International Business, 3rd edition

By Stuart Wall, et al.
Pearson Education
Distributed by Trans-Atlantic Publications Inc.
January 2010
ISBN: 9780273723721
448 Pages
$127.50 Paper Original


International Businessprovides a clear and concise introduction to the environment and functions of international business.  

It explains in straightforward language the economic and financial underpinnings of international trade, the more subtle organisational and cultural issues, and the managerial challenges which face organisations of all types and sizes. In particular, it provides up-to-the-minute coverage of recent global events – the economic downturn and uncertainty in financial markets.

It is written for students on undergraduate and postgraduate degree programmes, or undertaking professional qualifications. It is especially suitable for non-specialist students of business.


Preface: using this book  xiii

Acknowledgements  xiv

Abbreviations  xvii

1 Introduction to international business  


Patterns and trends in international business  


The multinational enterprise (MNE)  

How important are the multinationals?  

Useful websites  

Useful key texts  

Other texts and sources  

Case studies

1.1 Dyson relocates production to South-East Asia

1.2 Happy birthday, globalisation

1.3 How to play the home advantage

1.4 Does a global approach benefit the company?

1.5 Competing in a globalised economy


1.1 Relative Unit Labour Costs (RULC)

1.2 Definitions of Globalisation

1.3 Globalisation Features

2 Internationalisation process  


Export-based methods for internationalisation  

Non-equity-based methods for internationalisation  

Equity-based methods for internationalisation  

Why invest abroad?  

Theoretical explanations  

Useful websites  

Useful key texts  

Other texts and sources  

Case studies

2.1 Helping inward fdi

(a) South Africa: Skills Support Programme

(b) Egypt: Suppliers Development Programme

2.2 Patents and the EU pharmaceuticals market

2.3 Legal Process Outsourcing in India

2.4 Market entry into China

2.5 The Japanese keiretsu

2.6 China versus South Korea

2.7 Toyota wins support for its US operations

2.8 Daewoo moves into international agriculture

2.9 Internationalisation may not always deliver!


2.1 ‘Flat tax’ regimes

2.2 Government policies, exporting and fdi

3 International business: theory and practice  


Gains from trade  

Sources of comparative and competitive advantage

Trade and the world economy  

Barriers to trade  

Protectionist policies  

Regional trading arrangements  

Government policies and international business  

International institutions and world trade

The European Union (EU)

Useful websites  

Useful key texts  

Other texts and sources  

Case studies

3.1Impacts of freer trade

3.2 Intra-industry trade: Honda

3.3 High cost of anti-dumping tariffs

3.4 Harbours of resentment

3.5 WTO to rule on US import duties


3.1 Comparative advantage and opportunity cost

3.2 Gains from trade

3.3 Impacts of a tariff

3.4 Impacts of a subsidy

3.5 Customs Union: trade creation and trade diversion

3.6 Impacts of EU policies on farms and agri-businesses

3.7 IMF stabilisation programmes

3.8 World Bank structural adjustment and stabilisation

4 The political, legal, economic and technological environment


Political environment

Political risk

The international legal environment

Intellectual property rights

Economic systems

Economic variables and the business environment

Technological environment

Technology transfer

Useful websites  

Useful key texts  

Other texts and sources  

Case studies

4.1 Chinese government and EU milk products

4.2 BMW after Rover

4.3 Tougher scrutiny of foreign takeovers in US

4.4 Intellectual Property Rights (IPR) in India: Novartis

4.5 Extending copyright

4.5 Intellectual property rights in China (IPR): Durex

4.6 Market influences on Wellcome share price

4.7 China’s capital markets begin to open

4.8 Finance chiefs take pessimistic view


4.1 EU directives and state aid

4.2 EU directives and data protection

4.3 Strategic patenting

4.4 Elasticity of demand

4.5 Creating or destroying jobs

5  International sociocultural environment  171


National cultural characteristics  

Cultural impacts on international business  

National, organisational and occupational cultures  

Strategies for developing intercultural competence  

Useful websites  

Useful key texts  

Other texts and sources  

Case studies

5.1 National culture and Japanese competitiveness

5.2 East meets West

5.3 Culture of communication breaks through traditional barriers

5.4 Corporate culture and Japanese competitiveness

5.5 Management gurus might rethink the Dutch approach

5.6 Challenges to cross-cultural team management

5.7 Corporate ‘personality’ has a big impact on business success  


5.1 A clash of cultures

5.2 National and organisational cultural dimensions

6 International ethical and ecological environment  


Business ethics  

Ethics and the corporate culture  

Different ethical positions  

International business ethics  

International efforts to improve business ethics  

Ecological/environmental issues  

Global warming, ‘carbon footprint’ and tradable permits

Useful websites  

Useful key texts  

Other texts and sources  

Case studies

6.1 The Body Shop

6.2 Ethics and profits

6.3 Bribery and international business

6.4 US groups in ethical standards push

6.5 Taxing and regulating smoking

6.6 Organic farming

6.7 Biofuels subsidies criticised

6.8 Prices no incentive for a clean up


6.1 An ethical dilemma

6.2 TI Corruption Perception Index

6.3 Environmental impacts, taxes and regulations

6.4 Stern Report and global warming

6.5 The EU Emissions Trading Scheme

7 International strategic issues  


Business strategy – ideas and concepts  

Choice of strategy  

Corporate strategy in a global economy  

International business and the value chain  

International business strategies  

International business strategies and political perspectives  

Institutional strategies and international business  

Techniques for strategic analysis  

International operations management and logistical strategies

Useful websites  

Useful key texts  

Other texts and sources  

Case studies

7.1 Strategies in practice

a) Pharmaceutical sector

b) Brewing

7.2 Strategic mistakes at Citibank

7.3 MNE strategies in the US market

7.4 US carmaking: political and economic imperatives

7.5 Daimler-Benz AG and Chrysler

7.6 Telematics and strategic choice

7.7 Game theory in action: designing the US airwaves auction

7.8 Strategic scenario analysis: AMD versus Intel

7.9 Operations management system: Khan Handicrafts


7.1 Mergers and acquisitions incentives

7.2 Two-firm zero-sum game

7.3 Lean production

7.4 Inventory (stock) costs and control

7.5 Economies of scope and the transport sector

8  International human resource management  


Human resource management function  

International human resource management (IHRM)  

International HRM approaches  

IHRM policies and practices  

Work practice in an international context

Useful websites  

Useful key texts  

Other texts and sources  

Case studies

8.1 HRM and the external environment

8.2 Islamic culture and IHRM

8.3 Mindset of a Toyota manager revealed

8.4 Reward mechanisms in cross-cultural contexts

8.5 IHRM and national cultures


8.1 Greek national culture and decentralisation of the IHRM function  

9 International marketing  


The principal activities of marketing  

International marketing  

Decision-making and international marketing  

Market selection  

Market-entry strategies  

International marketing mix  

International marketing planning  

Useful websites  

Useful key texts  

Other texts and sources  

Case studies

9.1 Global rebranding of BP

9.2 A better burger thanks to data crunching

9.3 Variations in the international marketing mix

9.4 India’s new affluent consumers

9.5 Global brands

9.6 Lessons for marketers who face a hard sell

9.7 Love in a cold climate

9.8 Indian stores in search of drama


9.1 Market segmentation

9.2 Strategic pricing initiatives

9.3 Price elasticity of demand (PED) and revenue

9.4 Price discrimination

9.5 Promotion / advertising and demand

9.6 UK internet trends in 2007/8

10 International finance: theory and practice


The background to accounting  

Major financial accounting statements  

The profit and loss account (or ‘Statement of Income’)  

The balance sheet  

The cash-flow statement  

Published accounts  

Differences of approach in different countries  

Global accounting standards  

Corporate governance and international business  

International financial management  

Useful websites  

Useful key texts  

Other texts and sources  8

Case studies

10.1 SIV managers dig out their manuals

10.2 Seniority brings a false sense of security

10.3 Sum of the parts

10.4 Spate of downgrades raises fears

10.5 Risk needs a human touch

10.6 ‘To converge to a single set of standards is now crucial’


10.1 Types of exchange rate

10.2 Structured Investment Vehicle (SIV)

10.3 Financial instruments and international trade

10.4 Sarbanes-Oxley Act 2002

Answers and responses  



Stuart Wall is Head of Department at the Ashcroft International Business School, Anglia Ruskin University in Cambridge. Sonal Minocha and Bronwen Rees are both also at Anglia Ruskin University.

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