Simon Collinson Rajneesh Narula Alan M. Rugman

INTERNATIONALBUSINESS

Simon Collinson Rajneesh Narula Alan M. Rugman

Eighth Edition

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Collinson: International Business_PDF_p8

Table of Contents

Front Cover

Half Title Page

Title Page

Copyright Page

Contents in Brief

Contents in Detail

List of Figures and Tables��

Preface��

About the Authors��

Guide to the Case Studies��

Publisher's Acknowledgements

Frameworks for this Book: Our Approach to the Study of InternationalBusiness��

Part One: THE WORLD OF INTERNATIONAL BUSINESSChapter 1: An Introduction to International Business

Objectives of the chapter��

Introduction��

What is international business?��

Globalisation��

The outcomes of globalisation��

Understanding interdependence in

globalisation��

Regional integration��

Mapping globalisation��

Technology and innovation��

New technologies��

The knowledge-intensive, multi-technology

firm��

Socio-political developments��

What are institutions?��

Institutions and supranational

agreements��

Globalisation and liberalisation��

Multinational enterprises��

Proto-globalisation and the MNE in historical

context��

The industrial revolutions and the growth of private

firms��

Foreign direct investment��

Table of Contents

Measuring FDI and MNE activity��

MNEs before World War II��

The rise of the modern MNE��

International business in the modern

era��

1950-90: the rise of the triad

1990-2017: the rise of new players and forms of activity

Modularisation, outsourcing and value

chains��

The continuing importance of the state-owned

enterprise��

Emerging economy MNEs - significant but exaggerated

Dominance of the triad continues��

Small and medium-sized enterprises��

The fragmented firm: global value chains and production

networks��

Outsourcing, offshoring and

nearshoring��

Key points��

Key terms��

Notes��

Bibliography��

Chapter 2: General Frameworks in International BusinessObjectives of the chapter��

Active Learning Case: Starbucks: a global 'coffee culture'

Introduction��

Firm-specific advantages/ownership

advantages��

A classification of O advantages��

Location advantages/country-specific

advantages��

A classification of L advantages��

International Business Strategy in Action: US manufacturing: from China to

Mexico

The eclectic paradigm: putting it all

together��

Strategic management of MNEs: an

introduction��

Steps in the strategic management

process��

A framework for global strategies: the FSA-CSA matrix

The FSA-CSA matrix

Why firms become MNEs��

How do firms engage in international

activities?��

Entry modes��

Table of Contents

Non-equity entry modes��

Equity entry modes��

Collaborative agreements/strategic

alliances��

International new ventures and 'born global' firms

The international activities of SMEs��

The practical challenges for internationalising

SMEs��

International Business Strategy in Action: Worrying times for Singapore's SMEs

How do SME managers know which markets to

enter?��

Modes of entry and adaptation for success in foreign

markets��

Key points��

Key terms��

Real Cases

Walmart Inc.��

Back again? IKEA's re-entry into Japan

Notes��

Bibliography��

Chapter 3: Multinational Enterprises, Innovation and CompetitivenessObjectives of the chapter��

Active Learning Case: GE Healthcare in India: locally driven innovation

Introduction��

Trends in innovation at the country and firm

level��

The resource-based view (RBV) and the VRIO

framework��

Resources and capabilities��

The VRIO framework��

Dynamic capabilities��

Quick learning/incremental learning��

Integration of new assets/radical

learning��

Modification and transformation of new organisational

assets��

Dynamic capabilities and small firms��

International Business Strategy in Action: Spreadshirt: open innovation

Innovation and location advantages��

International dimensions of

innovation��

The location of innovation activities in the

MNE��

International Business Strategy in Action: Innovation networks at IBM

The innovative MNE as a differentiated

network��

Table of Contents

Key points��

Key terms��

Real Cases

Canon Group��

R&D at Hewlett-Packard��

Notes��

Bibliography��

Part Two: THE ENVIRONMENT OF INTERNATIONAL BUSINESSChapter 4: International Politics


Active Learning Case: How risky is foreign investment in Russia?

Introduction��

Political ideologies and economics��

Political systems��

Economic systems��

Government control of assets��

International Business Strategy in Action: Greece: third (bailout) time lucky

Government-business cooperation

Japan and EU assistance��

US competitiveness��

Economic integration��

Trade creation and trade diversion��

Levels of economic integration��

Economic integration: an overall

perspective��

Ethics, environment, MNEs and the civil

society��

International Business Strategy in Action: Businesses and NGOs work together on

climate change

The European Union (EU)��

Other examples of economic

integration��

Key points��

Key terms��

Review and discussion questions��

Real Cases

How environmental regulations can be used as trade

barriers��

Turkish lira in crisis: record low in

2018��

Notes��

Bibliography��

Chapter 5: International CultureObjectives of the chapter��

Active Learning Case: Cultures clash as big pharma gets bigger

Table of Contents

Introduction��

What is culture?��

The importance of culture in different business

contexts��

Culture has always been important��

International Business Strategy in Action: McDonald's

National stereotypes and key dimensions of

culture��

Culture at two levels��

Hofstede's four dimensions of culture

Trompenaars' seven dimensions of culture

The GLOBE project's nine dimensions of culture

Applying the national culture

frameworks��

'The way we do things here': the implications of cultural differences for

organisations and managers

Cross-cultural management��

Organisation��

Leadership��

Communication��

The corporate response��

Multinational organisation structures: imperialist or

independent?��

Culture clash in cross-border M&A and joint

ventures��

International Business Strategy in Action: The collective culture of John Lewis

& Partners

Culture embodied in national

institutions��

France: cultural and social characteristics that create a national

distinctiveness��

Key points��

Key terms��


Real Cases

Konami is watching its employees��

Sport can be local and global: Manchester

United��

Notes��

Bibliography��

Chapter 6: International TradeObjectives of the chapter��

Active Learning Case: US-China trade war: battle of the giants

Introduction��

International trade theory��

Theory of absolute advantage��

Table of Contents

Theory of comparative advantage��

Factor endowment theory��

International product life cycle

theory��

Other important considerations��

International Business Strategy in Action: Microsoft shows the world is not flat

Barriers to trade��

Reasons for trade barriers��

Commonly used barriers��

Tariffs��

International Business Strategy in Action: Brexit: A sharp lesson in the

importance of trade interdepend-encies

Non-tariff barriers to trade��

Quotas��

'Buy national' restrictions

Customs valuation��

Technical barriers��

Anti-dumping legislation, subsidies and countervailing

duties��

Agricultural products��

Export restraints��

Other economic developments��

Countertrade��

Trade in services��

Free trade zones��

Key points��

Key terms��


Real Cases

China's Rare Earth Minerals

Dumping on trade complaints��

Notes��

Bibliography��

Appendix: Balance of payments��

Chapter 7: International Financial Markets and InstitutionsObjectives of the chapter��

Active Learning Case: Barclays Bank international financial dealings

Introduction��

Foreign exchange markets��

Foreign exchange markets in the United

States��

Determination of the exchange rate��

Purchasing power parity��

International Fisher effect��

Combined equilibrium relationships��

Other factors determining exchange

Table of Contents

rates��Protecting against exchange risk��

Alternatives to minimise exchange

risk��

International Business Strategy in Action: The Big Four

Foreign money and capital markets��

MNEs and national money markets��

MNEs and national capital markets��

Regional money and capital markets��

The eurocurrency market��

Eurocurrency interest rates��

Other market characteristics��

Criticisms of the euromarkets��

Eurobonds and euroequities��

International Business Strategy in Action: AngloGold Ashanti

The IMF system��

Unresolved problems with the IMF

system��

MNEs and international financial markets and

institutions��

Key points��

Key terms��


Real Cases

HSBC��

Slowdown in China: Global financial markets and contagion

effects��

Notes��

Bibliography��

Part Three: INTERNATIONAL BUSINESS STRATEGIESChapter 8: Multinational Strategy


Active Learning Case: Vodafone and the triad telecom market

Introduction��

Strategic orientations��

International Business Strategy in Action: Tesco at home and abroad

Strategy formulation��

External environmental assessment��

Internal environmental assessment��

Goal setting��

Strategy implementation��

Location��

International Business Strategy in Action: Fuji Xerox and Xerox

Ownership��

Functional strategies��

Table of Contents

Control and evaluation��

Common methods of performance

measurement��

Key points��

Key terms��


Real Cases

3M��

Social media: Serengetee��

Notes��

Bibliography��

Appendix: Regional aspects of multinationality and

performance��

Chapter 9: Organising StrategyObjectives of the chapter��

Active Learning Case: Procter & Gamble

Introduction��

Organisation structures��

Early organisation structures��

International Business Strategy in Action: Sanofi-Aventis

The international division��

Global organisation structures��

International Business Strategy in Action: Baker Tilly changes its name to RSM

Strategic management and organising

strategy��

Analysis of key structural variables��

Coordination��

Key points��

Key terms��


Real Cases��

LVMH: organising luxury products in the international

arena��

Maersk Group��

Notes��

Bibliography��

Chapter 10: Corporate Strategy and National CompetitivenessObjectives of the chapter��

Active Learning Case: Worldwide operations and local strategies of

ABB��

Introduction��

The single diamond��

Determinants and external variables��

Critique and evaluation of the model��

Table of Contents

The double diamond��

Canada and the double diamond��

International Business Strategy in Action: Nokia and Ericsson: moving beyond

mobiles��

Mexico and the double diamond��

Integration and responsiveness��

Integration versus national

responsiveness��

International Business Strategy in Action: Renewed advantage through vertical

integration at Floreal

Knit-wear��

Balancing the trade-offs��

Key points��

Key terms��


Real Cases

The global beer industry: decline and growth at the same

time?��

IBM��

Notes��

Bibliography��

Part Four: FUNCTIONAL AREA STRATEGIESChapter 11: Production Strategy


Active Learning Case: GE production: from Six Sigma to the GE

Store��

Introduction��

Research, development and innovation��

Speed-to-market��

Generation of goods and services��

Global sourcing��

International Business Strategy in Action: H&M learning from

Zara��

Manufacturing of goods��

International Business Strategy in Action: Magna International

Inc.��

Developing a strong service

orientation��

International logistics��

Transportation��

Packaging��

Storage��

Different kinds of global production

systems��

Strategic management and production

Table of Contents

strategy��Technology and production design��

Continuous improvement��

Productivity��

Key points��

Key terms��


Real Cases

Flextronics��

Nike��

Notes��

Bibliography��

Chapter 12: Marketing StrategyObjectives of the chapter��

Active Learning Case: Adidas: promoting a global sports

brand��

Introduction��

International market assessment��

Initial screening: basic need and

potential��

Second screening: financial and economic

conditions��

Third screening: political and legal

forces��

Fourth screening: socio-cultural

forces��

Fifth screening: competitive

environment��

Final selection��

Product strategies��

Little or no modification��

Moderate to high modification��

International Business Strategy in Action: Weeby buys

Tappy��

Promotion��

Nature of the product��

Advertising��

International Business Strategy in Action: The 2018 retail crisis catches up

with Marks &

Spencer��

Personal selling��

Pricing��

Government controls��

Market diversity��

Currency fluctuations��

Price escalation forces��

Place��

Table of Contents

Different distribution systems��

Choosing the best distribution

system��

Strategic management and marketing

strategy��

Ongoing market assessment��

Internet marketing and 'open innovation'

Key points��

Key terms��


Real Cases

Bang & Olufsen��

Mirum - never lose your sense of wonder!

Notes��

Bibliography��

Chapter 13: Human Resource Management StrategyObjectives of the chapter��

Active Learning Case: The Coca-Cola Company thinks

local��

Introduction��

Selection and repatriation��

International screening criteria and selection

procedures��

Repatriation of expats��

Training and development��

Types of training��

International Business Strategy in Action: The glass

ceiling��

Compensation��

Common elements in an international compensation

package��

Compensation trends and comparisons��

Labour relations��

Labour relations practices��

International Business Strategy in Action: Primark: putting global stakeholders

first��

Industrial democracy��

Strategic management and IHRM

strategies��

Language training��

Cultural adaptation��

Competitive compensation��

Specially designed HRM programmes��

Key points��

Key terms��

Table of Contents


Real Cases

India's role in the global offshoring economy

Executive search firms��

Notes��

Bibliography��

Chapter 14: Political Risk and Negotiation StrategyObjectives of the chapter��

Active Learning Case: Nestle in Nigeria

Introduction��

Generic PEST analysis��

Political risk��

Deregulation and political risk��

The nature of political risk��

Sources of political risk��

Country analysis and political risk

assessment��

Online risk information resources��

Quantifying risk vulnerability��

Accounting for country risk��

Negotiation strategies��

Behavioural characteristics of the participants in

negotiations��

International Business Strategy in Action: From riches to rags: the decline of

the Venezuelan oil industry

International Business Strategy in Action: Intel

effect��

Transparency and corruption: politically sensitive political

risk��

Strategic management and political

risk��

Use of integrative and protective/defensive

techniques��

Key points��

Key terms��


Real Cases

Huawei accused of spying��

Problems with ports��

Notes��

Bibliography��

www resources��

Chapter 15: International Financial ManagementObjectives of the chapter��

Active Learning Case: Financial transparency at

Table of Contents

Siemens��Introduction��

Determining parent-subsidiary relationships

Polycentric solution��

Ethnocentric solution��

Geocentric solution��

Managing global cash flows��

Internal funds flows��

Funds positioning techniques��

Multilateral netting��

International Business Strategy in Action: Worldwide tax

havens��

Managing cash��

International Business Strategy in Action: Sovereign wealth

funds��

Exchange risk management��

Transaction risk��

Translation risk��

Economic risk��

An example of exchange risk

management��

Developing forecasting and reporting

systems��

Capital budgeting in the MNE��

Use of NPV��

Institutional features��

International financing in the MNE��

Financial structure��

Control: identifying objectives, evaluating affiliate performance and making

performance consistent with

goals��

Strategic international finance��

Establishing overseas operations��

Reducing financial risk��

Key points��

Key terms��


Real Cases

Carillion's collapse

M-Pesa: Kenya's mobile money service leapfrogging traditional banks

Notes��

Bibliography��

Part Five: REGIONAL STRATEGIESChapter 16: European Union


Table of Contents

Active Learning Case: Brexit troubles for Jaguar Land

Rover��

The EU: origins and environment��

Emergence of a Single European

Market��

Productivity and competitiveness: how does the EU

compare?��

International Business Strategy in Action: VW diesel

dispute��

Accessing and adapting to EU markets��

Strategic acquisitions and alliances��

Marketing considerations��

International Business Strategy in Action: The future is

Orange��

Producing products and services in the

EU��

Management considerations��

Barriers to EU market access��

Key points��

Key terms��


Real Cases

Accor budget hotels��

Carrefour��

Notes��

Bibliography��

Chapter 17: JapanObjectives of the chapter��

Active Learning Case: Doing business in

Japan��

Introduction��

Political, social and cultural

characteristics��

A traditionally strong government role in the

economy��

Distinctive cultural characteristics��

Economy and business��

Japan and China: the new Asian

powerhouse?��

Business characteristics��

Manufacturing strengths��

Strong applied R&D��

Keiretsu��

International Business Strategy in Action: Kirin Beer goes

international��

Distribution, retailing and customer

Table of Contents

orientation��Japanese corporations��

A changing nation��

Restructuring capital markets��

Deregulation, increased M&A and inward

FDI��

International Business Strategy in Action: Walmart takes

Seiyu��

Restructuring corporations��

The decline of manufacturing and distribution

keiretsu��

The growth of outward FDI and offshore

manufacturing��

The decline of lifetime employment and changing HRM

practices��

Diversification strategies��

Conclusions��

Key points��

Key terms��


Real Cases

Renault, Nissan and Mitsubishi Alliance: no pain, no

gain��

Sony - diversifying into the automobile industry?

Notes��

Bibliography��

www resources��

Chapter 18: North AmericaObjectives of the chapter��

Active Learning Case: FTA, NAFTA and

CUSMA��

Introduction��

Canada��

Canada's economy

Differences in the business

environment��

International Business Strategy in Action: Air Canada's bid for consolidation

Canada's multinationals

Business opportunities in Canada��

Franchising��

Mexico��

Mexico's economy

Mexico, NAFTA and CUSMA��

Regional trade agreements��

Doing business in Mexico��

International Business Strategy in Action: Mexico's tomatoes

Table of Contents

Key points��

Key terms��


Real Cases

Jumex of Mexico��

GlaxoSmithKline in the United States��

Notes��

Bibliography��

Chapter 19: Emerging EconomiesObjectives of the chapter��

Active Learning Case: Acer Taiwan goes

international��

Introduction��

Triad firms and emerging economy firms: why the mutual

attraction?��

An overview of emerging economies, by

region��

Asia-Pacific and the Middle East��

Central and eastern Europe��

Latin America and the Caribbean��

Africa��

International Business Strategy in Action: From Oserian to Tesco: the Kenyan cut

flower

industry��

Shifting patterns of comparative and competitive

advantage��

Flying Geese model��

Emerging economies as sources of

innovation��

Market access to the triad��

International Business Strategy in Action: Korean chaebols: Hyundai and

Samsung��

Key points��

Key terms��


Real Cases

The Indian IT, software and services

industry��

Bumrungrad International in Thailand��

Notes��

Bibliography��

www resources��

Chapter 20: ChinaObjectives of the chapter��

Active Learning Case: Oxford Instruments in

Table of Contents

China��Introduction��

Unprecedented scale, scope and speed of

growth��

The role of government��

MNE investment into China��

International Business Strategy in Action: Airbus secures a deal with

China��

Foreign R&D investment��

Getting into China��

Outward investment and the new multinationals from

China��

International Business Strategy in Action: Alibaba steps up to global

competition��

Key points��

Key terms��


Real Cases

China's One Belt One Road

Nanjing Auto makes the MG��

Notes��

Bibliography��

www resources��

Glossary��

Index��

Back Cover

Documents

Simon Collinson Rajneesh Narula Alan M. Rugman