Table of contents for International business : strategy, management, and the new realities / S. Tamer Cavusgil, Gary Knight, John R. Reisenberger.

Bibliographic record and links to related information available from the Library of Congress catalog.

Note: Contents data are machine generated based on pre-publication provided by the publisher. Contents may have variations from the printed book or be incomplete or contain other coding.

I	Foundation Concepts
1. Introduction: What is International Business? 
2. Globalization of Markets and the Internationalization of the Firm 
Page proof Chapter 2 does not have "the" in the title. Lena will ask Production to add "the" to page proofs
3. Organizational Participants that Make International Business Happen `
4. Theories of International Trade and Investment 
II	The Environment of International Business 
5. The Cultural Environment of international Business
6. Political and Legal Systems in National Environments 
7. Government Intervention in International Business 
8. Regional Economic Integration 
9. Understanding Emerging Markets 
 10. The International Monetary and Financial Environment 
III	Strategy and Opportunity Assessment for International Business
11. Global Strategy and Organization 
12. Global Market Opportunity Assessment 
IV	Entering and Operating in International Markets
13. Exporting and Countertrade
14. Foreign Direct Investment and Collaborative Ventures 
15. Licensing, Franchising and other Contractual Strategies 
16. Global Sourcing 
V	Functional Area Excellence
17. Marketing in the Global Firm
18. Human Resource Management in the Global Firm
19. Financial Management and Accounting In the Global Firm 
Preface xxii
Part I: Foundation Concepts 2
Introduction: What Is International Business? 2
A Day in the Global Economy 2
What Is International Business? 4
What Are the Key Concepts in International Trade and Investment? 5
The Nature of International Trade 5
The Nature of International Investment 6
Services as Well as Products 8
The International Financial Services Sector 10
How Does International Business Differ from Domestic Business? 11
The Four Risks in Internationalization 11
Who Participates in International Business? 13
Multinational Enterprise (MNE) 13
 	Global Trend: DIESEL S.p.A.: A Smaller Firm¿s Smashing Success in International Markets 15 Non-governmental Organizations (NGOs) 16 
Why Do Firms Pursue Internationalization Strategies? 16
Why Should You Study International Business? 18
Facilitator of the Global Economy and Interconnectedness 18
Contributor to National Economic Well-Being 19
A Competitive Advantage for the Firm 20
An Activity with Societal Implications 20
Gaining Managerial Skills in International Business 
Will Provide a Competitive Advantage for You 21
 	Recent Grad in IB: Ashley Lumb 22 
 	Closing Case: Whirlpool¿s Dramatic Turnaround Through Internationalization and Innovation 23 
 	Chapter Essentials: Key Terms 25 Summary 25 Apply Your Understanding 26 Test Your Comprehension 26 Global EdgeInternet Exercises 27 
Globalization of Markets and the Internationalization of the Firm 28
Bangalore: The New Silicon Valley 28
Why Globalization Is Not a New Phenomenon 31
Phases of Globalization 31
An Organizing Framework for Market Globalization 34
Dimensions of Market Globalization 35
Drivers of Market Globalization 37
Technological Advances as a Driver of Market Globalization 40
Information Technology 42
Communications 42
 	Global Trend:Globalization and E-Business in the Online World 43 Manufacturing 44 Transportation 44 
Societal Consequences of Market Globalization 44
Loss of National Sovereignty 44
Offshoring and the Flight of Jobs 45
Effect on the Poor 46
Effect on the Natural Environment 47
Effect on National Culture 47
Firm-Level Consequences of Market Globalization: Internationalization of the Firm¿s Value Chain 51
 Closing Case: Closing Case 53 Diverse Perspectives on Globalization of Markets 53 
 Chapter Essentials: Key Terms 55 Summary 55 Test Your Comprehension 56 Apply Your Understanding 56 
Global Edge Internet Exercises 57
 	MSB What is a C/K/R Management Skill Builder©? 58 
 	MSBCorporate Social Responsibility: Coffee, Ethiopia, and Starbucks 59 
Organizational Participants that Make International Business Happen 60
Born Global Firms 60
Three Types of Participants in International Business 62
Participants Organized by Value-Chain Activity 63
An Illustration of an International Value Chain: Dell Inc. 64
Focal Firms in International Business 66
The Multinational Enterprise 66
Small and Medium-Sized Enterprises 68
Born Global Firms 68
Foreign Market Entry Strategies of Focal Firms 69
A Framework for Classifying Market Entry Strategies 69
Focal Firms other Than the MNE and SME 71
Distribution Channel Intermediaries in International Business 75
Intermediaries Based in the Foreign Market 75
Intermediaries Based in the Home Country 76
Online Intermediaries 79
 	Global Trend: Online Retailers: Contemporary Global Intermediaries 80
Facilitators in International Business 81
 	Recent Grad in IB: Cynthia Asoka 82 
 	Closing Case: DHL International: An Ambitious Competitor in Global Logistics Services 85 
 Chapter Essentials: Key Terms 87 Summary 88
Test Your Comprehension 89 Apply Your Understanding 89
Global EdgeInternet Exercises 90
 	MSBFinding and Evaluating Freight Fowarders 91 
Theories of International Trade and Investment 92
Dubai¿s Successful Transformation into a Knowledge-Based Economy 92
Theories of International Trade and Investment 94
Why Nations Trade 96
Classical Theories 96
How Nations Enhance Their Competitive Advantage: Contemporary Theories 102
The Competitive Advantage of Nations 102
Michael Porter¿s Diamond Model 103
National Industrial Policy in Practice: An Example 107
New Trade Theory 108
Why and How Firms Internationalize 108
Internationalization Process of the Firm 108
 Global Trend: Repositioning to Create National 
Comparative Advantage 109
Born Globals and International Entrepreneurship 110
How Firms Gain and Sustain International Competitive Advantage 110
FDI-Based Theories 111
Non-FDI Based Explanations 116
 	Closing Case: Hyundai: The Struggle for International Success 117 
 Chapter Essentials: Key Terms 119 Summary 119
Test Your Comprehension 120 Apply Your Understanding 121
 Global Edge Internet Exercises 122
 	MSB Best Locations for Manufacturing 123 
rt 2 The Environment of International Business 124
The Cultural Environment of International Business 124
American Football ... in Europe? 124
The Challenge of Crossing Cultural Boundaries 126
The Meaning of Culture: Foundation Concepts 129
Why Culture Matters in International Business 131
 	Recent Grad in IB: Zhibo (Lawrence) Yu 133 National, Professional, and Corporate Culture 134 Interpretations of Culture 135 
Cultural Metaphors 135
Stereotypes 135
Idioms 135
Hall¿s High- and Low-Context Cultures 136
Hofstede¿s Research on National Culture 137
Key Dimensions of Culture 139
Values and Attitudes 139
Deal versus Relationship Orientation 139
Manners and Customs 140
Perceptions of Time 140
Perceptions of Space 141
Religion 141
Symbolic Productions 144
Material Productions and Creative Expressions of Culture 144
Language as a Key Dimension of Culture 144
Culture and Contemporary Issues 146
Culture and the Services Sector 146
Technology, the Internet, and Culture 147
Globalization¿s Effect on Culture: Are Cultures Converging? 147
Managerial Guidelines for Cross-Cultural Success 148
 	Global Trend: Minimizing Cross-Cultural Bias with Critical Incident Analysis 150 
 	Closing Case: Hollywood and the Rise of Cultural Protectionism 151 
 Chapter Essentials: Key Terms 153 Summary 153 Test Your Comprehension 154 Apply Your Understanding 155 
 Global Edge Internet Exercises 156
 	MSBDeveloping an Incentive Plan for Sales Personnel from Different Cultures 157 
Political and Legal Systems in National Environments 158
Doing Business in Russia: Evolving Legal and Political Realities 158
What Is Country Risk? 160
How Prevalent Is Country Risk? 161
What Are Political and Legal Systems? 163
Political Systems 164
Totalitarianism 164
Socialism 165
Democracy 165
Democracy¿s Link to Economic Freedom 166
How Political Systems Influence Economic Systems 167
Legal Systems 168
Five Types of Legal Systems 169
Actors in Political and Legal Systems 172
Government 172
International Organizations 172
Regional Economic Blocs 172
Special Interest Groups 172
Competing Firms 173
Types of Country Risk Produced by the Political System 173
Government Takeover of Corporate Assets 173
Embargoes and Sanctions 174
Boycotts against Firms or Nations 174
War, Insurrection, and Revolution 174
Terrorism 175
Types of Country Risk Produced by the Legal System 175
Country Risk Arising from the Host Country Legal Environment 175
Country Risk Arising from the Home-Country Legal Environment 177
 	Global Trend:E-Commerce and the International Legal Environment 178 Managing Country Risk 181 
Proactive Environmental Scanning 181
Strict Adherence to Ethical Standards 181
Allying with Qualified Local Partners 184
Protection through Legal Contracts 184
Safeguarding Intellectual Property Rights 184
 	Closing Case: Pillaging Patents: The New War on Pharmaceutical Drugs 186 
 Chapter Essentials: Key Terms 188 Summary 188 Test Your Comprehension 189 Apply Your Understanding 189 
 Global Edge Internet Exercises 190
 	MSB Performing a Preliminary Country Risk Analysis 191 
Government Intervention in International Business 192
India¿s Path Away from Government Intervention and Bureaucracy 192
Government Intervention in International Business 194
Rationale for Government Intervention 196
Defensive Rationale 197
Offensive Rationale 198
Instruments of Government Intervention 199
Tariffs 200
Nontariff Trade Barriers 202
Investment Barriers 204
Subsidies and Other Government Support Programs 205
Government Intervention, Economic Freedom, and Ethical Concerns 207
Evolution of Government Intervention 210
 	Global Trend: The World Trade Organization and International Services: The Doha Round 211 How Firms Should Respond to Government Intervention 212 
Strategies for Managers 212
 	Closing Case: Airbus versus Boeing: When is Intervention Not Intervention? 215 
 Chapter Essentials: Key Terms 217 Summary 217 Test Your Comprehension 218 Apply Your Understanding 218 
 Global Edge Internet Exercises 220
 	MSB Harmonized Code Tariffs as Trade Barriers for Devel 221 
Regional Economic Integration 222
The European Union 222
Regional Integration and Economic Blocs 224
Types of Regional Integration 225
Leading Economic Blocs 228
The European Union (EU) 228
 	Global Trend: Integrating Eastern Europe and Turkey into the EU 229 European Free Trade Association (EFTA) 234 North American Free Trade Agreement (NAFTA) 234 El Mercado Comun del Sur (MERCOSUR) 236 The Caribbean Community (CARICOM) 236 
Comunidad Andina de Naciones (CAN) 237
Association of Southeast Asian Nations (ASEAN) 237
Asia Pacific Economic Cooperation (APEC) 237
Australia and New Zealand Closer Economic Relations Agreement (CER) 238
Economic Integration in the Middle East and Africa 238
Why Countries Pursue Regional Integration 239
Success Factors for Regional Integration 240
Drawbacks and Ethical Dilemmas of Regional Integration 241
Management Implications of Regional Integration 243
 	Closing Case: Russell Corporation: The Dilemma of Regional Free Trade 246 
 Chapter Essentials: Key Terms 249 Summary 249 Test Your Comprehension 250 Apply Your Understanding 251 
 Global Edge Internet Exercises 252
 	MSB Entering the Retailing Sector in the New EU Member States 253 
Understanding Emerging Markets 254
The New Global Challengers: Newly Internationalizing MNEs from Emerging Markets 254
The Distinction between Advanced Economies, Developing Economies, and Emerging Markets 256
Advanced Economies 257
Developing Economies 257
Emerging Market Economies 260
 	Global Trend: China: Growing Role in International Business 264 What Makes Emerging Markets Attractive for International Business 265 
Emerging Markets as Target Markets 265
Emerging Markets as Manufacturing Bases 265
Emerging Markets as Sourcing Destinations 266
Estimating the True Potential of Emerging Markets 266
Per-capita Income as an Indicator of Market Potential 267
Middle Class as an Indicator of Market Potential 268
Use of a Comprehensive Index to Measure Market Potential 269
Risks and Challenges of Doing Business in Emerging Markets 270
Political Instability 271
Weak Intellectual Property Protection 271
Bureaucracy, Red Tape, and Lack of Transparency 271
Partner Availability and Qualifications 271
Dominance of Family Conglomerates 272
Strategies for Doing Business in Emerging Markets 272
Partnering with Family Conglomerates 273
Marketing to Governments in Emerging Markets 273
Skillfully Challenge Emerging Market Competitors 274
Catering to Economic Development Needs of Emerging Markets and Developing Economies 275
Fostering Economic Development with Profitable Projects 275
Microfinance to Facilitate Entrepreneurship 276
 	Closing Case: Arcelik: International Aspirations of an Emerging Market Firm 277 
 Chapter Essentials: Key Terms 279 Summary 279 Test Your Comprehension 280 Apply Your Understanding 281 
 Global Edge Internet Exercises 282
 	MSB Learning About and Assessing Emerging Markets 283 
The International Monetary and Financial Environment 284
The Complex Monetary and Financial Relationship between China and the United States 284
Currencies and Exchange Rates in International Business 286
Convertible and Nonconvertible Currencies 287
Foreign Exchange Markets 288
Exchange Rates Are in Constant Flux 288
How Exchange Rates Are Determined 290
Economic Growth 290
Interest Rates and Inflation 291
Market Psychology 292
Government Action 292
Development of the Modern Exchange Rate System 293
 	Global Trend: Is the U.S. Trade Deficit Good or Bad? 294
The Exchange Rate System Today 295
The International Monetary and Financial Systems 296
International FMonetary System 296
Global Financial System 297
Key Players in the Monetary and Financial Systems 298
The Firm 298
National Stock Exchanges and Bond Markets 298
Commercial Banks 300
 	Recent Grad in IB: Chip Besse 301
Central Banks 302
The Bank for International Settlements 302
International Monetary Fund 302
World Bank 304
 	Closing Case: The European Union and the Euro 305 
 Chapter Essentials: Key Terms 308 Summary 308
Test Your Comprehension 309 Apply Your Understanding 309
Global Edge Internet Exercises 310
 	MSBIdentifying the Best Location for a Bank Branch Abroad 311 
rt 3 Capabilities for Assessing the International Environment 312
Global Strategy and Organization 312
IKEA¿s Global Strategy 312
The Role of Strategy in International Business 315
Strategy in Multidomestic and Global Industries 316
The Integration-Responsiveness Framework 317
Pressures for Local Responsiveness 318
Pressures for Global Integration 318
Distinct Strategies Emerging from the Integration-Responsiveness Framework 319
Organizational Structure 322
Centralized or Decentralized Structure? 322
Alternative Organizational Arrangements for International Operations 323
Export Department or International Division 324
Decentralized Structure (Geographic Area Division) 325
Centralized Structure (Product or Functional Division) 326
Global Matrix Structure 327
Building the Global Firm 328
Visionary Leadership 329
Organizational Culture 331
 	Global Trend: Global Corporate Social Responsibility Rises to the Top of the MNE Agenda 332 Organizational Processes 333 Common Organizational Processes Designed to Achieve Coordination 333 
Putting Organizational Change in Motion 334
 	Closing Case: Carlos Ghosn and Renault-Nissan: Leading for Global Success 336 
 Chapter Essentials: Key Terms 338 Summary 339 Test Your Comprehension 340 Apply Your Understanding 340 
Global Edge Internet Exercises 342
 	MSB The Critical Role of Negotiations in International Business 343 
Global Market Opportunity Assessment 344
Estimating Market Demand in Emerging Markets and Developing Countries 344
Global Market Opportunity Assessment: An Overview 346
Task One: Analyze Organizational Readiness to Internationalize 347
Task Two: Assess the Suitability of the Firm¿s Products and Services for Foreign Markets 351
Factors Contributing to Product Suitability for International Markets 351
Key Issues for Managers to Resolve in Determining Product Potential 352
Task Three: Screen Countries to Identify Target Markets 353
Targeting Regions or Gateway Countries 354
Screening Methodology for Potential Country Markets 354
 	Global Trend: Global Macro Trends That Affect International Business 355
Screening Countries for Direct Investment and Global Sourcing 360
Task Four: Assess Industry Market Potential 362
Practical Methods for Managers to Assess Industry Market Potential 364
Data Sources for Estimating industry Market Potential 365
Task Five: Select Foreign Business Partners 365
 	Recent Grad in IB: Javier Estrada 366
Criteria for Selecting a Partner 367
Searching for Prospective Partners 367
Task Six: Estimate Company Sales Potential 368
Determinants of Company Sales Potential 368
Practical Approaches to Estimating Company Sales Potential 370
In Conclusion 371
 	Closing Case: Advanced Biomedical Devices: Assessing Readiness to Export 372 
 Chapter Essentials: Key Terms 375 Summary 375
Test Your Comprehension 376 Apply Your Understanding 376
 Global Edge Internet Exercises 378
 	MSB Global Market Opportunity Assessment for Cancer Insurance 379 
rt 4	Entering and Operating in International 
Markets 380
Exporting and Countertrade 380
Exporter¿s Dogged Pursuit of International Customers 380
An Overview of Foreign Market Entry Strategies 382
The Internationalization of the Firm 383
Diverse Motives for Pursuing Internationalization 383
Characteristics of Firm Internationalization 384
Exporting as a Foreign Market Entry Strategy 385
Exporting: A Popular Entry Strategy 387
Service Industry Exports 388
Advantages of Exporting 389
Disadvantages of Exporting 390
 	Global Trend: The Emergence of SME Exporters 390 A Systematic Approach to Exporting 391 Importing 394 
Managing Export-Import Transactions 394
Documentation 395
Shipping and Incoterms 396
Methods of Payment in Exporting and Importing 396
Cash in Advance 397
Letter of Credit 398
Open Account 399
Consignment Sales 399
Cost and Sources of Export-Import Financing 400
Commercial Banks 400
Factoring, Forfaiting, and Confirming 400
Distribution Channel Intermediaries 401
Buyers and Suppliers 401
Intracorporate Financing 401
Government Assistance Programs 401
Multilateral Development Banks (MDBs) 402
Identifying and Working with Foreign Intermediaries 402
Working with Foreign Intermediaries 402
When Intermediary Relations Go Bad 404
Countertrade 405
The Magnitude and Drivers of Countertrade 406
Types of Countertrade 407
Risks of Countertrade 407
Why Countertrade? 408
 	Closing Case: Barrett Farm Foods 409 
 Chapter Essentials: Key Terms 411 Summary 411 Test Your Comprehension 412 Apply Your Understanding 413 
 Global Edge Internet Exercises 414
 	MSB Identifying An Attractive Export Market 
Foreign Direct Investment and Collaborative Ventures 416
Deutsche Post¿s Global Buying Spree 417
Trends in Foreign Direct Investment and Collaborative Ventures 418
Low, Moderate, and High-Control Foreign Market Entry Strategies 418
Motives for Foreign Direct Investment (FDI) and Collaborative Ventures 420
Market-Seeking Motives 420
Resource or Asset-Seeking Motives 420
Efficiency-Seeking Motives 421
Foreign Direct Investment 422
Key Features of FDI 423
Who Is Active in Direct Investment? 424
Service Multinationals 424
Leading Destinations for FDI 425
Factors to Consider in Selecting FDI Locations 425
Types of Foreign Direct Investment 426
Greenfield Investment versus Mergers and Acquisitions 426
The Nature of Ownership in FDI 427
Vertical versus Horizontal FDI 427
International Collaborative Ventures 428
Equity Joint Ventures 428
Project-Based, Nonequity Ventures 429
 	Global Trend: Consolidation in Global Industries 430 Differences between Equity versus Project-Based, Nonequity Ventures 431 Consortium 431 Cross-Licensing Agreements 433 
Managing Collaborative Ventures 432
Understand Potential Risks in Collaboration 433
Pursue a Systematic Process for Partnering 433
Ensure Success with Collaborative Ventures 433
Success Factors in Collaborative Ventures 434
The Experience of Retailers in Foreign Markets 434
Challenges of International Retailing 435
International Retailing Success Factors 436
Foreign Direct Investment, Collaborative Ventures, and Ethical Behavior 437
 	Closing Case: AUTOLATINA: A Failed International Partnership 444 
 Chapter Essentials: Key Terms 446 Summary 446 Test Your Comprehension 447 Apply Your Understanding 447 Global Edge Internet Exercises 448 
 	MSBSelecting a Site for a Manufacturing Plant 449 
Licensing, Franchising, and Other Contractual Strategies 450
Harry Potter: The Magic of Licensing 450
The Nature of Contractual Entry Strategies in International Business 452
Unique Aspects of Contractual Relationships 453
Types of Intellectual Property 453
Licensing 454
Trademark and Copyright Licensing 455
Know-How Licensing 456
Who Are the Top Licensing Firms? 457
Advantages and Disadvantages of Licensing 457
Advantages of Licensing 457
Disadvantages of Licensing 459
Franchising 460
Who Are the Top Franchisors? 462
Advantages and Disadvantages of Franchising 463
The Franchisor Perspective 463
The Franchisee Perspective 464
Other Contractual Entry Strategies 464
Turnkey Contracting 465
Build-Operate-Transfer Arrangements (BOT) 466
Management Contracts 466
Leasing 466
The Special Case of Internationalization by Professional Service Firms 467
 	Recent Grad in IB: Jennifer Knippen 468 
 	Global Trend: Internationalization of Management Consulting Firms 469 Management of Licensing and Franchising 469 
Careful Selection of Qualified Partners 470
Managerial Guidelines for Protecting Intellectual Property 470
 	Closing Case: Subway and the Challenges of Franchising in China 475 
 Chapter Essentials: Key Terms 477 Summary 477 Test Your Comprehension 478 Apply Your Understanding 479 Global Edge Internet Exercises 480 Summary 477 
 	MSB Choosing the Best Entry Strategy 481 
Global Sourcing 482
Global Sourcing of Pharmaceutical Drug Trials 482
Trends Toward Outsourcing, Global Sourcing, and Offshoring 484
Decision 1: Outsource or Not? 486
Decision 2: Where in the World Should Value-Adding Activities Be Located? 487
Global Sourcing from Subsidiaries versus 
Independent Suppliers 487
Contract Manufacturing: Global Sourcing from Independent Suppliers 488
Offshoring 489
Limits to Global Sourcing 490
Strategic Implications of Outsourcing and 
Global Sourcing 490
Evolution of Global Sourcing 491
Phases in the Evolution: From Global Sourcing of Inputs to Offshoring Value-Adding Activities 491
Magnitude of Global Sourcing 492
Diversity of Countries That Initiate and Receive Outsourced Work 492
 	Global Trend: China: Rivaling India in the Global Sourcing Game 493
Benefits and Challenges of Global Sourcing for the Firm 494
Cost Efficiency 495
Achievement of Strategic Goals 495
Implementing Global Sourcing through Supply-Chain Management 497
Logistics and Transportation 500
Transportation Modes 500
Risks in Global Sourcing 501
Strategies for Minimizing Risk 
in Global Sourcing 502
Implications of Global Sourcing for Public Policy and Corporate Citizenship 504
Potential Harm to Economies from Global Sourcing 504
Ethical and Social Implications of Global Sourcing 506
Potential Benefits to National Economy 506
Public Policy toward Global Sourcing 507
 	Closing Case: Good Hopes for Global Outsourcing 508 
 Chapter Essentials: Key Terms 510 Summary 510
Test Your Comprehension 511 Apply Your Understanding 511
 Global Edge Internet Exercises 512
 	MSBA Smarter Approach to Global Sourcing 513 
rt5 Building the Global Firm: Functional Area Excellence 514
Marketing in the Global Firm 514
Zara¿s Unique Model for International Marketing Success 514
Global Marketing Strategy 516
Targeting Customer Segments and Positioning 516
Standardization and Adaptation of the International Marketing Program 518
Standardization 519
Adaptation 521
Standardization and Adaptation: A Balancing Act 522
Global Branding and Product Development 523
Global Branding 523
Global Product Development 525
International Pricing 526
Factors Affecting International Pricing 526
 	Global Trend: Designing Global Products with Global Teams 527 A Framework for Setting International Prices 529 Managing International Price Escalation 530 Managing Pricing under Varying Currency Conditions 531 Transfer Pricing 531 Gray Market Activity (Parallel Imports) 533 
International Marketing Communications 535
International Advertising 535
International Promotional Activities 537
Global Account Management 537
International Distribution 538
Ethical Dimensions of International Marketing 538
 	Closing Case: MTV India 540 
 Chapter Essentials: Key Terms 542 Summary 542 Test Your Comprehension 543 Apply Your Understanding 543 Global Edge Internet Exercises 544 
 	MSB Developing a Distribution Channel in Japan 545 
Human Resource Management in the Global Firm 546
International Human Resources: Management at Johnson & Johnson 546
The Strategic Role of Human Resources in International Business 548
Three Employee Categories 549
Differences between Domestic and International HRM 549
Key Tasks in International Human Resource Management 551
International Staffing Policy 551
Searching for Talent 553
Expatriate Failure and Culture Shock 555
Preparation and Training of Personnel 556
Preparing Employees for Repatriation 557
Cultivating Global Mindsets 557
Charting Global Careers for Employees 558
International Performance Appraisal 558
Compensation of Personnel 559
International Labor Relations 561
Distinctive Features of Labor around the World 563
The Cost and Quality of Labor 563
Workforce Reduction 564
Trends in International Labor 565
Firm Strategy in International Labor Relations 566
Diversity in the International Workforce 566
Women in International Business 566
 	Global Trend:Global Corporate Citizenship in International Human Resource Management 567 Success Strategies for Women Managers in International Business 570 
 	Closing Case: Sony¿s Evolving Human Resource Challenges 571 
 Chapter Essentials: Key Terms 573 Summary 573 Test Your Comprehension 575 Apply Your Understanding 575 Global Edge Internet Exercises 576 Summary 573 
 	MSB Evaluating International Locations for Quality of Life 577 
Financial Management and Accounting in the 
Global Firm 578
How a Small Firm Rides Foreign-Exchange Waves 578
Primary Tasks in International Financial Management 580
Task One: Decide on the Capital Structure 582
Task Two: Raise Funds for the Firm 582
Financial Centers 583
Sources of Funds for International Operations 584
 	Global Trend: Emerging Markets as International Investment Destinations Debt Financing 587 Intracorporate Financing 588 
Task Three: Working Capital and Cash Flow Management 588
Methods for Transferring Funds within the MNE 589
Multilateral Netting 590
Task Four: Capital Budgeting 591
Net Present Value Analysis of Capital Investment Projects 591
Task Five: Currency Risk Management 592
Three Types of Currency Exposure 593
Foreign Exchange Trading 594
Types of Currency Traders 595
Exchange Rate Forecasting 596
Management of Exposure to Currency Risk through Hedging 597
Best Practice in Minimizing Currency Exposure 599
Task Six: Accommodate the Diversity of International Accounting and Tax Practices 599
Transparency in Financial Reporting 600
Trends toward Harmonization 600
 	Recent Grad in IB: Maria Keeley 601 Consolidating the Financial Statements of Subsidiaries 603 International Taxation 604 
 	Closing Case: International Financial Operations at Tektronix 607 
 Chapter Essentials: Key Terms 609 Summary 609 Test Your Comprehension 611 Apply Your Understanding 611 
Global Edge Internet Exercises 612
 	MSB Understanding Currencies: Big Macs and Dell Computers 613 
notes xxx
sary xxx
to Credits 
me Index ject Index 

Library of Congress Subject Headings for this publication:

International business enterprises -- Management.