3rd Edition

International Business Theory and Practice

By Riad Ajami, Jason G Goddard Copyright 2014
    464 Pages
    by Routledge

    464 Pages
    by Routledge

    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.

    1. An Introduction to International Business and Multinational Corporations

    Recent Trends in World Trade

    Discussion Questions


    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


    Discussion Questions


    Mini-Case: Electronics International, Ltd.

    3. Theories of Trade and Economic Development

    Introduction to International Trade Theories

    More Recent Theories

    Modern Theories

    Theories of Economic Development

    The Global Continuum: Where Nations Fall Today

    Patterns of World Development


    Discussion Questions


    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

    IMF Conditionality

    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


    Discussion Questions


    Appendix: Balance of Payments

    Appendix Discussion Questions

    Appendix Bibliography

    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

    Market Volumes

    Uses of the Foreign Exchange Market

    Types of Exposure in Foreign Exchange Markets

    Types of Foreign Exchange Markets

    Foreign Exchange Rates

    Triangular Arbitrage

    Covered Interest Arbitrage

    Currency Futures Markets

    Foreign Currency Options

    Forecasting Foreign Exchange Rates

    Special Accounting Problems

    Special Issues and Problems in International Taxation


    Discussion Questions


    Mini-Case: Skytrack Instrumentation

    Mini-Case: Chemtech, Inc.

    6. Supranational Organizations and International Business


    General Agreement on Tariffs and Trade (GATT)

    Financial Organizations


    Discussion Questions


    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


    Discussion Questions


    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


    Discussion Questions


    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


    Discussion Questions


    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

    Managing Risk


    Discussion Questions


    Mini-Case: Amalgamated Polymers, Inc.

    11. Ethical Questions: Multinationals and Sustainability

    Emerging Environmental Concerns

    Social Responsibility of Business

    Major Environmental Issues

    MNC Responses

    MNC Opportunities

    Ethical Issues are Now Center Stage


    Discussion Questions


    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


    Discussion Questions


    Mini-Case: Remagen Brothers, Ltd.


    Riad Ajami, Jason G Goddard