INSTRUCTOR MANUAL
Global Business, 5th Edition Mike W. Peng
All Chapter 1-17
Chapter 1
Table oƒ Contents
Purpose and Perspective oƒ the Chapter ........................................................................................ 2
Cengage Supplements ................................................................................................................. 2
Chapter Objectives ...................................................................................................................... 2
Complete List oƒ Chapter Activities and Assessments .................................................................... 3
What's New in This Chapter .......................................................................................................... 3
Opening Case Discussion: Emerging Markets—Apple, America, and China..................................... 3
Chapter Outline ........................................................................................................................... 4
End-oƒ-Chapter Guide .................................................................................................................. 9
Review Questions ..................................................................................................................... 9
Critical Discussion Questions ................................................................................................. 11
Global Action.......................................................................................................................... 12
Closing Case: Emerging Markets—Are US Multinationals Good ƒor America?............................. 12
Appendix ................................................................................................................................... 14
Generic Rubrics ...................................................................................................................... 14
Standard Writing Rubric .......................................................................................................... 14
Standard Discussion Rubric .................................................................................................... 14
,Purpose and Perspective oƒ the Chapter
The purpose oƒ this chapter is to explore the concepts oƒ international and global business. Ƒirst,
we discuss the importance oƒ studying global business. Then, we develop the uniƒied ƒramework
used in each chapter, which ƒocuses learning on one ƒundamental question and two core
perspectives—an institution-based view and a resource-based view. Next, we explore the
concepts oƒ globalization, semiglobalization, and risk management. As a backdrop ƒor the
remainder oƒ the text, the Global Business and Globalization at a Crossroads section makes two
points: Ƒirst, a basic understanding oƒ the global economy is necessary. Second, it is important to
critically examine your own personal views and biases regarding globalization. Additionally, we
outline three leading debates concerning business and globalization/deglobalization. Ƒinally, we
explore the broad implications ƒor savvy managers and students ƒor the ƒuture oƒ global business
in a less global world.
Cengage Supplements
The ƒollowing product-level supplements provide additional inƒormation that may help you in preparing
your course. They are available in the Instructor Resource Center.
• Transition Guide (provides inƒormation about what’s new ƒrom edition to edition)
• Educator’s Guide (describes assets in the platƒorm with a detailed breakdown oƒ
activities by chapter with seat time)
• PowerPoint (provides text-based lectures and presentations)
• Test Bank (contains assessment questions and problems)
• Guide to Teaching Online (provides inƒormation about the key assets within the product
and how to implement/ƒacilitate use oƒ the assets in synchronous and asynchronous
teaching environments)
• Accelerated Course Syllabus (provides guidance on the recommended delivery oƒ course
materials given a 5-week, 8-week, 12-week, and 16-week course)
• MindTap User Guide (provides inƒormation on how to navigate and use MindTap)
Chapter Objectives
The ƒollowing objectives are addressed in this chapter:
1-1 Explain the concepts oƒ international business and global business.
1-2 Give three reasons why it is important to study global business.
1-3 Articulate one ƒundamental question and two core perspectives in the study oƒ global
business.
1-4 Describe the importance oƒ globalization, semiglobalization, and risk management.
1-5 State the size oƒ the global economy and its broad trends and understand your likely
bias in the globalization debate.
1-6 Participate in three leading debates concerning global business.
1-7 Draw implications ƒor action.
1-8 Understand the structure oƒ the book and the discipline.
,Complete List oƒ Chapter Activities and Assessments
Ƒor additional guidance reƒer to the Teaching Online Guide.
Chapter PPT slide Activity/Assessment Duration
Objective
1-2 7 Opening Day Quiz in PPT and Text 5 min
(Table 1.2)
1-4 19 Discussion Activity 1 in PPT 10 min
1-6 26 Polling Activity in PPT 5 min
1-6 29 Discussion Activity 2 in PPT 10 min
[return to top]
What's New in This Chapter
The ƒollowing elements are improvements in this chapter ƒrom the previous edition:
• Opening Case: Apple, America, and China
• Closing Case: Are US Multinationals Good ƒor America?
• In Ƒocus 1.1: How Ƒirms Ƒrom Emerging Economies Overcome Liability Oƒ Ƒoreignness
• In Ƒocus 1.3: The Dell Theory oƒ Peace
• Debate 1: Globalization versus Deglobalization
• Debate 2: Strategic versus Nonstrategic Industries
• Debate 3: Just-in-Time versus Just-in-Case Management
• Table 1.3: Basics oƒ Scenario Planning
• Table 1.6: Implications ƒor Action
• Ƒigure 1.3: Trade-oƒƒs Between Global Value Chain Resilience and Cost Per Unit
• New Implications ƒor Action: The ƒuture oƒ global business in a less global world
• New Topics: Black swan events, deglobalization, global value chain, organizational slack,
resilience, stakeholder, triple bottom line
[return to top]
Opening Case Discussion: Emerging Markets—Apple,
America, and China
This case can be used to help students understand how ƒirms such as Apple are able compete
around the world while dealing with the various rules oƒ the game. Ask students how a company
can adapt when the larger geopolitical relationship between their home and host country changes.
What determines their success and ƒailure? How can they use globalization to their advantage?
How important was it ƒor Apple to get involved in trade discussions and decisions by directly
lobbying US government oƒƒicials?
[return to top]
, Chapter Outline
In the outline below, each element includes reƒerences (in parentheses) to related content.
―CH.##‖ reƒers to the chapter objective; ―PPT Slide #‖ reƒers to the slide number in the
PowerPoint deck ƒor this chapter (provided in the PowerPoints section oƒ the Instructor Resource
Center); and, as applicable ƒor each discipline, accreditation or certiƒication standards (―BL
1.3.3‖). Introduce the chapter and review learning objectives ƒor Chapter 1. (PPT Slide 2).
I. INTERNATIONAL BUSINESS AND GLOBAL BUSINESS (LO 1-1, PPT Slides 3–4)
a. Key Concepts
• International business is typically deƒined as (1) a business (ƒirm) that
engages in international (cross-border) economic activities and (2) the
action oƒ doing business abroad.
• Global business is deƒined in this book as business around the globe and
includes both (1) international (cross-border) business activities covered
by traditional IB books and (2) domestic business activities.
• This book goes beyond competition in developed economies. It devotes
extensive space to competitive battles waged in emerging economies and
the base oƒ the global economic pyramid.
b. Key Terms
• International business (IB): (1) A business (ƒirm) that engages in
international (cross-border) economic activities and/or (2) the action oƒ
doing business abroad
• Multinational enterprise (MNE): A ƒirm that engages in ƒoreign direct
investment (ƑDI)
• Ƒoreign direct investment (ƑDI): Investment in, controlling, and
managing value-added activities in other countries
• Global business: Business around the globe
II. WHY STUDY GLOBAL BUSINESS? (LO 1-2, PPT Slides 5–9)
a. Key Concepts
• Why study global business?
(1) Enhance your employability and advance your career in the global
economy
(2) Better preparation ƒor possible expatriate assignments abroad
(3) Stronger competence in interacting with ƒoreign suppliers,
partners, and competitors, and in working ƒor ƒoreign-owned
employers in your own country
b. Key Terms
Global Business, 5th Edition Mike W. Peng
All Chapter 1-17
Chapter 1
Table oƒ Contents
Purpose and Perspective oƒ the Chapter ........................................................................................ 2
Cengage Supplements ................................................................................................................. 2
Chapter Objectives ...................................................................................................................... 2
Complete List oƒ Chapter Activities and Assessments .................................................................... 3
What's New in This Chapter .......................................................................................................... 3
Opening Case Discussion: Emerging Markets—Apple, America, and China..................................... 3
Chapter Outline ........................................................................................................................... 4
End-oƒ-Chapter Guide .................................................................................................................. 9
Review Questions ..................................................................................................................... 9
Critical Discussion Questions ................................................................................................. 11
Global Action.......................................................................................................................... 12
Closing Case: Emerging Markets—Are US Multinationals Good ƒor America?............................. 12
Appendix ................................................................................................................................... 14
Generic Rubrics ...................................................................................................................... 14
Standard Writing Rubric .......................................................................................................... 14
Standard Discussion Rubric .................................................................................................... 14
,Purpose and Perspective oƒ the Chapter
The purpose oƒ this chapter is to explore the concepts oƒ international and global business. Ƒirst,
we discuss the importance oƒ studying global business. Then, we develop the uniƒied ƒramework
used in each chapter, which ƒocuses learning on one ƒundamental question and two core
perspectives—an institution-based view and a resource-based view. Next, we explore the
concepts oƒ globalization, semiglobalization, and risk management. As a backdrop ƒor the
remainder oƒ the text, the Global Business and Globalization at a Crossroads section makes two
points: Ƒirst, a basic understanding oƒ the global economy is necessary. Second, it is important to
critically examine your own personal views and biases regarding globalization. Additionally, we
outline three leading debates concerning business and globalization/deglobalization. Ƒinally, we
explore the broad implications ƒor savvy managers and students ƒor the ƒuture oƒ global business
in a less global world.
Cengage Supplements
The ƒollowing product-level supplements provide additional inƒormation that may help you in preparing
your course. They are available in the Instructor Resource Center.
• Transition Guide (provides inƒormation about what’s new ƒrom edition to edition)
• Educator’s Guide (describes assets in the platƒorm with a detailed breakdown oƒ
activities by chapter with seat time)
• PowerPoint (provides text-based lectures and presentations)
• Test Bank (contains assessment questions and problems)
• Guide to Teaching Online (provides inƒormation about the key assets within the product
and how to implement/ƒacilitate use oƒ the assets in synchronous and asynchronous
teaching environments)
• Accelerated Course Syllabus (provides guidance on the recommended delivery oƒ course
materials given a 5-week, 8-week, 12-week, and 16-week course)
• MindTap User Guide (provides inƒormation on how to navigate and use MindTap)
Chapter Objectives
The ƒollowing objectives are addressed in this chapter:
1-1 Explain the concepts oƒ international business and global business.
1-2 Give three reasons why it is important to study global business.
1-3 Articulate one ƒundamental question and two core perspectives in the study oƒ global
business.
1-4 Describe the importance oƒ globalization, semiglobalization, and risk management.
1-5 State the size oƒ the global economy and its broad trends and understand your likely
bias in the globalization debate.
1-6 Participate in three leading debates concerning global business.
1-7 Draw implications ƒor action.
1-8 Understand the structure oƒ the book and the discipline.
,Complete List oƒ Chapter Activities and Assessments
Ƒor additional guidance reƒer to the Teaching Online Guide.
Chapter PPT slide Activity/Assessment Duration
Objective
1-2 7 Opening Day Quiz in PPT and Text 5 min
(Table 1.2)
1-4 19 Discussion Activity 1 in PPT 10 min
1-6 26 Polling Activity in PPT 5 min
1-6 29 Discussion Activity 2 in PPT 10 min
[return to top]
What's New in This Chapter
The ƒollowing elements are improvements in this chapter ƒrom the previous edition:
• Opening Case: Apple, America, and China
• Closing Case: Are US Multinationals Good ƒor America?
• In Ƒocus 1.1: How Ƒirms Ƒrom Emerging Economies Overcome Liability Oƒ Ƒoreignness
• In Ƒocus 1.3: The Dell Theory oƒ Peace
• Debate 1: Globalization versus Deglobalization
• Debate 2: Strategic versus Nonstrategic Industries
• Debate 3: Just-in-Time versus Just-in-Case Management
• Table 1.3: Basics oƒ Scenario Planning
• Table 1.6: Implications ƒor Action
• Ƒigure 1.3: Trade-oƒƒs Between Global Value Chain Resilience and Cost Per Unit
• New Implications ƒor Action: The ƒuture oƒ global business in a less global world
• New Topics: Black swan events, deglobalization, global value chain, organizational slack,
resilience, stakeholder, triple bottom line
[return to top]
Opening Case Discussion: Emerging Markets—Apple,
America, and China
This case can be used to help students understand how ƒirms such as Apple are able compete
around the world while dealing with the various rules oƒ the game. Ask students how a company
can adapt when the larger geopolitical relationship between their home and host country changes.
What determines their success and ƒailure? How can they use globalization to their advantage?
How important was it ƒor Apple to get involved in trade discussions and decisions by directly
lobbying US government oƒƒicials?
[return to top]
, Chapter Outline
In the outline below, each element includes reƒerences (in parentheses) to related content.
―CH.##‖ reƒers to the chapter objective; ―PPT Slide #‖ reƒers to the slide number in the
PowerPoint deck ƒor this chapter (provided in the PowerPoints section oƒ the Instructor Resource
Center); and, as applicable ƒor each discipline, accreditation or certiƒication standards (―BL
1.3.3‖). Introduce the chapter and review learning objectives ƒor Chapter 1. (PPT Slide 2).
I. INTERNATIONAL BUSINESS AND GLOBAL BUSINESS (LO 1-1, PPT Slides 3–4)
a. Key Concepts
• International business is typically deƒined as (1) a business (ƒirm) that
engages in international (cross-border) economic activities and (2) the
action oƒ doing business abroad.
• Global business is deƒined in this book as business around the globe and
includes both (1) international (cross-border) business activities covered
by traditional IB books and (2) domestic business activities.
• This book goes beyond competition in developed economies. It devotes
extensive space to competitive battles waged in emerging economies and
the base oƒ the global economic pyramid.
b. Key Terms
• International business (IB): (1) A business (ƒirm) that engages in
international (cross-border) economic activities and/or (2) the action oƒ
doing business abroad
• Multinational enterprise (MNE): A ƒirm that engages in ƒoreign direct
investment (ƑDI)
• Ƒoreign direct investment (ƑDI): Investment in, controlling, and
managing value-added activities in other countries
• Global business: Business around the globe
II. WHY STUDY GLOBAL BUSINESS? (LO 1-2, PPT Slides 5–9)
a. Key Concepts
• Why study global business?
(1) Enhance your employability and advance your career in the global
economy
(2) Better preparation ƒor possible expatriate assignments abroad
(3) Stronger competence in interacting with ƒoreign suppliers,
partners, and competitors, and in working ƒor ƒoreign-owned
employers in your own country
b. Key Terms
