International Business

561 Pages·2015·117.374 MB·English

by  Michael Geringer

InternatIonal
busIness
Geringer McNett Minor Ball
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I N T E R N AT I O N A L B U S I N E S S
J. Michael Geringer
OHIO UNIVERSITY
Jeanne M. McNett
NORTHEASTERN UNIVERSITY
Michael S. Minor
UNIVERSITY OF TEXAS, RIO GRANDE VALLEY
Donald A. Ball
INTERNATIONAL BUSINESS
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ISBN 978-1-259-31722-4
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Library of Congress Cataloging-in-Publication Data
Geringer, J. Michael (John Michael)
International business / J. Michael Geringer, Michael S. Minor, Jeanne M. McNett.—1st edition.
pages cm
ISBN 978-1-259-31722-4 (alk. paper)—ISBN 1-259-31722-6 (alk. paper) 1. International business
enterprises. 2. International trade. 3. International finance. 4. International economic relations. I. Minor,
Michael S. II. McNett, Jeanne M., 1946– III. Title.
HD2755.5.G47 2016
658'.049—dc23
2015020683
The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website
does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education
does not guarantee the accuracy of the information presented at these sites.
mheducation.com/highered
BRIEF CONTENTS
module 1 The Challenging Context of International Business 2
module 2 International Trade and Investment 28
module 3 Sociocultural Forces 60
module 4 Sustainability and Natural Resources 90
module 5 Political Forces That Affect Global Trade 122
module 6 Intellectual Property Rights and Other Legal
Forces 150
module 7 Economic and Socioeconomic Forces 180
module 8 The International Monetary System and Financial
Forces 208
module 9 International Competitive Strategy 232
module 10 Organizational Design and Control 258
module 11 Global Leadership Issues and Practices 282
module 12 International Markets: Assessment and Entry Modes 308
module 13 Marketing Internationally 328
module 14 Managing Human Resources in an International
Context 354
module 15 International Accounting and Financial Management 392
bonus module A International Institutions from a Business
Perspective 416
bonus module B Export and Import Practices 446
bonus module C Global Operations and Supply Chain
Management 470
Glossary 501
Company Name Index 509
Subject Index 516
v
DEDICATION
Mike dedicates this book to his parents, Raymond and JoAnn, who have provided
continued support and encouragement for his writing and other life activities.
Jeanne dedicates this book to her best friends, Nick Athanassiou and Raven McCrory,
her finance professor, Dr. N. D. Qui, and her ION research buddies.
Michael dedicates this book to Angela R. Campbell, Anevay Garcia, Delsin Garcia,
and Amy E. Minor, and to the memory of his mother, father, and late wife.
ABOUT THE AUTHORS
J. Michael Geringer Jeanne M. McNett
J. Michael Geringer is the O’Bleness Professor of Inter- Jeanne M. McNett is a researcher at Northeastern
national Strategy at Ohio University. He earned a BS in University in the D’Amore-McKim College of Business
business at Indiana University and MBA and Ph.D. and Professor of Management, Emerita, at Assumption
degrees at the University of Washington. He has authored College. Dr. McNett also has taught at Morris College
or edited over 30 books and monographs, more than and the University of Maryland in their Asian and
140 published papers, and more than 40 case studies; European divisions. She earned her Ph.D. at the Univer-
he serves on the editorial boards of several leading sity of Massachusetts, Amherst, and her MBA at the Cass
international academic journals including editor-in-chief School of Business, City University, London, UK. She
or associate editor for four journals; he served as the has had expatriate assignments in Germany, the UK,
Saastamoinen Foundation chair at the Helsinki School Saudi Arabia, Japan, and Korea. Her interests include the
of Economics in Finland; he was the founding chair of role of culture in international business and the pedagogy
the Strategic Alliances Committee of the Licensing Ex- of international management. Her publications include
ecutives Society; he served as the chair of both the Inter- the Blackwell Encyclopedia of Management, Interna-
national Business and the Strategy and Policy divisions tional Management, second and third editions (Blackwell,
of the Administrative Sciences Association of Canada; 2006; Wiley, 2015); The Blackwell Handbook of Global
and he is past chair of the Academy of Management’s Management (Blackwell, 2004); and A Primer on Sus-
International Management division. His research has ap- tainability (Business Expert Press, 2014). Her teaching,
peared in Strategic Management Journal, Academy of research, and presentations have received awards,
Management Journal, Journal of International Manage- including the Roethlisberger Best Paper of the Year
ment, Columbia Journal of World Business, Management Award from the Journal of Management Education and
International Review, Journal of Management Studies, the Alpha Phi Alpha Teacher of the Year Award. She is
Human Resource Management Journal, Long Range involved in community sailing on Cape Cod and in Open
Planning, Organisation Studies, Thunderbird Interna- University Wellfleet, a community education effort.
tional Business Review, and Journal of Applied Psychol-
ogy, among others. He has received 11 “best paper”
awards for his research, including the Decade Award for
most influential article from the Journal of International
Business Studies. In addition to spending many years
living abroad, he has traveled and worked in dozens of
nations worldwide. His teaching performance has earned
numerous awards in the United States, Canada, Asia,
Africa, Australia, and Europe, including the University
Distinguished Teacher Award. In addition to many ser-
vice activities with various social and nongovernmental
organizations, Geringer is active in consulting and exec-
utive development for multinational corporations and
executives from six continents.
vii
viii About the Authors
Michael S. Minor Don A. Ball
Michael S. Minor is professor of marketing and interna- Don A. Ball, a consultant to multinational corporations,
tional business at the University of Texas Rio Grande was a professor of marketing and international business
Valley and interim chair of the marketing department. for several years after leaving industry. He has a degree
He previously served as director of the Ph.D. program in mechanical engineering from Ohio State and a doctor-
and as undergraduate program director there. He was ate in business administration from the University of
educated at the University of North Carolina, American Florida. Ball has published articles in the Journal of
University, and Cornell and holds his Ph.D. from International Business Studies and other publications.
Vanderbilt University. He began his international career Before obtaining his doctorate, he spent 15 years in vari-
in Asia, where he lived for several years. His current ous marketing and production management positions in
research interests are in consumer neuroscience, social Mexico, South America, and Europe.
network behavior, and advertising. He has published in
Journal of Retailing, Journal of Advertising, Journal
of International Business Studies, Psychology and
Marketing, International Studies of Management and
Organization, Cyberpsychology and Behavior, Journal
of Advertising Research, Academy of Management
Learning and Experience, the Wiley Encyclopedia of
Management, and elsewhere. He is the author of Flash
Marketing, and coauthor with John C. Mowen of Under-
standing Consumer Behavior and the forthcoming
Consumer Behavior: A Managerial Approach. He is a
prolific collaborator with current and former Ph.D.
students and has directed some 15 doctoral dissertations.
He is a former member of a country band and currently
plays in the band at his church. A member of BMI, he
has written nearly two dozen songs, some of which are
actually fairly good.
A LETTER TO STUDENTS
Welcome to International Business. We are enthusiastic about the field of international business
and the interesting challenges and opportunities it provides. In preparing International Business
for you, our goal is to create the most accessible and personal learning program, so that our read-
ers can share in the excitement we find in this field. Whether you are an undergraduate or are in
an MBA program, an international business course is a necessary venue for helping you explore
and understand the complexities that face us in today’s ever more global business world. Our
hope is that our content will answer questions about business in different cultures, the impact of
geography, why products are the same (or different) across cultures, why people have different
practices, the continued growth and effect of the Internet on international business, how you can
succeed in this global world and many, many more questions. The field of international business
is exciting and dynamic, so there are always new questions and sometimes there are new answers
to old questions.
Each of the 15 modules provides you with a condensed presentation of international business
topics. Within each module, contemporary, student-focused examples offer you an immediate
appreciation of the critical importance of the concept under discussion. Alongside more tradi-
tional developed-country applications throughout the text, we also integrate extensive examples
that apply to emerging-market contexts, and that highlight key changes occurring in the global
economy. All applications are current, relevant, readable, and challenging. Together they provide
you with a truly global view of business. Eye-catching photos, maps, and figures, plus exclusive
features like Get That Job! From Backpack to Briefcase vignettes and Culture Facts cultural high-
lights, reinforce the appeal and readability of the material, personalize the content, and enhance
your enjoyment and your learning. Looking for an even more personal experience, and an efficient
and effective way to study? Ask your Instructor how you can access this content via SmartBook®
or visit www.learnsmartadvantage.com.
We wish you an exciting journey of discovery within the field of international business, both
in your academic training and in your personal and professional careers!
Sincerely,
Mike Je anne D on
Michael
[email protected] [email protected]
ix