1 The growth of international business 1
The history of international business 2
The dimensions of international business 5
Indirect methods of developing foreign markets 9
Types of FDI 10
Summary of key points 12
References 12
Reading 1.1 Forces of change 13
Reading l.2 Competition：the dispersion of technology 13
Reading 1.3 Europe's Trade Unions unite and rule 15
2 The multinational corporation 17
Introduction 17
The market imperfections approach 18
Theories based on firm-specific advantages 20
Approaches based on location-specific advantages 23
General theory of international production 27
Summary of key points 29
References 29
Reading 2.1 Selling to the world 31
Reading 2.2 Do we want to be international？ 31
Reading 2.3 Developing beyond the screwdriver plant 32
3 The environment of international 33
Introduction 34
The economic environment 35
The financial environment 37
The political environments 38
The legal environment 40
The cultural environment 41
Summary of key points 41
The technological environment 43
Reading 3.1 Hongkong/Midland merger progress 45
References 45
Reading 3.2 Capitalism hits east Germany 47
4 International business strategy 49
Introduction 49
From domestic to international strategy 50
Management philosophies and strategy 52
Conflicting determinants 55
Porter's model of international strategy 56
Prahalad and Doz's strategy model 59
Summary of key points 63
Reading 4.1 American Airlines managing the future 64
References 64
Reading 4.2 The big squeeze 67
5 International marketing strategy 69
Introduction 69
The pitfalls of international marketing 70
International marketing management 71
International marketing research 72
International segmentation 73
International product strategy 74
International pricing strategy 76
International promotional strategy 77
Summary of key points 78
International distribution strategy 78
References 80
Reading 5.1 Customers：their emerging power 80
Reading 5.2 Ford mondaine or mundane? 81
6 International technology strategy 83
Introduction 83
Technology and the MNC：an overview 84
Technological interdependence 85
Technology and the strategy process 86
Strategy,manufacturing and process development 87
Strategy and innovation 87
Strategy and information systems 88
technology accumulation 89
Home or overseas R D 90
Organizational issues 91
Relative technological performance 93
Summary of key points 94
References 95
Reading 6.1 NV Philips Gloeilampen－fabrieken 96
Reading 6.3 Perkin Elmer 97
Reading 6.2 Fujitsu 97
Reading 6.4 Electrolux 98
Reading 6.5 NeXT computer：Jobs's Lot 98
7 International financial strategy 101
Introduction 101
Exchange rate regimes 102
The foreign exchange market 103
Exchange rate changes 104
Exchange rate forecasting 104
Foreign exchange risk 106
Risk management for exchange rate changes 107
International cash management 109
International taxation 110
Control procedures and performance evaluation 113
Capital budgeting in the multinational 113
Summary of key points 114
References 114
Reading 7.1 Britain's Inland Revenue probes tax avoidance at Sony 115
Reading 7.2 Taxing times for multinationals in Argentina 116
8 International operations strategy 118
Introduction 118
International procurement 119
International subcontracting 120
The plant location decision 122
Plant design and manufacturing systems 126
Plant roles and interplant relationships 127
Location of research and development 128
Summary of key points 131
References 131
Reading 8.1 Nissan's procurement policy at its UK plant 132
Reading 8.2 IBM：the principal decides to commence subcontracting 132
Reading 8.4 Thomson phases out its Gosport，UK，plant 133
Reading 8.3 The disadvantages of integrated produciton：the Ford and renault experience 133
Reading 8.5 Sony and the prospects for its Bridgend plant 134
Reading 8.6 Japanese R＆D in the EC：the case of Canon and Matsushita 135
9 International personnel strategy 136
IntroduCtiOn 136
Staffing polices 137
Expatriate policy 142
Globalization and human resource management 143
Global managers and management development 144
International labour strategy 145
Summary of key points 146
References 149
Reading 9.1 British trade union leader's Perspective of singleunion agreements at Japanese plantsin the United Kingdom 150
Reading 9.2 Full of eastern premise 152
Reading 9.3 Matsushita and international managemendevelopment 153
Reading 9.4 Polaroid and‘skill—based pay Systems' 154
10 International organization and control strategy 155
Introduction 155
The evolutions of organizational structure 155
New directions in organizational structures 160
Location of decision－making 165
Summary of key Points 166
References 167
Reading 10.1 Bartlett and Ghoshal on matrix management 168
Reading 10.2 Performance evaluation and the implications for Ford's Dagenham and Halewood plants in the United Kingdom 169
Reading 10.3 IBM’s 1991 reorganization 172
11 International subsidiary strategy 174
Introduction 174
The White and Poynter framework 175
The jarillo and Martinez framework 178
The Bartlett and Ghoshal framework 179
Host government policy：the Political imperative 184
Subsidiary strategies：operating characteristics and host—country dimensions in regional trading blocks 186
Summary of key points 188
References 189
12 International acquisitions：strategy and management 190
Introduction 190
A new era in takeover activity 190
The cultural，legal and political dimensions 192
Managing international acquisitions 193
The conventional perspective of the acquisition process 194
An alternative perspective of the acpuistion process 195
International acquisitions and value creation or synergy 196
Corporate renewal：acquisitions and line of 197
Acquisitions and business strategy 198
Managing the international acquisitions decision process 199
The successful integration process 201
Problems in acquisition integration 203
Different approaches to integration 204
Summary of key points 207
References 208
Reading 12．1 An oppertunistic international acquisition-but strategic？ 208
Reading 12．2 Pre－merger management 209
Reading 12．3 Rhone－Poulenc's acquisition of Rorer 211
Reading 12．4 Bridgestone's difficulties in integrating Flrestone 212
13 International business in the future introduction 214
The future of the multinational 214
International co－operation 216
The rise of nationalism 217
Determinants of competition 218
International managers for the millenniumReferences 224
Reading 13．1 Declaration of interdependence toward the World—2005 224
Index 226