International Business

Stuart Wall is Head of Department at the Ashcroft International Business School, Anglia Ruskin University in Cambridge. Sonal Minocha and Bronwen Rees are both also at Anglia Ruskin University.

Preface: using this book xiii

Acknowledgements xiv

Abbreviations xvii

1 Introduction to international business

Introduction

Patterns and trends in international business

Globalisation

The multinational enterprise (MNE)

How important are the multinationals?

Useful websites

Useful key texts

Other texts and sources

Case studies

1.1 Dyson relocates production to South-East Asia

1.2 Happy birthday, globalisation

1.3 How to play the home advantage

1.4 Does a global approach benefit the company?

1.5 Competing in a globalised economy

Boxes

1.1 Relative Unit Labour Costs (RULC)

1.2 Definitions of Globalisation

1.3 Globalisation Features

2 Internationalisation process

Introduction

Export-based methods for internationalisation

Non-equity-based methods for internationalisation

Equity-based methods for internationalisation

Why invest abroad?

Theoretical explanations

Useful websites

Useful key texts

Other texts and sources

Case studies

2.1 Helping inward fdi

(a) South Africa: Skills Support Programme

(b) Egypt: Suppliers Development Programme

2.2 Patents and the EU pharmaceuticals market

2.3 Legal Process Outsourcing in India

2.4 Market entry into China

2.5 The Japanese keiretsu

2.6 China versus South Korea

2.7 Toyota wins support for its US operations

2.8 Daewoo moves into international agriculture

2.9 Internationalisation may not always deliver!

Boxes

2.1 'Flat tax' regimes

2.2 Government policies, exporting and fdi

3 International business: theory and practice

Introduction

Gains from trade

Sources of comparative and competitive advantage

Trade and the world economy

Barriers to trade

Protectionist policies

Regional trading arrangements

Government policies and international business

International institutions and world trade

The European Union (EU)

Useful websites

Useful key texts

Other texts and sources

Case studies

3.1Impacts of freer trade

3.2 Intra-industry trade: Honda

3.3 High cost of anti-dumping tariffs

3.4 Harbours of resentment

3.5 WTO to rule on US import duties

Boxes

3.1 Comparative advantage and opportunity cost

3.2 Gains from trade

3.3 Impacts of a tariff

3.4 Impacts of a subsidy

3.5 Customs Union: trade creation and trade diversion

3.6 Impacts of EU policies on farms and agri-businesses

3.7 IMF stabilisation programmes

3.8 World Bank structural adjustment and stabilisation

4 The political, legal, economic and technological environment

Introduction

Political environment

Political risk

The international legal environment

Intellectual property rights

Economic systems

Economic variables and the business environment

Technological environment

Technology transfer

Useful websites

Useful key texts

Other texts and sources

Case studies

4.1 Chinese government and EU milk products

4.2 BMW after Rover

4.3 Tougher scrutiny of foreign takeovers in US

4.4 Intellectual Property Rights (IPR) in India: Novartis

4.5 Extending copyright

4.5 Intellectual property rights in China (IPR): Durex

4.6 Market influences on Wellcome share price

4.7 China's capital markets begin to open

4.8 Finance chiefs take pessimistic view

Boxes

4.1 EU directives and state aid

4.2 EU directives and data protection

4.3 Strategic patenting

4.4 Elasticity of demand

4.5 Creating or destroying jobs

5 International sociocultural environment 171

Introduction

National cultural characteristics

Cultural impacts on international business

National, organisational and occupational cultures

Strategies for developing intercultural competence

Useful websites

Useful key texts

Other texts and sources

Case studies

5.1 National culture and Japanese competitiveness

5.2 East meets West

5.3 Culture of communication breaks through traditional barriers

5.4 Corporate culture and Japanese competitiveness

5.5 Management gurus might rethink the Dutch approach

5.6 Challenges to cross-cultural team management

5.7 Corporate 'personality' has a big impact on business success

Boxes

5.1 A clash of cultures

5.2 National and organisational cultural dimensions

6 International ethical and ecological environment

Introduction

Business ethics

Ethics and the corporate culture

Different ethical positions

International business ethics

International efforts to improve business ethics

Ecological/environmental issues

Global warming, 'carbon footprint' and tradable permits

Useful websites

Useful key texts

Other texts and sources

Case studies

6.1 The Body Shop

6.2 Ethics and profits

6.3 Bribery and international business

6.4 US groups in ethical standards push

6.5 Taxing and regulating smoking

6.6 Organic farming

6.7 Biofuels subsidies criticised

6.8 Prices no incentive for a clean up

Boxes

6.1 An ethical dilemma

6.2 TI Corruption Perception Index

6.3 Environmental impacts, taxes and regulations

6.4 Stern Report and global warming

6.5 The EU Emissions Trading Scheme

7 International strategic issues

Introduction

Business strategy ideas and concepts

Choice of strategy

Corporate strategy in a global economy

International business and the value chain

International business strategies

International business strategies and political perspectives

Institutional strategies and international business

Techniques for strategic analysis

International operations management and logistical strategies

Useful websites

Useful key texts

Other texts and sources

Case studies

7.1 Strategies in practice

a) Pharmaceutical sector

b) Brewing

7.2 Strategic mistakes at Citibank

7.3 MNE strategies in the US market

7.4 US carmaking: political and economic imperatives

7.5 Daimler-Benz AG and Chrysler

7.6 Telematics and strategic choice

7.7 Game theory in action: designing the US airwaves auction

7.8 Strategic scenario analysis: AMD versus Intel

7.9 Operations management system: Khan Handicrafts

Boxes

7.1 Mergers and acquisitions incentives

7.2 Two-firm zero-sum game

7.3 Lean production

7.4 Inventory (stock) costs and control

7.5 Economies of scope and the transport sector

8 International human resource management

Introduction

Human resource management function

International human resource management (IHRM)

International HRM approaches

IHRM policies and practices

Work practice in an international context

Useful websites

Useful key texts

Other texts and sources

Case studies

8.1 HRM and the external environment

8.2 Islamic culture and IHRM

8.3 Mindset of a Toyota manager revealed

8.4 Reward mechanisms in cross-cultural contexts

8.5 IHRM and national cultures

Boxes

8.1 Greek national culture and decentralisation of the IHRM function

9 International marketing

Introduction

The principal activities of marketing

International marketing

Decision-making and international marketing

Market selection

Market-entry strategies

International marketing mix

International marketing planning

Useful websites

Useful key texts

Other texts and sources

Case studies

9.1 Global rebranding of BP

9.2 A better burger thanks to data crunching

9.3 Variations in the international marketing mix

9.4 India's new affluent consumers

9.5 Global brands

9.6 Lessons for marketers who face a hard sell

9.7 Love in a cold climate

9.8 Indian stores in search of drama

Boxes

9.1 Market segmentation

9.2 Strategic pricing initiatives

9.3 Price elasticity of demand (PED) and revenue

9.4 Price discrimination

9.5 Promotion / advertising and demand

9.6 UK internet trends in 2007/8

10 International finance: theory and practice

Introduction

The background to accounting

Major financial accounting statements

The profit and loss account (or 'Statement of Income')

The balance sheet

The cash-flow statement

Published accounts

Differences of approach in different countries

Global accounting standards

Corporate governance and international business

International financial management

Useful websites

Useful key texts

Other texts and sources 8

Case studies

10.1 SIV managers dig out their manuals

10.2 Seniority brings a false sense of security

10.3 Sum of the parts

10.4 Spate of downgrades raises fears

10.5 Risk needs a human touch

10.6 'To converge to a single set of standards is now crucial'

Boxes

10.1 Types of exchange rate

10.2 Structured Investment Vehicle (SIV)

10.3 Financial instruments and international trade

10.4 Sarbanes-Oxley Act 2002

Answers and responses

Index