Instructor Manual: Peng, Global Business, 6e, ©2027, 9798214054063; Chapter 1: Introduction
Instructor Manual
PENG, GLOBAL BUSINESS, 6E, ©2027, 9798214054063; C HAPTER 1: INTRODUCTION
TABLE OF CONTENTS
Purpose and Perspective of the Chapter......................................................................2
Chapter Objectives........................................................................................................2
Complete List of Chapter Activities and Assessments.................................................3
What's New in This Chapter........................................................................................3
Opening Case Discussion: The Globalization of Sports...............................................3
Chapter Outline.............................................................................................................4
Additional Activities and Assignments.......................................................................14
Review Questions.................................................................................................................................... 14
Critical Discussion Questions.................................................................................................................. 16
Global Action...........................................................................................................................................17
Closing Case Discussion: Trade Wars.....................................................................................................18
Appendix.....................................................................................................................19
Generic Rubrics....................................................................................................................................... 19
Standard Writing Rubric.......................................................................................................................... 19
Standard Discussion Rubric.....................................................................................................................20
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 1
publicly accessible website, in whole or in part.
, Instructor Manual: Peng, Global Business, 6e, ©2027, 9798214054063; Chapter 1: Introduction
PURPOSE AND PERSPECTIVE OF THE CHAPTER
The purpose of this chapter is to establish foundational knowledge for understanding global business by
introducing core concepts, frameworks, and contemporary challenges that shape international commerce.
Students will explore the distinction between traditional international business and global business,
recognizing that modern business encompasses both cross-border activities and domestic operations
affected by global forces. The chapter presents a unified analytical framework centered on one
fundamental question: What determines the success and failure of firms around the globe? This
framework employs two core perspectives—the institution-based view focusing on formal and informal
rules governing business, and the resource-based view examining firm-specific capabilities and resources.
Additionally, students will examine globalization as a pendulum-like process subject to periodic swings
between integration and fragmentation, while developing critical thinking skills through contemporary
debates including globalization versus deglobalization and just-in-time versus just-in-case management
approaches. The chapter emphasizes practical applications for career development in an increasingly
interconnected yet uncertain global economy.
CHAPTER OBJECTIVES
After studying this chapter, you should be able to:
1-1 Outline the concepts of international business and global business.
1-2 Identify the reason why it is important to study global business.
1-3 State one fundamental question and two core perspectives in the study of global business.
1-4 Describe globalization, semiglobalization, and risk management.
1-5 Participate in two leading debates concerning global business.
1-6 Draw implications for action.
1-7 Follow the structure of the discipline and the book.
COMPLETE LIST OF CHAPTER ACTIVITIES AND
ASSESSMENTS
The following table organizes activities and assessments by objective, so that you can see how all this
content relates to objectives and make decisions about which content you would like to emphasize in your
class based on your objectives. For additional guidance, refer to the Teaching Online Guide.
Chapter Activity/Assessment Source (i.e., PPT Duration
Objective slide, Workbook)
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 2
publicly accessible website, in whole or in part.
, Instructor Manual: Peng, Global Business, 6e, ©2027, 9798214054063; Chapter 1: Introduction
LO4 Discussion Activity 1 PPT Slide 22-23 10 min
LO5 Polling Activity PPT slide 25 5 min
LO5 Discussion Activity 2 PPT Slide 29-30 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: The globalization of sports
In focus 1.2: Corporate diplomacy in the age of uncertainty
In focus 1.3: McDonald’s enters and exits Russia
Closing case: Trade wars
[return to top]
OPENING CASE DISCUSSION: THE GLOBALIZATION OF
SPORTS
Why are firms such as Amazon, Apple, NBC, and Netflix and sports leagues such as the English Premier
League, Indian Premier League, NBA, and NFL interested in competing around the world? Why are they
not satisfied being successful at home? What capabilities do they have? How do they deal with various
rules of the game governing broadcasting and sports in different countries? What determines their
success and failure around the world? What determines their success and failure around the world? This
book will address these and other important questions.
[return to top]
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).
1. INTERNATIONAL BUSINESS AND GLOBAL BUSINESS (LO 1-1, PPT Slides 3-4)
a. Key Concept
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 3
publicly accessible website, in whole or in part.
, Instructor Manual: Peng, Global Business, 6e, ©2027, 9798214054063; Chapter 1: Introduction
i. International business traditionally focuses on firms engaging in cross-border
activities, while global business encompasses both international and domestic
business activities in an interconnected world.
b. Key Terms
i. International business (IB): A business that engages in international
economic activities, or the action of doing business abroad
ii. Global business: Business around the globe
c. Discussion Question
i. How has the blurring of boundaries between domestic and international markets
changed the way companies must approach their business strategies?
d. Sample Response
i. Companies can no longer treat domestic markets as isolated from global
competition, as foreign firms regularly enter previously domestic markets. This
requires firms to develop globally competitive capabilities even when operating
primarily in their home market.
e. Teaching Tips and Strategies
i. Use concrete examples like textbook publishing competition to show how
"domestic" markets are now global. Address potential confusion about
terminology by emphasizing that global business is more comprehensive than
traditional IB.
f. Key Concept
i. Multinational enterprises (MNEs) engage in foreign direct investment by
controlling and managing value-added activities across countries. They represent
one important aspect of global business but not the complete picture.
g. Key Terms
i. Multinational enterprise (MNE): A firm that engages in foreign direct
investment
ii. Foreign direct investment (FDI): Investing in, controlling, and managing
value-added activities in other countries
h. Discussion Question
i. Why might focusing solely on MNEs provide an incomplete understanding of
global business dynamics?
i. Sample Response
i. Focusing only on MNEs ignores domestic firms that compete with or collaborate
with foreign entrants. This perspective misses how local companies respond to
globalization and may themselves become international players.
j. Teaching Tips and Strategies
i. Encourage students to think beyond the "foreign entrant" perspective by
discussing how domestic firms in their region have responded to international
competition. Use examples of local companies that have gone global.
2. WHY STUDY GLOBAL BUSINESS? (LO 1-2, PPT Slides 5-10)
a. Key Concept
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 4
publicly accessible website, in whole or in part.
Instructor Manual
PENG, GLOBAL BUSINESS, 6E, ©2027, 9798214054063; C HAPTER 1: INTRODUCTION
TABLE OF CONTENTS
Purpose and Perspective of the Chapter......................................................................2
Chapter Objectives........................................................................................................2
Complete List of Chapter Activities and Assessments.................................................3
What's New in This Chapter........................................................................................3
Opening Case Discussion: The Globalization of Sports...............................................3
Chapter Outline.............................................................................................................4
Additional Activities and Assignments.......................................................................14
Review Questions.................................................................................................................................... 14
Critical Discussion Questions.................................................................................................................. 16
Global Action...........................................................................................................................................17
Closing Case Discussion: Trade Wars.....................................................................................................18
Appendix.....................................................................................................................19
Generic Rubrics....................................................................................................................................... 19
Standard Writing Rubric.......................................................................................................................... 19
Standard Discussion Rubric.....................................................................................................................20
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 1
publicly accessible website, in whole or in part.
, Instructor Manual: Peng, Global Business, 6e, ©2027, 9798214054063; Chapter 1: Introduction
PURPOSE AND PERSPECTIVE OF THE CHAPTER
The purpose of this chapter is to establish foundational knowledge for understanding global business by
introducing core concepts, frameworks, and contemporary challenges that shape international commerce.
Students will explore the distinction between traditional international business and global business,
recognizing that modern business encompasses both cross-border activities and domestic operations
affected by global forces. The chapter presents a unified analytical framework centered on one
fundamental question: What determines the success and failure of firms around the globe? This
framework employs two core perspectives—the institution-based view focusing on formal and informal
rules governing business, and the resource-based view examining firm-specific capabilities and resources.
Additionally, students will examine globalization as a pendulum-like process subject to periodic swings
between integration and fragmentation, while developing critical thinking skills through contemporary
debates including globalization versus deglobalization and just-in-time versus just-in-case management
approaches. The chapter emphasizes practical applications for career development in an increasingly
interconnected yet uncertain global economy.
CHAPTER OBJECTIVES
After studying this chapter, you should be able to:
1-1 Outline the concepts of international business and global business.
1-2 Identify the reason why it is important to study global business.
1-3 State one fundamental question and two core perspectives in the study of global business.
1-4 Describe globalization, semiglobalization, and risk management.
1-5 Participate in two leading debates concerning global business.
1-6 Draw implications for action.
1-7 Follow the structure of the discipline and the book.
COMPLETE LIST OF CHAPTER ACTIVITIES AND
ASSESSMENTS
The following table organizes activities and assessments by objective, so that you can see how all this
content relates to objectives and make decisions about which content you would like to emphasize in your
class based on your objectives. For additional guidance, refer to the Teaching Online Guide.
Chapter Activity/Assessment Source (i.e., PPT Duration
Objective slide, Workbook)
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 2
publicly accessible website, in whole or in part.
, Instructor Manual: Peng, Global Business, 6e, ©2027, 9798214054063; Chapter 1: Introduction
LO4 Discussion Activity 1 PPT Slide 22-23 10 min
LO5 Polling Activity PPT slide 25 5 min
LO5 Discussion Activity 2 PPT Slide 29-30 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: The globalization of sports
In focus 1.2: Corporate diplomacy in the age of uncertainty
In focus 1.3: McDonald’s enters and exits Russia
Closing case: Trade wars
[return to top]
OPENING CASE DISCUSSION: THE GLOBALIZATION OF
SPORTS
Why are firms such as Amazon, Apple, NBC, and Netflix and sports leagues such as the English Premier
League, Indian Premier League, NBA, and NFL interested in competing around the world? Why are they
not satisfied being successful at home? What capabilities do they have? How do they deal with various
rules of the game governing broadcasting and sports in different countries? What determines their
success and failure around the world? What determines their success and failure around the world? This
book will address these and other important questions.
[return to top]
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).
1. INTERNATIONAL BUSINESS AND GLOBAL BUSINESS (LO 1-1, PPT Slides 3-4)
a. Key Concept
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 3
publicly accessible website, in whole or in part.
, Instructor Manual: Peng, Global Business, 6e, ©2027, 9798214054063; Chapter 1: Introduction
i. International business traditionally focuses on firms engaging in cross-border
activities, while global business encompasses both international and domestic
business activities in an interconnected world.
b. Key Terms
i. International business (IB): A business that engages in international
economic activities, or the action of doing business abroad
ii. Global business: Business around the globe
c. Discussion Question
i. How has the blurring of boundaries between domestic and international markets
changed the way companies must approach their business strategies?
d. Sample Response
i. Companies can no longer treat domestic markets as isolated from global
competition, as foreign firms regularly enter previously domestic markets. This
requires firms to develop globally competitive capabilities even when operating
primarily in their home market.
e. Teaching Tips and Strategies
i. Use concrete examples like textbook publishing competition to show how
"domestic" markets are now global. Address potential confusion about
terminology by emphasizing that global business is more comprehensive than
traditional IB.
f. Key Concept
i. Multinational enterprises (MNEs) engage in foreign direct investment by
controlling and managing value-added activities across countries. They represent
one important aspect of global business but not the complete picture.
g. Key Terms
i. Multinational enterprise (MNE): A firm that engages in foreign direct
investment
ii. Foreign direct investment (FDI): Investing in, controlling, and managing
value-added activities in other countries
h. Discussion Question
i. Why might focusing solely on MNEs provide an incomplete understanding of
global business dynamics?
i. Sample Response
i. Focusing only on MNEs ignores domestic firms that compete with or collaborate
with foreign entrants. This perspective misses how local companies respond to
globalization and may themselves become international players.
j. Teaching Tips and Strategies
i. Encourage students to think beyond the "foreign entrant" perspective by
discussing how domestic firms in their region have responded to international
competition. Use examples of local companies that have gone global.
2. WHY STUDY GLOBAL BUSINESS? (LO 1-2, PPT Slides 5-10)
a. Key Concept
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 4
publicly accessible website, in whole or in part.
