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(Ebook PDF) (Ebook PDF) International Business: The New Realities 5th Edition All Chapter
(Ebook PDF) (Ebook PDF) International Business: The New Realities 5th Edition All Chapter
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Dedicated to...
This book is dedicated to all those who feel passionate about
cross-border business, our readers around the world. I trust that this
edition will inspire and help you discover the magic of international
business. Since any journey is much more rewarding when you are
accompanied by others, I also dedicate this edition to my students of
four decades whom I had the opportunity to mentor over the years.
S. Tamer Cavusgil
Atlanta, Georgia
This book is dedicated to my wife, Mari, for her intellect, patience, and
adventurous spirit; to Bill and Audrey, and to Hiroshi and Hisako, for
being great parents and role models; and to the many students I have
had the good fortune to influence over the years.
Gary Knight
Salem, Oregon
John R. Riesenberger
Scottsdale, Arizona
This page intentionally left blank
Brief Contents
Preface xx
Glossary 512
Author Index 518
Company Index 525
Subject Index 528
vii
Contents
Preface xx
viii
CONTENTS ix
Manufacturing 41
Transportation 42
Dimensions of Market Globalization 42
Firm-Level Consequences of Market Globalization: Internationalization
of the Firm’s Value Chain 43
j You Can Do It | Recent Grad in IB: Terrance Rogers 45
Societal Consequences of Globalization 45
Contagion: Rapid Spread of Monetary and Financial Crises 46
Loss of National Sovereignty 46
Offshoring 47
Reshoring 47
Effect on the Poor 47
Effect on Sustainability and the Natural Environment 49
Effect on National Culture 49
Globalization and Africa 52
j Closing Case: A Debate on the Good and Harm of Globalization 53
j End-of-Chapter Review: Key Terms 55 Summary 55 Test Your
Comprehension 56 Apply Your Understanding 56
globalEDGE™ Internet Exercises 57
Endnotes 57
Glossary 512
Author Index 518
Company Index 525
Subject Index 528
Preface
New to This Edition
Our aim is to keep the text fully up-to-date and at a reasonable length. Thus, we have dropped
some items and added new ones. From Chapter 1, we dropped the Opening Case on Facebook.
From Chapter 4, we dropped the Closing Case on Bribery and Corruption at Siemens. From Chap-
ter 4, we dropped the Closing Case on Bribery and Corruption at Siemens. From Chapter 5, we
dropped the Closing Case on Hyundai and the Global Auto Industry. From Chapter 6, we dropped
the Opening Case on Risks in Russia’s Political and Legal Systems. From Chapter 9, we dropped
the Closing Case on Financial Contagion and the Global Financial Crisis. From Chapter 17, we
dropped the Opening Case on International Human Resource Management at Johnson & Johnson.
To replace the above dropped items and maintain currency, we have created new or greatly
revised opening and closing cases in the fifth edition of Cavusgil, Knight, and Riesenberger
(CKR 5e) as follows:
Chapter 1: A new Opening Case on Instagram: A Global Phenomenon
Chapter 2: A heavily revised Opening Case on Spotify and the Rise of Born Global Firms
Chapter 4: A new Closing Case on the recent Scandal at Volkswagen
Chapter 5: A new Closing Case on Unilever’s Comparative and Competitive Advantages
Chapter 6: A new Opening Case on Odebrecht and Risks in Brazil’s Political and Legal
Systems
Chapter 7: A heavily revised Closing Case on Government Intervention at Airbus and Boeing
Chapter 8: A heavily revised Closing Case on Tata Group: India’s Top Global Challenger
Chapter 9: A new Closing Case on Tesco, the European Debt Crisis, and Brexit
Chapter 15: A heavily revised Closing Case on Subway and the Challenges of Franchising
in China
Chapter 16: A heavily revised Opening Case on Michael Kors: The Global Affordable
Luxury Market
Chapter 17: A new Opening Case on International Human Resource Management at Google
In addition, for our feature You Can Do It: Recent Grad in IB, we have added new biogra-
phies of young graduates with careers in international business. In Chapter 1, we added Mary
Lyles, who works in global sourcing for Starbucks; and in Chapter 15, we added Juanita Velez,
who works in international social media at Delta Air Lines.
In various chapters, we also added several new exhibits and significant new material on such
contemporary topics as preparing for international travel, the rise of digital technologies, the
trade and GDP growth relationship, the meaning of colors worldwide, workplace harassment,
Brexit and the UK, populism, national governance, blockchain and cryptocurrencies, carbon
taxes, cross-national project management, the Global Connectedness Index, global sourcing for
smartphones, reshoring and nearshoring, the best global companies to work for, and women in
international business, among numerous others.
Solving Teaching and Learning Challenges
Today’s students—often called Generation Z, Post Millennials, or the iGen—have grown up in a
constantly connected world. To address the unique wants, needs and learning style of Generation
Z students, we have designed CKR 5e to emphasize the following features:
• Visual learning. CKR 5e emphasizes interactive media and videos as well as exhibits,
maps, and other visual learning aids. The MyLab Management provides access to a wide
variety of additional visual resources.
• Relevant knowledge and job-related skills. CKR 5e includes more relevant examples and
activities, concise foundational course content, Intangible Soft Skills, and Tangible Process
Skills that prepare Generation Z students for the work world.
xx
PREFACE xxi
• Contemporary issues that matter to Generation Z. CKR 5e emphasizes the new interna-
tional business environment, in-depth coverage of contemporary international business
topics such as emerging markets, developing economies, growth of the service sector, risks
in international business, digital technologies, women in international business, and other
important trends.
• Meaningful content. CKR 5e provides substantial content on ethics, corporate social
responsibility, and sustainability in international business.
• Digital platform. Generation Z learners prefer content that they can read or access digitally
at a time and place of their choosing. Digital learning enhances engagement, self-pacing,
and the ability to customize content to individual needs. Digital platforms help ensure
timely, up-to-date content and the ability to collaborate with peers. In these and other
ways, CKR 5e provides such digital options. To improve Generation Z students results, we
recommend pairing the text content with MyLab Management, which is the teaching and
learning platform that empowers you to reach every student. By combining trusted author
content with digital tools and a flexible platform, MyLab personalizes the learning experi-
ence and will help your students learn and retain key course concepts while developing
skills that future employers are seeking in their candidates. From Mini Sims to Personal
Inventory Assessments, MyLab Management helps you teach your course, your way. Learn
more at www.pearson.com/mylab/management.
Some of the main features of the textbook and MyLab are as follows:
HIGHLY ACCESSIBLE WRITING AND EXPLANATIONS THAT ENGAGE STUDENTS. Opening and closing
cases appeal to students, featuring firms and subjects such as Apple, IKEA, Harley-Davidson,
H&M, Instagram, born global firms, social media in China, and the global movie industry. The
content stimulates student desire to learn more about international business.
Constantly fluctuating exchange rates require international MORE EXERCISES AND ACTIVITIES THAT ENABLE STUDENTS
managers to keep in mind three facts: TO ACQUIRE CRITICAL THINKING AND PROBLEM-SOLVING
• The prices the firm charges can be quoted in the firm’s currency or in the currency of SKILLS. CKR 5e contains 174 exhibits (about three
each foreign customer. times more than leading competitors). Students like ex-
• Because several months can pass between placement and delivery of an order,
fluctuations in the exchange rate during that time can cost or earn the firm money. hibits because they help clarify complex material and
• The firm and its customers can use the exchange rate as it stands on the date of each facilitate reading the chapters.
transaction, or they can agree to use a specific exchange rate.
CHAPTER WARM-UP. These questions help you hold your students accountable for
learning key concepts in each chapter before coming to class.
Zwaar dofklankte z’n stem, als baste ’t geluid uit z’n neusgaten òp
met ’n brom-nasalen nadreun. [8]
Hassel uit z’n hoog rug-krommige lengte keek bar neer op den
sjofelen daglooner, die zoo plots zich kwam opdringen. Zonder
antwoord van Hassel af te wachten nasaalde z’n stem dreunend
weer uit z’n platten polypen-neus:
Nou ook bij ouë Gerrit.… niks!.… alleen kon ie nog vragen of ie
iemand wist, die ’m wat aardbei-mandjes wou laten vlechten. Maar
lieve heer.… wà’ kon hij uitvoere mi’ s’n bevende hande.… Vroeger
sestig, sevetig op ’n dag, nou geen tien.… wa’ kon ie hale.… vaif
sent.… En boompies make.… nee dat gong heelegoàr nie.… da
bukke.… da bukke.… ure achter malkaer.… de tieme rondvlechte.…
en stoan mi s’n poote op de boompies, gebukt.… nee, dan was ie
zoo roar in z’n ouë dop.… of d’r al moar bloed noar z’n hangende
kop droaide.… Verlede jaar hattie ’t prebeerd.. Maar bòns, was ie
tege den muur gesmakt, duizelig en tollerig en z’n stuut voelde ie
gebroke.… Wa hadde se’n pret had, ’t jonge goed.… nee, nee da
gong nie.… sou ie maor nie eens mee ankomme.… da gong nie.…
En dan.… se [13]woue ’m nie eens hewwe.… da jonge goed was ’m
de baas, da speelsche tuig.
Wà nou, wà’ nou, joeg ’t, jammer-knaagde ’t in ’m. Was ’t moar t’ met
somer.… moar lieve Heer!.… December.… begin December.…
goeie God.… wà’ mos da na-toe!—van wà’ nou vrete.…
De ouë Bolk had eerst nog voor zich heengekeken, stug, met
oogengraagte, de kalme zekere spithouwen van Dirk in z’n hei
bestarend,.… met jaloersche lust den kerel daar te verdringen.…
want dà kon ie, as de beste.… Maar toen inéén had ouë Gerrit ’m
aan ’t verstand gebracht dat ie gosommooglik ies veur ’m hat, dat ie
alleen die paar roe hat diep te spitte—miskien in ’t veurjaor, tegen
Moart, as de grond nie nog te hard was.…
—Hoho!.… Bolkie, schraapte de Ouë eruit, je skiet of’r, je bin nie
f’rtuunelik.… ’t spait me duuf’ls daa’k segge mot.… tug is ’t puur
woar.… je skiet of’r.… d’r is op heede van alderlei volk te veul.… j’
bin te veul.… d’r is nies.. puur nies omhande.… ’t wort allegoar
dàan, allegoar deur hullie.… verjenne.… ’t spait me.… huu!.. huu.…
—Wa skeel je.… oud k’nijn! giftte ie met halve stem woedend.…
—Aa’s je nou d’rs de vaifde steek ommekeert Dirk, je zie nou water
hee?.… teemde goeig ouë Gerrit.
Nooit had ouë Bolk kinderen gehad; geen jongen, geen meid; z’n
grootste, stille smart.… En zóó maar grienbalke [16]kon ie as se d’r
van begonne.… nou weer die lamme kerel, had ie ze moar.…
—Bars jai, gromde Bolk, met tranen van windkou in z’n oogen,.…
godskristes.… koebeeste,.… ha’k moar koot’rs..
Weer kwam er schrei-droefnis in z’n stem, die stil, voor hem alleen
uit weende z’n smart.
Bolk draaide zich nijdig om, met z’n rug naar Piet. Dirk zwoegde
door, spraakloos.—Rondom was grauwer, late middag-somberte
over de velden aan ’t verdroeven.… Op akkerverten, hier en daar,
was drukker beweeg van spitters dan in ochtend, silhouettig, zwart-
vagelijk toch, in het wazig winterdroeve grijs-grauw. De lucht dromde
zwaarder van regenwolken, en windstooten loeiden op, bulderend
rondgierend in dollendans, op de leege wijdte van ’t bronzen land.
Schimmiger uit alle hemelhoeken woei áán, scheemrige wolkenjacht.
aansliertend, wijd-alom, in reuze-donkering naar horizon, grauwiger
opgeblaas van vale wolkenkoppen, monsterlijk verwrongen met àl
droeviger schemerschijn op angst-looien wolk-gezichten. En stiller
nu, in roerlooze effenheid stonden de donkere erfjes en achteruitjes
van Bikkerstraat, vertriestend vaal, in barren grijns.
—Hep je bai Neelis de Borstel niks.… niks te hakke?.…, informeerde
schuintjes, nog eens de Ouë, onverschillig toch [17]voor ’t antwoord,
kijkend met gretigheid naar Dirk, die weer zwaar-zwellend in kracht,
door panderige aardplaten heen moest bonken.
—Wâ hakke?.… die raize, da’s louw, die hakke se omm’rs selfers
—Wa jonge kop.… de heule tait m’r gaintjes.… neegtien jaor t’met.…
—Nou, mag nie?.… wa ken main jou mikmak skeele.… mo’k nou al
griene, wa jou Dirk?
—’n Herberg, rejaal in anbouw, lolde Piet met ’n slag van pret op z’n
been,—d’r hang ’n droppel an je kokkert!.…
—Nou gaat-ie bai Ronk, f’rek, die stong, van morge t’met an seve
uur op ’t land.… f’rek, hai hep g’n hand veur ooge sien-en kenne,
hep sain noodig.…..
—Half seeve? vroeg ouë Gerrit ’n beetje ongeloovig.… wie hep saìn
sien?
—Wa sel ’t dan hier bloase hewwe, bibberde ouë Gerrit in elkaar
schokkerend van kou, dieper handen z’n broekzakken indringend,
opsjortend z’n kleeren, in nauwe kreukels om z’n lijf. En plots voelde
ie wat lekker ’t voor hem was, zoo vroeg, in winterkilte dat Piet de
koebeesten voerde. Donderemente wa’ koud kreeg ie ’t nou.…
Piet was weer zingend naar z’n hei gestapt.
In de woonkamer, aan den weg, zat vrouw Hassel, met ’r rug naar de
kachel, dof omgonsd in ’r ooren, vol van dreunslagen van bekken,
versuft toch, als sliep ze met oogen open. Achter haar stoeltje rookte
’t benauwd, lichtelijk in brandlucht. Bij ’t kamer-instappen zag ouë
Gerrit dadelijk dat haar schort aan ’t branden was, over de kachel te
drogen gehangen.
Met schrik-gezicht, draaide vrouw Hassel om, wild grijpend naar d’r
schort. Ze had ook even wel iets vreemds geroken, iets smeulerigs,
maar ’t was ’r weer door d’r hoofd gegaan, omdat ze niet begreep
wàt ’t kon zijn, heelemaal niet meer wetend dat ze d’r schort voor de
kachel had gehangen.
—Wa vergat ze leste taid tug alles en alles.… Hoe was ’t gods-in-d’r
leve mogelik. Nou had se d’r eige nog so gesait …. Nou dènk je d’r
an.… en nou, na ’n paar menuute allegoar rejaal vergete.…
vergete.… Tranen kreeg ze in ’r oogen. ’t Maakte ’r zoo bang, zoo
huilerig en zenuwachtig. Ze voelde wel onrustig dat er al ’n poos
lang wat mals met ’r gebeurde, in ’r kop vooral, maar ze kon niet
vatten wàt, wàt.
Ouë Gerrit was op z’n kousen door den stal heengesjokt, had even
naar z’n beesten gekeken, en was moe-huiverig op [23]z’n biezen
kaal-korten gemakstoel bij den kachel geschoven. Z’n jekker had ie
aangehouen en met ingezakt bovenlijf zat-ie zich behaag-zwaar te
schurken, zoekend naar meer broeiing en warmte. Toch voelde ie
zich brommerig op zijn wijf dat al ’n jaar lang temet alles vergat. En
dàn, dat huilen van ’r, dat nare drenzerige grienen, met halve smart-
zinnetjes er tusschen gekermd, waarvan ie niks begreep, dàt, dàt
maakte ’m helsch. F’r wa griende da waif tug?.… Wier se soo fèl
geslage?.… godskristus, wa g’luk da Guurtje d’r was, s’ maid van
twintig, sain eenige maid goddank. Versakrementeele, aa’s die d’r
nie was, krege temet de jonges nie eens d’r buik vol. Dan vergat se
te koke.… snôverjenne.… wa’ malle f’rduufeling tug.…
Wa wou dat mormel tug, die laileke trien?.… Wà sat se nou weer?
van de skrik te griene.… ja verdomd!.… op ’t achterend weer.…