International Business

Description

Cover Copyright Dedication Contents Preface About the Author A01_INTE1689_FM Chapter 1_FUNDAMENTALS OF INTERNATIONAL BUSINESS INTRODUCTION ELEMENTS OF GLOBALIZATION Economic Globalization Cultural Globalization Political Globalization INTERNATIONAL BUSINESS GROWTH OF INTERNATIONAL BUSINESS Economic Forces Political Forces Technological Forces INTERNATIONAL VERSUS DOMESTIC BUSINESS MOTIVES FOR FIRM INTERNATIONALIZATION MODES OF ENTRY Trade-related Entry Modes Contractual Entry Modes Investment-related Entry Modes EMERGING TRENDS IN INTERNATIONAL BUSINESS FDI Moves in Search of Energy Pharmaceutical FDI Moves in Response to the ‘Patent Cliff’ Mega-regional Agreements Key Terms Discussion Questions Chapter 2 POLITICAL ECONOMY OF INTERNATIONAL BUSINESS INTRODUCTION ECONOMIC ENVIRONMENT Economic Systems Economic Indicators Economic Growth Economic Development POLITICAL ENVIRONMENT Political Ideologies and Systems Political Risk INTERNATIONAL BUSINESS NEGOTIATION Objectives of International Business Negotiation Bargaining Power of the TNC Key Terms Discussion Questions Chapter 3 THE INTERNATIONAL CULTURALAND LEGAL ENVIRONMENT INTRODUCTION ELEMENTS OF CULTURE Language Non-verbal Communication Religion Values and Attitudes Customs and Manners Aesthetics LEGAL ENVIRONMENT Global Legal Systems Legal Jurisdiction ETHICS IN INTERNATIONAL BUSINESS KEY Terms Discussion Questions Chapter 4_INTERNATIONAL TRADE THEORIES Introduction International Trade Theories Mercantilist Doctrine Classical Approach Factor Proportions Theory Leontief Paradox Linder’s Income-preference Similarity Theory Product Life-cycle Theory The New Trade Theory National Competitive Advantage Theory Assessment DEVELOPMENTS IN WORLD TRADE Volume of Trade Composition of World Trade Direction of World Trade Service Trade Key Terms Discussion Questions Chapter 5 COMMERCIAL POLICY INSTRUMENTS Introduction Government intervention in trade Economic Rationale Non-economic Rationale INSTRUMENTS OF TRADE CONTROL Tariff Barriers Non-tariff Barriers ANALYSIS OF INDIA’S FOREIGN TRADE Volume of India’s Foreign Trade Composition of India’s Foreign Trade Direction of India’s Foreign Trade Key Terms Discussion Questions Chapter 6 MULTILATERAL REGULATION OF TRADE Introduction General Agreement on Tariffs and Trade (GATT ) Objectives and Principles Uruguay Round GATT : An Evaluation World Trade Organization (WTO ) WTO AGREEMENTS General Agreement on Tariffs and Trade (GATT ) General Agreement on Trade in Services (GATS ) Agreement on Trade-related Aspects of IntellectualProperty Rights (TRIPS) Agreement on Trade-related Investment Measures (TRIMS) ORGANIZATIONAL STRUCTURE OF WTO Principles of WTO Most-Favored-Nation (MFN) National Treatment FUNCTIONS OF WTO WTO : AN EVALUATION Developing Country Issues Dispute Resolution Mechanism Subsidies in Agriculture FUTURE CHALLENGES FOR WTO UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (UNCTAD ) Functions of UNCTAD UNCTAD : An Assessment KEY TERMS DISCUSSION QUESTIONS Chapter 7 INTERNATIONAL TRADE FINANCE AND PROMOTION INTRODUCTION INTERNATIONAL TRADE PAYMENT Cash in Advance Letter of Credit (L/C) Documentary Collection Open Account TERMS OF TRADE Free on board Free alongside Ship Cost, Insurance and Freight Cost and freight INTERNATIONAL TRADE FINANCE Private Sources Governmental Sources INTERNATIONAL TRADE CREDIT TRADE PROMOTION IN INDIA Organizations for Export Promotion Export Incentives Marketing Assistance Market Development Assistance Market Access Initiative Foreign Exchange Trade Fairs and Exhibitions Export Risk Insurance Production Assistance/Facilities Special Economic Zones (SEZs) Export Processing Zones Free Trade Zone (Ftz) Export-oriented Unit (Eou) Export Houses Special Economic Zone KEY TERMS DISCUSSION QUESTIONS Chapter 8 REGIONAL ECONOMIC INTEGRATION INTRODUCTION LEVELS OF ECONOMIC INTEGRATION Free Trade Area (FTA) Customs Union Common Market Economic Union Political Union EFFECTS OF INTEGRATION Trade Creation and Trade Diversion Reduced Import Prices Increased Competition and Economies of Scale Higher Factor Productivity REGIONAL TRADING AGREEMENTS—A GLOBAL OVERVIEW European Union (EU) Euro NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) NAFTA Provisions Importance of NAFTA CARICOM MERCOSUR ANDEAN PACT ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN) Objectives of ASEAN ASEAN Achievements ASIA-PACIFIC ECONOMIC COOPERATION FORUM (APEC) SOUTH ASIAN ASSOCIATION FOR REGIONALCOOPERATION (SAARC) CLOSER ECONOMIC RELATIONS (CER) AFRICA COMMODITY ARRANGEMENTS Multi Fibre Arrangement (MFA) Organization of Petroleum Exporting Countries (OPEC) KEY TERMS DISCUSSION QUESTIONS Chapter 9 INTERNATIONAL FINANCIAL SYSTEM INTRODUCTION BASICS OF FOREIGN EXCHANGE Exchange Rate Determination Fixed and Flexible Exchange Rate Systems Currency Convertibility EVOLUTION OF THE MONETARY SYSTEM The Gold Standard (1876–1914) The Inter-war Years and World War II (1914–44) The Bretton Woods System (1944–73) The Post-Bretton Woods System:1973–Present CONTEMPORARY EXCHANGE RATE SYSTEMS Fixed Exchange Rate System Independent Float System Currency Board Arrangement Soft Pegs Crawling Peg Pegged Exchange Rates within Horizontal Bands Floating Arrangements INTERNATIONAL FINANCIAL SYSTEM Foreign Exchange Markets FOREIGN EXCHANGE RISK AND EXPOSURE International Capital Market International Money Markets International Bond Markets International Stock Markets KEY TERMS DISCUSSION QUESTIONS Chapter10 INTERNATIONAL FINANCIAL INSTITUTIONS INTRODUCTION INTERNATIONAL MONETARY FUND (IMF) Objectives of the IMF Functions of the IMF WORLD BANK GROUP Grants ASIAN DEVELOPMENT BANK AFRICAN DEVELOPMENT BANK AFRICAN DEVELOPMENT FUND (ADF) NIGERIA TRUST FUND (NTF) KEY TERMS DISCUSSION QUESTIONS Chapter11 INTERNATIONAL BALANCE OF PAYMENTS INTRODUCTION FUNDAMENTALS OF BALANCE-OF-PAYMENTS ACCOUNTING Defining International Economic Transactions The BOP as a Cash Flow Statement BOP Accounting: Double-entry Book-keeping TYPES OF BALANCE-OF-PAYMENTS ACCOUNTS Current Account Capital and Financial Account Net Errors and Omissions Official Reserves Account THE BALANCE OF PAYMENTS IN TOTALITY KEY TERMS DISCUSSION QUESTIONS Chapter12 FOREIGN DIRECT INVESTMENT INTRODUCTION FDI: A CLASSIFICATION Asset-based View Nature of Business Activity Motive-based View MODES OF FDI ENTRY Branch Office Strategic Alliances Wholly Owned Subsidiary Forms of Wholly Owned Subsidiaries: Greenfield Investmentversus Mergers and Acquisitions Umbrella Holding Company Differences Between Joint Ventures and Mergers GLOBAL FDI PATTERNS Trends in FDI Direction of FDI FDI Outflows FOREIGN INVESTMENT IN INDIA Policy Perspective Sectoral Dimensions of FDI Flows Geographical Composition Outward Indian FDI KEY TERMS DISCUSSION QUESTIONS Chapter13 INTERNATIONAL ORGANIZATION STRUCTURE AND DESIGN INTRODUCTION EARLY ORGANIZATIONAL STRUCTURES INTERNATIONAL DIVISION STRUCTURE GLOBAL ORGANIzATIONAL STRUCTURES Global Product Structure Global Area Structure Global Functional Structure Mixed Structure Matrix Structure Transnational Network Structure DETERMINANTS OF THE ORGANIZATION STRUCTURE KEY TERMS DISCUSSION QUESTIONS Chapter14 INTERNATIONAL MARKETING INTRODUCTION INTERNATIONAL MARKET ASSESSMENT THE MARKETING MIX Market Segmentation PRODUCT Producer Goods Consumer Goods Determinants of Product Adaptation Brand Management New Product Development Promotion Strategy Pricing Strategy Distribution KEY TERMS DISCUSSION QUESTIONS Chapter15 INTERNATIONAL HRM INTRODUCTION RECRUITMENT AND SELECTION Ethnocentric Approach Polycentric Approach Geocentric Approach Regiocentric Approach TRAINING AND DEVELOPMENT Cross-cultural Training Language Training Specific Skills Training COMPENSATION INTERNATIONAL LABOR RELATIONS INTERNATIONAL LABOR STANDARDS KEY TERMS DISCUSSION QUESTIONS Chapter16 INTERNATIONAL OPERATIONS INTRODUCTION SUPPLY-CHAIN MANAGEMENT INTERNATIONAL LOGISTICS Systems Concept Total Cost Concept Trade-off Concept GLOBAL SUPPLY CHAIN DECISIONS Quality Third-party Logistics (3PL) Location Decisions Production Decisions Purchasing Decision Inventory Decisions International Packaging Issues International Storage Issues Transportation Decisions Transportation Infrastructure KEY TERMS DISCUSSION QUESTIONS Chapter17 INTERNATIONAL FINANCE AND ACCOUNTING INTRODUCTION ACCOUNTING SYSTEM NATIONAL AND INTERNATIONAL ACCOUNTING STANDARDS The Incarnation of IFRS: How it Came into Being CONSOLIDATION AND CURRENCY TRANSLATION TAXATION Transfer Prices Tax Havens Tax Treaties: The Elimination of Double Taxation INDIAN ACCOUNTING PRACTICES IFRS: A Change for the Better KEY TERMS DISCUSSION QUESTIONS Chapter18 GLOBAL E-COMMERCE INTRODUCTION E-COMMERCE VS E-BUSINESS TYPES OF E-COMMERCE B2B E-commerce B2C E-commerce B2G E-commerce C2C E-commerce C2B E-commerce M-Commerce E-COMMERCE—AN EVALUATION E-commerce Advantages Disadvantages of E-commerce DRIVERS OF E-COMMERCE Global Factors Demographic Factors Economic and Financial Resources Information Infrastructure Industry Structure Firm Size Entrepreneurial Environment Consumer Preferences National Policy KEY TERMS DISCUSSION QUESTIONS Chapter19 ENVIRONMENTAL ISSUES IN INTERNATIONAL BUSINESS INTRODUCTION CLIMATE CHANGE TRANS-BOUNDARY POLLUTION INTERNATIONAL LEGAL FRAMEWORKSFOR ENVIRONMENTAL PROTECTION KYOTO PROTOCOL International Emissions Trading KEY TERMS DISCUSSION QUESTIONS Chapter20 GLOBAL OUTSOURCING INTRODUCTION FORMS OF OUTSOURCING DRIVERS OF OUTSOURCING Theory of Comparative Advantage Concentration on Core Competency Developments in Technology Existence of Low-cost, Skilled Manpower Changes in Regulatory Environment Infrastructural and Institutional Development FACTORS BEHIND A DECISION TO OUTSOURCE Technical and Institutional Separability Standardization and Automation Cost Minimization Market Size SOFTWARE INDUSTRY IN INDIA Large Skilled English Speaking Work Force Time Advantage Location Advantage DEVELOPMENTS IN THE IT–BPO SECTOR GROWTH DRIVERS OF INDIA’S ITES–BPO SECTOR Abundant Talent Sustained Cost Competitiveness Continued Focus on Quality World Class Information Security Environment Rapid Growth in Key Business Infrastructure Enabling Business Policy and Regulatory Environment PROBLEMS AND PITFALLS OF THE ITES–BPO INDUSTRY Changing Value of the Rupee Poor Infrastructure Increasing Demand for Trained Manpower Employee Dissatisfaction and High Attrition Rates Intensifying Competition Future Threats KEY TERMS DISCUSSION QUESTIONS Model Papers