Assignment 2 Deadline: 27-03-2020 @ 23:59 Course Name: Intro to International Business Instructions: · : Students must mention question number clearly in their answer. · Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. · All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). · Citing of references is also necessary in APA style. Critical Thinking Please read Case 2: “Venezuela under Hugo Chávez and Beyond” available in your e-book (page no.611), and answer the following questions: Assignment Question(s): 1. Under Chávez’s leadership, what kind of economic system was put in place in Venezuela? How would you characterize the political system? 2. How do you think that Chávez’s unilateral changes to contracts with foreign oil companies will affect future investment by foreigners in Venezuela? 3. How will the high level of public corruption in Venezuela affect future growth rates? 4. During the Chávez years, many foreign multinationals exited Venezuela or reduced their exposure there. What do you think the impact of this has been on Venezuela? What needs to be done to reverse the trend? 5. By 2016, Venezuela’s economy appeared to be on the brink of total collapse. What do you think needs to be done to reverse this? Assignment 2 D ead line: 27 - 03 - 2020 @ 23:59 Course Name: Intro to International Business Instructions : · : Students must mention question number clearly in their answer . · Avoid plagiarism , the work should be in your own words , copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. · All answered must be typed using Times New Roman (size 12, double - spaced) font. No pictures containing text will be accepted and will be considered plagiarism). · Citing of references is also necessary in APA style . C ritical Thinking Please read Case 2 : “Venezuela under Hugo Chávez and Beyond” available in your e - book (page no.611 ), and answer the following questions: Assignment Question (s) : 1. Under Chávez’s leadership, what kind of economic system was put in place in Venezuela? How would you characterize the political system? Assignment 2 Deadline: 27-03-2020 @ 23:59 Course Name: Intro to International Business Instructions:  : Students must mention question number clearly in their answer.  Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.  All answered must be typed using Times New Roman (size 12, double- spaced) font. No pictures containing text will be accepted and will be considered plagiarism).  Citing of references is a ...

1. Assignment 2
Deadline: 27-03-2020 @ 23:59
Course Name: Intro to International Business
Instructions:
· : Students must mention question number clearly in their
answer.
· Avoid plagiarism, the work should be in your own words,
copying from students or other resources without proper
referencing will result in ZERO marks. No exceptions.
· All answered must be typed using Times New Roman (size 12,
double-spaced) font. No pictures containing text will be
accepted and will be considered plagiarism).
· Citing of references is also necessary in APA style.
Critical Thinking
Please read Case 2: “Venezuela under Hugo Chávez and
Beyond” available in your e-book (page no.611), and answer the
following questions:
Assignment Question(s):
1. Under Chávez’s leadership, what kind of economic system
was put in place in Venezuela? How would you characterize the
political system?
2. How do you think that Chávez’s unilateral changes to
contracts with foreign oil companies will affect future
investment by foreigners in Venezuela?

2. 3. How will the high level of public corruption in Venezuela
affect future growth rates?
4. During the Chávez years, many foreign multinationals exited
Venezuela or reduced their exposure there. What do you think
the impact of this has been on Venezuela? What needs to be
done to reverse the trend?
5. By 2016, Venezuela’s economy appeared to be on the brink
of total collapse. What do you think needs to be done to reverse
this?
Assignment 2
D
ead
line:
27
-
03
-
2020
@ 23:59
Course Name:
Intro to International Business
Instructions
:

3. ·
:
Students
must mention question number clearly
in their
answer
.
·
Avoid plagiarism
, the work should be in
your own words
, copying from
students or other
resources without proper referencing will result in
ZERO
marks. No exceptions.
·
All answered must be typed using
Times New Roman (size 12, double
-
spaced)
font.
No pictures
containing text will be accepted and will be
considered plagiarism).

4. ·
Citing of
references
is also necessary
in
APA style
.
C
ritical Thinking
Please read
Case 2
:
“Venezuela under Hugo Chávez and Beyond”
available in your e
-
book
(page no.611
), and answer
the following questions:
Assignment Question
(s)
:

5. 1.
Under Chávez’s leadership, what kind of economic system was
put in place in
Venezuela? How would you characterize the political system?
Assignment 2
Deadline: 27-03-2020 @ 23:59
Course Name: Intro to International Business
Instructions:
answer.
copying from
students or other resources without proper referencing will
result in ZERO
marks. No exceptions.
12, double-

6. spaced) font. No pictures containing text will be accepted and
will be
considered plagiarism).
nces is also necessary in APA style.
Critical Thinking
Please read Case 2: “Venezuela under Hugo Chávez and
Beyond” available in your e-book
(page no.611), and answer the following questions:
Assignment Question(s):
1. Under Chávez’s leadership, what kind of economic system
was put in place in
Venezuela? How would you characterize the political system?
Cases 611
On March 5, 2013, Hugo Chávez, the president of
Venezuela, died after losing a battle against cancer.
Chávez had been president of Venezuela since 1999. A
former military officer who was once jailed for engineer-
ing a failed coup attempt, Chávez was a self-styled demo-
cratic socialist who won the presidential election by
campaigning against corruption, economic mismanage-
ment, and the “harsh realities” of global capitalism. When
he took office in February 1999, Chávez claimed he had
inherited the worst economic situation in the country’s
recent history. He wasn’t far off the mark. A collapse in
the price of oil, which accounted for 70 percent of the

7. country’s exports, left Venezuela with a large budget defi-
cit and forced the economy into a deep recession.
Soon after taking office, Chávez worked to consolidate
his hold over the apparatus of government. By 2012, Free-
dom House, which annually assesses political and civil
liberties worldwide, concluded Venezuela was only
“partly free” and that freedoms were being progressively
curtailed. In 2006, for example, Parliament, which was
dominated by his supporters, gave him the power to legis-
late by decree for 18 months. In late 2010, Chávez yet
again persuaded the National Assembly to grant him the
power to rule by decree for another 18 months.
On the economic front, the economy shrank in the
early 2000s, while unemployment remained persistently
high (at 15 to 17 percent) and the poverty rate rose to
more than 50 percent of the population. A 2003 study
by the World Bank concluded Venezuela was one of the
most regulated economies in the world and that state
controls over business activities gave public officials
ample opportunities to enrich themselves by demand-
ing bribes in return for permission to expand opera-
tions or enter new lines of business. Despite Chávez’s
anticorruption rhetoric, Transparency International,
which ranks the world’s nations according to the extent
of public corruption, noted that corruption increased
under Chávez. In 2012, Transparency International
ranked Venezuela 165th out of 174 nations in terms of
level of corruption.
Consistent with his socialist rhetoric, Chávez progres-
sively took various enterprises into state ownership and
required that other enterprises be restructured as “work-
ers’ cooperatives” in return for government loans. In addi-
tion, the government took over large rural farms and

8. ranches that Chávez claimed were not sufficiently pro-
ductive and turned them into state-owned cooperatives.
In mid-2000, the world oil market bailed Chávez out of
mounting economic difficulties. Oil prices started to surge
from the low $20s in 2003, reaching $150 a barrel by mid-
2008. Venezuela, the world’s fifth-largest producer, reaped
a bonanza. On the back of surging oil exports, the econ-
omy grew at a robust rate. Chávez used the oil revenues to
boost government spending on social programs, many of
them modeled after programs in Cuba. These included ultra-
cheap gasoline and free housing for the poor.
In 2006, he announced plans to reduce the stakes held
by foreign companies in oil projects in the Orinoco re-
gions, to increase the royalties they had to pay to the
Venezuelan government, and to give the state-run oil com-
pany a majority position. Simultaneously, he replaced
professional managers at the state-owned oil company
with his supporters, many of whom knew little about the
oil business. They extracted profits to support Chávez’s
social programs but at the cost of low investments in the
oil company, and over time its output started to fall.
Notwithstanding his ability to consolidate political
power, on the economic front, Venezuela’s performance
under Chávez was mixed. His main achievements were to
reduce poverty, which fell from 50 percent to 28 percent
by 2012, and to bring down unemployment from 14.5 per-
cent at the start of his rule to 7.6 percent in February
2013. Profits from oil helped Chávez achieve both these
goals. However, despite strong global demand and mas-
sive reserves, oil production in Venezuela fell by a third
between 2000 and 2012 as foreign oil companies exited
the country and the state-run oil company failed to make

9. up the difference. Inflation surged and was running at
around 28 percent per annum between 2008 and 2012,
one of the highest rates in the world. To compound mat-
ters, the budget deficit expanded to 17 percent of GDP in
2012 as the government spent heavily to support its social
programs and various subsidies.
Following Chávez’s death, his handpicked successor,
Nicolas Maduro, took over the presidency. Maduro con-
tinued the policies introduced by Chávez. Things did not
go well. By 2014, the country was in a recession. The
economy contracted by 4 percent that year, while infla-
tion surged to around 65 percent. The situation contin-
ued to deteriorate in 2015 and 2016. Exacerbated by a
sharp fall in oil prices and hence government revenues,
the economy was forecasted by the IMF to be 23 percent
smaller in 2017 than it was in 2013, the worst decline in
the world. By 2015, widespread shortages of basic goods
had emerged. In 2016, an estimated 75 percent of Venezu-
elans lost weight, averaging 8.7 kg per person, because of
a scarcity of food. Unemployment was rising. Inflation
increased to 741 percent by the end of 2016 (the highest in
the world). The poverty rate was back up over 30 percent.
To cap this litany of disaster, the value of the Venezuelan
currency, the bolivar, fell from 64 per U.S. dollar in 2014
to 960 per dollar by 2016.
Parliamentary elections held in December 2015 re-
sulted in large losses for the ruling United Socialist
Party. For the first time since 1999, the opposition
gained a majority of seats in Parliament. Maduro’s
Venezuela under Hugo Chávez and Beyond

10. 612 Part 7 Cases
Case Discussion Questions
1. Under Chávez’s leadership, what kind of economic
system was put in place in Venezuela? How would
you characterize the political system?
2. How do you think that Chávez’s unilateral changes
to contracts with foreign oil companies will affect
future investment by foreigners in Venezuela?
3. How will the high level of public corruption in
Venezuela affect future growth rates?
4. During the latter part of Chávez’s rule, Venezuela
benefited from high oil prices. Since 2014, however,
oil prices have fallen substantially. What has the af-
fect of this has been on government finances and
the Venezuelan economy?
5. During the Chávez years, many foreign multina-
tionals exited Venezuela or reduced their exposure
there. What do you think the impact of this has
been on Venezuela? What needs to be done to
reverse the trend?
6. By 2016, Venezuela’s economy appeared to be on
the brink of total collapse. What do you think needs
to be done to reverse this?
response was to have the supreme court, which was
populated with Chavez appointees, exercise “parlia-
mentary power” while declaring the legislature to be in
contempt of the court. In effect, Venezuela has become
a full-f ledged dictatorship.

11. Sources
D. Luhnow and P. Millard, “Chávez Plans to Take More Con-
trol of Oil away from Foreign Firms,” The Wall Street Journal,
April 24, 2006, p. A1; R. Gallego, “Chávez’s Agenda Takes
Shape,” The Wall Street Journal, December 27, 2005, p. A12;
“The Sickly Stench of Corruption: Venezuela,” The Economist,
April 1, 2006, p. 50; “Chávez Squeezes the Oil Firms,” The
Economist, November 12, 2005, p. 61; “Glimpsing the Bottom
of the Barrel: Venezuela,” The Economist, February 3, 2007,
p. 51; “The Wind Goes Out of the Revolution—Defeat for Hugo
Chávez,” The Economist, December 8, 2007, pp. 30–32; “Oil
Leak,” The Economist, February 26, 2011, p. 43; “Medieval
Poli-
cies,” The Economist, August 8, 2011, p. 38; “Now for the
Reck-
oning,” The Economist, May 5, 2013; “Heading for a Crash,”
The
Economist, January 23, 2016; Matt O’Brian, “Venezuela Is on
the Brink of Complete Economic Collapse,” The Washington
Post, January 29, 2016; “How Chavez and Maduro Have Impov-
erished Venezuela,” The Economist, April 6, 2017.
For decades, the Southeast Asian nation of Myanmar
(formerly known as Burma) was an international pariah.
Ruled by a brutal military dictatorship since the 1960s,
political dissent was not tolerated, the press was tightly
controlled, and opposition parties were shut down. Much
economic activity was placed in the hands of the state—
which effectively meant the hands of the military elite,
who siphoned off economic profits for their own benefit.
Corruption was rampant. In the 1990s, America and the
European Union imposed sweeping economic sanctions
on the country to punish the military junta for stealing
elections and jailing opponents. The de facto leader of
the country’s democratic opposition movement, Nobel

12. Peace Prize–winner Aung San Suu Kyi, was repeatedly
placed under house arrest from 1989 through 2010.
None of this was good for the country’s economy. De-
spite having a wealth of natural resources—including timber,
minerals, oil, and gas—the economy stagnated while its
Southeast Asian neighbors flourished. By 2012, Myanmar’s
GDP per capita was $1,400. In neighboring Thailand, it
was $10,000 per capita. The economy was still largely rural,
with 70 percent of the country’s nearly 60 million people
involved in agriculture. This compares with 8.6 percent in
Thailand. Few people own cars or cell phones, and there
are no major road or rail links between Myanmar and its
neighbors—China, India, and Thailand.
In 2010, the military again won elections that were
clearly rigged. Almost no one expected any changes, but
the new president, Thein Sein, was to defy expectations.
The government released hundreds of political prisoners,
removed restrictions on the press, freed Aung San Suu
Kyi, and allowed opposition parties to contest seats in a
series of by-elections. When Aung San Suu Kyi won a by-
election, thrashing her military-backed opponent, they let
her take the seat, raising hopes that Myanmar was at last
joining the modern world. In response, both America and
the European Union began to lift their sanctions.
Thein Sein also started to initiate much-needed eco-
nomic reforms. Even before the 2010 elections, the mili-
tary had begun to quietly privatize state-owned
enterprises, although many were placed in the hands of
cronies of the regime. In 2012, Thein Sein stated that the
government would continue to reduce its role in a wide
range of sectors, including energy, forestry, health care,
finance, and telecommunications. Land reforms are also

13. under way. The government also abandoned the official
fixed exchange rate for the Myanmar currency, the kyat,
replacing it with a managed float. From 2001 to 2012, the
official exchange rate for the kyat varied between 5.75
and 6.70 per U.S. dollar, while the black-market rate was
between 750 and 1,335 per U.S. dollar. The official fixed
exchange rate had effectively priced Myanmar’s exports
out of the world market, although it did benefit the mili-
tary elite who were able to exchange their worthless kyat
for valuable U.S. dollars on very favorable terms. Imple-
mented in April 2012, the managed float valued the kyat
Political and Economic Reform in Myanmar
CoverTitle PageCopyright PageDedicationAbout the
AuthorsBrief ContentsContentsAcknowledgmentspart one
Introduction and OverviewCHAPTER 1 GlobalizationOpening
Case Globalization of BMW, Rolls-Royce, and the
MINIIntroductionWhat Is Globalization?The Globalization of
MarketsThe Globalization of ProductionManagement Focus
Boeing’s Global Production SystemThe Emergence of Global
InstitutionsDrivers of GlobalizationDeclining Trade and
Investment BarriersRole of Technological ChangeThe Changing
Demographics of the Global EconomyThe Changing World
Output and World Trade PictureThe Changing Foreign Direct
Investment PictureCountry Focus India’s Software SectorThe
Changing Nature of the Multinational EnterpriseManagement
Focus Wanda GroupThe Changing World OrderGlobal Economy
of the Twenty-First CenturyThe Globalization
DebateAntiglobalization ProtestsGlobalization, Jobs, and
IncomeCountry Focus Protesting Globalization in
FranceGlobalization, Labor Policies, and the
EnvironmentGlobalization and National
SovereigntyGlobalization and the World’s PoorManaging in the
Global MarketplaceChapter SummaryCritical Thinking and
Discussion QuestionsResearch TaskClosing Case Uber: Going
Global from Day OneEndnotespart two National

14. DifferencesCHAPTER 2 National Differences in Political,
Economic, and Legal SystemsOpening Case The Decline of
ZimbabweIntroductionPolitical SystemsCollectivism and
IndividualismDemocracy and TotalitarianismCountry Focus
Putin’s RussiaEconomic SystemsMarket EconomyCommand
EconomyMixed EconomyLegal SystemsDifferent Legal
SystemsDifferences in Contract LawProperty Rights and
CorruptionCountry Focus Corruption in BrazilManagement
Focus Did Walmart Violate the Foreign Corrupt Practices
Act?The Protection of Intellectual PropertyManagement Focus
Starbucks Wins Key Trademark Case in ChinaProduct Safety
and Product LiabilityFocus on Managerial Implications: The
Macro Environment Influences Market AttractivenessChapter
SummaryCritical Thinking and Discussion QuestionsResearch
TaskClosing Case Economic Transformation in
VietnamEndnotesCHAPTER 3 National Differences in
Economic DevelopmentOpening Case Economic Development in
BangladeshIntroductionDifferences in Economic
DevelopmentMap 3.1 GNI per capita, 2016Map 3.2 GNI PPP per
capita, 2016Map 3.3 Average annual growth rate in GDP (%),
2007–2016Broader Conceptions of Development: Amartya
SenMap 3.4 Human Development Index, 2015Political Economy
and Economic ProgressInnovation and Entrepreneurship Are the
Engines of GrowthInnovation and Entrepreneurship Require a
Market EconomyInnovation and Entrepreneurship Require
Strong Property RightsThe Required Political SystemCountry
Focus Emerging Property Rights in ChinaEconomic Progress
Begets DemocracyGeography, Education, and Economic
DevelopmentStates in TransitionThe Spread of DemocracyMap
3.5 Freedom in the world, 2017The New World Order and
Global TerrorismThe Spread of Market-Based SystemsMap 3.6
Index of economic freedom, 2017The Nature of Economic
TransformationDeregulationPrivatizationCountry Focus India’s
Economic TransformationLegal SystemsImplications of
Changing Political EconomyFocus on Managerial Implications:
Benefits, Costs, Risks, and Overall Attractiveness of Doing

15. Business InternationallyChapter SummaryCritical Thinking and
Discussion QuestionsResearch TaskClosing Case The Political
and Economic Evolution of IndonesiaEndnotesCHAPTER 4
Differences in CultureOpening Case The Swatch Group and
Cultural UniquenessIntroductionWhat Is Culture?Values and
NormsCulture, Society, and the Nation-StateDeterminants of
CultureSocial StructureIndividuals and GroupsSocial
StratificationCountry Focus India and Its Caste SystemReligious
and Ethical SystemsMap 4.1 World
ReligionsChristianityIslamCountry Focus Secularism in
TurkeyHinduismBuddhismConfusianismManagement Focus
China and Its GuanxiLanguageSpoken LanguageUnspoken
LanguageEducationCulture and BusinessCultural ChangeFocus
on Managerial Implications: Cultural Literacy and Competitive
AdvantageChapter SummaryCritical Thinking and Discussion
QuestionsResearch TaskClosing Case The Emirates Group and
Employee DiversityEndnotesCHAPTER 5 Ethics, Corporate
Social Responsibility, and SustainabilityOpening Case
Woolworths Group’s Corporate Responsibility Strategy
2020IntroductionEthics and International BusinessEmployment
PracticesManagement Focus “Emissionsgate” at
VolkswagenHuman RightsEnvironmental
PollutionCorruptionEthical DilemmasRoots of Unethical
BehaviorPersonal EthicsDecision-Making
ProcessesOrganizational CultureUnrealistic Performance
GoalsLeadershipSocietal CulturePhilosophical Approaches to
EthicsStraw MenUtilitarian and Kantian EthicsRights
TheoriesJustice TheoriesFocus on Managerial Implications:
Making Ethical Decisions InternationallyManagement Focus
Corporate Social Responsibility at Stora EnsoChapter
SummaryCritical Thinking and Discussion QuestionsResearch
TaskClosing Case UNCTAD Sustainable Development
GoalsEndnotespart three The Global Trade and Investment
EnvironmentCHAPTER 6 International Trade TheoryOpening
Case Donald Trump on TradeIntroductionAn Overview of Trade
TheoryThe Benefits of TradeThe Pattern of International

16. TradeTrade Theory and Government PolicyMercantilismCountry
Focus Is China Manipulating Its Currency in Pursuit of a Neo-
Mercantilist Policy?Absolute AdvantageComparative
AdvantageThe Gains from TradeQualifications and
AssumptionsExtensions of the Ricardian ModelCountry Focus
Moving U.S. White-Collar Jobs OffshoreHeckscher–Ohlin
TheoryThe Leontief ParadoxThe Product Life-Cycle
TheoryProduct Life-Cycle Theory in the Twenty-First
CenturyNew Trade TheoryIncreasing Product Variety and
Reducing CostsEconomies of Scale, First-Mover Advantages,
and the Pattern of TradeImplications of New Trade
TheoryNational Competitive Advantage: Porter’s
DiamondFactor EndowmentsDemand ConditionsRelated and
Supporting IndustriesFirm Strategy, Structure, and
RivalryEvaluating Porter’s TheoryFocus on Managerial
Implications: Location, First-Mover Advantages, and
Government PolicyChapter SummaryCritical Thinking and
Discussion QuestionsResearch TaskClosing Case The Trans
Pacific Partnership (TPP)Appendix International Trade and the
Balance of PaymentsEndnotesCHAPTER 7 Government Policy
and International TradeOpening Case Boeing and Airbus Are in
a Dogfight over Illegal SubsidiesIntroductionInstruments of
Trade PolicyTariffsSubsidiesCountry Focus Are the Chinese
Illegally Subsidizing Auto Exports?Import Quotas and
Voluntary Export RestraintsExport Tariffs and BansLocal
Content RequirementsAdministrative PoliciesAntidumping
PoliciesThe Case for Government InterventionManagement
Focus Protecting U.S. MagnesiumPolitical Arguments for
InterventionEconomic Arguments for InterventionThe Revised
Case for Free TradeRetaliation and Trade WarDomestic
PoliciesDevelopment of the World Trading SystemFrom Smith
to the Great Depression1947–1979: GATT, Trade
Liberalization, and Economic Growth1980–1993: Protectionist
TrendsThe Uruguay Round and the World Trade
OrganizationWTO: Experience to DateThe Future of the WTO:
Unresolved Issues and the Doha RoundCountry Focus

17. Estimating the Gains from Trade for AmericaMultilateral and
Bilateral Trade AgreementsThe World Trading System under
ThreatFocus on Managerial Implications: Trade Barriers, Firm
Strategy, and Policy ImplicationsChapter SummaryCritical
Thinking and Discussion QuestionsResearch TaskClosing Case
Is China Dumping Excess Steel Production?EndnotesCHAPTER
8 Foreign Direct InvestmentOpening Case Foreign Direct
Investment in Retailing in IndiaIntroductionForeign Direct
Investment in the World EconomyTrends in FDIThe Direction
of FDIThe Source of FDICountry Focus Foreign Direct
Investment in ChinaThe Form of FDI: Acquisitions versus
Greenfield InvestmentsTheories of Foreign Direct
InvestmentWhy Foreign Direct Investment?Management Focus
Foreign Direct Investment by CemexThe Pattern of Foreign
Direct InvestmentThe Eclectic ParadigmPolitical Ideology and
Foreign Direct InvestmentThe Radical ViewThe Free Market
ViewPragmatic NationalismShifting IdeologyBenefits and Costs
of FDIHost-Country BenefitsHost-Country CostsHome-Country
BenefitsHome-Country CostsInternational Trade Theory and
FDIGovernment Policy Instruments and FDIHome-Country
PoliciesHost-Country PoliciesInternational Institutions and the
Liberalization of FDIFocus on Managerial Implications: FDI
and Government PolicyChapter SummaryCritical Thinking and
Discussion QuestionsResearch TaskClosing Case Burberry
Shifts Its Strategy in JapanEndnotesCHAPTER 9 Regional
Economic IntegrationOpening Case Renegotiating
NAFTAIntroductionLevels of Economic IntegrationThe Case for
Regional IntegrationThe Economic Case for IntegrationThe
Political Case for IntegrationImpediments to IntegrationThe
Case against Regional IntegrationRegional Economic
Integration in EuropeEvolution of the European UnionMap 9.1
Member states of the European Union in 2017Political Structure
of the European UnionManagement Focus The European
Commission and IntelThe Single European ActThe
Establishment of the EuroCountry Focus The Greek Sovereign
Debt CrisisEnlargement of the European UnionBritish Exit from

18. the European Union (BREXIT)Regional Economic Integration
in the AmericasMap 9.2 Economic integration in the
AmericasThe North American Free Trade AgreementThe
Andean CommunityMercosurCentral American Common
Market, CAFTA, and CARICOMRegional Economic Integration
ElsewhereAssociation of Southeast Asian NationsMap 9.3
ASEAN countriesRegional Trade Blocs in AfricaOther Trade
AgreementsFocus on Managerial Implications: Regional
Economic Integration ThreatsChapter SummaryCritical
Thinking and Discussion QuestionsResearch TaskClosing Case
The Push toward Free Trade in AfricaEndnotespart four The
Global Monetary SystemCHAPTER 10 The Foreign Exchange
MarketOpening Case The Mexican Peso, the Japanese Yen, and
Pokemon GoIntroductionThe Functions of the Foreign Exchange
MarketCurrency ConversionInsuring against Foreign Exchange
RiskManagement Focus Embraer and the Gyrations of the
Brazilian RealThe Nature of the Foreign Exchange
MarketEconomic Theories of Exchange Rate
DeterminationPrices and Exchange RatesCountry Focus
Quantitative Easing, Inflation, and the Value of the U.S.
DollarInterest Rates and Exchange RatesInvestor Psychology
and Bandwagon EffectsSummary of Exchange Rate
TheoriesExchange Rate ForecastingThe Efficient Market
SchoolThe Inefficient Market SchoolApproaches to
ForecastingCurrency ConvertibilityFocus on Managerial
Implications: Foreign Exchange Rate RiskChapter
SummaryCritical Thinking and Discussion QuestionsResearch
TaskClosing Case Apple’s Earnings Hit by Strong
DollarEndnotesCHAPTER 11 The International Monetary
SystemOpening Case Egypt and the IMFIntroductionThe Gold
StandardMechanics of the Gold StandardStrength of the Gold
StandardThe Period between the Wars: 1918–1939The Bretton
Woods SystemThe Role of the IMFThe Role of the World
BankThe Collapse of the Fixed Exchange Rate SystemThe
Floating Exchange Rate RegimeThe Jamaica
AgreementExchange Rates since 1973Country Focus The U.S.

19. Dollar, Oil Prices, and Recycling PetrodollarsFixed versus
Floating Exchange RatesThe Case for Floating Exchange
RatesThe Case for Fixed Exchange RatesWho Is
Right?Exchange Rate Regimes in PracticePegged Exchange
RatesCurrency BoardsCrisis Management by the IMFFinancial
Crises in the Post–Bretton Woods EraCountry Focus The IMF
and Iceland’s Economic RecoveryEvaluating the IMF’s Policy
PrescriptionsFocus on Managerial Implications: Currency
Management, Business Strategy, and Government
RelationsManagement Focus Airbus and the EuroChapter
SummaryCritical Thinking and Discussion QuestionsResearch
TaskClosing Case China’s Exchange Rate
RegimeEndnotesCHAPTER 12 The Global Capital
MarketOpening Case Saudi AramcoIntroductionBenefits of the
Global Capital MarketFunctions of a Generic Capital
MarketAttractions of the Global Capital MarketManagement
Focus The Industrial and Commercial Bank of China Taps the
Global Capital MarketGrowth of the Global Capital
MarketGlobal Capital Market RisksCountry Focus Did the
Global Capital Markets Fail Mexico?The Eurocurrency
MarketGenesis and Growth of the MarketAttractions of the
Eurocurrency MarketDrawbacks of the Eurocurrency MarketThe
Global Bond MarketAttractions of the Eurobond MarketThe
Global Equity MarketForeign Exchange Risk and the Cost of
CapitalFocus on Managerial Implications: Growth of the Global
Capital MarketChapter SummaryCritical Thinking and
Discussion QuestionsResearch TaskClosing Case Alibaba’s
Record-Setting IPOEndnotespart five The Strategy and
Structure of International BusinessCHAPTER 13 The Strategy
of International BusinessOpening Case Sony’s Global
StrategyIntroductionStrategy and the FirmValue
CreationStrategic PositioningThe Firm as a Value ChainGlobal
Expansion, Profitability, and Profit GrowthExpanding the
Market: Leveraging Products and CompetenciesLocation
EconomiesExperience EffectsLeveraging Subsidiary
SkillsProfitability and Profit Growth SummaryManagement

20. Focus Leveraging Skills Worldwide at ArcelorMittalCost
Pressures and Pressures for Local ResponsivenessPressures for
Cost ReductionsPressures for Local ResponsivenessManagement
Focus Viacom International Media NetworksChoosing a
StrategyGlobal Standardization StrategyLocalization
StrategyTransnational StrategyInternational
StrategyManagement Focus Evolution of Strategy at Procter &
GambleThe Evolution of StrategyChapter SummaryCritical
Thinking and Discussion QuestionsResearch TaskClosing Case
IKEA’s Global StrategyEndnotesCHAPTER 14 The
Organization of International BusinessOpening Case Unilever’s
Global OrganizationIntroductionOrganizational
ArchitectureOrganizational StructureVertical Differentiation:
Centralization and DecentralizationManagement Focus Walmart
InternationalHorizontal Differentiation: The Design of
StructureIntegrating MechanismsManagement Focus Dow—
(Failed) Early Global Matrix AdopterControl Systems and
IncentivesTypes of Control SystemsIncentive SystemsControl
Systems, Incentives, and Strategy in the International
BusinessProcessesOrganizational CultureCreating and
Maintaining Organizational CultureOrganizational Culture and
Performance in the International BusinessManagement Focus
Lincoln Electric and CultureSynthesis: Strategy and
ArchitectureLocalization StrategyInternational StrategyGlobal
Standardization StrategyTransnational StrategyEnvironment,
Strategy, Architecture, and PerformanceOrganizational
ChangeOrganizational InertiaImplementing Organizational
ChangeChapter SummaryCritical Thinking and Discussion
QuestionsResearch TaskClosing Case Organizational
Architecture at P&GEndnotesCHAPTER 15 Entry Strategy and
Strategic AlliancesOpening Case Gazprom and Global Strategic
AlliancesIntroductionBasic Entry DecisionsWhich Foreign
Markets?Management Focus Tesco’s International Growth
StrategyTiming of EntryScale of Entry and Strategic
CommitmentsMarket Entry SummaryManagement Focus The
Jollibee PhenomenonEntry ModesExportingTurnkey

21. ProjectsLicensingFranchisingJoint VenturesWholly Owned
SubsidiariesSelecting an Entry ModeCore Competencies and
Entry ModePressures for Cost Reductions and Entry
ModeGreenfield Venture or Acquisition?Pros and Cons of
AcquisitionsPros and Cons of Greenfield VenturesWhich
Choice?Strategic AlliancesAdvantages of Strategic
AlliancesDisadvantages of Strategic AlliancesMaking Alliances
WorkChapter SummaryCritical Thinking and Discussion
QuestionsResearch TaskClosing Case Starbucks’ Foreign Entry
StrategyEndnotespart six International Business
FunctionsCHAPTER 16 Exporting, Importing, and
CountertradeOpening Case Tata Motors and
ExportingIntroductionThe Promise and Pitfalls of
ExportingManagement Focus Ambient Technologies and the
Panama CanalImproving Export PerformanceInternational
ComparisonsInformation SourcesManagement Focus Exporting
with Government AssistanceService ProvidersExport
StrategyManagement Focus 3M’s Export StrategyThe
globalEDGE™ Exporting ToolExport and Import FinancingLack
of TrustLetter of CreditDraftBill of LadingA Typical
International Trade TransactionExport AssistanceExport-Import
BankExport Credit InsuranceCountertradeThe Popularity of
CountertradeTypes of CountertradePros and Cons of
CountertradeChapter SummaryCritical Thinking and Discussion
QuestionsResearch TaskClosing Case Embraer and Brazilian
ImportingEndnotesCHAPTER 17 Global Production and Supply
Chain ManagementOpening Case Alibaba and Global Supply
ChainsIntroductionStrategy, Production, and Supply Chain
ManagementWhere to ProduceCountry FactorsManagement
Focus IKEA Production in ChinaTechnological
FactorsProduction FactorsThe Hidden Costs of Foreign
LocationsManagement Focus H&M and Its Order TimingMake-
or-Buy DecisionsGlobal Supply Chain FunctionsGlobal
LogisticsGlobal PurchasingManaging a Global Supply
ChainRole of Just-in-Time InventoryRole of Information
TechnologyCoordination in Global Supply

22. ChainsInterorganizational RelationshipsChapter
SummaryCritical Thinking and Discussion QuestionsResearch
TaskClosing Case Amazon’s Global Supply
ChainsEndnotesCHAPTER 18 Global Marketing and
R&DOpening Case ACSI and Satisfying Global
CustomersIntroductionGlobalization of Markets and
BrandsMarket SegmentationManagement Focus Marketing to
Afro-BraziliansProduct AttributesCultural DifferencesEconomic
DevelopmentProduct and Technical StandardsDistribution
StrategyDifferences between CountriesChoosing a Distribution
StrategyCommunication StrategyBarriers to International
CommunicationPush versus Pull StrategiesManagement Focus
Unilever among India’s PoorGlobal AdvertisingPricing
StrategyPrice DiscriminationStrategic PricingRegulatory
Influences on PricesConfiguring the Marketing MixInternational
Market ResearchProduct DevelopmentThe Location of
R&DIntegrating R&D, Marketing, and ProductionCross-
Functional TeamsBuilding Global R&D CapabilitiesChapter
SummaryCritical Thinking and Discussion QuestionsResearch
TaskClosing Case Global Branding, Marvel Studios, and Walt
Disney CompanyEndnotesCHAPTER 19 Global Human
Resource ManagementOpening Case Building a Global Diverse
Workforce at SodexoIntroductionStrategic Role of Global HRM:
Managing a Global WorkforceStaffing PolicyTypes of Staffing
PoliciesExpatriate ManagersManagement Focus Expatriates at
Royal Dutch ShellGlobal MindsetTraining and Management
DevelopmentTraining for Expatriate ManagersRepatriation of
ExpatriatesManagement Focus Monsanto’s Repatriation
ProgramManagement Development and StrategyPerformance
AppraisalPerformance Appraisal ProblemsGuidelines for
Performance AppraisalCompensationNational Differences in
CompensationManagement Focus McDonald’s Global
Compensation PracticesExpatriate PayBuilding a Diverse
Global WorkforceInternational Labor RelationsThe Concerns of
Organized LaborThe Strategy of Organized LaborApproaches to
Labor RelationsChapter SummaryCritical Thinking and

23. Discussion QuestionsResearch TaskClosing Case
AstraZenecaEndnotesCHAPTER 20 Accounting and Finance in
the International BusinessOpening Case Shoprite—Financial
Success of a Food Retailer in AfricaIntroductionNational
Differences in Accounting StandardsInternational Accounting
StandardsManagement Focus Chinese AccountingAccounting
Aspects of Control SystemsExchange Rate Changes and Control
SystemsTransfer Pricing and Control SystemsSeparation of
Subsidiary and Manager PerformanceFinancial Management:
The Investment DecisionCapital BudgetingProject and Parent
Cash FlowsManagement Focus Black Sea Oil and Gas
LtdAdjusting for Political and Economic RiskRisk and Capital
BudgetingFinancial Management: The Financing
DecisionFinancial Management: Global Money
ManagementMinimizing Cash BalancesReducing Transaction
CostsManaging the Tax BurdenMoving Money across
BordersChapter SummaryCritical Thinking and Discussion
QuestionsResearch TaskClosing Case Tesla, Inc.—Subsidizing
Tesla Automobiles GloballyEndnotespart seven Integrative
CasesGlobal Medical TourismVenezuela under Hugo Chávez
and BeyondPolitical and Economic Reform in MyanmarWill
China Continue to Be a Growth Marketplace?Lead in Toys and
Drinking WaterCreating the World’s Biggest Free Trade
ZoneSugar Subsidies Drive Candy Makers AbroadVolkswagen
in RussiaThe NAFTA Tomato WarsSubaru’s Sales Boom
Thanks to the Weaker YenThe IMF and Ukraine’s Economic
CrisisThe Global Financial Crisis and Its Aftermath: Declining
Cross-Border Capital FlowsFord’s Global Platform
StrategyPhilips’ Global RestructuringGeneral Motors and
Chinese Joint VenturesExporting Desserts by a Hispanic
EntrepreneurApple: The Best Supply Chains in the
World?Domino’s Global MarketingSiemens and Global
CompetitivenessMicrosoft and Its Foreign Cash
HoldingsGlossaryOrganization IndexName IndexSubject Index