pt. One Introduction and Overview -- ch. 1 Globalization -- Opening Case The Rise of Ecuador's Rose Industry -- Introduction -- What Is Globalization -- The Globalization of Markets -- The Globalization of Production -- Management Focus Vizio and the Market for Flat-Panel TVs -- The Emergency of Global Institutions -- Drivers of Globalization -- Declining Trade and Investment Barriers -- The Role of Technological Change -- The Changing Demographics of the Global Economy -- The Changing World Output and World Trade Picture -- The Changing Foreign Direct Investment Picture -- Country Focus India's Software Sector -- The Changing Nature of the Multinational Enterprise -- The Changing World Order -- The Global Economy of the Twenty-First Century -- Management Focus China's Hisense---An Emerging Multinational -- The Globalization Debate -- Antiglobalization Protests -- Country Focus Protesting Globalization in France.

Globalization, Jobs, and Income -- Globalization, Labor Policies, and the Environment -- Globalization and National Sovereignty -- Globalization and the World's Poor -- Managing in the Global Marketplace -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case Who Makes the Apple iPhone? -- Endnotes -- pt. Two Country Differences -- ch. 2 National Differences in Political Economy -- Opening Case Ghana: An African Dynamo -- Introduction -- Political Systems -- Collectivism and Individualism -- Democracy and Totalitarianism -- Country Focus Venezuela under Hugo Chavez, 1999-2013 -- Economic Systems -- Market Economy -- Command Economy -- Mixed Economy -- Legal Systems -- Different Legal Systems -- Differences in Contract Law -- Property Rights and Corruption -- Country Focus Corruption in Nigeria -- Management Focus Did Walmart Violate the Foreign Corrupt Practices Act? -- The Protection of Intellectual Property.

Product Safety and Product Liability -- Management Focus Starbucks Wins Key Trademark Case in China -- Implications for Managers -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case Poland's Economy -- Endnotes -- ch. 3 Political Economy and Economic Development -- Opening Case Political and Economic Reform in Myanmar (Burma) -- Introduction -- Differences in Economic Development -- Map 3.1 GNI per Capita, 2011 -- Map 3.2 GNI PPP per Capita, 2011 -- Broader Conceptions of Development: Amartya Sen -- Map 3.3 Average Annual Growth Rate in GDP per Capita, 2002--2011 -- Map 3.4 Human Development Index, 2012 -- Political Economy and Economic Progress -- Innovation and Entrepreneurship Are the Engines of Growth -- Innovation and Entrepreneurship Require a Market Economy -- Innovation and Entrepreneurship Require Strung Property Rights -- The Required Political System.

Country Focus Emerging Property Rights in China -- Economic Progress Begets Democracy -- Geography, Education, and Economic Development -- States in Transition -- The Spread of Democracy -- Map 3.5 Political Freedom in 2012 -- The New World Order and Global Terrorism -- The Spread of Market-Based Systems -- Map 3.6 Distribution of Economic Freedom, 2013 -- The Nature of Economic Transformation -- Deregulation -- Privatization -- Legal Systems -- Country Focus India's Economic Transformation -- Implications of Changing Political Economy -- Implications for Managers -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case Revolution in Egypt -- Endnotes -- ch. 4 Differences in Culture -- Opening Case Why did Walmart Fail in Germany? -- Introduction -- What Is Culture? -- Values and Norms -- Culture, Society, and the Nation-State -- The Determinants of Culture -- Social Structure -- Individuals and Groups.

Social Stratification -- Country Focus Breaking India's Caste System -- Religious and Ethical Systems -- Christianity -- Map 4.1 World Religions -- Islam -- Country Focus Islamic Capitalism in Turkey -- Hinduism -- Buddhism -- Confucianism -- Management Focus DMG-Shanghai -- Language -- Spoken Language -- Unspoken Language -- Education -- Culture and the Workplace -- Cultural Change -- Implications for Managers -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case Culture and Business in Saudi Arabia -- Endnotes -- ch. 5 Ethics in International Business -- Opening Case Exporting Used Batteries to Mexico -- Introduction -- Ethical Issues in International Business -- Employment Practices -- Human Rights -- Management Focus Making Apple's iPod -- Environmental Pollution -- Management Focus Unocal in Myanmar -- Corruption -- Management Focus Corruption at Daimler -- Moral Obligations -- Ethical Dilemmas.

The Roots of Unethical Behavior -- Personal Ethics -- Decision-Making Processes -- Organization Culture -- Unrealistic Performance Expectations -- Leadership -- Societal Culture -- Philosophical Approaches to Ethics -- Straw Men -- Utilitarian and Kantian Ethics -- Rights Theories -- Justice Theories -- Implications for Managers -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case Working Conditions in a Chinese Factory -- Endnotes -- Cases -- Siemens Bribery Scandal -- Disaster in Bangladesh -- Knights Apparel -- Japan's Economic Malaise -- Indonesia: The Next Asian Giant? -- pt. Three The Global Trade and Investment Environment -- ch. 6 International Trade Theory -- Opening Case Creating the World's Biggest Free Trade Zone -- Introduction -- An Overview of Trade Theory -- The Benefits of Trade -- The Pattern of International Trade -- Trade Theory and Government Policy -- Mercantilism -- Absolute Advantage.

Country Focus Is China a Neo-mercantilist Nation? -- Comparative Advantage -- The Gains from Trade -- Qualifications and Assumptions -- Extensions of the Ricardian Model -- Country Focus Moving U.S. White-Collar Jobs Offshore -- Heckscher-Ohlin Theory -- The Leontief Paradox -- The Product Life-Cycle Theory -- Product Life-Cycle Theory in the 21st century -- New Trade Theory -- Increasing Product Variety and Reducing Costs -- Economies of Scale, First-Mover Advantages, and the Pattern of Trade -- Implications of New Trade Theory -- National Competitive Advantage: Porter's Diamond -- Factor Endowments -- Demand Conditions -- Related and Supporting Industries -- Firm Strategy, Structure, and Rivalry -- Evaluating Porter's Theory -- Implications for Managers -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case The Rise of India's Drug Industry -- Appendix International Trade and the Balance of Payments.

Endnotes -- ch. 7 The Political Economy of International Trade -- Opening Case China Limits Exports of Rare Earth Metals -- Introduction -- Instruments of Trade Policy Tariffs -- Country Focus Are the Chinese Illegally Subsidizing Auto Exports? -- Subsidies -- Import Quotas and Voluntary Export Restraints -- Local Content Requirements -- Administrative Policies -- Antidumping Policies -- Management Focus U.S. Magnesium Seeks Protection -- The Case for Government Intervention -- Political Arguments for Intervention -- Country Focus Trade in Hormone-Treated Beef -- Economic Arguments for Intervention -- The Revised Case for Free Trade -- Retaliation and Trade War -- Domestic Politics -- Development of the World Trading System -- From Smith to the Great Depression -- 1947--1979: GATT, Trade Liberalization, and Economic Growth -- 1980--1993: Protectionist Trends -- The Uruguay Round and the World Trade Organization -- WTO: Experience to Date.

The Future of the WTO: Unresolved Issues and the Doha Round -- Country Focus Estimating the Gains from Trade for America -- Implications for Managers -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case U.S. Tariffs on Tire Imports from China -- Endnotes -- ch. 8 Foreign Direct Investment -- Opening Case Foreign Retailers in India -- Introduction -- Foreign Direct Investment in the World Economy -- Trends in VDI -- The Direction of FDI -- The Source of FDI -- Country Focus Foreign Direct Investment in China -- The Form of FDI: Acquisitions versus Greenfield Investments -- Management Focus Foreign Direct Investment by Cemex -- Theories of Foreign Direct Investment -- Why Foreign Direct Investment? -- The Pattern of Foreign Direct Investment -- The Eclectic Paradigm -- Political Ideology and Foreign Direct Investment -- The Radical View -- The Free Market View -- Pragmatic Nationalism -- Shifting Ideology.

Management Focus DP World and the United States -- Benefits and Costs of FDI -- Host-Country Benefits -- Host-Country Costs -- Home-Country Benefits -- Home-Country Costs -- International Trade Theory and FDI -- Government Policy Instruments and FDI -- Home-Country Policies -- Host-Country Policies -- International Institutions and the Liberalization of FDI -- Implications for Managers -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case Walmart in Japan -- Endnotes -- ch. 9 Regional Economic Integration -- Opening Case Tomato Wars -- Introduction -- Levels of Economic Integration -- The Case for Regional Integration -- The Economic Case for Integration -- The Political Case for Integration -- Impediments to Integration -- The Case against Regional Integration -- Regional Economic Integration in Europe -- Evolution of the European Union -- Map 9.1 Member States of the European Union in 2012.

Political Structure of the European Union -- Management Focus The European Commission and Intel -- The Single European Act -- The Establishment of the Euro -- Country Focus Creating a Single Market in Financial Services -- Enlargement of the European Union -- Country Focus The Greek Sovereign Debt Crisis -- Regional Economic Integration in the Americas -- The North American Free Trade Agreement -- Map 9.2 Economic Integration in the Americas -- The Andean Community -- Mercosur -- Central American Common Market, CAFTA, and CARICOM -- Free Trade Area of the Americas -- Regional Economic Integration Elsewhere -- Association of Southeast Asian Nations -- Map 9.3 ASEAN Countries -- Map 9.4 APEC Members -- Asia-Pacific Economic Cooperation -- Regional Trade Blocs in Africa -- Implications for Managers -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case I Want My Greek TV! -- Endnotes -- Cases -- Legal Outsourcing.

The Global Financial Crisis and Protectionism -- NAFTA and Mexican Trucking -- The Rise of the Indian Automobile Industry -- Logitech -- pt. Four The Global Monetary System -- ch. 10 The Foreign Exchange Market -- Opening Case The Rise {and Fall) of the Japanese Yen -- Introduction -- The Functions of the Foreign Exchange Market -- Currency Conversion -- Insuring against Foreign Exchange Risk -- Management Focus Volkswagen's Hedging Strategy -- The Nature of the Foreign Exchange Market -- Economic Theories of Exchange Rate Determination -- Prices and Exchange Rates -- Country Focus Quantitative Easing, Inflation, and the U.S. Dollar -- Interest Rates and Exchange Rates -- Investor Psychology and Bandwagon Effects -- Summary of Exchange Hate Theories -- Exchange Rate Forecasting -- The Efficient Market School -- The Inefficient Market School -- Approaches to Forecasting -- Currency Convertibility -- Implications for Managers.

Management Focus Dealing with the Rising Euro -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case Billabong -- Endnotes -- ch. 11 The International Monetary System -- Opening Case Iceland's Economic Recovery -- Introduction -- The Gold Standard -- Mechanics of the Gold Standard -- Strength of the Gold Standard -- The Period between the Wars: 1918--1939 -- The Bretton Woods System -- The Role of the IMF -- The Role of the World Bank -- The Collapse of the Fixed Exchange Rate System -- The Floating Exchange Rate Regime -- The Jamaica Agreement -- Exchange Rates since 1973 -- Country Focus The U.S. Dollar, Oil Prices, and Recycling Petrodollars -- Fixed versus Floating Exchange Rates -- The Case for Floating Exchange Rates -- The Case for Fixed Exchange Rates -- Who Is Right? -- Exchange Rate Regimes in Practice -- Pegged Exchange Rates -- Currency Boards -- Crisis Management by the IMF.

Financial Crises in the Post--Bretton Woods Era -- Country Focus The Mexican Currency Crisis of 1995 -- Evaluating the IMF's Policy Prescriptions -- Implications for Managers -- Management Focus Airbus and the Euro -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case Currency Trouble in Malawi -- Endnotes -- ch. 12 The Global Capital Market -- Opening Case Declining Cross-Border Capital Flows: Retreat or Reset? -- Introduction -- Benefits of the Global Capital Market -- Functions of a Generic Capital Market -- Attractions of the Global Capital Market -- Management Focus Deutsche Telekom Taps the Global Capital Market -- Growth of the Global Capital Market -- Global Capita! Market Risks -- Country Focus Did the Global Capital Markets Fail Mexico? -- The Eurocurrency Market -- Genesis and Growth of the Market -- Attractions of the Eurocurrency Market -- Drawbacks of the Eurocurrency Market.

The Global Bond Market -- Attractions of the Eurobond Market -- The Global Equity Market -- Foreign Exchange Risk and the Cost of Capital -- Implications for Managers -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case Industrial and Commercial Bank of China -- Endnotes -- Cases -- South Korean Currency Crisis -- Russian Ruble Crisis and Its Aftermath -- Caterpillar: Competing in a World of Fluctuating Currencies -- pt. Five The Strategy and Structure of International Business -- ch. 13 The Strategy of International Business -- Opening Case Ford's Global Strategy -- Introduction -- Strategy and the Firm -- Value Creation -- Strategic Positioning -- Operations: The Finn as a Value Chain -- Global Expansion, Profitability, and Profit Growth -- Expanding the Market: Leveraging Products and Competencies -- Location Economies -- Experience Effects -- Leveraging Subsidiary Skills.

Management Focus Leveraging Subsidiary Skills at ArcelorMittal Summary -- Cost Pressures and Pressures for Local Responsiveness -- Pressures for Cost Reductions -- Pressures for Local Responsiveness -- Management Focus Local Responsiveness at MTV Networks -- Choosing a Strategy -- Global Standardization Strategy -- Localization Strategy -- Transnational Strategy -- International Strategy -- Management Focus Evolution of Strategy at Procter & Gamble -- The Evolution of Strategy -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Tasks -- Closing Case Avon Products -- Endnotes -- ch. 14 The Organization of International Business -- Opening Case Organizing Siemens to Compete Globally -- Introduction -- Organizational Architecture -- Organizational Structure -- Vertical Differentiation: Centralization and Decentralization -- Management Focus The International Division at Walmart.

Horizontal Differentiation: The Design of Structure -- Management Focus The Rise and Fall of Dow Chemical's Matrix Structure -- Integrating Mechanisms -- Control Systems and Incentives -- Types of Control Systems -- Incentive Systems -- Control Systems, Incentives, and Strategy in the International Business -- Processes -- Organizational Culture -- Creating and Maintaining Organizational Culture -- Organizational Culture and Performance in the International Business -- Management Focus Culture and Incentives at Lincoln Electric -- Synthesis: Strategy and Architecture -- Localization Strategy -- International Strategy -- Global Standardization Strategy -- Transnational Strategy -- Environment, Strategy, Architecture, and Performance -- Organizational Change -- Organizational Inertia -- Implementing Organizational Change -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case Philips NV -- Endnotes.

ch. 15 Entry Strategy and Strategic Alliances -- Opening Case JCB in India -- Introduction -- Basic Entry Decisions -- Which Foreign Markets? -- Timing of Entry -- Management Focus Tesco's International Growth Strategy -- Scale of Entry and Strategic Commitments -- Summary -- Management Focus The Jollibee Phenomenon---A Philippine Multinational -- Entry Modes -- Exporting -- Turnkey Projects -- Licensing -- Franchising -- Joint Ventures -- Wholly Owned Subsidiaries -- Selecting an Entry Mode -- Core Competencies and Entry-Mode -- Pressures for Cost Reductions and Entry Mode -- Greenfield Venture or Acquisition? -- Pros and Cons of Acquisitions -- Pros and Cons of Greenfield Ventures -- Greenfield Venture or Acquisition? -- Strategic Alliances -- The Advantages of Strategic Alliances -- The Disadvantages of Strategic Alliances -- Making Alliances Work -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task.

Closing Case General Motors in China -- Endnotes -- Cases -- The Evolving Strategy of IBM -- IKEA in 2013 -- General Electric's Joint Ventures -- The Globalization of Starbucks -- Coca-Cola's Strategy -- pt. Six International Business Functions -- ch. 16 Exporting, Importing, and Countertrade -- Opening Case Steel Master Buildings -- Introduction -- The Promise and Pitfalls of Exporting -- Management Focus FCX Systems -- Improving Export Performance -- An international Comparison -- Information Sources -- Management Focus Exporting with a Little Government Help -- Utilizing Export Management Companies -- Export Strategy -- Management Focus Export Strategy at 3M -- Export and Import Financing -- Lack of Trust -- Letter of Credit -- Draft -- Bill of Lading -- A Typical International Trade Transaction -- Export Assistance -- Export-Import Bank -- Export Credit Insurance -- Countertrade -- The Popularity of Countertrade -- Types of Countertrade.

The Pros and Cons of Countertrade -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case Vellus Products -- Endnotes -- ch. 17 Global Production, Outsourcing, and Logistics -- Opening Case Did Boeing Outsource Too Much Work on the 787? -- Introduction -- Strategy, Production, and Logistics -- Where to Produce -- Country Factors -- Management Focus Philips in China -- Technological Factors -- Product Factors -- Locating Production Facilities -- The Hidden Costs of Foreign Locations -- Management Focus GE Moves Manufacturing, from China to the United States -- The Strategic Role of Foreign Production Sites -- Management Focus Hewlett-Packard in Singapore -- Outsourcing Production: Make-or-Buy Decisions -- The Advantages of Make -- The Advantages of Buy -- Trade-offs -- Strategic Alliances with Suppliers -- Managing a Global Supply Chain -- The Role of Just-in-Time Inventory.

The Role of Information Technology and the Internet -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case Making the Amazon Kindle -- Endnotes -- ch. 18 Global Marketing and R & D -- Opening Case Burberry's Global Brand Strategy -- Introduction -- The Globalization of Markets and Brands -- Market Segmentation -- Management Focus Marketing to Black Brazil -- Product Attributes -- Cultural Differences -- Economic Development -- Product and Technical Standards -- Distribution Strategy -- Differences between Countries -- Choosing a Distribution Strategy -- Communication Strategy -- Barriers to international Communication -- Push versus Pull Strategies -- Management Focus Unilever---Selling to India's Poor -- Global Advertising -- Management Focus Dove's Global "Real Beauty" Campaign -- Pricing Strategy -- Price Discrimination -- Strategic Pricing -- Regulatory Influences on Prices -- Configuring the Marketing Mix.

Management Focus Levi Strauss Goes Local -- New-Product Development -- The Location of R & D -- Integrating R & D, Marketing, and Production -- Cross-Functional Teams -- Building Global R & D Capabilities -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case Domino's Pizza -- Endnotes -- ch. 19 Global Human Resource Management -- Opening Case The Strategic Role of Human Resources at IBM -- Introduction -- The Strategic Role of International HRM -- Staffing Policy -- Types of Staffing Policy -- Expatriate Managers -- Management Focus Managing Expatriates at Royal Dutch Shell -- The Global Mind-Set -- Training and Management Development -- Training for Expatriate Managers -- Repatriation of Expatriates -- Management Focus Monsanto's Repatriation Program -- Management Development and Strategy -- Performance Appraisal -- Performance Appraisal Problems -- Guidelines for Performance Appraisal -- Compensation.

National Differences in Compensation -- Management Focus Global Compensation Practices at McDonald's -- Expatriate Pay -- International Labor Relations -- The Concerns of Organized Labor -- The Strategy of Organized Labor -- Approaches to Labor Relations -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case MMC China -- Endnotes -- ch. 20 Accounting and Finance in the International Business -- Opening Case Tax Strategy at Google -- Introduction -- National Differences in Accounting Standards -- International Accounting Standards -- Management Focus Chinese Accounting -- Accounting Aspects of Control Systems -- Exchange Rate Changes and Control Systems -- Transfer Pricing and Control Systems -- Separation of Subsidiary and Manager Performance -- Financial Management: The Investment Decision -- Capital Budgeting -- Project and Parent Cash Flows -- Adjusting for Political and Economic Risk.

Management Focus Black Sea Oil and Gas Ltd. -- Risk and Capital Budgeting -- Financial Management: The Financing Decision -- Financial Management: Global Money Management -- Minimizing Cash Balances -- Reducing Transaction Costs -- Managing the Tax Burden -- Moving Money across Borders -- Chapter Summary -- Critical Thinking and Discussion Questions -- Research Task -- Closing Case Microsoft's Acquisition of Skype -- Endnotes -- Cases -- Brazil's Gol Airlines -- Staffing Policy at AstraZeneca.