PART 1 Introduction to International Business Theory and PractIce 1
Chapter 1 The International Business Imperative 2
Learning Objectives 2
Opening Vignette:Looking for Work?Try the World 3
The Need for International Business 3
A Definition of International Business 4
A Brief History 5
Global Linkages Today 7
The Current U.S.International Trade Position 15
A Diagnosis of the U.S. Trade Position 15
The Impact of lnternational Business on the United States 15
The Structure of the Book 20
Summary 21
Global Perspective 1.1: Free Trade Needs a Dominant Champion 7
Global Perspective 1.2: Free Markets and The Environment 8
Global Perspective 1.3: Ethics and Intermational BuSiness 13
Global Perspective 1.4: Small U.S. Firms Are Moving Forward in the Global Marketplace 18
Global Perspective 1.5: Affluence through Global Business 20
Appendix:Geographical Perspectives on International Business 23
Chapter 2 The Theory of International Trade and Investment 32
Learning Objectives 32
Opening Vignette:Trade Booming under NAFIA 33
The Age of Mercantilism 34
Classical Trade Theory 34
The Theory of Absolute Advantage 36
The Theory of Comparative Advantage 36
A Numerical Example of Classical Trade 37
National Production Possibilities 38
The Gains from International Trade 40
Concluding Points about Classical Trade Theory 42
Factor Proportions Trade Theory 42
Factor Intensity in Production 42
Factor Endowments,Factor Prices,and Comparative Advantage 43
Assumptions of the Factor Proportions Theory 44
The Leontief Paradox 45
Linder's Overlapping Product Ranges Theory 46
International Investment and Product Cycle Theory 47
The Stages of the Product Cycle 47
Trade Implications of the Product Cycle 48
The Contributions of Product Cycle Theory 50
The New Trade Theory 50
Economies of Scale and Imperfect Competition 50
The CompetitiVe Advantage of Nations 52
The Theory of International Investment 54
The Foreign Direct Investment Decision 54
The Theory of Foreign Direct Investment 56
Firms as Seekers 56
Firms as Exploiters of Imperfections 57
Firms as Internalizers 60
Summary 60
Global Perspective 2.1: Investment Destinations 58
Global PersPective 2.2: Beijing Imposes Substantial New Taxes and Duties on Imports by Foreigners 59
Part 1 Cases 64
America for Sale—and Returned 64
Vamport Manufacturing 67
The Global Car Market 73
PART 2 The International Business Environment and Institutions 77
Chapter 3 The lnternational Economic Activity Of the Nation:The Balance Of Payments 78
Learning Objectives 78
Opening Vignette:Emerging Market Firms Innovate to Raise Funds 79
Fundamentals of Balance of Payments Accounting 80
Defining International Economic Transactions 80
The BOP as a Flow Statement 80
BOP Accounting:Double—Entry BOokkeeping 81
The Accounts Of the Balance of Payments 81
The Current ACcount 82
The Capital Account 87
Current and Capital Account Balance Relationships 92
Net Errors and Omissions 94
Official Reserves Account 94
The Balance of Payments in Total 95
The Balance of Payments as a Reflection of Economic Openness and Development 97
The Case of Mexico 97
The Case of Nepal 98
The Case of MalaYsia 98
Balance of Payments Dynamics 98
Merchandise Trade and Exchange Rate Dynamics 99
Summary 101
Global Perspective 3.1: The current Account and Finland 88
Global Perspective 3.2: "They Don't Let Just Anyone Buy a Defense Contractor 91
Global Perspective 3.3: A Rose by Any Other Name:The Terminology of the BOP 101
Chapter 4 The International Monetary System:Principles and History 104
Learning Objectives 104
Opening Vignette:A Matter of Exchange Rates 105
The Purpose of EXchange Rates 105
What Is a Currency Worth? 105
The Law of One Price 106
Qualities Desired in an Exchange Rate 108
International Monetary Systems of the Twentieth Century 109
The Gold Standsrd 110
Fixed EXchange Parity Rates 110
Restriction on Money Supply Growth 111
Automatic Balance Of payment Adjustment 113
The Interwar Years，19l9—1939 114
The Bretton Woods Agreement 115
The Agreement 115
The Adjustable Peg 116
The International Monetary Fund 116
The International Bank for Reconstruction and Development 117
The Experience under Bretton Woods,l946—1971 117
Collapse and Transition,197l—1973 118
Floating EXchange Rates,1973—Present 119
The Rise of the Dollar l980—l985 121
Intervention in the l980s: Expectations and Coordination 121
The Plaza Agreement,September 1985 122
The Louvre Accord,February 1987 122
Endaka 123
Fixed and Floating Currencies 123
The CFA Franc Zone 124
The Argentine Peso (or Dollar?) 126
The European Monetary System 127
Exchange Rates,Interest Rates,and Economic Policy 132
Summary 135
Global Perspective 4.1: "lt Pays to Be Jailed in Switzerland" 110
Global Perspective 4.2: Purchasing Power Parity and"Le Shuttle" 113
Global Perspective 4.3: The Origins of Monies 114
Chapter 5 International Financial Markets 138
Learning Objectives 138
Opening Vignette:Who's Making the Most? 139
The Market for Currencies 139
Exchange Rate Quotations and Terminology 141
Direct and Indirect Quotations 141
Cross Rates 143
Percentage Change Calculations 143
Foreign Currency Market Structure 143
Currency Bid and Offer Quotes 145
Market Size and Composition 146
International Money Markets 147
Eurocurrency Markets 147
Eurocurrency Interest Rates 147
Linking Eurocurrency Interest Rates and Exchange Rates 149
International Capital Markets 149
Defining lnternational Financing 150
Driving Forces in the International Financial Markets 152
International Banking and Bank Lending 153
Structure of International Banking 153
Offshore Banking 155
International Bank Lending 155
International Security Markets 156
The Euronote Market 156
The International Bond Market 157
International Equity Markets 157
Private Placements 160
Gaining Access to International Financial Markets 160
The Debt Crisis and Currency Earnings 160
Friday,August 13,1982:The Crisis 161
Solutions to the Debt Crisis 163
Summary 166
Global Perspective 5.1: Yin/Yang Balance with the Yuan 144
Global Perspective 5.2: Taxes,Eurobonds and the Netherlands Antilles 158
Global Perspective 5.3: Sovereign Credit Ratings 162
Global Perspective 5.4: Spending at Core of Mexico's Woes 165
Chapter 6 Economic Integration 170
Learning Objectives 170
Opening Vignette：Building Blocs(or Stumbling Blocs?)of Worldwide Free Trade 171
Levels of Economic Integration 172
The Free Trade Area 172
The Customs Union 173
The Common Market 173
The Economic Union 173
Arguments Surrounding Economic Integration 174
Trade Creation and Trade Diversion 174
Reduced Import Prices 175
Increased Competition and Economies of Scale 175
Higher Factor Productivity 176
Regionalism versus Nationalism 176
European Integration 177
Economic Integration in Europe from l948 to the mid—l980s 177
The European Community since the Mid—l980s 179
Organization of the EU 180
Implications of the Integrated European Market 181
North American Economic Integration 184
U.S.Canada Free Trade Agreement 184
North American Free Trade Agreement 185
Other Economic Alliances 187
Integration in Latin America 187
Integration in Asia 189
Integration in Africa and the Middle East 191
Economic Integration and the International Manager 194
Cartels and Commodity Price Agreements 195
Summary 196
Global Perspective 6.1: Labor Pains of Integration 176
Global Perspective 6.2: NAFTA Makes its Mark 186
Global Perspective 6.3: Working the New Bloc 190
Chapter 7 National Trade and Investment Policies 200
Learning Objectives 200
Opening Vignette Protecting Wildlife by Restricting Trade 201
Rationale and Goals of Trade and Investment Policies 201
Global Trade Regulation Since l945 203
Changes in the Global Policy Environment 206
Reduction of Domestic Policy Influences 206
Sharpening of the Conflict between Industrialized and Developing Nations 211
Policy Responses to Changing Conditions 213
Restrictions of Imports 215
Restrictions of Exports 219
Export Promotion Efforts 220
Import Promotion Efforts 222
A Strategic Outlook for Trade and Investment Policies 224
AU.S Perspective 224
An International Perspective 225
Summary 226
Global Perspective 7.1: Uruguay Round's Biggest Winners May Be Developing Nations 205
Global Perspective 7.2: Brazilian Policy Shifts Change the Auto industry 207
Global Perspective 7.3: North versus South at the Earth Summit 214
Global Perspective 7.4: Can California Rice Stick in Japan? 217
Global perspective 7.5: Military Exports:To Promote or Not to Promote? 220
Part2 Cases 229
Debt—Nature Swaps: A Green Solution to LDC Debt 229
Who Owns Hollywood? 232
One Afternoon at the United States International Trade Commission 234
When“Fair Trade”Policies Backfire 238
Harley—Davidson(A):Protecting Hogs 244
Funding from Eximbank 248
Republica de Centroica 250
The War of the Bananas 252
North American Free Trade Agreement 256
The Tuna and the Dolphin 258
Video Case:Old Ways,New Game 261
PART 3 International Business and the Nation-State 265
Chapter 8 Politics and Laws 266
Learning Objectives 266
Opening Vignette:Can U.S. Firms Abroad Do Well While Doing Good? 267
The Home—Country Perspective 268
Embargoes and Sanctions 268
Export Controls 270
A Changed Environment for Export Controls 271
Export Control Problems and Conflicts 273
Regulating International Business Behavior 275
Host Country Political and Legal Environment 278
Political Action and Risk 278
Economic Risk 282
Managing the Risk 283
Legal Differences and Restraints 284
The Influencing of Politics and Laws 287
International Relations and Laws 290
International Politics 290
International Law 290
Summary 293
Global Perspective 8.1: The Dogfight over MiG Modernization 274
Global Perspective 8.2: Ethics in a shrinking World 275
Global Perspective 8.3: coping in a World of Bribes 277
Global Perspective 8.4: Two Air Disasters,Two Cultures,Two Remedies 285
Global Perspective 8.5: How Swiss is the Swiss Army Knife? 286
Global Perspective 8.6: Washington:under the Influence? 289
Global Perspective 8.7: Vietnam Embargo Ends,U,S. Firms Enter 291
Chapter 9 The Cultural Challenge 296
Learning Objectives 296
Opening Vignette:Making Culture Work for Your Success 297
Culture Defined 298
The Elements of Culture 299
Language 300
Nonverbal Language 303
Religion 304
Values and Attitudes 306
Manners and Customs 306
Material Elements 310
Aesthetics 310
Education 311
Social Institutions 312
Sources of Cultural Knowledge 312
Cultural Analysis 314
The Training Challenge 317
Summary 318
Global Perspective9.1: AnAmricanfurkinParis 300
Global Perspective9.2: Negotiating in Europe:Watch Out for the Differences 308
Global Perspective9.3: Learning the Strange Foreign Ways 319
Chapter 10 Economies in Transition 324
Learning Objectives 324
Opening Vignette:A Study of Two Transition Strategies 325
Doing Business with Emerging Market Economies 326
A Brief Historic Review 328
The Demise of the Socialist System 329
The Realities of Economic Change 331
Adjusting to Global Change 335
Concurrent Shifts in Trade and Investment Flows 335
Resistance to Change 337
International Business Challenges and Opportunities 340
Reasons for the Emergence of State—Owned Enterprises 543
The Effect of State-Owned Enterprises on International Business 345
The Privatization Perspective 344
Summary 346
Global Perspective 10.1:Private Business Clubs in China 334
Global Perspective 10.2:Pro-Worker Bias in Russia 334
Global Perspective 10.3:china at the Top of Unilever's wish List 336
Global Perspective 10.4:The Consumer Power of Rural india 337
Global Perspective 10.5:The Coresponsibility of the West 339
Global Perspective 10.6:Amway the Hungarian Way 341
Global Perspective 10.7:Russian Software Firms Look Overseas 342
Global Perspective 10.8:Privatization sweeps the Globe 345
Part 3 Cases 349
Promoting U.S. Tobacco Exports:A Conflict between Trade and Health 349
Union Carbide at Bhopal 353
IMEA：Its a Big Country,Someone Has to Furnish It 356
Ecological Cooling;The Fridge from Eastern Germany 360
Video Case:A Taste of the West 363
PART 4 International Business Preparation and Market Entry 367
Chapter 11 International Business Research 368
Learning Objectives 368
Opening Vignette:Globalbase Has the World Covered 369
International and Domestic Research 369
Recognizing the Need for International Research 370
Determining Research Objectives 371
Going International—Exporting 371
Going International—Importing 373
Market Expansion 373
Conducting Secondary Research 373
Identifying Sources of Data 373
Selection of Secondary Data 378
Interpretation and Analysis of Secondary Data 379
Conducting Primary Research 380
Industrial versus Consumer Sources of Data 381
Determining the Research Technique 381
The International Information System 385
Summary 390
Global Perspective 11.1: Market Research on-Line 377
Global Perspective 11.2: Creative Research 379
Global Perspective 11.3: Market Research in Mexico 383
Global Perspective 11.4: Advice from Kissinger Associates 390
Appendix A: Monitors of International Issues 393
Appendix B:Selected U.S.Government Publications and Services 398
Chapter 12 International Business Entry 400
Learning Objectives 400
Opening Vignette:A Passionate Commitment to Exporting 401
The Role of Management 401
Motivations to Go Abroad 402
Proactive Motivations 403
Reactive Motivations 404
Concerns and Problems of Going Intemational 406
Strategic Efforts of Going International 406
Alternative Entry Strategies 408
Indirect Exporting and Importing 408
Direct Exporting and Importing 409
International Intermediaries 410
Export Management Companies 412
Webb-Pomerene Associations 414
Trading Companies 414
International Facilitators 417
Private Sector Facilitators 417
Public Sector Facilitators 418
Other Forms of International Market Entry and Expansion licensing 420
Licensing 420
Franchising 421
A Comprehensive View of International Expansion 426
Summary 426
Global Perspective 12.1: No Pig in a Poke 410
Global Perspective 12.2: Small Firms Need Experts to Grow FOreign Business 411
Global Perspective 12.3: Exporting with Private Sector Help 418
Global Perspective 12.4: Matchmaking Produces Export Sales 419
Global Perspective 12.5: Taking Your Franchise Abroad 424
Chapter 13 Multinational Corporations 432
Learning Objectives 432
Opening Vignette:The Stateless Corporation 433
The Multinational Corporate Phenomenon 434
The Multinational Corporation Defined 434
The World's Multinational Corporations 435
Foreign Direct Investment 437
Reasons for Foreign Direct Investment 437
The Host-country Perspective 442
The Home-Country Perspective 447
Management of the Relationship 447
Dealing with Other Constituents 452
Transfer of Technology 452
The Basics of Technology Transfer 452
Adapting Technology to Local Conditions 453
Modes of Operation 454
Full Ownership 454
Interfirm Cooperation 455
Summary 463
Global Perspective 13.1: Making it Close to Customers 441
Global Perspective 13.2: Giving Up on Russia? 448
Global Perspective 13.3: outsourcing Just Do It! 458
Part4 Cases 468
Damar lnternational 468
Tollens N．V．—Holland:Surfstone 471
Spectrum Color Systems,Inc 482
German Luxury Cars:Made in the U.S.A 490
Videocase:Lakewood Forest Products 493
Videocase:ESPKIT 496
PART 5 International Business Strategy and Operations 501
Chapter 14 International Marketing 502
Learning Objectives 502
Opening Vignette Thinking Globally Acting Locally 503
Target Market Selection 504
Identification and Screening 504
Concentration versus Diversification 509
Marketing Management 511
Standardization versus Adaptation 511
Product Policy 515
Pricing Policy 520
Distribution Policy 525
Promotional Policy 528
Summary 533
Global Perspective 14.1: Born Global 510
Global Perspective 14.2: It Played in Phon Phaeng...and Peoria.T00 514
Global Perspective 14.3: Different Ways of Getting the Job Done 524
Global Perspective 14.4: Expanding the Social Vision:Global Community Relations 533
Chapter 15 International services 538
Learning Objectives 538
Opening Vignette The Global Service of Plastic Money 539
Differences between Services and Products 540
Linkage between Services and Products 540
Stand-Alone Services 541
The Role of Services in the Global Economy 546
Global Transformations in the Services Sector 549
Problems in International Service Trade 551
Data Collection Problems 551
US,Disincentives to the Offering of International Services 551
Global Regulations of Services 553
Corporate Involvement in International Service Trade 554
Typical International Services 558
Starting to Offer Services Internationally 558
Strategic Indications 559
Summary 561
Global Perspective 15.1: white—Collar Jobs Move Abroad 545
Global Perspective 15.2: Indian Exports: Not Just Carpets but Software 548
Global Perspective 15.3: Europe Speeds Phone Competition 549
Global Perspective 15.4: A service For Students Abroad 558
Global Perspective 15.5: Tourism: The Global Growth Industry 559
Chapter 16 International Logistics 564
Leaning Objectives 564
Opening Vignette African Trade Depends on Logistics 565
The Field of International Logistics 565
A Definition of International Logistics 566
The Impact of International Logistics 567
Differences between Domestic and International Logistics 568
International Transportation Issues 569
Transportation Infrastrueture 569
Availability of Modes 570
Choice of Modes 574
Export Documentation 577
International Inventory Issues 580
International Packaging Issues 582
International Storage Issues 586
Storage Facilities 586
Special Trade Zones 587
Management of International Logistics 589
Centralized Logistics Management 589
Decentralized Logistics Management 589
Outsourcing Logistics Services 590
Logistics and the Environment 591
Summary 592
Global Perspective 16.1: The Logistics Effects 0f the Channel Tunnel 570
Global Perspective 16.2: Germany Gateway to Central Europe 571
Global Perspective 16.3: sea-Air The Best ot Both Worlds 577
Global Perspective 16.4: The Cost of Warehousing in Japan 587
Global Perspective 16.5: Cutting Delivery from Two Weeks to Two Days 590
Global Perspective 16.6: Environmental Impact on Logistics 591
Chapter 17 International Financial Management 596
Learning Objectives 596
Opening Vignette Chinese Banks Holding Up Payments on Delivered Goods 597
Overview of International Financial Management 597
Import/Export Trade Financing 598
Trade Financing Using a Letter of Credit(L/C) 598
International Capital Budgeting 600
Capital Budget Components and Decision Criteria 600
A Proposed Project Evaluation 601
Risks in lnternational Investments 602
Capital Structure International Dimensions 604
The Capital Structure of the Firm 604
The Capital Structure of Foreign Subsidiaries 605
International Working Capital and Cash Flow Management 606
Operating Cash Flows and Financing Cash Flows 606
A Sample Cash Flow Mapping 606
Inteation Cash Flows and Transfer Prices 606
Cash Flow and Management 608
Financial Risk Management 610
Classification of Foreign Currency Exposures 611
Transaction Exposure 612
Transaction Exposure Management 612
Risk Management versus Speculation 614
Transaction Exposure Case Lufthansa(l985) 614
Currency Risk Sharing 616
Economic Exposure 617
Impact of Economic Exposure 617
Economic Exposure Management 618
Translation Exposure 619
the Current Rate Method 619
Translation Exposure Management 620
Interest Rate and Currency Swaps 621
Interest Rate Swaps 621
Currency Swaps 622
Summary 623
Global Perspective 17.1: “Lost in a Maze of Hedges” 613
Global Perspective 17.2: Economic Exposure:Foreign Automakers in Mexico 619
Chapter 18 Countertrade 624
Learning Objectives 626
Opening Vignette Implementing International Countertrade 627
A Definition of Countertrade 628
Types of Countertrade 631
Official Attitudes Toward Countertrade 638
AUS.Policy Perspective 638
Other Government Views 640
Attitudes of Other International Organizations 640
The Corporate Situation 641
The Emergence of New Intermediaries 643
Preparing for Countertrade 645
Summary 648
Global Perspective 18.1: Turkmenistan Embraces Countertrade 630
Global Perspective 18.2: When Governments Do Offset Deals 636
Global Perspective 18.3: Debt Funds stud Abroad637 637
Global Perspective 18.4: coping with Offsets 642
Chapter 19 International Accounting and Taxation 652
Learning Objectives 652
Opening Vignette:U.S. Accounting Practices Would Halve EPS 653
Accounting Diversity 653
Principal Accounting Differences Across Countries 654
Origins of Differences 655
Classification Systems 656
Principal Differences: The lssues 657
The Process of Accounting Standardization 665
International Taxation 665
Tax Jurisdictions 665
Tax Types 607
Income Categories and Taxation 668
U.S.Taxation of Foreign Operations 669
Taxation of Foreign Branches of U.S.Corporations 669
Taxation of Foreign Subsidiaries of U.S.Corporations 669
Calcu1ation of U.S.Taxes on ForeIgn—Source Earnings 673
Concluding Remarks Regarding U,S. Taxation of Foreign Income 675
Summary 676
Global Perspective 19.1: The Father of Accounting:Luca Pacioli Who? 655
Global Perspective 19.2: countertrade Accountants in the Dark 656
Global Perspective 19.3: How Green is My Balance Sheet? 664
Global Perspective 19.4: Did Stolichnaya Taxes Put Vodka on the Rocks? 666
Global Perspective 19.5: TforgLessonsfromalbania 676
Chapter 20 lnternational Human Resource Management 680
Learning Objectives 680
Opening Vignette:Global Talent Search 681
Managing Managers 682
Early Stages of Internationalization 682
Advanced Stages of Internationalization 683
Interfirm Cooperative Vennures 684
Sources for Management Recruitment 686
Selection Criteria for Overseas Assignments 688
Culture Shock 693
Repatriation 695
Compensation 696
Managing Labor Personnel 699
Labor Participation in Management 700
The Role of Labor Unions 705
Human Resource Policies 706
Summary 707
Global Perspective 20.1: The Challenge of How to Best Manage Together 685
Global Perspective 20.2: Women's Global Career Ladder 692
Global Perspective 20.3: How Far will Your Salary Go? 697
Global Perspective 20.4: Workers of the World.Get Training! 701
Global Perspective 20.5: Cooperation Worth copying 706
Chapter 21 Organization and Control In International Operations 712
Learning Objectives 713
Opening Vignette:Borderless Management 713
Organizational Structure 714
Organizational Designs 714
Locus Of Decision Making 723
Factors Affecting Structure and Decision Making 724
The Networked Global Organization 725
The Role of Country Organizations 727
Controls 729
Types Of Controls 730
Exercising Controls 733
Summary 736
Global Perspective 21.1: Restructuring fOr NAFTA 720
Global Perspective 21.2: Characteristics of Success 728
Global Perspective 21.3: The Country Manager of the 1990s 734
Chapter 22 The Future 746
Learning Objectives 746
Opening Vignette:The Demise of the Global Firm? 747
The International Business Environment 748
The Political Environment 748
The Internal Financial Environment 752
The Effects of Population Shifts 754
The Technological Environment 754
Changes in Trade Relations 755
Governmental Policy 756
The Future of International Business Management 757
International Planning and Research 757
International Product Policy 759
International Communication 762
Distribution Strategies 762
International Pricing 763
Careers in Internal Business 763
Further Training 764
Employment with a Large Firm 765
Employment with a Small or Medium—Sized Firm 767
Self—Employment 771
Summary 771
Global Perspective 22.1: The Struggle to Fill Positions in China 750
Global Perspective 22.2: tenders Target Women in the Developing World 751
Global Perspective 22.3: Japanese Women Make career Moves 764
Global Perspective 22.4: Preparing for an Internationail Assignment 770
Part 5 Cases 774
Harley—Davidson:Hedging Hogs 774
Establishing an Overseas Law Office 775
Aston Systems Corporation 778
HathaWay Electronics:The Foreign Assignment 784
Mcdonnell Douglas:The F—18 Hornet Offset 790
Charting a Course in a Global Economy 795
Troll-AEG 801
Otjiwarongo Crocodile Ranch 820
Videocase: The Culture of Commerce 830
Glossary 833
Name Index 847
Subject Index 854
Maps 10
Map 1 International Trade as a Percentage of Gross Domestic Product 10
Map 2 Current Account Balances as a Percentage of Gross Domestic Product 41
Map 3 Manufacturing:A Major Factor in Gross Domestic Product 84
Map 4 Total External Debt by Country 130
Map 5 The Locations of the World's International Financial Centers(IFCs)andInternationalOffOffshoreFinancialCenters(IOFCs) 152
Map 6 International Groupings 190
Map 7 The Global Envitonment: A Source of Conflict between Developed and Less—Developed Nations 210
Map 8 The Risk of Terrorist Activity A Factor in International Business Decisions 281
Map 9 Religions of the World A Part of Culture 307
Map 10 Emerging Economies of Central and Eastern Europe 327
Map 11 Advances in Telephone and Data Transmission Technology Facilitate the Collection of Data for International Business Research 387
Map 12 International Locations of U.S. Financing Operations 423
Map 13 The Operations ( Structure of the Multinational Firm) 445
Map 14 Income Distribution:A Factor in Evaluating Market Potential 507
Map 15 Services as a Portion of Gross Domestic Product 552
Map 16 Trade and Travel Networks 590
Map 17 Inflation Rates and Interest Rates around the World 603
Map 18 Preferred Items for Export in Countertrade Transactions 632
Map 19 Corporate Tax Rates around the World 670
Map 20 Organized Labor as a Percentage of the labor Force 702
Map 21 The European Union:An Example of Area Structure 735
Map 22 The Cost of Living in the World's Major Business Cities 764