Description
"This is a wonderful text, remarkable for its breadth and freshness of approach. Hill links the often arcane world of international business to society and history. He has a good eye for the telling detail and the illuminating quotation. I shall be recommending this to my friends who are teaching, saying 'read this and get your students to stay curious.'"
—John Stopford, Emeritus, London Business School
Reflecting a strong managerial orientation, a corporate emphasis, and a true global-local focus, International Business: Managing Globalization explains the whats and whys of global differences as it covers industries, competitors, regions, and markets from the perspectives of practicing managers. Author John S. Hill reviews the geographic and historic backgrounds of regions and markets in a way that no other text has done, with special focus on global supply chains, global branding, and world religions as they affect management at the local level.
Key Features
- Integrates business topics and environmental analysis into a strategic, global-local framework
- Places current events in focus by covering history and geography as they affect international business
- Includes a unique chapter on global industry and competitor analysis—a common business tool—but a topic not covered in other texts
- Covers religion as a key determiner of behaviors worldwide to help readers understand why behaviors differ depending on the local context
- Focuses on corporate analysis, planning, and internationalization—vital corporate practices rarely covered in other textbooks
- Includes both shorter and longer, more complex cases, thus appealing to both introductory and advanced courses
Accompanied by High-Quality Ancillaries
Instructor Resources on CD are available to qualified instructors by contacting Customer Care at 1-800-818-SAGE (7243)
Intended Audience
International Business: Managing Globalization is ideal for the Introduction to Business course or for courses focusing on international or global business strategy.
Table of Contents
PART ONE: The Globalization Process: Background, Causes and Effects
Chapter 1 The International Business Challenge
Introduction
The International Business Challenge
The Diverse International Marketplace
The Changing International Marketplace
Responding to the International Business Challenge: How Executives Cope with Global Diversity and Change
From Cultural Ignorance to Cultural Understanding
Analytic Tools: The Multi-Disciplinary Nature of International Business
Globalization: Historic Background
Globalization: Definition and Components
The Exploration Era to 1500
1500-1900: The Colonial Era
1900-today: The Era of the Modern International Corporation
The Globalization Era Since 1980
The Major Catalysts of Post-1980 Globalization
Globalization and the Developing World
Reasons for Developmental Differences: The Diffusion Process in International Business
Diffusion Effects on Strategy Formulation and Implementation
International Business Topics and the Organization of this Text
Part 1 International Business: The Globalization Process
Part 2: International Business Analysis
Part 3: Managing Globalization: International Business Strategies
Key Points
Casette 1-1: The September 11 Tragedy: An International Business Perspective
Casette 1-2: The Internet: Revolutionizing International Business? Or not?
Chapter 2 Globalization and Worldwide Infrastructure Development
Introduction
Global Infrastructure Development: UN Facilitators of International Business
United Nations Background
International Telecommunications Union (ITU)
International Civil Aviation Organization (ICAO)
Universal Postal Union (UPU)
International Maritime Organization (IMO)
UN Commission on International Trade Laws (UNCITRAL)
World Intellectual Property Organization (WIPO)
International Labor Organization (ILO)
International Court of Justice
Financial Infrastructures: International Monetary Fund
Floating Currencies: Supply and Demand Basics
Currency Convertibility and the IMF
World Trade Organization (WTO)
The Free Trade-Protectionism Debate
National Infrastructure Development: World Bank Group
Private Sector Infrastructure Developments
Regional Economic and Political Integration
Degrees of Integration: Types of Trade Blocs
Formation of Economic/Political Blocs: The Evolution of the EU
Key Success Factors in Regional Blocs: the European Union
Other Trade Blocs: Progress and Problems
Global Privatization and Deregulation Programs
National Privatization and Deregulation Programs
Industry and Company Effects
World Infrastructure Development and International Business Growth
Key Points
Casette 2-1: AIDS in Africa: Two Prescriptions -- Any Cure?
Casette 2-2: Free Trade for Steel? The Debate continues.
Casette 2-3: The Battle in Seattle and the Anti-Globalization Movement
Casette 2-4: Working with Exchange Rates and Exchange Rate Arrangements
Chapter 3 Globalization Effects on Country Institutions, People, Industries, Business and Consumers
Introduction: The Economic Development Process
Resource Bases for Industrialization
Economic Development Effects on Country Institutions and People
Changes in Country Institutions
The Diffusion of Modern Behaviors: Explaining Within-Country Variations in Behaviors through the Flexible Stereotype
Developmental Effects on Industry, Business Practices and Consumers
Developmental Effects on Industry Behaviors
Developmental Effects on Business Practices
Developmental Effects on Consumer Behavior
Country Development, Industrialization, Modernization, and Integration into the Regional and Global Economies
Stage 1: Traditional Pre-Industrial Societies
Stage 2: Industrialization and Modernization Processes
Stage 3: Post-Industrial Economies
Stage 4: Regionally and Globally-Involved Societies
Some Conclusions
Obstacles to Economic Development
Industrialization Process Impediments
Geographic Impediments
Ethnic and Linguistic Composition
Institutional Resistance to Change
Key Points
Casette 3-1: Transitioning to the market economy: The Case of Eastern Europe
Casette 3-2: Tradition and Modernization in Developing Pakistan
PART TWO: International Business Analysis
Chapter 4 Globalization and Regional Markets: Geopolitical Analyses
The Importance of Geopolitical Studies
Regional Development in the Worldwide Context
North America
Geographic Characteristics
Historical and Cultural Perspectives
Commercial History
Latin America
Geographic Characteristics
Historical and Cultural Perspectives
Commercial History
Western Europe
Geographic Characteristics
Historical and Cultural Perspectives
Commercial History
Eastern Europe
Geographic Characteristics
Historical and Cultural Perspectives
Commercial History
Middle East And Africa
Geographic Characteristics
Historical and Cultural Perspectives
Commercial History
Asia
Geographic Characteristics
Historical and Cultural Perspectives
Commercial History
Geopolitics and Strategy
Key Points
Casette 4-1: The Effects of Geography and History on Regional Development
Casette 4-2: Oil and the Middle East
Chapter 5 National Market Analysis
Introduction
Essential Background
Historic Influences on National Culture Development
Geographic Influences on National Culture Development
Current Position Analysis
The Current Political Situation
The Current Economic Position
International Position: Analyzing Country Balance of Payments
How Managers use Balance of Payments Data
Commercial Analyses
Industry Analysis
Demand Analysis: Customer and Marketing Considerations
Supply Chain Analyses
Business Environment Analyses
Financial Aspects: Capital Markets, Taxation Policies and Currency Issues
Cultural Analyses
Key Points
Casette 5-1: The Japanese Economy—Historic Perspectives and Current Situation
Casette 5-2: Looking at Brazil in its Latin American Context
Casette 5-3: Comparing market profiles for the US, Brazil and China
Chapter 6 Analyzing Global Industries and Competitors
Introduction
Worldwide Industry Analysis
Evaluations of Worldwide Market Demand
Assessing Industry Supply Chains
Industry Structure
Drivers of Industry Change
Financial Benchmarks
Key Success Factors
Global Competitor Analyses
Internal Assessments
External Assessments: Analyzing Competitor Operations
Using Market Opportunity and Competitive Analyses to Craft Global Strategies
Market Selection Strategies
Competitive Effects on Strategic Decision-Making
Key Points
Casette 6-1: Global Change and the Wine Industry
Casette 6-2: The Airbus – Boeing Global Rivalry
Part Three: Managing Globalization: International Business Strategies
Chapter 7 International Strategic Planning and Market Screening
Global Planning in the Chemical Industry
The International Planning Process
Introduction
The Changing Environment of International Planning: Historic Perspectives
The Evolution of the International Corporate Planning Processes
Assessing the Corporate Position
Internal Assessments
External Assessments: The Marketplace Situation
External Assessments: Corporate and Industry Resource Deployments
Formulation of Strategic Plans
Subsidiary-Level Planning
Integrating National Plans into Regional and Global Strategies
The Benefits of Well-Executed Planning Processes
Market Screening and Risk Assessments
Political Risk
Economic Risks
Financial and Foreign Currency Risks
Operations Risk
Legal Risks
Taxation Risks
Security Risks
Business Risk Evaluation Methodologies
Special Case: Evaluating Emerging Markets
Long Term Planning: Scenario Analyses
Key Points
Casette 7-1: Strategic Planning at Benetton
Casette 7-2: Wal-Mart and Market Screening
Casette 7-3: Managing Risk in Emerging Markets
Chapter 8 INTERNATIONALIZATION AND GLOBALIZATION PROCESSES
Internationalization and Globalization—Similar but Different
Internationalization and Globalization
Definitions
Measuring Internationalization and Globalization
Advantages of Internationalization and Globalization
Disadvantages of Internationalization and Globalization
Internationalization, Globalization and Industry Strategies
Drivers of Corporate Internationalization and Globalization: Why Firms go Abroad
Market Drivers
Cost Drivers
Competitive Drivers
Government Drivers
A Major Globalization Facilitator: The Role of Information Technologies
Preparing the Company for Internationalization and Globalization
Focusing the Organization: Corporate Competencies
Focusing the Organization: Supply Chain Restructuring
Developing Leadership and Management Capabilities
Globalizing the Corporate Culture
Effects of Globalization
Industry Structure Effects
Organizational Structure Effects
Corporate Culture Effects
Relationships Between Strategies, Structures and Corporate Cultures
Financing International and Global Operations
Equity Options using Outside Financing
Equity Options using Internal Financing
Debt Options using External Financing
Debt Options and Internal Financing
Key Points
Casette 8-1: Four Companies go Global
Casette 8-2: Setting up a Multi-Lingual Website
Chapter 9 Market Entry and Servicing Strategies
Exporting Strategies
Indirect Exporting and Use of Trading Companies
Direct Exporting
Contractual Forms of Market Entry
Licensing
Franchising
Management Contracts
Contract Manufacturing
Co-Production Agreements
Investment Options for Servicing Foreign Markets: Joint Ventures, Acquisitions and Greenfield Operations
International Joint Ventures (IJVs)
Mergers and Acquisitions (M & A)
Greenfield Operations
Siting Research and Development Capabilities
Matching Market Servicing Strategies to Environmental and Corporate Needs
External factors
Internal Factors
Key points
Casette 9-1: Managing the International Joint Venture (IJV)
Casette 9-2: The Daimler-Chrysler Mega Merger
Chapter 10 Global and Multi-Market Strategies
Introduction: Booze and Money Go Global
Identifying and Developing Core Businesses
Internalizing the Core Strategy
Globalizing the International Strategy
Dealing with Competitors: Global and Multi-Market Competitive and Cooperative
Strategies
Competitive Strategies
Cooperating with Competitors: Global Alliances
Global and Multi-Market Financial Strategies
Transfer Pricing Issues
Managing Foreign Currency Risks
Global Cash Management: Settling Corporate Subsidiary Accounts
Global and Multi-Market Financial Synergies
Administering Global Finances
Key Points
Casette 10-1: Global Branding, Rivalries and Organizational Practices
Casette 10-2: Making All the Right Moves: India’s Tata Group
Chapter 11 Global and Multi-Market Supply Chain Management
Global and Multi-Market Supply Chains: Integration Options
Environmental and Corporate Catalysts to Global and Multi-Market Supply Chain Development
Supplier-Manufacturer Integration: “Upstream Relationships”
International Manufacturing Systems and Supply Chain Management
Manufacturer-Distribution Linkages
Distributor-Customer Linkages: Electronic Data Interchange and Internet Systems
Integration Mechanisms for Global Supply Chains: IT, Managerial and New Product
Development Issues
Supply Chain Integration and Information Technologies
Creating Multi-Cultural Managers
Integrating Supply Chain and Human Resource Policies.
Global and Multi-Market New Product Development Strategies
De-Integrating the Global Supply Chain: Outsourcing Strategies
Strategic Advantages of Outsourcing
Strategic Disadvantages of Outsourcing
Outsourcing Individual Supply Chain Components: Pros and Cons.
Key Points
Casette 11-1: Constructing and Evaluating Global and Multi-Market Supply Chains
Casette 11-2: Evaluating outsourcing decisions
Chapter 12 Managing Cultural Differences
Negotiating face-to-face: When Culture Really Matters
High-Medium-Low Context Cultures: A Framework for Understanding Business and Interpersonal Behaviors
Low Context Behaviors
High context Behaviors
Medium Context Behaviors
Cultural Underpinnings of High-Medium-Low Context Behaviors – The “Whys”
Religion
Economic and Political System Effects
Social Forces
Intercultural Negotiations
Negotiating with US Businesspeople
Negotiating with the Japanese
Negotiating with Western Europeans
Negotiating with Asians
Negotiating with Middle Easterners
Negotiating with Eastern Europeans: The Russian Case
Organizing International Negotiations
Planning and Preparation
Conducting the Negotiation
Reaching an Agreement
Some Conclusions: What is a good negotiator?
Key Points
Casette 12-1: West meets East over the negotiation table : Contrasts and Causes
Chapter 13 Localization Strategies: Managing Stakeholders and Supply Chains
Getting to Grips with the real Chinese market
The Importance of Localization Strategies
The Need for Localization/Insider Strategies
Market Servicing Strategy and Localization Potential
Managing Local Stakeholder Relations
Building Government Relations
Building Business Community Relations
Environmental Groups
Consumerism
Public Relations and the Press
Supply Chain Management
The Benefits of Supply Chain Localization
Supplier Management
Managing Local Manufacturing Operations
Localizing Marketing Operations: Multinational Strategies
Managing Local Supply Chains: Management and Human Resource Issues
Management-Worker Relations
Key Points
Casette 13-1: Localization Strategies in Rural India
Casette 13-2: Child Labor—Is it a Matter of Perspective?
Casette 13-3: The Case of the Efficiency-Oriented Gringo
