Instructor Manual: Peng, Global Business, 5e; ©2023; 9780357716403; Chapter 2: Formal Institutions: Politics, Laws, and
Economics
Instructor Manual
Global Business, 5th Edition Mike W. Peng
Chapter 1-17
Chapter 1
Table of Contents
Purpose and Perspective of the Chapter ............................................................................... 2
Cengage Supplements ........................................................................................................ 2
Chapter Objectives ............................................................................................................. 2
Complete List of 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-of-Chapter Guide ......................................................................................................... 9
Review Questions ...................................................................................................................................... 9
Critical Discussion Questions ................................................................................................................... 11
Global Action ........................................................................................................................................... 12
Closing Case: Emerging Markets—Are US Multinationals Good for America? ........................................ 12
Appendix ..........................................................................................................................14
Generic Rubrics ....................................................................................................................................... 14
Standard Writing Rubric .......................................................................................................................... 14
Standard Discussion Rubric ..................................................................................................................... 14
1 © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
, Instructor Manual: Peng, Global Business, 5e; ©2023; 9780357716403; Chapter 2: Formal Institutions: Politics, Laws, and
Economics
Purpose and Perspective of the Chapter
The purpose of this chapter is to explore the concepts of international and global business.
First, we discuss the importance of studying global business. Then, we develop the unified
framework used in each chapter, which focuses learning on one fundamental question and two
core perspectives—an institution-based view and a resource-based view. Next, we explore the
concepts of globalization, semiglobalization, and risk management. As a backdrop for the
remainder of the text, the Global Business and Globalization at a Crossroads section makes two
points: First, a basic understanding of 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. Finally,
we explore the broad implications for savvy managers and students for the future of global
business in a less global world.
Cengage Supplements
The following product-level supplements provide additional information that may help you in
preparing your course. They are available in the Instructor Resource Center.
Transition Guide (provides information about what’s new from edition to edition)
Educator’s Guide (describes assets in the platform with a detailed breakdown of
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 information about the key assets within the product
and how to implement/facilitate use of the assets in synchronous and asynchronous
teaching environments)
Accelerated Course Syllabus (provides guidance on the recommended delivery of course
materials given a 5-week, 8-week, 12-week, and 16-week course)
MindTap User Guide (provides information on how to navigate and use MindTap)
Chapter Objectives
The following objectives are addressed in this chapter:
1-1 Explain the concepts of international business and global business.
1-2 Give three reasons why it is important to study global business.
1-3 Articulate one fundamental question and two core perspectives in the study of global
business.
1-4 Describe the importance of globalization, semiglobalization, and risk management.
1-5 State the size of 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 for action.
1-8 Understand the structure of the book and the discipline.
2 © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
, Instructor Manual: Peng, Global Business, 5e; ©2023; 9780357716403; Chapter 2: Formal Institutions: Politics, Laws, and
Economics
Complete List of Chapter Activities and Assessments
For additional guidance refer to the Teaching Online Guide.
Chapter PPT slide Activity/Assessment Duration
Objective
1-2 7 Opening Day Quiz in PPT and 5 min
Text (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 following elements are improvements in this chapter from the previous edition:
Opening Case: Apple, America, and China
Closing Case: Are US Multinationals Good for America?
In Focus 1.1: How Firms From Emerging Economies Overcome Liability Of Foreignness
In Focus 1.3: The Dell Theory of 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 of Scenario Planning
Table 1.6: Implications for Action
Figure 1.3: Trade-offs Between Global Value Chain Resilience and Cost Per Unit
New Implications for Action: The future of 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 firms such as Apple are able compete
around the world while dealing with the various rules of 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 failure? How can they use globalization to
their advantage? How important was it for Apple to get involved in trade discussions and
decisions by directly lobbying US government officials?
[return to top]
3 © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
, Instructor Manual: Peng, Global Business, 5e; ©2023; 9780357716403; Chapter 2: Formal Institutions: Politics, Laws, and
Economics
Chapter Outline
In the outline below, each element includes references (in parentheses) to related content.
―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the
PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor
Resource Center); and, as applicable for each discipline, accreditation or certification standards
(―BL 1.3.3‖). Introduce the chapter and review learning objectives for 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 defined as (1) a business (firm) that
engages in international (cross-border) economic activities and (2) the
action of doing business abroad.
Global business is defined 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 of the global economic pyramid.
b. Key Terms
International business (IB): (1) A business (firm) that engages in
international (cross-border) economic activities and/or (2) the action of
doing business abroad
Multinational enterprise (MNE): A firm that engages in foreign direct
investment (FDI)
Foreign direct investment (FDI): 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 for possible expatriate assignments abroad
(3) Stronger competence in interacting with foreign suppliers,
partners, and competitors, and in working for foreign-owned
employers in your own country
b. Key Terms
4 © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
Economics
Instructor Manual
Global Business, 5th Edition Mike W. Peng
Chapter 1-17
Chapter 1
Table of Contents
Purpose and Perspective of the Chapter ............................................................................... 2
Cengage Supplements ........................................................................................................ 2
Chapter Objectives ............................................................................................................. 2
Complete List of 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-of-Chapter Guide ......................................................................................................... 9
Review Questions ...................................................................................................................................... 9
Critical Discussion Questions ................................................................................................................... 11
Global Action ........................................................................................................................................... 12
Closing Case: Emerging Markets—Are US Multinationals Good for America? ........................................ 12
Appendix ..........................................................................................................................14
Generic Rubrics ....................................................................................................................................... 14
Standard Writing Rubric .......................................................................................................................... 14
Standard Discussion Rubric ..................................................................................................................... 14
1 © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
, Instructor Manual: Peng, Global Business, 5e; ©2023; 9780357716403; Chapter 2: Formal Institutions: Politics, Laws, and
Economics
Purpose and Perspective of the Chapter
The purpose of this chapter is to explore the concepts of international and global business.
First, we discuss the importance of studying global business. Then, we develop the unified
framework used in each chapter, which focuses learning on one fundamental question and two
core perspectives—an institution-based view and a resource-based view. Next, we explore the
concepts of globalization, semiglobalization, and risk management. As a backdrop for the
remainder of the text, the Global Business and Globalization at a Crossroads section makes two
points: First, a basic understanding of 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. Finally,
we explore the broad implications for savvy managers and students for the future of global
business in a less global world.
Cengage Supplements
The following product-level supplements provide additional information that may help you in
preparing your course. They are available in the Instructor Resource Center.
Transition Guide (provides information about what’s new from edition to edition)
Educator’s Guide (describes assets in the platform with a detailed breakdown of
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 information about the key assets within the product
and how to implement/facilitate use of the assets in synchronous and asynchronous
teaching environments)
Accelerated Course Syllabus (provides guidance on the recommended delivery of course
materials given a 5-week, 8-week, 12-week, and 16-week course)
MindTap User Guide (provides information on how to navigate and use MindTap)
Chapter Objectives
The following objectives are addressed in this chapter:
1-1 Explain the concepts of international business and global business.
1-2 Give three reasons why it is important to study global business.
1-3 Articulate one fundamental question and two core perspectives in the study of global
business.
1-4 Describe the importance of globalization, semiglobalization, and risk management.
1-5 State the size of 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 for action.
1-8 Understand the structure of the book and the discipline.
2 © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
, Instructor Manual: Peng, Global Business, 5e; ©2023; 9780357716403; Chapter 2: Formal Institutions: Politics, Laws, and
Economics
Complete List of Chapter Activities and Assessments
For additional guidance refer to the Teaching Online Guide.
Chapter PPT slide Activity/Assessment Duration
Objective
1-2 7 Opening Day Quiz in PPT and 5 min
Text (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 following elements are improvements in this chapter from the previous edition:
Opening Case: Apple, America, and China
Closing Case: Are US Multinationals Good for America?
In Focus 1.1: How Firms From Emerging Economies Overcome Liability Of Foreignness
In Focus 1.3: The Dell Theory of 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 of Scenario Planning
Table 1.6: Implications for Action
Figure 1.3: Trade-offs Between Global Value Chain Resilience and Cost Per Unit
New Implications for Action: The future of 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 firms such as Apple are able compete
around the world while dealing with the various rules of 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 failure? How can they use globalization to
their advantage? How important was it for Apple to get involved in trade discussions and
decisions by directly lobbying US government officials?
[return to top]
3 © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
, Instructor Manual: Peng, Global Business, 5e; ©2023; 9780357716403; Chapter 2: Formal Institutions: Politics, Laws, and
Economics
Chapter Outline
In the outline below, each element includes references (in parentheses) to related content.
―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the
PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor
Resource Center); and, as applicable for each discipline, accreditation or certification standards
(―BL 1.3.3‖). Introduce the chapter and review learning objectives for 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 defined as (1) a business (firm) that
engages in international (cross-border) economic activities and (2) the
action of doing business abroad.
Global business is defined 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 of the global economic pyramid.
b. Key Terms
International business (IB): (1) A business (firm) that engages in
international (cross-border) economic activities and/or (2) the action of
doing business abroad
Multinational enterprise (MNE): A firm that engages in foreign direct
investment (FDI)
Foreign direct investment (FDI): 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 for possible expatriate assignments abroad
(3) Stronger competence in interacting with foreign suppliers,
partners, and competitors, and in working for foreign-owned
employers in your own country
b. Key Terms
4 © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
