International Busin ess Stuart Wall

Transcription

1 International Busin ess Stuart Wall Sonal Minocha Bronwen Rees Marlow, England London New York» Boston San Francisco Toronto Sydney Auckland» Singapore Heng Kong Tokyo Seoul * Taipei «N»«' ^ Cape Town Säo Paulo Mexico City Madrid

2 Preface: using this book Acknowledgements Abbreviations xv xvii xxi 1 Introduction to international business 1 Introduction 1 Patterns and trends in international business 1 Globalisation 16 The multinational enterprise (MNE) 30 How important are the multinationals? Relative unit labour costs (RULC) Definitions of globalisation Dyson revisits its international location A local hero's fight for American jobs Manufacturing futures and markets JCB adapts to the Indian market Outsourcing in Action: China outsources clothes Reshoring creates new jobs Competing in a globalised economy 27 2 Internationalisation process 37 Introduction 37 Export-based methods for internationalisation 38 Non-equity-based methods for internationalisation 42 Equity-based methods for internationalisation 48 Why invest abroad? 57 Theoretical explanations Producers pin hope on Agoa Trade Pact to drive exports Patents and the EU pharmaceuticals market Asda sees gap in Malta market for George shop Legal process outsourcing in India Market entry into China Renault and Nissan seek 4.3bn in synergies The Japanese keiretsu 54 vii

3 2.8 High energy costs drive EU industry abroad China's thirst for dairy Toyota wins support for its US Operations Nokia offers a taxing tale Internationalisation may not always deliver! 72 3 International business: theory and practica Introduction '5 Gains from trade Sources of comparative and competitive advantage 8' Trade and the world economy Barriers to trade Protectionist policies 3- Regional trading arrangements 10'-' Government policies and international business 10;.' International institutions and world trade 108 The International Monetary Fund (IMF) 114 World Bank 1'- 3.1 Comparative advantage and opportunity cost 7/ 3.2 Gains from trade Impacts of a tariff Impacts of a subsidy 3.5 Customs Union: trade creation and trade diversion Impacts of EU policies on farms and agri-businesses IMF stabilisation programmes World Bank structural adjustment and stabilisation Free trade and its impacts: NAFTA Intra-industry trade: Honda Indian subsidies to cereal farmers Luxembourg tax regime: Under siege WTO doubts grow over global role The political, legal, economic and technological environment 121 Introduction 121 Political environment 122 Political risk 123 The international legal and regulatory environment 132 Intellectual property rights 139 Economic systems 145 Economic variables and the business environment 148 viii

4 Technological environment 153 Technology transfer EU directives and state aid Strategie patenting Elasticity of demand Creating or destroying jobs Chinese government and EU milk produets Sugar and onions in India BMW after Rover Stricter US roles drive fuel efficiency Light bulbs reduce energy costs Engineering the future - smartphone patents Redskins lose trademark protection Market influences on Wellcome share price Transport and elasticities of demand Eyeball scans are a fresh weapon against fraud International sociocultural environment 159 Introduction 159 National cultural characteristics 160 Cultural impacts on international business 170 National, organisational and occupational cultures 178 Strategies for developing intercultural competence A clash of cultures National and organisational cultural dimensions Brazilian, Russian, Indian and Chinese cultural characteristics National culture and Japanese competitiveness East meets West Apple Corporate culture and Japanese competitiveness Challenges to cross-cultural team management International ethical and ecological environment 189 Introduction 189 Business ethics 190 Ethics and the corporate culture 192 Ethical responsibilities and codes of conduct 195 Ethics and profits 200 International business ethics 203 ix

5 tents Ecological/environmental issues 208 Global warming, 'carbon footprint' and tradable permits An ethical dilemma Tl Corruption Perception Index Bribery and corruption Environmental impacts, taxes and regulations Stern Report and global warming The EU Emissions Trading Scheme The Body Shop Apple in supply-chain purge at Africa mines Forestry and corporate responsibility Organic farming Emissions trading: The case of cement International Strategie issues 221 Introduction 221 Business strategy - ideas and concepts 222 Choice of strategy 228 Corporate strategy in a global economy 232 International business and the value chain 237 International business strategies 238 Institutional strategies and international business 242 Techniques for Strategie analysis 251 International Operations management and logistical strategies Mergers and acquisitions incentives Two-firm zero-sum game Lean produetion Inventory (stock) costs and control Economies of scope and the transport sector Strategies for MNEs in emerging markets Flipkart formulation: strategy for an Indian start-up Publishers take on Amazon Apple hopes to open door to 'smarter' homes Daimler-Benz AG and Chrysler Retail banks go digital E-tailers in India prepare for Showdown Operations management system: Khan Handicrafts Surgeons adopt assembly-line ideas Walmart's English experiment 273 x

6 8 International human resource management 278 Introduction 278 Human resource management function 278 International human resource management (IHRM) 284 International HRM approaches 288 IHRM policies and practices Motivation theory and HRM Greek national culture and decentralisation of the IHRM function Hire the young and old McDonald's Uncertainty avoidance and IHRM policies China factory Chiefs struggle to maintain worker loyalty Islamic culture and IHRM Skills training urged for low paid Mindset of a Toyota manager revealed Reward mechanisms in cross-cultural contexts International marketing 303 Introduction 303 The principal activities of marketing 304 International marketing 310 Reasons for international marketing 311 Decision making and international marketing 312 Market selection 316 Market-entry strategies 318 International marketing mix 319 International marketing planning Baseball thrives on desk research Market segmentation Variations in the international marketing mix Strategie pricing initiatives Price elasticity of demand (PED) and revenue Price discrimination Promotion/advertising and demand How Lego and others turned to anthropology Britons use smart devices for longer than they sleep MovingADS Flipkart aims to make shoe fit Tesco steps up battle against pound shops Royal Mail, pricing and letters 328 xi

7 9.7 Indian stores in search of drama International finance: theory and practica 340 Introduction 340 Accounting, financial Information and decision making 341 Risk assessment and the credit rating agencies 347 International financial markets 350 The exchange rate 352 International debt financing 355 Other international financial markets 360 International equity markets 363 International financial risk management Types of exchange rate The Structured Investment Vehicle (SIV) Financial Instruments and international trade Accounts shake-up New accounting rule a boost for Investors Moody's cuts Puerto Rico deeper into junk Moody's faces new conflict of interest claim IMF says 'overvalued' pound preventing rebalancing Sliced and diced debt deals returns Tunisia and Pakistan join rush for Sharia bonds Risk needs a human touch 367 References 370 Index 375 xii