International Business PDF
Preview International Business
InternatIonal BusIness Mike Peng and Klaus Meyer Second Edition Australia Brazil Mexico Singapore United Kingdom United States This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Important Notice: Media content referenced within the product description or the product text may not be available in the eBook version. International Business, 2nd Edition © 2016, Cengage Learning EMEA Mike Peng and Klaus Meyer WCN: 02-300 ALL RIGHTS RESERVED. 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For permission to use material from this text or product, and for permission queries, email [email protected]. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. ISBN: 978-1-4737-2264-4 Cengage Learning EMEA Cheriton House, North Way, Andover, Hampshire, SP10 5BE United Kingdom Cengage Learning products are represented in Canada by Nelson Education Ltd. For your lifelong learning solutions, visit www.cengage.co.uk Purchase your next print book, e-book or e-chapter at www.cengagebrain.com Printed in China by RR Donnelley Print Number 01 Print Year 2016 To our students: past, present and future BRIEF CONTENTS PART ONE FOUNDATIONS 1 1 Globalizing Business 3 2 Formal Institutions: Political, Economic and Legal Systems 29 3 Informal Institutions: Culture, Religion and Languages 57 4 Firm Resources: Competitiveness and Growth 88 PART TWO BUSINESS ACROSS BORDERS 117 5 Trading Internationally 119 6 Investing Abroad Directly 151 7 Exchange Rates 184 PART THREE GLOBALIZATION 211 8 European Integration 213 9 Global Integration and Multilateral Organizations 246 10 Socially Responsible Business 278 PART FOUR THE FIRM ON THE GLOBAL STAGE 307 11 Starting International Business 309 12 Foreign Entry Strategies 337 13 Competitive Dynamics 363 14 Global Strategies and Acquisitions 390 PART FIVE OPERATIONS IN THE GLOBAL MNE 419 15 Organizing and Innovating in the MNE 421 16 People in the MNE 451 17 Customers and Suppliers of the MNE 477 PART SIX INTEGRATIVE CASES 505 Integrative Cases 1-14 Glossary 581 Credits 593 Name Index 594 Subject Index 596 Organizations Index 602 v CONTENTS List of Boxes ix 4 FIRm RESOURcES: Preface to the 1st Edition xiii cOmPETITIVENESS ANd Preface to the 2nd Edition xviii GROWTH 88 Acknowledgements for the 2nd Edition xix Scholarly Journals xx Identifying Resources 90 About the authors xxii Appraising Resources: The Vrio Framework 97 Applying Resource Analysis: Benchmarking 101 PART ONE Debates and Extensions 106 Implications for Practice 108 FOUNDATIONS 1 PART TWO 1 GLOBALIZING BUSINESS 3 BUSINESS ACROSS BORDERS 117 European and Global Business 5 Why Study International Business? 7 A Unified Framework 9 Understanding Globalization 12 5 TRAdING INTERNATIONALLy 119 A Glance at the Global Economy 18 Why Do Nations Trade? 123 Implications for Practice 22 Theories of International Trade 126 National Institutions and International Trade 136 2 FORmAL INSTITUTIONS: Debates and Extensions 142 POLITIcAL, EcONOmIc ANd Implications for Practice 145 LEGAL SySTEmS 29 6 INVESTING ABROAd dIREcTLy 151 An Institution-Based View of International Business 32 The FDI Vocabulary 154 Political Systems 35 Ownership Advantages 158 Economic Systems 40 Location Advantages 160 Legal Systems 44 Internalization Advantages 165 Debates and Extensions 46 Benefits and Costs of FDI 168 Implications for Practice 51 National Institutions and FDI 170 Debates and Extensions 174 3 INFORmAL INSTITUTIONS: Implications for Practice 178 cULTURE, RELIGION ANd LANGUAGES 57 7 EXcHANGE RATES 184 Cultures 60 Markets for Currencies 188 Languages 69 Institutions of the International Monetary Religions 72 System 194 Ethics 74 Managing Exchange Risks 198 Debates and Extensions 77 Debates and Extensions 202 Implications for Practice 80 Implications for Practice 204 vi CONTENTS vii Debates and Extensions 327 Implications for Practice 328 PART THREE GLOBALIZATION 12 FOREIGN ENTRy STRATEGIES 337 211 Strategic Objectives of Establishing Foreign Subsidiaries 340 Where to Enter? 342 8 EUROPEAN INTEGRATION 213 When to Enter? 344 How to Enter? 346 Overcoming Divisions 216 How to Organize Your Operations 353 The EU as Institutional Framework for Institutions and Foreign Entry Strategies 353 Business 222 Debates and Extensions 355 The Euro as a Common Currency 228 Implications for Practice 357 Debates and Extensions 236 Implications for Practice 239 13 cOmPETITIVE dyNAmIcS 363 9 GLOBAL INTEGRATION ANd Dynamics of Competition 366 mULTILATERAL Competition and Collusion 368 ORGANIZATIONS 246 Institutions Governing Competition 372 Resources Influencing Competition 377 The Multilateral Trade System 249 Debates and Extensions 380 The Multilateral Monetary System 256 Implications for Practice 384 Regional and Bilateral Economic Integration 259 Debates and Extensions 265 14 GLOBAL STRATEGIES Implications for Practice 271 ANd AcQUISITIONS 390 10 SOcIALLy RESPONSIBLE Strategizing Globally 392 BUSINESS 278 Growth by Acquisitions 397 Institutions Governing Acquisitions 403 Stakeholders of the Firm 282 Resource-Based Perspectives on CSR in the Global Economy 288 Acquisitions 407 Institutions, Stakeholders and CSR 292 Debates and Extensions 408 Debates and Extensions 295 Implications for Practice 411 Implications for Practice 299 PART FIVE PART FOUR OPERATIONS IN THE FIRM ON THE GLOBAL MNE 419 THE GLOBAL STAGE 307 15 ORGANIZING ANd INNOVATING 11 STARTING INTERNATIONAL IN THE mNE 421 BUSINESS 309 Organizational Structures in MNEs 423 Going International 312 Managing Knowledge in Global MNEs 429 Resources and Internationalization 323 Institutions and the Choice of Organizational Institutions and Internationalization 326 Structure 438 viii CONTENTS Resource-Based Considerations 439 Debates and Extensions 440 PART SIX Implications for Practice 442 INTEGRATIVE CASES 505 16 PEOPLE IN THE mNE 451 Approaches to Managing People 453 Expatriates 455 1 Xiaomi Challenges Global Smartphone Managing People Abroad 464 Leaders 506 Institutions and Human Resource 2 Rolls Royce: From Insolvency to World Management 466 Leadership 511 People as Resources 468 3 Agrana: From Local Supplier to Global Player 520 Debates and Extensions 469 4 Bharti Airtel Acquires Resources and Implications for Practice 471 Companies 525 5 Enhancing UK Export Competitiveness 528 6 Canada and the EU Negotiate CETA 534 17 cUSTOmERS ANd SUPPLIERS 7 German Chamber of Commerce Develops Social OF THE mNE 477 Responsibility in China 540 8 Tackling Corrupt Practices: GSK China 544 Understanding Consumers around the World 479 9 Fan Milk in West Africa 550 The Marketing Mix 482 10 ESET: From Living Room to Global Player in Antivirus Software 556 Price 484 11 The Lg-Nortel Joint Venture 561 Supply Chain Management 487 12 Beko Washes Clothes Across Europe 566 Institutions, Marketing and Supply Chain Management 493 13 SG Group: Managing European Acquisitions 570 Resources, Marketing and Supply Chain 14 Just Another Move to China? 576 Management 494 Debates and Extensions 495 Glossary 581 Implications for Practice 498 Credits 593 Name Index 594 Subject Index 596 Organizations Index 602
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