The new and updated edition of this widely used text is equally useful for undergraduate and graduate students of international business. Its student-friendly format, detailed coverage of classic and timely topics, and extensive use of case studies make it widely adaptable for different level courses, as well as for educators who prefer either a case study or lecture approach. This edition features new coverage of the Asian financial crisis and the European Union. Its treatment of such topics as foreign exchange, international trade policy, and economic development introduces students to techniques for analysing national economies that are not covered in many competing texts. Ethical and environmental issues are also covered in detail, and all case studies, tables, and figures have been thoroughly revised and updated.
Each chapter includes a short case study, while longer, more complex case studies conclude the text. Each chapter also features learning objectives, discussion questions, and references. An online instructor's guide that includes PowerPoints with end-of-chapter answers and maps is available to instructors who adopt the text.
Table of Contents
1. An Introduction to International Business and Multinational Corporations
Recent Trends in World Trade
Mini-Case: Transworld Minerals, Inc.
2. The Nature of International Business
Domestic Versus International Business
Methods of Going International
Recent Trend Patterns and Changes in Global Trade
Government Involvement in Trade Restrictions and Incentives
Regional Trade Groups and Cartels
Non-tariff Barriers to Merchandise Trade
Mini-Case: Electronics International, Ltd.
3. Theories of Trade and Economic Development
Introduction to International Trade Theories
More Recent Theories
Theories of Economic Development
The Global Continuum: Where Nations Fall Today
Patterns of World Development
Mini-Case: Euromanage, Inc.
4. International Monetary System and Balance of Payments
International Monetary Terminology
A Brief History of the International Monetary System
The International Monetary Fund (IMF)
Forms of IMF Assistance
Special Drawing Rights
Difficulties in the Bretton Woods System
The Floating Rate Era: 1973 to the Present
European Monetary System
Difficulties in the Floating Rate Era
Issues for Reform
Appendix: Balance of Payments
Appendix Discussion Questions
Mini-Case: Global Bank Corporation
Mini-Case: Scrinton Technologies
5. Foreign Exchange Markets
The Structure of the Foreign Exchange (FX) Markets
Location of Foreign Exchange Markets
Uses of the Foreign Exchange Market
Types of Exposure in Foreign Exchange Markets
Types of Foreign Exchange Markets
Foreign Exchange Rates
Covered Interest Arbitrage
Currency Futures Markets
Foreign Currency Options
Forecasting Foreign Exchange Rates
Special Accounting Problems
Special Issues and Problems in International Taxation
Mini-Case: Skytrack Instrumentation
Mini-Case: Chemtech, Inc.
6. Supranational Organizations and International Business
General Agreement on Tariffs and Trade (GATT)
Mini-Case: Structural Adjustments in Masawa
7. Analyzing National Economies
The Purpose and Methodology of Country Analysis
Preliminary Economic Indicators
Market Demand Forecasting
Areas of Research
Methods of Estimating Market Size and Share
Designing Initial Market Strategy
Appendix: A Step By Step Approach to Market Research
Mini-Case: The Republic of Mazuwa
8. International Law and Global Orientations
Public and Private Law
Different Legal Systems
International Treaties Framework
Legal Concepts Relating To International Business
Areas of Concern to Multinational Corporations
Intellectual and Industrial Property Rights
Operational Concerns of Multinational Corporations
Resolving Business Conflicts
Mini-Case: Compu-Soft Systems, Inc.
9. Sociocultural Factors
Sociocultural Factors and International Business
Society, Culture, and Sociocultural Forces
Elements of Culture
Other Theories of Culture
Management of Cultural Change
Mini-Case: Delis Foods Corporation
Mini-Case: Air America
10. Foreign Investment: Researching Risk
Why Invest Abroad?
Assessing Political Risk
Types of Host National Control
Assessing the Risk
Mini-Case: Amalgamated Polymers, Inc.
11. Ethical Questions: Multinationals and Sustainability
Emerging Environmental Concerns
Social Responsibility of Business
Major Environmental Issues
Ethical Issues are Now Center Stage
Mini-Case: Milford Processes, Inc.
Mini-Case: Alapco Chemicals, Ltd.
12. Future Issues in International Business
Letters of Credit in International Trade
Why Study the Future?
Future Trends Affecting International Business
Impact of Trends on MNCs
Mini-Case: Remagen Brothers, Ltd.