INSTRUCTOR’S MANUAL for INTERNATIONAL BUSINESS The Challenges of Globalization
1st Edition (Canadian Edition ) Prepa red by Gerry Taft Copyright © 2015 Pearson Canada Inc. Contents Chapter 1 Globalization ................................................................................................2 Chapter 2 Cross-Cultural Business ............................................................................. 17 Chapter 3 Politics and Law ......................................................................................... 39 Chapter 4 International Ethics .................................................................................... 54 Chapter 5 Economics and Emerging Markets ............................................................ 61 Chapter 6 International Trade ..................................................................................... 78 Chapter 7 Foreign Direct Investment ......................................................................... 97 Chapter 8 Regional Economic Integration ............................................................... 111 Chapter 9 International Financial Markets and Foreign Exchange .......................... 129 Chapter 10 International Strategy and Organization .................................................. 144 Chapter 11 Selecting an d Managing Entry Modes ..................................................... 157 Chapter 12 Developing and Marketing Products ....................................................... 173 Teaming Up .................................................................................................................. 187 Ch 1: Globalization 2 Copyright © 2015 Pearson Canada Inc . CHAPTER 1 GLOBALIZATION LEARNING OBJECTIVES : 1.
Describe the process of globalization and how it affects markets a nd production.
2.
Identify the two forces causing globalization to increase.
3.
Summarize the evidence for each main argum ent in the globalization debate.
4.
Identify the types of companies that participate in international business.
5.
Describe the global business environment and identify its four main elements.
CHAPTER OUTLINE : Introduction International Business Involves Us All Technology Makes It Possible Global Talent Makes It Happen Globalization Globalization of Markets Reduces Marketing Costs Creates New Market Opportunities Levels Uneven Income Streams Yet Local Needs Are Important Globalization of Production Access Lower-Cost Workers Access Technical Expertise Access Production Inputs Forces Driving Globalization Falling Barriers to Trade and Investment World Trade Organization Regional Trade Agreements Trade and National Output Technological Innovation E-ma
il and Videoconferencing
Internet and World Wide Web
Co
mpany Intranets and Extranets
Advancements in Transportation Technol ogies
Measuring Globalization Untangling t
he Globalization Debate Today’s Globalization in Context Introduction to the Debate Globalization’s Impact on Jobs and Wages Against Globalization Eliminates Jobs in Developed Nations Lowers Wages in Developed Nations Exploits Workers in Developing Nations For Globalization Increases Wealth and Efficiency in All Nations Generates Labor Market Flexibility in Developed Nations Ch 1: Globalization 3 Copyright © 2015 Pearson Canada Inc . Advances Econom
ies of Developing Nations Summary of the Jobs and Wages Debate Globalization’s Impact on Labor, the Environment, and Markets Labor Standards Environmental Protection Future Markets Globalization and Income Inequality Inequality within Nations Inequality between Nations Global Inequality Summary of the Income Inequality Debate Globalization and National Sovereignty Globalization: Menace to Democracy? Globalization: Guardian of Democracy? Globalization’s Influence on Cultures Key Players in International Business Multinational Corporations Entrepreneurs and Small Businesses Why International Business Is Special The Global Business Environment The Road Ahead for In ternational Business Bottom Line for Business A comprehensive set of specially designed PowerPoint slides is available for use with Chapter 1. These slides and the lecture outline below form a completely integrated package that simplifies the teaching of this chapter’s material. Lecture Outline 1. INTROD
UCTION
Globalization is reshaping our cultures, our political, legal, and economic systems, and
affecting our standards of living. It alters the global pattern of trade and investme nt by
expanding markets and multiplying production possibilities.
A. International Business Involves Us All
1.
Each of us encounters the result of inte rnational business transactions
every day whether we realize it or not.
2. International business is any commercial transaction that crosses the
borders of two or more nations.
3. Imports are goods and services purchased abroad and brought into a
countr
y. Exports are goods and services sold abroad and sent out of a
countr
y.
B. Technology Makes It Possible
1.
Technology is a remarkable fac ilitato r of international business and
change.
2. E-business (e
-commerce) is the use of computer networks to pur chase,
sell, or exchange product
s; service customers; and collaborate with
partners.
1st Edition (Canadian Edition ) Prepa red by Gerry Taft Copyright © 2015 Pearson Canada Inc. Contents Chapter 1 Globalization ................................................................................................2 Chapter 2 Cross-Cultural Business ............................................................................. 17 Chapter 3 Politics and Law ......................................................................................... 39 Chapter 4 International Ethics .................................................................................... 54 Chapter 5 Economics and Emerging Markets ............................................................ 61 Chapter 6 International Trade ..................................................................................... 78 Chapter 7 Foreign Direct Investment ......................................................................... 97 Chapter 8 Regional Economic Integration ............................................................... 111 Chapter 9 International Financial Markets and Foreign Exchange .......................... 129 Chapter 10 International Strategy and Organization .................................................. 144 Chapter 11 Selecting an d Managing Entry Modes ..................................................... 157 Chapter 12 Developing and Marketing Products ....................................................... 173 Teaming Up .................................................................................................................. 187 Ch 1: Globalization 2 Copyright © 2015 Pearson Canada Inc . CHAPTER 1 GLOBALIZATION LEARNING OBJECTIVES : 1.
Describe the process of globalization and how it affects markets a nd production.
2.
Identify the two forces causing globalization to increase.
3.
Summarize the evidence for each main argum ent in the globalization debate.
4.
Identify the types of companies that participate in international business.
5.
Describe the global business environment and identify its four main elements.
CHAPTER OUTLINE : Introduction International Business Involves Us All Technology Makes It Possible Global Talent Makes It Happen Globalization Globalization of Markets Reduces Marketing Costs Creates New Market Opportunities Levels Uneven Income Streams Yet Local Needs Are Important Globalization of Production Access Lower-Cost Workers Access Technical Expertise Access Production Inputs Forces Driving Globalization Falling Barriers to Trade and Investment World Trade Organization Regional Trade Agreements Trade and National Output Technological Innovation E-ma
il and Videoconferencing
Internet and World Wide Web
Co
mpany Intranets and Extranets
Advancements in Transportation Technol ogies
Measuring Globalization Untangling t
he Globalization Debate Today’s Globalization in Context Introduction to the Debate Globalization’s Impact on Jobs and Wages Against Globalization Eliminates Jobs in Developed Nations Lowers Wages in Developed Nations Exploits Workers in Developing Nations For Globalization Increases Wealth and Efficiency in All Nations Generates Labor Market Flexibility in Developed Nations Ch 1: Globalization 3 Copyright © 2015 Pearson Canada Inc . Advances Econom
ies of Developing Nations Summary of the Jobs and Wages Debate Globalization’s Impact on Labor, the Environment, and Markets Labor Standards Environmental Protection Future Markets Globalization and Income Inequality Inequality within Nations Inequality between Nations Global Inequality Summary of the Income Inequality Debate Globalization and National Sovereignty Globalization: Menace to Democracy? Globalization: Guardian of Democracy? Globalization’s Influence on Cultures Key Players in International Business Multinational Corporations Entrepreneurs and Small Businesses Why International Business Is Special The Global Business Environment The Road Ahead for In ternational Business Bottom Line for Business A comprehensive set of specially designed PowerPoint slides is available for use with Chapter 1. These slides and the lecture outline below form a completely integrated package that simplifies the teaching of this chapter’s material. Lecture Outline 1. INTROD
UCTION
Globalization is reshaping our cultures, our political, legal, and economic systems, and
affecting our standards of living. It alters the global pattern of trade and investme nt by
expanding markets and multiplying production possibilities.
A. International Business Involves Us All
1.
Each of us encounters the result of inte rnational business transactions
every day whether we realize it or not.
2. International business is any commercial transaction that crosses the
borders of two or more nations.
3. Imports are goods and services purchased abroad and brought into a
countr
y. Exports are goods and services sold abroad and sent out of a
countr
y.
B. Technology Makes It Possible
1.
Technology is a remarkable fac ilitato r of international business and
change.
2. E-business (e
-commerce) is the use of computer networks to pur chase,
sell, or exchange product
s; service customers; and collaborate with
partners.
