1 Branching Paths A Novel Teacher Evaluation Model for Fa.docx

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Branching Paths: A Novel Teacher Evaluation Model for
Faculty Development
James P. Bavis and Ahn G. Nu
Department of English, Purdue University
ENGL 101: Course Name
Dr. Richard Teeth
Jan. 30, 2020
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Abstract
A large body of assessment literature suggests that students’
evaluations of their teachers
(SETs) can fail to measure the construct of teaching in a variety
of contexts. This can
compromise faculty development efforts that rely on
information from SETs. The disconnect
between SET results and faculty development efforts is
exacerbated in educational contexts
that demand particular teaching skills that SETs do not value in
proportion to their local
importance (or do not measure at all). This paper responds to
these challenges by proposing an
instrument for the assessment of teaching that allows
institutional stakeholders to define the
teaching construct in a way they determine to suit the local
context. The main innovation of this

instrument relative to traditional SETs is that it employs a
branching “tree” structure populated
by binary-choice items based on the Empirically derived,
Binary-choice, Boundary-definition
(EBB) scale developed by Turner and Upshur for ESL writing
assessment. The paper argues
that this structure can allow stakeholders to define the teaching
construct by changing the order
and sensitivity of the nodes in the tree of possible outcomes,
each of which corresponds to a
specific teaching skill. The paper concludes by outlining a pilot
study that will examine the
differences between the proposed EBB instrument and a
traditional SET employing series of
multiple-choice questions (MCQs) that correspond to Likert
scale values.
Keywords: college teaching, student evaluations of teaching,
scale development, EBB
scale, pedagogies, educational assessment, faculty development
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3
Branching Paths: A Novel Teacher Evaluation Model for
Faculty Development
According to Theall (2017), “Faculty evaluation and
development cannot be considered
separately ... evaluation without development is punitive, and

development without evaluation is
guesswork" (p. 91). As the practices that constitute modern
programmatic faculty development
have evolved from their humble beginnings to become a
commonplace feature of university life
(Lewis, 1996), a variety of tactics to evaluate the proficiency of
teaching faculty for development
purposes have likewise become commonplace. These include
measures as diverse as peer
observations, the development of teaching portfolios, and
student evaluations.
One such measure, the student evaluation of teacher (SET), has
been virtually
ubiquitous since at least the 1990s (Wilson, 1998). Though
records of SET-like instruments can
be traced to work at Purdue University in the 1920s (Remmers
& Brandenburg, 1927), most
modern histories of faculty development suggest that their rise
to widespread popularity went
hand-in-hand with the birth of modern faculty development
programs in the 1970s, when
universities began to adopt them in response to student protest
movements criticizing
mainstream university curricula and approaches to instruction

(Gaff & Simpson, 1994; Lewis,
1996; McKeachie, 1996). By the mid-2000s, researchers had
begun to characterize SETs in
terms like “…the predominant measure of university teacher
performance […] worldwide”
(Pounder, 2007, p. 178). Today, SETs play an important role in
teacher assessment and faculty
development at most universities (Davis, 2009). Recent SET
research practically takes the
presence of some form of this assessment on most campuses as
a given. Spooren et al.
(2017), for instance, merely note that that SETs can be found at
“almost every institution of
higher education throughout the world” (p. 130). Similarly,
Darwin (2012) refers to teacher
evaluation as an established orthodoxy, labeling it a
“venerated,” “axiomatic” institutional
practice (p. 733).
Moreover, SETs do not only help universities direct their
faculty development efforts.
They have also come to occupy a place of considerable
institutional importance for their role in
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personnel considerations, informing important decisions like
hiring, firing, tenure, and
promotion. Seldin (1993, as cited in Pounder, 2007) finds that
86% of higher educational
institutions use SETs as important factors in personnel
decisions. A 1991 survey of department
chairs found 97% used student evaluations to assess teaching
performance (US Department of
Education). Since the mid-late 1990s, a general trend towards
comprehensive methods of
teacher evaluation that include multiple forms of assessment has
been observed
(Berk, 2005). However, recent research suggests the usage of
SETs in personnel decisions is
still overwhelmingly common, though hard percentages are hard
to come by, perhaps owing to

the multifaceted nature of these decisions (Boring et al., 2017;
Galbraith et al., 2012). In certain
contexts, student evaluations can also have ramifications
beyond the level of individual
instructors. Particularly as public schools have experienced
pressure in recent decades to adopt
neoliberal, market-based approaches to self-assessment and
adopt a student-as-consumer
mindset (Darwin, 2012; Marginson, 2009), information from
evaluations can even feature in
department- or school-wide funding decisions (see, for instance,
the Obama Administration’s
Race to the Top initiative, which awarded grants to K-12
institutions that adopted value-added
models for teacher evaluation).
However, while SETs play a crucial role in faulty development
and personnel decisions
for many education institutions, current approaches to SET
administration are not as well-suited
to these purposes as they could be. This paper argues that a
formative, empirical approach to
teacher evaluation developed in response to the demands of the
local context is better-suited

for helping institutions improve their teachers. It proposes the
Heavilon Evaluation of Teacher,
or HET, a new teacher assessment instrument that can
strengthen current approaches to
faculty development by making them more responsive to
teachers’ local contexts. It also
proposes a pilot study that will clarify the differences between
this new instrument and the
Introductory Composition at Purdue (ICaP) SET, a more
traditional instrument used for similar
purposes. The results of this study will direct future efforts to
refine the proposed instrument.
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Methods section, which follows, will propose a pilot study that
compares the results of the
proposed instrument to the results of a traditional SET (and will
also provide necessary
background information on both of these evaluations). The
paper will conclude with a discussion
of how the results of the pilot study will inform future iterations
of the proposed instrument and,
more broadly, how universities should argue for local
development of assessments.

Literature Review
Effective Teaching: A Contextual Construct
The validity of the instrument this paper proposes is contingent
on the idea that it is
possible to systematically measure a teacher’s ability to teach.
Indeed, the same could be said
for virtually all teacher evaluations. Yet despite the exceeding
commonness of SETs and the
faculty development programs that depend on their input, there
is little scholarly consensus on
precisely what constitutes “good” or “effective” teaching. It
would be impossible to review the
entire history of the debate surrounding teaching effectiveness,
owing to its sheer scope—such
a summary might need to begin with, for instance, Cicero and
Quintilian. However, a cursory
overview of important recent developments (particularly those
revealed in meta-analyses of
empirical studies of teaching) can help situate the instrument
this paper proposes in relevant
academic conversations.
Meta-analysis 1. One core assumption that undergirds many of
these conversations is

the notion that good teaching has effects that can be observed in
terms of student achievement.
A meta-analysis of 167 empirical studies that investigated the
effects of various teaching factors
on student achievement (Kyriakides et al., 2013) supported the
effectiveness of a set of
teaching factors that the authors group together under the label
of the “dynamic model” of
teaching. Seven of the eight factors (Orientation, Structuring,
Modeling, Questioning,
Assessment, Time Management, and Classroom as Learning
Environment) corresponded to
moderate average effect sizes (of between 0.34–0.41 standard
deviations) in measures of
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student achievement. The eighth factor, Application (defined as
seatwork and small-group tasks
oriented toward practice of course concepts), corresponded to
only a small yet still significant
effect size of 0.18. The lack of any single decisive factor in the
meta-analysis supports the idea
that effective teaching is likely a multivariate construct.
However, the authors also note the
context-dependent nature of effective teaching. Application, the
least-important teaching factor

overall, proved more important in studies examining young
students (p. 148). Modeling, by
contrast, was especially important for older students.
Meta-analysis 2. A different meta-analysis that argues for the
importance of factors like
clarity and setting challenging goals (Hattie, 2009) nevertheless
also finds that the effect sizes
of various teaching factors can be highly context-dependent. For
example, effect sizes for
homework range from 0.15 (a small effect) to 0.64 (a
moderately large effect) based on the level
of education examined. Similar ranges are observed for
differences in academic subject (e.g.,
math vs. English) and student ability level. As Snook et al.
(2009) note in their critical response
to Hattie, while it is possible to produce a figure for the average
effect size of a particular
teaching factor, such averages obscure the importance of
context.
Meta-analysis 3. A final meta-analysis (Seidel & Shavelson,
2007) found generally
small average effect sizes for most teaching factors—
organization and academic domain-
specific learning activities showed the biggest cognitive effects

(0.33 and 0.25, respectively).
Here, again, however, effectiveness varied considerably due to
contextual factors like domain of
study and level of education in ways that average effect sizes do
not indicate.
These pieces of evidence suggest that there are multiple
teaching factors that produce
measurable gains in student achievement and that the relative
importance of individual factors
can be highly dependent on contextual factors like student
identity. This is in line with a well-
documented phenomenon in educational research that
complicates attempts to measure
teaching effectiveness purely in terms of student achievement.
This is that “the largest source of
variation in student learning is attributable to differences in
what students bring to school - their
8
abilities and attitudes, and family and community” (McKenzie
et al., 2005, p. 2). Student
achievement varies greatly due to non-teacher factors like
socio-economic status and home life

(Snook et al., 2009). This means that, even to the extent that it
is possible to observe the
effectiveness of certain teaching behaviors in terms of student
achievement, it is difficult to set
generalizable benchmarks or standards for student achievement.
Thus is it also difficult to make
true apples-to-apples comparisons about teaching effectiveness
between different educational
contexts: due to vast differences between different kinds of
students, a notion of what
constitutes highly effective teaching in one context may not in
another. This difficulty has
featured in criticism of certain meta-analyses that have
purported to make generalizable claims
about what teaching factors produce the biggest effects (Hattie,
2009). A variety of other
commentators have also made similar claims about the
importance of contextual factors in
teaching effectiveness for decades (see, e.g., Bloom et al., 1956;
Cashin, 1990; Theall, 2017).
The studies described above mainly measure teaching
effectiveness in terms of
academic achievement. It should certainly be noted that these
quantifiable measures are not

generally regarded as the only outcomes of effective teaching
worth pursuing. Qualitative
outcomes like increased affinity for learning and greater sense
of self-efficacy are also important
learning goals. Here, also, local context plays a large role.
SETs: Imperfect Measures of Teaching
As noted in this paper’s introduction, SETs are commonly used
to assess teaching
performance and inform faculty development efforts. Typically,
these take the form of an end-of-
term summative evaluation comprised of multiple-choice
questions (MCQs) that allow students
to rate statements about their teachers on Likert scales. These
are often accompanied with
short-answer responses which may or may not be optional.
SETs serve important institutional purposes. While
commentators have noted that there
are crucial aspects of instruction that students are not equipped
to judge (Benton & Young,
2018), SETs nevertheless give students a rare institutional
voice. They represent an opportunity
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to offer anonymous feedback on their teaching experience and
potentially address what they
deem to be their teacher’s successes or failures. Students are
also uniquely positioned to offer
meaningful feedback on an instructors’ teaching because they
typically have much more
extensive firsthand experience of it than any other educational
stakeholder. Even peer
observers only witness a small fraction of the instructional
sessions during a given semester.
Students with perfect attendance, by contrast, witness all of
them. Thus, in a certain sense, a
student can theoretically assess a teacher’s ability more
authoritatively than even peer mentors
can.
While historical attempts to validate SETs have produced mixed
results, some studies
have demonstrated their promise. Howard (1985), for instance,

finds that SET are significantly
more predictive of teaching effectiveness than self-report, peer,
and trained-observer
assessments. A review of several decades of literature on
teaching evaluations (Watchel, 1998)
found that a majority of researchers believe SETs to be
generally valid and reliable, despite
occasional misgivings. This review notes that even scholars who
support SETs frequently argue
that they alone cannot direct efforts to improve teaching and
that multiple avenues of feedback
are necessary (L’hommedieu et al., 1990; Seldin, 1993).
Finally, SETs also serve purposes secondary to the ostensible
goal of improving
instruction that nonetheless matter. They can be used to bolster
faculty CVs and assign
departmental awards, for instance. SETs can also provide
valuable information unrelated to
teaching. It would be hard to argue that it not is useful for a
teacher to learn, for example, that a
student finds the class unbearably boring, or that a student finds
the teacher’s personality so
unpleasant as to hinder her learning. In short, there is real value
in understanding students’

affective experience of a particular class, even in cases when
that value does not necessarily
lend itself to firm conclusions about the teacher’s professional
abilities.
However, a wealth of scholarly research has demonstrated that
SETs are prone to fail in
certain contexts. A common criticism is that SETs can
frequently be confounded by factors
10
external to the teaching construct. The best introduction to the
research that serves as the basis
for this claim is probably Neath (1996), who performs
something of a meta-analysis by
presenting these external confounds in the form of twenty
sarcastic suggestions to teaching
faculty. Among these are the instructions to “grade leniently,”
“administer ratings before tests”
(p. 1365), and “not teach required courses” (#11) (p. 1367).
Most of Neath’s advice reflects an
overriding observation that teaching evaluations tend to
document students’ affective feelings
toward a class, rather than their teachers’ abilities, even when

the evaluations explicitly ask
students to judge the latter.
Beyond Neath, much of the available research paints a similar
picture. For example, a
study of over 30,000 economics students concluded that “the
poorer the student considered his
teacher to be [on an SET], the more economics he understood”
(Attiyeh & Lumsden, 1972). A
1998 meta-analysis argued that “there is no evidence that the
use of teacher ratings improves
learning in the long run” (Armstrong, 1998, p. 1223). A 2010
National Bureau of Economic
Research study found that high SET scores for a course’s
instructor correlated with “high
contemporaneous course achievement,” but “low follow-on
achievement” (in other words, the
students would tend to do well in the course, but poor in future
courses in the same field of
study. Others observing this effect have suggested SETs reward
a pandering, “soft-ball”
teaching style in the initial course (Carrell & West, 2010). More
recent research suggests that
course topic can have a significant effect on SET scores as well:
teachers of “quantitative

courses” (i.e., math-focused classes) tend to receive lower
evaluations from students than their
humanities peers (Uttl & Smibert, 2017).
Several modern SET studies have also demonstrated bias on the
basis of gender
(Anderson & Miller, 1997; Basow, 1995), physical
appearance/sexiness (Ambady & Rosenthal,
1993), and other identity markers that do not affect teaching
quality. Gender, in particular, has
attracted significant attention. One recent study examined two
online classes: one in which
instructors identified themselves to students as male, and
another in which they identified as
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11
female (regardless of the instructor’s actual gender) (Macnell et
al., 2015). The classes were

identical in structure and content, and the instructors’ true
identities were concealed from
students. The study found that students rated the male identity
higher on average. However, a
few studies have demonstrated the reverse of the gender bias
mentioned above (that is, women
received higher scores) (Bachen et al., 1999) while others have
registered no gender bias one
way or another (Centra & Gaubatz, 2000).
The goal of presenting these criticisms is not necessarily to
diminish the institutional
importance of SETs. Of course, insofar as institutions value the
instruction of their students, it is
important that those students have some say in the content and
character of that instruction.
Rather, the goal here is simply to demonstrate that using SETs
for faculty development
purposes—much less for personnel decisions—can present
problems. It is also to make the
case that, despite the abundance of literature on SETs, there is
still plenty of room for scholarly
attempts to make these instruments more useful.
Empirical Scales and Locally-Relevant Evaluation

One way to ensure that teaching assessments are more
responsive to the demands of
teachers’ local contexts is to develop those assessments locally,
ideally via a process that
involves the input of a variety of local stakeholders. Here,
writing assessment literature offers a
promising path forward: empirical scale development, the
process of structuring and calibrating
instruments in response to local input and data (e.g., in the
context of writing assessment,
student writing samples and performance information). This
practice contrasts, for instance, with
deductive approaches to scale development that attempt to
represent predetermined theoretical
constructs so that results can be generalized.
Supporters of the empirical process argue that empirical scales
have several
advantages. They are frequently posited as potential solutions to
well-documented reliability and
validity issues that can occur with theoretical or intuitive scale
development (Brindley, 1998;
Turner & Upshur, 1995, 2002). Empirical scales can also help
researchers avoid issues caused

12
by subjective or vaguely-worded standards in other kinds of
scales (Brindley, 1998) because
they require buy-in from local stakeholders who must agree on
these standards based on
their understanding of the local context. Fulcher et al. (2011)
note the following, for instance:
Measurement-driven scales suffer from descriptional
inadequacy. They are not sensitive
to the communicative context or the interactional complexities
of language use. The level
of abstraction is too great, creating a gulf between the score and
its meaning. Only with
a richer description of contextually based performance, can we
strengthen the meaning
of the score, and hence the validity of score-based inferences.
(pp. 8–9)
There is also some evidence that the branching structure of the
EBB scale specifically
can allow for more reliable and valid assessments, even if it is
typically easier to calibrate and
use conventional scales (Hirai & Koizumi, 2013). Finally,
scholars have also argued that

theory-based approaches to scale development do not always
result in instruments that
realistically capture ordinary classroom situations (Knoch,
2007, 2009).
The most prevalent criticism of empirical scale development in
the literature is that the
local, contingent nature of empirical scales basically discards
any notion of their results’
generalizability. Fulcher (2003), for instance, makes this basic
criticism of the EBB scale even
as he subsequently argues that “the explicitness of the design
methodology for EBBs is
impressive, and their usefulness in pedagogic settings is
attractive” (p. 107). In the context of
this particular paper’s aims, there is also the fact that the
literature supporting empirical scale
development originates in the field of writing assessment, rather
than teaching assessment.
Moreover, there is little extant research into the applications of
empirical scale development for
the latter purpose. Thus, there is no guarantee that the benefits
of empirical development
approaches can be realized in the realm of teaching assessment.
There is also no guarantee

that they cannot. In taking a tentative step towards a better
understanding of how these
assessment schema function in a new context, then, the study
described in the next section
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asks whether the principles that guide …

Page i
11e
GLOBAL BUSINESS TODAY
Charles W. L. Hill
University of Washington
G. Tomas M. Hult
Michigan State University
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Page iiiFor my mother June Hill, and the memory of my father,
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—Charles W. L. Hill

For Gert & Margareta Hult, my parents
—G. Tomas M. Hult
5
Page iv
Page v
about the authors
CHARLES W. L. HILL
University of Washington
Charles W. L. Hill is the Hughes M. and Katherine Blake
Professor of Strategy and
International Business at the Foster School of Business,
University of Washington. Professor
Hill has taught in the MBA, Executive MBA, Technology
Management MBA, Management,
and PhD programs at the University of Washington. During his
time at the University of
Washington, he has received over 25 awards for teaching
excellence, including the Charles E.
Summer Outstanding Teaching Award. The Foster School is
consistently ranked as a Top-25
business school. Learn more about Professor Hill at
http://foster.uw.edu/faculty-
research/directory/charles-hill.
A native of the United Kingdom, Professor Hill received his
PhD from the University of

Manchester, UK. In addition to the University of Washington,
he has served on the faculties of
the University of Manchester, Texas A&M University, and
Michigan State University.
Professor Hill has published over 50 articles in top academic
journals, including the Academy
of Management Journal, Academy of Management Review,
Strategic Management Journal, and
Organization Science. Professor Hill has also published several
textbooks, including
International Business (McGraw-Hill) and Global Business
Today (McGraw-Hill). His work is
among the most widely cited in international business and
strategic management.
Beginning in 2014, Dr. Hill partnered with Dr. Tomas Hult in a
formidable co-authorship of
the International Business franchise of textbooks (International
Business and Global Business
Today).This brought together two of the most cited international
business scholars in history.
Professor Hill works on a private basis with a number of
organizations. His clients have
included Microsoft, where he has been teaching in-house
executive education courses for two
decades. He has also consulted for a variety of other large
companies (e.g., AT&T Wireless,
Boeing, BF Goodrich, Group Health, Hexcel, Microsoft, Philips
Healthcare, Philips Medical
Systems, Seattle City Light, Swedish Health Services, Tacoma
City Light, Thompson Financial
Services, WRQ, and Wizards of the Coast). Professor Hill has
also served on the advisory board
of several start-up companies.

For recreation, Professor Hill enjoys skiing and competitive
sailing!
G. TOMAS M. HULT
Michigan State University
Dr. Tomas Hult is Professor of Marketing, Byington Endowed
Chair, and Director of the
International Business Center in the Department of Marketing in
the Eli Broad College of
Business at Michigan State University. He also teaches for the
Broad College’s Department of
Supply Chain Management and Department of Management.
Learn more about Professor Hult at
http://broad.msu.edu/facultystaff/hult.
A native of Sweden, Dr. Hult received a mechanical engineer
degree in Sweden before
obtaining Bachelor and MBA degrees in the United States,
followed by a PhD at The University
6
of Memphis. In addition to Michigan State University, he has
served on the faculties of Florida
State University and the University of Arkansas at Little Rock.
Dr. Hult holds visiting
professorships in the International Business Group of his native
Uppsala University, Sweden,
and the International Business Division of Leeds University,
United Kingdom. Michigan State,
Uppsala, and Leeds are all ranked in the top 10 in the world in

international business research.
Dr. Hult serves as Executive Director and Board Member of the
Academy of International
Business (AIB), President and Board Member of the Sheth
Foundation, and serves on the U.S.
District Export Council. Tomas Hult hosts the radio show
globalEDGE Business Beat on the
Michigan Business Network.
Hult is one of the world’s leading academic authorities
(citations, publications) in marketing
strategy, international business, international marketing,
strategic management, global supply
chains, and complex multinational corporations. He is one of
only about 100 Elected Fellows of
the Academy of International Business, an accolade achieved by
only the elite international
business scholars. Dr. Hult was also selected in 2016 as the
Academy of Marketing
Science/CUTCO-Vector Distinguished Marketing Educator.
He regularly speaks at high profile events (e.g., European
Commission, Swedish
Entrepreneurship Forum, United Nation's Conference on Trade
and Development, U.S.
Department of Education, World Investment Forum) and
publishes influential op-ed articles
(e.g., Time, Fortune, Fortune, World Economic Forum, The
Conversation). Tomas has
developed a large clientele of the world’s top corporations (e.g.,
ABB, Albertsons, Avon, BG,
Bechtel, Bosch, BP, Defense Logistics Agency, Domino’s,
FedEx, Ford, FreshDirect, General
Motors, GroceryGateway, HSBC, IBM, Michigan Economic
Development Corporation, Masco,

NASA, Raytheon, Shell, Siemens, State Farm, Steelcase, Tech
Data, and Xerox).
In addition to co-authoring with Charles W. L. Hill the market-
share leading textbooks in
international business (Global Business Today, now in its 11th
edition, and International
Business, now in its 12th edition), Dr. Hult has written several
popular business trade books
(e.g., Second Shift; Global Supply Chain Management;
Extending the Supply Chain; and Total
Global Strategy).
Tennis, golf, and traveling are his favorite recreational
activities.
7
Page vi
brief contents
PART ONE Introduction and Overview
Chapter One Globalization 2
PART TWO National Differences
Chapter Two National Differences in Political, Economic, and
Legal Systems 36
Chapter Three National Differences in Economic Development
58
Chapter Four Differences in Culture 86

Chapter Five Ethics, Corporate Social Responsibility, and
Sustainability 122
PART THREE The Global Trade and Investment Environment
Chapter Six International Trade Theory 150
Chapter Seven Government Policy and International Trade 184
Chapter Eight Foreign Direct Investment 212
Chapter Nine Regional Economic Integration 240
PART FOUR The Global Monetary System
Chapter Ten The Foreign Exchange Market 270
Chapter Eleven The International Monetary System 294
PART FIVE The Strategy of International Business
Chapter Twelve The Strategy of International Business 320
Chapter Thirteen Entering Developed and Emerging Markets
356
PART SIX International Business Functions
Chapter Fourteen Exporting, Importing, and Countertrade 382
Chapter Fifteen Global Production and Supply Chain
Management 408
Chapter Sixteen Global Marketing and Business Analytics 438

Chapter Seventeen Global Human Resource Management 474
GLOSSARY 503
NAME INDEX 511
8
SUBJECT INDEX 513
ACRONYMS 531
COUNTRIES AND THEIR CAPITALS 532
9
Page vii
the proven choice for
international business
Current. Application Rich, Relevant. Accessible
and Student Focused.
Global Business Today (GBT), the worldwide market leader
among international business
products, has set a new standard for international business
teaching. We have focused on
creating resources that
Are comprehensive, state of the art, and timely.
Are theoretically sound and practically relevant.
Focus on applications of international business concepts.
Tightly integrate the chapter topics throughout.

Are fully integrated with results-driven technology.
Take full and integrative advantage of globalEDGE.msu.edu—
the Google-ranked #1 web
resource for “international business resources.”
International Business (now in its 12th edition, 2019), also co-
authored by Charles W. L. Hill
and G. Tomas M. Hult, is a more comprehensive and case-
oriented version that lends itself to
the core course in international business for those that want a
deeper focus on the global
monetary system, structure of international business,
international accounting, and international
finance.
GBT has always endeavored to be current, relevant, application
rich, accessible, and student-
focused. Our goal has always been to cover macro and micro
issues equally and in a relevant,
practical, accessible, and student-focused approach. We believe
that anything short of such a
breadth and depth of coverage is a serious deficiency. Many of
the students in these international
business courses will soon be working in global businesses, and
they will be expected to
understand the implications of international business for their
organization’s strategy, structure,
and functions in the context of the global marketplace. We are
proud and delighted to have put
together this international business learning experience for the
leaders of tomorrow.
Over the years, and now through 11 editions, Dr. Charles Hill
has worked hard to adhere to
these goals. Since the ninth edition, Charles’ co-author, Dr.
Tomas Hult, has followed the same

approach. In deciding what changes to make, we have been
guided not only by our own reading,
teaching, and research but also by the invaluable feedback we
received from professors and
students around the world, from reviewers, and from the
editorial staff at McGraw-Hill
Education. Our thanks go out to all of them.
Comprehensive and Up-to-Date
To be relevant and comprehensive, an international business
package must
10
Page viii
Explain how and why the world’s cultures, countries, and
regions differ.
Cover economics and politics of international trade and
investment.
Tackle international issues related to ethics, corporate social
responsibility, and
sustainability.
Explain the functions and form of the global monetary system.
Examine the strategies and structures of international
businesses.
Assess the special roles of the various functions of an
international business.
Relevance and comprehensiveness also require coverage of the
major theories. It has always
been a goal to incorporate the insights gleaned from recent
academic scholarship into the book.
Consistent with this goal, insights from the following research,

as a sample of
theoretical streams used in the book, have been incorporated:
New trade theory and strategic trade policy.
The work of Nobel Prize–winning economist Amartya Sen on
economic development.
Samuel Huntington’s influential thesis on the “clash of
civilizations.”
Growth theory of economic development championed by Paul
Romer and Gene Grossman.
Empirical work by Jeffrey Sachs and others on the relationship
between international trade
and economic growth.
Michael Porter’s theory of the competitive advantage of nations.
Robert Reich’s work on national competitive advantage.
The work of Nobel Prize–winner Douglass North and others on
national
institutional structures and the protection of property rights.
The market imperfections approach to foreign direct investment
that has grown out of
Ronald Coase and Oliver Williamson’s work on transaction cost
economics.
Bartlett and Ghoshal’s research on the transnational
corporation.
The writings of C. K. Prahalad and Gary Hamel on core
competencies, global competition,
and global strategic alliances.
Insights for international business strategy that can be derived
from the resource-
based view of the firm and complementary theories.
Paul Samuelson’s critique of free trade theory.
Conceptual and empirical work on global supply chain
management—logistics, purchasing
(sourcing), operations, and marketing channels.
In addition to including leading-edge theory, in light of the fast-

changing nature of the
international business environment, we have made every effort
to ensure that this product is as
up-to-date as possible. A significant amount has happened in
the world since we began revisions
of this book. By 2016, almost $4 trillion per day were flowing
across national borders. The size
of such flows fueled concern about the ability of short-term
speculative shifts in global capital
markets to destabilize the world economy.
The world continued to become more global. As you can see in
Chapter 1 on Globalization,
trade across country borders has almost exponentially escalated
in the last few years. Several
Asian economies, most notably China and India, continued to
grow their economies at a rapid
rate. New multinationals continued to emerge from developing
nations in addition to the world’s
established industrial powers.
Increasingly, the globalization of the world economy affected a
wide range of firms of all
sizes, from the very large to the very small. We take great pride
in covering international
business for small- and medium-sized enterprises (SMEs), as
well as larger multinational
corporations. We also take great pride in covering firms from
all around the world. Some sixty
SMEs and multinational corporations from all six core
continents are covered in the chapters’
opening cases, closing cases, and/or Management Focus boxes.
11

Page ix
And unfortunately, global terrorism and the attendant
geopolitical risks keep emerging in
various places globally, many new and inconceivable just a
decade ago. These represent a threat
to global economic integration and activity. Plus, with the
United Kingdom opting to leave the
European Union (Brexit), which has implications past 2019, the
election of President Donald
Trump in the United States (who espouses views on
international trade that break with the long
established consensus), and several elections around the world,
the globe—in many ways—has
paid more attention to nationalistic issues over trade. These
topics and many more are integrated
into this text for maximum learning opportunities.
WHAT’S NEW IN THE 11TH EDITION
The success of the first ten editions of Global Business Today
(and its longer, more in-depth
textbook option and companion, International Business, now in
the 12th edition) was based in
part on the incorporation of leading-edge research into the text,
the use of the up-to-date
examples and statistics to illustrate global trends and enterprise
strategy, and the discussion of
current events within the context of the appropriate theory.
Building on these strengths, our
goals for the 11th edition have focused on the following:
1. Incorporate new insights from scholarly research.
2. Make sure the content covers all appropriate issues.
3. Make sure the text is up-to-date with current events,
statistics, and examples.

4. Add new and insightful opening and closing cases in most
chapters.
5. Incorporate value-added globalEDGETM features in every
chapter.
6. Connect every chapter to a focus on managerial implications.
As part of the overall revision process, changes have been made
to every chapter in the book.
All statistics have been updated to incorporate the most recently
available data. As before, we
provide the only textbook in International Business that ensures
that all material is up-to-date on
virtually a daily basis. The copyright for the book is 2020, but
you are likely using the text
somewhere between the years 2019 to 2022. We keep the
textbook updated to each semester you
use the text in your course! We do this by integrating Connect
and globalEDGETM features in
every chapter.
Specifically, combining McGraw Hill’s Connect platform with
the Google number-one-
ranked globaledge.msu.edu site (for “international business
resources”), we can add up-to-date
materials and exercises to each chapter to add value to the
material and provide relevant data
and information. This keeps chapter material constantly and
dynamically updated for teachers
who want to infuse Connect and globalEDGETM material into
the chapter topics, and it keeps
students abreast of current developments in international
business.
In addition to updating all statistics, figures, and maps to
incorporate most recently published

data, a chapter-by-chapter selection of changes for the 10th
edition include the following:
CHAPTER 1: GLOBALIZATION
New opening case: GM and Its Chevrolet Supercar, The
Corvette ZR1
New materials on international trade, trade agreements, world
production, and world
population
Explanations of differences in cross-border trade and in-country
production; the value of
trade agreements; and population implications related to
resource constraints
Revised Management Focus: Boeing’s Global Production
System
12
Page x
Revised Management Focus: Wanda Group
New closing case: Globalization of BMW, Rolls-Royce, and the
MINI
CHAPTER 2: NATIONAL DIFFERENCES IN
POLITICAL, ECONOMIC, AND LEGAL SYSTEMS
New opening case: Transformation in Saudi Arabia
New Country Focus: Putin’s Russia
Updated data on corruption
Updated Country Focus: Corruption in Brazil
New closing case: The Decline of Zimbabwe
CHAPTER 3: NATIONAL DIFFERENCES IN

ECONOMIC DEVELOPMENT
New opening case: Brazil’s Struggling Economy
Updated statistics and discussion in section Differences in
Economic Development
Updated Country Focus: Property Rights in China
Updated statistics and discussion in section States in Transition
New closing case: Economic Development in Bangladesh
CHAPTER 4: DIFFERENCES IN CULTURE
New opening case: China, Hong Kong, Macau, and Taiwan
Deeper treatment of culture, values, and norms
Revised the foundation that most religions are now pro-business
Updated the Hofstede culture framework with new research
New Country Focus: Determining Your Social Class by Birth
New Country Focus: Turkey, Its Religion, and Politics
New Management Focus: China and Its Guanxi
New closing case: The Swatch Group and Cultural Uniqueness
CHAPTER 5: ETHICS, CORPORATE SOCIAL
RESPONSIBILITY, AND SUSTAINABILITY
New opening case: Sustainability Initiatives at Natura, the
Bodyshop, and Aesop
Deeper focus on corporate social responsibility and
sustainability at the country, company,
and customer levels
New Management Focus: “Emissionsgate” at Volkswagen
New closing case: Woolworths’s Corporate Responsibility
Strategy
CHAPTER 6: INTERNATIONAL TRADE THEORY
New opening case: “Trade Wars Are Good and Easy to Win”
Discussion of President Donald Trump’s approach to
international trade
Updated Country Focus: Is China Manipulating Its Currency in

Pursuit of a Neo-
Mercantilist Policy?
New closing case: The Trans Pacific Partnership (TPP) Is Dead;
Long Live the CPTPP!
Updated Appendix: International Trade and the Balance of
Payments with new data and
13
revised discussion
CHAPTER 7: GOVERNMENT POLICY AND
INTERNATIONAL TRADE
New opening case: U.S. and South Korea Strike a Revised Trade
Deal
New section: The World Trading System Under Threat, which
discusses the potential
ramifications of Brexit and the trade policies of the Trump
administration
New Closing Case: Boeing and Airbus Are in a Dogfight over
Illegal Subsidies
CHAPTER 8: FOREIGN DIRECT INVESTMENT
New opening case: Geely Goes Global
Updated statistics and discussion in the section Foreign Direct
Investment in the World
Economy
New Management Focus: Burberry Shifts Its Entry Strategy in
Japan
New closing case: FDI in the Indian Retail Sector
CHAPTER 9: REGIONAL ECONOMIC
INTEGRATIONS

New opening case: NAFTA 2.0?
Extended discussion of Brexit and its ramifications
New section The Future of NAFTA, which discusses the
renegotiation of NAFTA by the
Trump administration
New closing case: Free Trade in Africa: TFTA and CFTA
CHAPTER 10: THE FOREIGN EXCHANGE MARKET
New opening case: The Fluctuating Value of the Yuan Gives
Chinese Business a Lesson in
Foreign Exchange Risk
New closing case: The Mexican Peso, the Japanese Yen, and
Pokemon Go
CHAPTER 11: THE INTERNATIONAL MONETARY
SYSTEM
New opening case: Can Dollarization Save Venezuela?
Updated statistics discussion of floating exchange rates through
to early 2018
New Country Focus: China’s Exchange Rate Regime
New Closing Case: Egypt and the IMF
CHAPTER 12: THE STRATEGY OF INTERNATIONAL
BUSINESS
New opening case: Red Bull, a Leader in International Strategy
Deeper discussion of the rise of regionalism
Integration of global strategy thoughts
New Management Focus: IKEA’s Global Strategy
14

Page xi
New Management Focus: Unilever’s Global Organization
New closing case: Sony Corporation: An International
Innovator?
CHAPTER 13: ENTERING DEVELOPED AND
EMERGING MARKETS
New opening case: IKEA Entering India, Finally!
New scope of the chapter to include entering developed and
emerging markets, as well as
aspects of less developed markets
New closing case: Cutco Corporation—Sharpening Your Market
Entry
CHAPTER 14: EXPORTING, IMPORTING, AND
COUNTERTRADE
New opening case: Spotify and SoundCloud
New material on company readiness to export and import
material
New and revised material on globalEDGETM Diagnostic Tools,
with a focus on Company
Readiness to Export (CORE)
New Management Focus: Embraer and Brazilian Importing
New Management Focus: Exporting Desserts by a Hispanic
Entrepreneur
New Management Focus: Two Men and a Truck
New closing case: Tata Motors and Exporting
CHAPTER 15: GLOBAL PRODUCTION AND SUPPLY
CHAIN MANAGEMENT
New opening case: Procter & Gamble Remakes Its Global
Supply Chains
Revised and new material on global logistics, global

purchasing, and global operations
Revised sections Strategic Roles for Production Facilities,
Make-or-Buy Decisions, and
Global Supply Chain Functions
New material in the sections Role of Information Technology,
Coordination in Global
Supply Chains, and Interorganizational Relationships
New Management Focus: IKEA Production in China
New Management Focus: Amazon’s Global Supply Chains
New closing case: Alibaba and Global Supply Chains
CHAPTER 16: GLOBAL MARKETING AND
BUSINESS ANALYTICS
New opening case: Fake News and Alternative Facts
Revised section Globalization of Markets and Brands
New section on Business Analytics; reordered with International
Marketing Research to
provide a better flow of the chapter material
Revised section International Marketing Research
Inclusion of more social media topics throughout
Revised positioning of the Product Development and R&D
section
New Management Focus: Global Branding, Marvel Studios, and
Walt Disney Company
New Management Focus: Burberry’s Social Media Marketing
15
Page xii
New closing case: ACSI and Satisfying Global Customers
CHAPTER 17: GLOBAL HUMAN RESOURCE

MANAGEMENT
New opening case: Global Mobility at Shell
New section: Building a Diverse Global Workforce, which looks
at the benefits, challenges,
and policies for building a diverse global workforce in a
multinational enterprise
New Closing Case: Sodexo: Building a Diverse Global
Workforce
Beyond Uncritical Presentation and Shallow
Explanation
Many issues in international business are complex and thus
necessitate considerations of pros
and cons. To demonstrate this to students, we have adopted a
critical approach that presents the
arguments for and against economic theories, government
policies, business strategies,
organizational structures, and so on.
Related to this, we have attempted to explain the complexities
of the many theories and
phenomena unique to international business so the student might
fully comprehend the
statements of a theory or the reasons a phenomenon is the way
it is. We believe that these
theories and phenomena are explained in more depth in this
work than they are in the
competition, which seem to use the rationale that a shallow
explanation is little better
than no explanation. In international business, a little
knowledge is indeed a dangerous thing.
Practical and Rich Applications
We have always believed that it is important to show students
how the material covered in the

text is relevant to the actual practice of international business.
This is explicit in the later
chapters of the book, which focus on the practice of
international business, but it is not always
obvious in the first half of the book, which considers macro
topics. Accordingly, at the end of
each chapter in Parts Two, Three, and Four—where the focus is
on the environment of
international business, as opposed to particular firms—there is a
section titled Focus on
Managerial Implications. In this section, the managerial
implications of the material discussed
in the chapter are clearly explained. Additionally, most chapters
have at least one Management
Focus box. The purpose of these boxes is to illustrate the
relevance of chapter material for the
practice of international business.
A Did You Know? feature in each chapter challenges students to
view the world around
them through the lens of international business (e.g., Did you
know that sugar prices in the
United States are much higher than sugar prices in the rest of
the world?). The authors recorded
short videos explaining the phenomenon.
In addition, each chapter begins with an opening case that sets
the stage for the chapter and
ends with a closing case that illustrates the relevance of chapter
material for the practice of
international business.
To help students go a step further in expanding their
application-level understanding of
international business, each chapter incorporates two
globalEDGETM research tasks designed

and written by Tomas Hult. The exercises dovetail with the
content just covered.
16
Integrated Progression of Topics
A weakness of many texts is that they lack a tight, integrated
flow of topics from chapter to
chapter. This book explains to students in Chapter 1 how the
book’s topics are related to each
other. Integration has been achieved by organizing the material
so that each chapter builds on
the material of the previous ones in a logical fashion.
PART ONE
Chapter 1 provides an overview of the key issues to be
addressed and explains the plan of the
book. Globalization of markets and globalization of production
is the core focus.
PART TWO
Chapters 2 through 4 focus on country differences in political
economy and culture, and Chapter
5 on ethics, corporate social responsibility, and sustainability
issues in international business.
Most international business textbooks place this material at a
later point, but we believe it is vital
to discuss national differences first. After all, many of the
central issues in international trade
and investment, the global monetary system, international
business strategy and structure, and
international business functions arise out of national differences
in political economy and
culture.

PART THREE
Chapters 6 through 9 investigate the political economy of global
trade and investment. The
purpose of this part is to describe and explain the trade and
investment environment in which
international business occurs.
PART FOUR
Chapters 10 and 11 describe and explain the global monetary
system, laying out in detail the
monetary framework in which international business
transactions are conducted.
PART FIVE
In Chapters 12 and 13, attention shifts from the environment to
the firm. In other words, we
move from a macro focus to a micro focus at this stage of the
book. We …

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