International Business - Prentice Hall

CAVUMFM_i-1v2 10/12/07 4:42 PM Page ix
> Contents
Preface xxv
Part I: Foundation Concepts 2
1 Introduction: What Is International Business? 2
> A Day in the Global Economy 2
What Is International Business? 4
What Are the Key Concepts in International Trade and Investment? 5
The Nature of International Trade 5
The Nature of International Investment 6
Services as Well as Products 8
The International Financial Services Sector 10
How Does International Business Differ from Domestic Business? 11
The Four Risks in Internationalization 11
Who Participates in International Business? 13
Multinational Enterprise (MNE) 13
■ Global Trend: DIESEL S.p.A.: A Smaller Firm’s Smashing Success in
International Markets 15
Non-governmental Organizations (NGOs) 16
Why Do Firms Pursue Internationalization Strategies? 16
Why Should You Study International Business? 18
Facilitator of the Global Economy and Interconnectedness 18
Contributor to National Economic Well-Being 19
A Competitive Advantage for the Firm 20
An Opportunity for Global Corporate Citizenship 20
A Competitive Advantage for You 21
■ Recent Grad in IB: Ashley Lumb 22
■ Closing Case: Whirlpool’s Dramatic Turnaround Through Internationalization
23
■ Chapter Essentials: Key Terms 25 Summary 25 Test Your Comprehension
26 Apply Your Understanding 26
globalEDGE TM Internet Exercises 27
2 Globalization of Markets and the Internationalization of
the Firm 28
> Bangalore: The New Silicon Valley 28
Why Globalization Is Not a New Phenomenon 31
Phases of Globalization 31
An Organizing Framework for Market Globalization 34
ix