ANNUAL EDITIONS: International Business, Fifteenth Edition
AE: International Business PrefaceCorrelation GuideTopic GuideInternet ReferencesUNIT 1: Overview of International BusinessUnit OverviewPart A. Introduction to International Business 1. Globalization and Its Contents, Peter Marber, World Policy Journal, Winter 2004/2005
What is globalization and how has it changed over the past 50 years? What have been its benefits to the people of the developed and the developing world during this period. What are some of the aspects of globalization that could be of benefit in the future? 2. The Leading Economic Organizations at the Beginning of the 21st Century, Fred Maidment, Business Journal (Central New York), Fall/Spring 2005
What were the leading economic organizations at the beginning of the 21st century? The largest trade blocs, country GDPs, governments, and corporations are shown here. 3. Trading Places, Peter F. Drucker, The National Interest, Spring 2005
Peter Drucker, one of the most important management thinkers of the past 50 years, had something to say about the global economy in this article. This is one of his last published articles. 4. Here's the Good News, Barrett Sheridan and Daniel Gross, Newsweek International, December 24, 2007
What has happened over the past five or so years in the global economy, especially with respect to the developing countries? How have they performed when compared to the countries of the developed world? The answer may surprise you. 5. The Real Global Technology Challenge, Leonard Lynn and Harold Salzman, Current, September 2007
The United States is facing rapid technological changes while competing in the global environment. How to deal with these changes while remaining technologically competitive is the subject of this article. 6. Looking Ahead to Our Place in the Next Economy, Matthew Budman, Across the Board, January/February 2004
What is the next big thing going to be in the next economy as it comes out of the recession? How will organizations respond to new conditions to be successful? What will their role be in the global economy? Part B. International Trade Theory7. A Roadmap for the New Trade Landscape, Patty Murray, Vital Speeches of the Day, October 2007
What are some of the steps that can be taken by policy makers in the United States to address the need for the continued growth of international trade? This article covers some specific ideas that the U.S. Senator Patty Murray of Washington State presented in the speech before the Washington Council on International Trade, in Seattle, on July 2, 2007. 8. Are Global Prices Converging or Diverging?, Reuven Glick, Federal Reserve Bank of San Francisco Economic Letter, Number 2007–24, August 10, 2007
Economic theory assumes that as the marketplace becomes more global, the prices for equivalent goods and services of different country converge. Unfortunately, given the recent data, that doesn't seem to be the case. 9. What One Hand Gives, the Other Takes, Ronald Mendoza, Challenge, September/October 2007
Developed countries have been giving foreign aid to developing countries since the end of World War II, yet that aid has only been marginally effective. This article explores some of the reasons behind this and also addresses how the effectiveness of foreign aid can be measured more effectively in the future. UNIT 2: International Institutions and OrganizationsUnit OverviewPart A. International Institutions 10. The World's Banker, David Frum, National Review, April 11, 2005
David Wolfowitz was nominated by President George W. Bush as the head of the World Bank. This is a controversial nomination, but one that might prove to be a great success. 11. Helping the Global Economy Stay in Shape, Carlo Cottarelli and Isabelle Mateos y Lago, Finance and Development, September 2007
The IMF was founded by the Bretton Woods Agreement in 1945 but since then the world of international finance and economic development has certainly changed. Here are some of the things the IMF has done to keep up with those changes. 12. The Bretton Woods System, Reuven Glick and Mark Spiegel, FRBSF Economic Letter, November 25, 2005
Has the practice of Asian—particularly Chinese and Japanese—central banks effectively lead to a pegging of the U.S. dollar to an exchange rate that is artificially high when compared to the Chinese and Japanese currencies? Is this causing the Chinese and Japanese exports to seem more attractive in the United States than they actually are? This is the issue that is debated in this article. Part B. Financial Markets and Exchanges13. Wall Street in the Desert, Stanley Reed, BusinessWeek, October 8, 2007
The ruler of the United Arab Emirates (UAE), Mohammed bin Rashid al Maktoum, is leading an effort to make Dubai the financial capital of the Middle East and a strong player in the global financial market. This article presents what he has done so far to accomplish this goal. Part C. Monetary System and Balance of Payments 14. Dollar Doldrums, Sarah Goldstein, Inc., March 2008
American corporations are having a difficult time dealing with the decline of the U.S. dollar. Not just big companies, but small ones are facing this issue too. This article presents the strategies employed by some small firms to address this problem. 15. Financial Globalization, M. Ayhan Kose et al., Finance and Development, March 2007
Developing countries need to have the necessary financial institutions in place before they can fully take advantage of the benefits of financial globalization, many of which are collateral benefits that are not directly tied to finance. Part D. Global Corporations 16. China's Mobile Maestro, Clay Chandler, Fortune, September 3, 2007
The largest mobile-phone company in the world is China Mobile, nearly five times larger than the largest U.S. company AT&T, with 332 million subscribers as of July, 2007—the number of subscribers more than the total population of the United States. 17. The Challengers, The Economist, January 12, 2008
Multinational corporations are no longer restricted to the developed countries. On the contrary, many of the most rapidly growing multinational firms have their roots in the developing world and are challenging the established multinational companies of the developed world. UNIT 3: Environmental Factors and International BusinessUnit OverviewPart A. Legal and Political Environment 18. How Capitalism Is Killing Democracy, Robert B. Reich, Foreign Policy, September/October 2007
Capitalism and democracy have risen since the end of the Cold War. But now, 'Capitalism seems to be gaining ascendancy over democracy,' asserts former Secretary of Labor, Robert B. Reich. Part B. Cultural and Social Environment 19. Grassroots Diplomacy, Gail Dutton, Across the Board, May/June 2005
Many people in the world do not like the Bush Administration or U.S. foreign policy and that dislike is starting to spill over onto American products and corporations. Here are a few things that American executives can do to help to minimize and perhaps even turn this around. 20. New Tech, Old Habits, Moon Ihlwan and Kenji Hall, BusinessWeek, March 26, 2007
Japan and Korea are two of the most technologically advanced societies in the world, yet, their workforces seem reluctant to take advantage of the high technology. 21. Is U.S. Business Losing Europe?, Stuart Crainer and Des Dearlove, Across the Board, May/June 2005
American foreign policy is particularly unpopular in Europe, and American companies and products may start suffering as a result of this. Another factor regarding this issue is that more U.S. companies are using nationals to conduct their business in Europe. 22. Can Europe Compete?, Carl Schramm and Robert E. Litan, Commentary, September 2007
The European Union has had much success over the past half century, but now it faces new challenges. Sluggish economic growth, especially when compared to the United States and the developing countries of China and India, do not bode well for the continent. This article discusses some of the reasons for Europe's slow economic growth. 23. Unequal Access, Emily Wax, The Washington Post Weekly Edition, September 3–9, 2007
The caste system may be outlawed in India by the constitution, but it is still very much alive. Getting the members of the lower castes, which represent the majority of the population, to participate in India's booming economy is a problem that India is going to have to address if it is wants to continue to grow and prosper. Part C. Ethics and International Business24. When Greens Go Corporate, William Underhill, Newsweek International, January 14, 2008
The World Wildlife Federation and a number of other green nongovernmental organizations have teamed-up with corporations to support the environment. But, is it ethical, and are these NGO's selling their souls for the financial support the companies are giving them in return for the PR "cover" they are receiving for their involvement? UNIT 4: International Business OperationsUnit OverviewPart A. International Strategic Management 25. Making It in China, G. Pascal Zachary, Business 2.0 August 2005
There are many opportunities in China, the fastest growing economy in the world. But, to make it in China, you have to be patient and you have to know the rules. Part B. Import/Export and Entering Foreign Markets 26. The China Factor, Industry Week, November 2005
China is the fastest growing, and potentially, the largest market in the world. What are some of the opportunities and threats that manufacturers face as they try to cope with this market? Part C. Foreign Direct Investment 27. A Whiff of New Money, Brian Bremmer and Assif Shameen, BusinessWeek, July 4, 2005
Indonesia is growing again under President Yudhoyone, but the question is whether it can grow at a rate that is necessary just to stay even. 28. BRIC Crumbling?, John S. McClenahen, Industry Week, January 2007
The BRIC countries, Brazil, Russia, India, and China have been the leading options for foreign investment. But problems in some of these countries may mean it is time to consider other alternatives such as Mexico, or maybe even, Eastern Europe. Part D. Financial Management and Accounting 29. The Brave New World of IFRS, Eva K. Jermakowicz and Sylwia Gornik-Tomaszewski, Financial Executive, November 2005
The implementation of the IFRS (International Financial Reporting System) for the year 2005 will make a major change in the accounting practices of firms outside of the United States. Reconciling these changes with the requirements of the American Financial Accounting Standards Board (FASB) will be a major task. 30. Found in Translation, Susan M. Sorensen and Donald L. Kyle, Journal of Accountancy, February 2007
When reviewing financial statements from outside the United States it is important to understand how the statements were developed and under what rules: IAS; IFBS or USGAAP. Even if the statements are presented in U.S. dollars, it is necessary to consider under which set of rules they were constructed and how and when the currency was converted? Part E. Operations, Supply Chaining and Research and Developing 31. Shaping the Future of Manufacturing, Patricia Panchak, Industry Week, January 2005
Many of the same cries of gloom and doom that have been raised by the American industry over the past 35 years are still raised today. Yet, somehow, the American industry has thrived in an era in which many had predicted its demise. Part F. International Marketing 32. The Rise of BRIC, Noreen O'Leary, AdWeek, February 4, 2008
Advertising and marketing are being reshaped by the four fastest growing economies in the world: Brazil, Russia, India, and China, often referred to as the BRIC countries. Each of these countries is unique, and each one offers special and enormous problems and opportunities. Part G. International Human Resource Management 33. International OHS, Garrett Brown, Occupational Hazards, January 2008
Grupo Mexico owns an open-pit copper mine just thirty miles south of the U.S. border in Mexico. Because of a union-management dispute, Grupo Mexico is attempting to dislodge the union from the mine and other actions that endanger the health and safety of the workers, as well as a strike that has received support from unions in the United States. 34. Out of Work, Kanaga Raja, Multinational Monitor, January/February 2007
According to the International Labor Organization's (ILO) January report, "Global Employment Trends Brief", the world has experienced strong economic growth. Yet, even though more people are working than ever before, the global unemployment rate remains at an all-time high of 6.3 percent or 195.2 million people. Part H. Off-Shoring and Outsourcing 35. Worrying Trends for the Global Outsourcing Industry, Barbara Wall, International Herald Tribune, July 25, 2008
Outsourcing companies rake in large profits and are regarded as investment havens, but analysts advise investors to take that record with a grain of salt. 36. Roots of Insecurity, Horst Brand, Dissent, Winter 2007
Workers in the industrialized world—not just the United States—are feeling progressively more insecure about their jobs. Many of the reasons for this have to do with the policies the U.S. government has instituted from the 1970's through to the 1990's. UNIT 5: International Business and the FutureUnit Overview37. Countdown to a Meltdown, James Fallows, The Atlantic Monthly, July/August 2005
What is the worst possible scenario that could happen in the next ten years? Here is a presentation of what might happen if things were to truly go bad! 38. Oil Frontiers, Andy Rowell, Multinational Monitor, January/February 2007
What will be the future of crude oil? Whatever the future of oil will be, it will be directly tied to the future of the developed and developing world. Here are some likely scenarios. 39. A New World Economy, Pete Engardio, BusinessWeek, August 22, 2005
In the future, India and China will play a much greater role in the world economy. The future is in Asia, and it is up to the corporate leaders to take advantage of it. 40. Going Green, Kevin M. Kelly, Automotive Design and Production, January 2008
The auto industry is attempting to find new ways to become greener than it has been in the past. This means there will be changes not only in the use of energy that fuels the cars and trucks, but also in the materials that go into manufacturing the vehicles, and also in the operation of the plants. 41. Globalization and You, Sean Price, Junior Scholastic, October 31, 2005
There is now a worldwide market for labor. People compete with everyone. It is not like it was 30 years ago, when Americans competed with Americans for jobs, and Germans competed with Germans. Now Americans compete with Germans, who compete with Chinese, who compete with Irishmen, who compete with everyone else. Test-Your-Knowledge FormArticle Rating Form
