 | (1) |
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492 | (2) |
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494 | (1) |
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Incorporating Corporate Social Responsibility and Ethics into International Business Decisions |
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495 | (1) |
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Integrating Corporate Social Responsibility with Business Operations |
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496 | (5) |
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497 | (1) |
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497 | (4) |
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International Ethical Codes of Conduct for International Companies |
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|
501 | (1) |
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The Issues of Bribery and Corruption |
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501 | (6) |
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Practical Insight 14.1: Unlawful Payments to Foreign Officials |
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|
502 | (1) |
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503 | (1) |
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503 | (1) |
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The Social Costs of Bribery and Corruption |
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|
503 | (1) |
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Practical Insight 14.2: Halliburton Discloses Bribes in Nigeria |
|
|
504 | (1) |
|
Child Labor and Sweatshops |
|
|
504 | (3) |
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What Companies Can Do to Integrate Ethics and Business Conduct |
|
|
507 | (3) |
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Practical Insight 14.3: U.S. Companies Back Out of Burma, Citing Human-Rights Concerns, Graft |
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|
509 | (1) |
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510 | (1) |
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511 | (1) |
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511 | (1) |
|
Minicase: Hondurans in Sweatshops See Opportunity |
|
|
511 | (5) |
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Case IV: The Tata Way: Evolving and Executing Sustainable Business Strategies |
|
|
516 | (7) |
| Name Index |
|
523 | (6) |
| Subject Index |
|
529 | |
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