International Business, 2nd Edition

Book description

The book follows a clearly formulated methodological structure to introduce the student to the subject. It follows a comprehensive, logical, graded approach based on the concept, environment, structure and strategy of International Business. It looks at the widest possible gamut of issues in the area to give the student an idea of the broad spectrum of issues that subject covers. It incorporates leading-edge research, alongside up-to-date examples and current statistics tracking global developments in this field. It also has the broadest possible geographical coverage as it explores emerging business practices in Africa, TNCs from Latin America and the emergence of new geographies such as Vietnam, Indonesia and Turkey. To provide a well-rounded perspective in a topic, it emphasizes the associated conceptual debates along with the facts. In addition, it incorporates several pedagogical features designed to arouse the interest of students

Table of contents

  1. Cover
  2. Title page
  3. Contents
  4. About the Author
  5. Dedication
  6. Preface
  7. 1. Fundamentals of International Business
    1. Introduction
    2. Elements of Globalization
      1. Economic Globalization
      2. Cultural Globalization
      3. Political Globalization
    3. International Business
    4. Growth of International Business
      1. Economic Forces
      2. Political Forces
      3. Technological Forces
    5. International Versus Domestic Business
    6. Motives for Firm Internationalization
    7. Modes of Entry
      1. Trade-related Entry Modes
      2. Contractual Entry Modes
      3. Investment-related Entry Modes
    8. Emerging Trends in International Business
      1. FDI Moves in Search of Energy
      2. Pharmaceutical FDI Moves in Response to the ‘Patent Cliff’
      3. Mega-regional Agreements
    9. Chapter Summary
    10. Key Terms
    11. Discussion Questions
  8. 2. Political Economy of International Business
    1. Introduction
    2. Economic Environment
      1. Economic Systems
      2. Economic Indicators
      3. Economic Growth
      4. Economic Development
    3. Political Environment
      1. Political Ideologies and Systems
      2. Political Risk
    4. International Business Negotiation
      1. Objectives of International Business Negotiation
      2. Bargaining Power of the TNC
    5. Chapter Summary
    6. Key Terms
    7. Discussion Questions
  9. 3. The International Cultural and Legal Environment
    1. Introduction
    2. Elements of Culture
      1. Language
      2. Non-verbal Communication
      3. Religion
      4. Values and Attitudes
      5. Customs and Manners
      6. Aesthetics
    3. Legal Environment
      1. Global Legal Systems
      2. Legal Jurisdiction
    4. Ethics in International Business
    5. Chapter Summary
    6. Key Terms
    7. Discussion Questions
  10. 4. International Trade Theories
    1. Introduction
    2. International Trade Theories
      1. Mercantilist Doctrine
      2. Classical Approach
      3. Factor Proportions Theory
      4. Leontief Paradox
      5. Linder’s Income-preference Similarity Theory
      6. Product Life-cycle Theory
      7. The New Trade Theory
      8. National Competitive Advantage
      9. Theory Assessment
    3. Developments in World Trade
      1. Volume of Trade
      2. Composition of World Trade
      3. Direction of World Trade
      4. Service Trade
    4. Chapter Summary
    5. Key Terms
    6. Discussion Questions
  11. 5. Commercial Policy Instruments
    1. Introduction
    2. Government Intervention in Trade
      1. Economic Rationale
      2. Non-economic Rationale
    3. Instruments of Trade Control
      1. Tariff Barriers
      2. Non-tariff Barriers
    4. Analysis of India’s Foreign Trade
      1. Volume of India’s Foreign Trade
      2. Composition of India’s Foreign Trade
      3. Direction of India’s Foreign Trade
    5. Chapter Summary
    6. Key Terms
    7. Discussion Questions
  12. 6. Multilateral Regulation of Trade
    1. Introduction
    2. General Agreement on Tariffs and Trade (GATT)
      1. Objectives and Principles
      2. Uruguay Round
      3. GATT: An Evaluation
    3. World Trade Organization (WTO)
    4. WTO Agreements
      1. General Agreement on Tariffs and Trade (GATT)
      2. General Agreement on Trade in Services (GATS)
      3. Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS)
      4. Agreement on Trade-related Investment Measures (TRIMS)
    5. Organizational Structure of WTO
    6. Principles of WTO
      1. Most-Favored-Nation (MFN)
      2. National Treatment
    7. Functions of WTO
    8. WTO: An Evaluation
      1. Developing Country Issues
      2. Dispute Resolution Mechanism
      3. Subsidies in Agriculture
    9. Future Challenges for WTO
    10. United Nations Conference on Trade and Development (UNCTAD)
      1. Functions Of UNCTAD
      2. UNCTAD: An assessment
    11. Chapter Summary
    12. Key Terms
    13. Discussion Questions
  13. 7. International Trade Finance and Promotion
    1. Introduction
    2. International Trade Payment
      1. Cash in Advance
      2. Letter of Credit (L/C)
      3. Documentary Collection
      4. Open Account
    3. Terms of Trade
      1. Free on board
      2. Free alongside Ship
      3. Cost, Insurance and Freight
      4. Cost and freight
    4. International Trade Finance
      1. Private Sources
      2. Governmental Sources
    5. International Trade Credit
    6. Trade Promotion in India
      1. Organizations for Export Promotion
      2. Export Incentives
      3. Marketing Assistance
      4. Market Development Assistance
      5. Market Access Initiative
      6. Foreign Exchange
      7. Trade Fairs and Exhibitions
      8. Export Risk Insurance
      9. Production Assistance/Facilities
      10. Special Economic Zones (SEZs)
      11. Export Processing Zones
      12. Free Trade Zone (Ftz)
      13. Export-oriented Unit (Eou)
      14. Export Houses
      15. Special Economic Zone
    7. Chapter Summary
    8. Key Terms
    9. Discussion Questions
  14. 8. Regional Economic Integration
    1. Introduction
    2. Levels of Economic Integration
      1. Free Trade Area (FTA)
      2. Customs Union
      3. Common Market
      4. Economic Union
      5. Political Union
    3. Effects of Integration
      1. Trade Creation and Trade Diversion
      2. Reduced Import Prices
      3. Increased Competition and Economies of Scale
      4. Higher Factor Productivity
    4. Regional Trading Agreements—A Global Overview
      1. European Union (EU)
      2. Euro
    5. North American Free Trade Agreement (NAFTA)
      1. NAFTA Provisions
      2. Importance of NAFTA
    6. CARICOM
    7. MERCOSUR
    8. Andean Pact
    9. Association of Southeast Asian Nations (ASEAN)
      1. Objectives of ASEAN
      2. ASEAN Achievements
    10. Asia-Pacific Economic Cooperation Forum (APEC)
    11. South Asian Association for Regional Cooperation (SAARC)
    12. Closer Economic Relations (CER)
    13. Africa
    14. Commodity Arrangements
      1. Multi Fibre Arrangement (MFA)
      2. Organization of Petroleum Exporting Countries (OPEC)
    15. Chapter Summary
    16. Key Terms
    17. Discussion Questions
  15. 9. International Financial System
    1. Introduction
    2. Basics of Foreign Exchange
      1. Exchange Rate Determination
      2. Fixed and Flexible Exchange Rate Systems
      3. Currency Convertibility
    3. Evolution of the Monetary System
      1. The Gold Standard (1876–1914)
      2. The Inter-war Years and World War II (1914–44)
      3. The Bretton Woods System (1944–73)
      4. The Post-Bretton Woods System: 1973–Present
    4. Contemporary Exchange Rate Systems
      1. Fixed Exchange Rate System
      2. Independent Float System
      3. Currency Board Arrangement
      4. Soft Pegs
      5. Crawling Peg
      6. Pegged Exchange Rates within Horizontal Bands
      7. Floating Arrangements
    5. International Financial System
      1. Foreign Exchange Markets
    6. Foreign Exchange Risk and Exposure
      1. International Capital Market
      2. International Money Markets
      3. International Bond Market
      4. International Stock Markets
    7. Chapter Summary
    8. Key Terms
    9. Discussion Questions
  16. 10. International Financial Institutions
    1. Introduction
    2. International Monetary Fund (IMF)
      1. Objectives of the IMF
      2. Functions of the IMF
    3. World Bank Group
      1. Loans
      2. Grants
    4. Asian Development Bank
    5. African Development Bank
    6. African Development Fund (ADF)
    7. Nigeria Trust Fund (NTF)
    8. Chapter Summary
    9. Key Terms
    10. Discussion Questions
  17. 11. International Balance of Payments
    1. Introduction
    2. Fundamentals of Balance-of-payments Accounting
      1. Defining International Economic Transactions
      2. The BOP as a Cash Flow Statement
      3. BOP Accounting: Double-entry Book-keeping
    3. Types of Balance-of-payments Accounts
      1. Current Account
      2. Capital and Financial Account
      3. Net Errors and Omissions
      4. Official Reserves Account
    4. The Balance of Payments in Totality
    5. Chapter Summary
    6. Key Terms
    7. Discussion Questions
  18. 12. Foreign Direct Investment
    1. Introduction
    2. FDI: A Classification
      1. Asset-based View
      2. Nature of Business Activity
      3. Motive-based View
    3. Modes of FDI Entry
      1. Branch Office
      2. Strategic Alliances
      3. Wholly Owned Subsidiary
      4. Forms of Wholly Owned Subsidiaries: Greenfield Investment versus Mergers and Acquisitions
      5. Umbrella Holding Company
      6. Differences Between Joint Ventures and Mergers
    4. Global FDI Patterns
      1. Trends in FDI
      2. Direction of FDI
      3. FDI Outflows
    5. Foreign Investment in India
      1. Policy Perspective
      2. Sectoral Dimensions of FDI Flows
      3. Geographical Composition
      4. Outward Indian FDI
    6. Chapter Summary
    7. Key Terms
    8. Discussion Questions
  19. 13. International Organization Structure and Design
    1. Introduction
    2. Early Organizational Structures
    3. International Division Structure
    4. Global Organizational Structures
      1. Global Product Structure
      2. Global Area Structure
      3. Global Functional Structure
      4. Mixed Structure
      5. Matrix Structure
      6. Transnational Network Structure
    5. Determinants of the Organization Structure
    6. Chapter Summary
    7. Key Terms
    8. Discussion Questions
  20. 14. International Marketing
    1. Introduction
    2. International Market Assessment
    3. The Marketing Mix
      1. Market Segmentation
    4. Product
      1. Producer Goods
      2. Consumer Goods
      3. Determinants of Product Adaptation
      4. Brand Management
      5. New Product Development
      6. Promotion Strategy
      7. Pricing Strategy
      8. Distribution
    5. Chapter Summary
    6. Key Terms
    7. Discussion Questions
  21. 15. International HRM
    1. Introduction
    2. Recruitment and Selection
      1. Ethnocentric Approach
      2. Polycentric Approach
      3. Geocentric Approach
      4. Regiocentric Approach
    3. Training and Development
      1. Cross-cultural Training
      2. Language Training
      3. Specific Skills Training
    4. Compensation
    5. International Labor Relations
    6. International Labor Standards
    7. Chapter Summary
    8. Key Terms
    9. Discussion Questions
  22. 16. International Operations
    1. Introduction
    2. Supply-chain Management
    3. International Logistics
      1. Systems Concept
      2. Total Cost Concept
      3. Trade-off Concept
    4. Global Supply Chain Decisions
      1. Quality
      2. Third-party Logistics (3PL)
      3. Location Decisions
      4. Production Decisions
      5. Purchasing Decision
      6. Inventory Decisions
      7. International Packaging Issues
      8. International Storage Issues
      9. Transportation Decisions
      10. Transportation Infrastructure
    5. Chapter Summary
    6. Key Terms
    7. Discussion Questions
  23. 17. International Finance and Accounting
    1. Introduction
    2. Accounting System
    3. National and International Accounting Standards
      1. The Incarnation of IFRS: How it Came into Being
    4. Consolidation and Currency Translation
    5. Taxation
      1. Transfer Prices
      2. Tax Havens
      3. Tax Treaties: The Elimination of Double Taxation
    6. Indian Accounting Practices
      1. IFRS: A Change for the Better
    7. Chapter Summary
    8. Key Terms
    9. Discussion Questions
  24. 18. Global E-commerce
    1. Introduction
    2. E-Commerce vs E-Business
    3. Types of E-commerce
      1. B2B E-commerce
      2. B2C E-commerce
      3. B2G E-commerce
      4. C2C E-commerce
      5. C2B E-commerce
      6. M-Commerce
    4. E-Commerce—An Evaluation
      1. E-commerce Advantages
      2. Disadvantages of E-commerce
    5. Drivers of E-Commerce
      1. Global Factors
      2. Demographic Factors
      3. Economic and Financial Resources
      4. Information Infrastructure
      5. Industry Structure
      6. Firm Size
      7. Entrepreneurial Environment
      8. Consumer Preferences
      9. National Policy
    6. Chapter Summary
    7. Key Terms
    8. Discussion Questions
  25. 19. Environmental Issues in International Business
    1. Introduction
    2. Climate Change
    3. Trans-boundary Pollution
    4. International Legal Frameworks for Environmental Protection
    5. Kyoto Protocol
      1. International Emissions Trading
    6. Chapter Summary
    7. Key Terms
    8. Discussion Questions
  26. 20. Global Outsourcing
    1. Introduction
    2. Forms of Outsourcing
    3. Drivers of Outsourcing
      1. Theory of Comparative Advantage
      2. Concentration on Core Competency
      3. Developments in Technology
      4. Existence of Low-cost, Skilled Manpower
      5. Changes in Regulatory Environment
      6. Infrastructural and Institutional Development
    4. Factors Behind a Decision to Outsource
      1. Technical and Institutional Separability
      2. Standardization and Automation
      3. Cost Minimization
      4. Market Size
    5. Software Industry in India
      1. Large Skilled English Speaking Work Force
      2. Time Advantage
      3. Location Advantage
    6. Developments in the it–BPO Sector
    7. Growth Drivers of India’s ITES–BPO Sector
      1. Abundant Talent
      2. Sustained Cost Competitiveness
      3. Continued Focus on Quality
      4. World Class Information Security Environment
      5. Rapid Growth in Key Business Infrastructure
      6. Enabling Business Policy and Regulatory Environment
    8. Problems and Pitfalls of the ITES–BPO Industry
      1. Changing Value of the Rupee
      2. Poor Infrastructure
      3. Increasing Demand for Trained Manpower
      4. Employee Dissatisfaction and High Attrition Rates
      5. Intensifying Competition
      6. Future Threats
    9. Chapter Summary
    10. Key Terms
    11. Discussion Questions
  27. Notes
  28. Acknowledgements
  29. Copyright
  30. Back Cover

Product information

  • Title: International Business, 2nd Edition
  • Author(s): Sumati Varma
  • Release date: April 2015
  • Publisher(s): Pearson Education India
  • ISBN: 9789332558366