SOLUTION MANUAL For International
Business, 17th Edition By John Daniels,
Lee Radebaugh & Daniel Sullivan
Complete Chapters 1-42| A+ GRADE
GUARANTEED
Page 1 of 504
, PART ONE
BACKGROUND FOR INTERNATIONAL BUSINESS
Chapter 1
Globalization And International Business
OBJECTIVES
1-1 Explain Why And How The Study Of International Business (IB) Is Important 1-2
Understand The Relationship Between Globalization And IB
1-3 Grasp The Forces Driving Globalization And IB 1-4 Discuss The Major Criticisms Of
Globalization 1-5 Assess The Major Reasons Companies Seek To Create Value By
Engaging In IB
1-6 Define And Illustrate The Different Operating Modes For Companies To
Accomplish Their International Objectives
1-7 Recognize Why National Differences In Companies' External Environments Affect
How They May Best Improve Their IB Performance
CHAPTER OVERVIEW
Globalization Has Become A Major Socioeconomic Force And Topic Of Debate In The Twenty-
First Century. Chapter One Examines The Forces That Are Driving This Phenomenon, As Well
As The Often- Passionate Criticisms Of The Process. The Chapter Reviews The Objectives That
Firms Pursue When They Engage In International Business Activities And Describes The
Various Modes Of Entry That May Be Used. It Also Notes The Terminology That Has Come
Into Existence As New Types Of Organizations Have Evolved. The Chapter Concludes With A
Discussion Of The Conditions In A Company's External Environment That May Affect Its
International Operations.
Page 2 of 504
, CHAPTER OUTLINE
OPENING CASE: THE GLOBALIZED BUSINESS OF SPORTS [See Map 1.1]
Although Not Everyone Agrees That The Unbridled Globalization Of Professional Sports Is All
For The Good, The Process And Possibilities Are Definitely Far Reaching. Today's Satellite
Television Broadcasts Enable Fans To Watch Top Players And Teams In Nearly Any Sport
From Almost Anywhere On Earth. Professional Teams Scour The World To Find And Develop
The Most Talented Athletes, And Players Forsake Home Country Allegiances In Their Pursuit
Of The World's Highest Salaries. Further, The More People That Tournaments Can Attract
Through Attendance And Television, The More Money That Sponsors And Advertisers Are
Willing To Pay—And The Greater The Likelihood That Those Sponsors And Advertisers Will
Have Business Operations That Span The Globe. In Addition, Sports And Nonsports
Companies Alike Pay Famous Athletes And Teams Generous Sums To Endorse Their Products.
Successful Teams Have Opened Shops Both Domestically And Internationally To Sell
Souvenirs Bearing Their Logos And May Make More Money On Merchandise Than From TV
Rights And Sponsorships Combined. Most Recently, As Teams And Leagues Have Begun To
Seek Income Opportunities Outside Their Home Countries, Foreign Investors Have Acquired A
U.S. Baseball Team; Another Group Of Foreign Investors Acquired Controlling Interest In A
British Soccer (Football) Team, And The National Football League (NFL) Of The United States
Underwrites Flag Football Games In Chinese Schools And Is Playing Some Regular Season NFL
Games In Europe. Map 1.1 Outlines National Sports In A Variety Of Countries And Can Be
Used To Discuss How Culture Impacts Globalization.
Questions
1-1 Professional Athlete A Is A Star. Professional Athlete B Is An Average Player.
How Has The Globalization Of Professional Sports Affected Each Of These Both
Positively And Negatively?
Being A Star, Professional Athlete A Can Become A Target For Endorsement Deals From Local
And International Companies And Organizations That Would Use Such An Athlete In
Advertising. They Also Get Substantial Financial Contracts (Salaries And Bonuses) From Their
Clubs. The Endorsements And Salary Deals Get More Lucrative If Professional Athlete A
Reaches Strong Positive Visibility In Major Sport Events Or If He/She Develops A Global Brand
Such As Cristiano Ronaldo. Advertisers Will Pay Them Considerably For Endorsing A Product
Or Service. However, The Same Athlete Might Be Dropped If His/Her Performance Decline Or
If Scandals Damage His/Her Image.
For The Average Player Such As Professional Athlete B, Professional Sports Globalization Has
Afforded Them Higher Salaries Than Before. Globalization Has Led To A Rise In Professional
Page 3 of 504
, Sports Interest And Viewership And, Consequently, Robust Growth In Professional Athletes'
Salaries. At The Same Time, The Fierce Competition Between Athletes And The Growing
Demands From Clubs And Fans Have Put Intense Pressure On Athletes To Perform Regularly.
Today's Athletes Have Little Room For Mistakes. (LO1-2: Understand The Relationship
Between Globalization And IB, AACSB: Analytical Skills).
1-2 As You Read The Chapter, Identify And Show An Example Of Each International
Mode Of Operations That Is Illustrated In The Globalization Of Professional Sports.
Sport Is A Major Source Of Service Exports And Imports. Countries Compete To Organize Major
Global Events Such As The World Cup Or The Olympics For Many Business And Political
Reasons. Chief Among Them Is Tourism. Let's Say That Some American Fans Fly On Qatar
Airlines To Watch The Upcoming World Cup In Qatar In 2022. Their Travel Expenses In Qatar
Are Service Exports For Qatar And Service Imports For The
U.S. (LO1-2: Understand The Relationship Between Globalization And IB, AACSB: Analytical
Skills).
Teaching Tips: Carefully Review The Powerpoint Slides For Chapter One. A Good Internet
Source Of Information On Globalization Can Be Found At
Http://Www.Globalization101.Org/. Finally, Review The Atlas Provided In The Text, Where
You Will Find Maps Of The World And Its Continents, As Well As A Country Index.
I. THE WHY, WHAT, AND HOW OF STUDYING INTERNATIONAL BUSINESS (IB)
A. Why Study IB?
Nearly All Organizations Compete Abroad, Compete Domestically Against Foreign Or
Domestic Companies With International Operations, And/Or Use Inputs From Foreign
Suppliers. Thus, Most Managers Should Consider IB When Setting Their Operating Strategies
And Practices. Even If You Don't Anticipate Direct IB Activities, Understanding The Subject
Matter Will Likely Prove Useful.
Studying IB Is Essential Because:
• Most Organizations Are Either International Or Compete With International Companies,
• Modes Of Operations May Differ From Those Used Domestically,
• It Helps Managers To Decide Where To Find Resources And To Sell,
Page 4 of 504
Business, 17th Edition By John Daniels,
Lee Radebaugh & Daniel Sullivan
Complete Chapters 1-42| A+ GRADE
GUARANTEED
Page 1 of 504
, PART ONE
BACKGROUND FOR INTERNATIONAL BUSINESS
Chapter 1
Globalization And International Business
OBJECTIVES
1-1 Explain Why And How The Study Of International Business (IB) Is Important 1-2
Understand The Relationship Between Globalization And IB
1-3 Grasp The Forces Driving Globalization And IB 1-4 Discuss The Major Criticisms Of
Globalization 1-5 Assess The Major Reasons Companies Seek To Create Value By
Engaging In IB
1-6 Define And Illustrate The Different Operating Modes For Companies To
Accomplish Their International Objectives
1-7 Recognize Why National Differences In Companies' External Environments Affect
How They May Best Improve Their IB Performance
CHAPTER OVERVIEW
Globalization Has Become A Major Socioeconomic Force And Topic Of Debate In The Twenty-
First Century. Chapter One Examines The Forces That Are Driving This Phenomenon, As Well
As The Often- Passionate Criticisms Of The Process. The Chapter Reviews The Objectives That
Firms Pursue When They Engage In International Business Activities And Describes The
Various Modes Of Entry That May Be Used. It Also Notes The Terminology That Has Come
Into Existence As New Types Of Organizations Have Evolved. The Chapter Concludes With A
Discussion Of The Conditions In A Company's External Environment That May Affect Its
International Operations.
Page 2 of 504
, CHAPTER OUTLINE
OPENING CASE: THE GLOBALIZED BUSINESS OF SPORTS [See Map 1.1]
Although Not Everyone Agrees That The Unbridled Globalization Of Professional Sports Is All
For The Good, The Process And Possibilities Are Definitely Far Reaching. Today's Satellite
Television Broadcasts Enable Fans To Watch Top Players And Teams In Nearly Any Sport
From Almost Anywhere On Earth. Professional Teams Scour The World To Find And Develop
The Most Talented Athletes, And Players Forsake Home Country Allegiances In Their Pursuit
Of The World's Highest Salaries. Further, The More People That Tournaments Can Attract
Through Attendance And Television, The More Money That Sponsors And Advertisers Are
Willing To Pay—And The Greater The Likelihood That Those Sponsors And Advertisers Will
Have Business Operations That Span The Globe. In Addition, Sports And Nonsports
Companies Alike Pay Famous Athletes And Teams Generous Sums To Endorse Their Products.
Successful Teams Have Opened Shops Both Domestically And Internationally To Sell
Souvenirs Bearing Their Logos And May Make More Money On Merchandise Than From TV
Rights And Sponsorships Combined. Most Recently, As Teams And Leagues Have Begun To
Seek Income Opportunities Outside Their Home Countries, Foreign Investors Have Acquired A
U.S. Baseball Team; Another Group Of Foreign Investors Acquired Controlling Interest In A
British Soccer (Football) Team, And The National Football League (NFL) Of The United States
Underwrites Flag Football Games In Chinese Schools And Is Playing Some Regular Season NFL
Games In Europe. Map 1.1 Outlines National Sports In A Variety Of Countries And Can Be
Used To Discuss How Culture Impacts Globalization.
Questions
1-1 Professional Athlete A Is A Star. Professional Athlete B Is An Average Player.
How Has The Globalization Of Professional Sports Affected Each Of These Both
Positively And Negatively?
Being A Star, Professional Athlete A Can Become A Target For Endorsement Deals From Local
And International Companies And Organizations That Would Use Such An Athlete In
Advertising. They Also Get Substantial Financial Contracts (Salaries And Bonuses) From Their
Clubs. The Endorsements And Salary Deals Get More Lucrative If Professional Athlete A
Reaches Strong Positive Visibility In Major Sport Events Or If He/She Develops A Global Brand
Such As Cristiano Ronaldo. Advertisers Will Pay Them Considerably For Endorsing A Product
Or Service. However, The Same Athlete Might Be Dropped If His/Her Performance Decline Or
If Scandals Damage His/Her Image.
For The Average Player Such As Professional Athlete B, Professional Sports Globalization Has
Afforded Them Higher Salaries Than Before. Globalization Has Led To A Rise In Professional
Page 3 of 504
, Sports Interest And Viewership And, Consequently, Robust Growth In Professional Athletes'
Salaries. At The Same Time, The Fierce Competition Between Athletes And The Growing
Demands From Clubs And Fans Have Put Intense Pressure On Athletes To Perform Regularly.
Today's Athletes Have Little Room For Mistakes. (LO1-2: Understand The Relationship
Between Globalization And IB, AACSB: Analytical Skills).
1-2 As You Read The Chapter, Identify And Show An Example Of Each International
Mode Of Operations That Is Illustrated In The Globalization Of Professional Sports.
Sport Is A Major Source Of Service Exports And Imports. Countries Compete To Organize Major
Global Events Such As The World Cup Or The Olympics For Many Business And Political
Reasons. Chief Among Them Is Tourism. Let's Say That Some American Fans Fly On Qatar
Airlines To Watch The Upcoming World Cup In Qatar In 2022. Their Travel Expenses In Qatar
Are Service Exports For Qatar And Service Imports For The
U.S. (LO1-2: Understand The Relationship Between Globalization And IB, AACSB: Analytical
Skills).
Teaching Tips: Carefully Review The Powerpoint Slides For Chapter One. A Good Internet
Source Of Information On Globalization Can Be Found At
Http://Www.Globalization101.Org/. Finally, Review The Atlas Provided In The Text, Where
You Will Find Maps Of The World And Its Continents, As Well As A Country Index.
I. THE WHY, WHAT, AND HOW OF STUDYING INTERNATIONAL BUSINESS (IB)
A. Why Study IB?
Nearly All Organizations Compete Abroad, Compete Domestically Against Foreign Or
Domestic Companies With International Operations, And/Or Use Inputs From Foreign
Suppliers. Thus, Most Managers Should Consider IB When Setting Their Operating Strategies
And Practices. Even If You Don't Anticipate Direct IB Activities, Understanding The Subject
Matter Will Likely Prove Useful.
Studying IB Is Essential Because:
• Most Organizations Are Either International Or Compete With International Companies,
• Modes Of Operations May Differ From Those Used Domestically,
• It Helps Managers To Decide Where To Find Resources And To Sell,
Page 4 of 504
