INTEGRATED PROGRESSION OF TOPICS

Many textbooks lack a tight, integrated flow of topics from chapter to chapter. In this book, students are told 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.

Part Two
Chapters 2, 3, and 4 focus on national differences in political economy and culture. Most international business textbooks place this material later, but I 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 operations arise out of national differences in political economy and culture. To fully understand these issues, students must first appreciate the differences in countries and cultures.

Part Three
Chapters 5 through 8 investigate the political economy of international 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 9 and 10 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 11 through 16, attention shifts from the environment to the firm. Here the book examines the strategies and structures that firms adopt to compete effectively in the international business environment. These chapters explain how firms can perform their key functions—manufacturing, marketing, R&D, and human resource management—to compete and succeed in the international business environment.

Throughout the book, the relationship of new material to topics discussed in earlier chapters is pointed out to the students to reinforce their understanding of how the material comprises an integrated whole.

FOCUS ON MANAGERIAL IMPLICATIONS

Many international business textbooks fail to discuss the implications of the various topics for the actual practice of international business. This does not serve the needs of business school students who soon will be practicing managers. Accordingly, the usefulness of this book’s material in the practice of international business is discussed explicitly. In particular, 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. For example, Chapter 5, "International Trade Theory," ends with a detailed discussion of the various trade theories’ implications for international business management.

In addition, each chapter begins with an opening case that illustrates the relevance of chapter material for the practice of international business. Chapter 2, "National Differences in Political Economy," for example, opens with a case that describes the challenges faced by people in sub-Saharan Africa because of lack of economic development due in large part to corrupt government and bad economic politics.

I have also retained the closing cases to each chapter. These cases are also designed to illustrate the relevance of chapter material for the practice of international business. The closing case to Chapter 2, for example, looks at the changing political economy in India. This case helps to illustrate the impact of foreign direct investment on the economic growth of the country.

Another tool that I have used to focus on managerial implications are Management Focus boxes. There is at least one Management Focus in each chapter. Like the opening case, the purpose of these boxes is to illustrate the relevance of chapter material for the practice of international business. The Management Focus in Chapter 2, for example, looks at how piracy in the video game industry threatens the growth of the entire industry.

ACCESSIBLE AND INTERESTING

The international business arena is fascinating and exciting, and I have tried to communicate my enthusiasm for it to the student. Learning is easier and better if the subject matter is communicated in an interesting, informative, and accessible manner. One technique I have used to achieve this is weaving interesting anecdotes into the narrative of the text—stories that illustrate theory. The opening cases and focus boxes are also used to make the theory being discussed in the text both accessible and interesting.

Each chapter has two kinds of focus boxes—a Management Focus box (described above) and a Country Focus box. Country Focus boxes provide background on the political, economic, social, or cultural aspects of countries grappling with an international business issue. In Chapter 3, for example, one Country Focus box discusses how large banking institutions are offering Islamic financial services for their customers in Pakistan.

Just how accessible and interesting this book actually is will be revealed by time and student feedback. I am confident, however, that this book is far more accessible to students than its competitors. For those of you who view such a bold claim with skepticism, I urge you to read the sections in Chapter 1 on the globalization of the world economy, the changing nature of international business, and how international business is different.

WHAT’S NEW IN THIS EDITION

The success of the first three editions of Global Business Today was based in part upon 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, my goals for this revision have been threefold:

1. Incorporate new insights from recent scholarly research wherever appropriate.
2. Make sure the content of the text covers all appropriate issues.
3. Make sure the text is as up-to-date as possible with regard to current events, statistics, and examples.

As part of the revision process, changes have been made to every chapter in the book. In addition, I am introducing four significant changes to this edition.

Chapter 4, "Ethics in International Business," was added due to an outcry for more expansive coverage of the important role that ethics plays. Ethical dilemmas arise frequently in international business because of the many cultural differences among countries. This chapter discusses the challenges companies face when forced to deal with human rights issues, environmental pollution, and corruption. There are also sections dealing with social responsibility and the sources of unethical behavior. The Management Focus addresses the risky nature of testing pharmaceuticals in developing nations. There is also a discussion about the unethical behavior of the leaders of large corporations, such as the frequently publicized Enron scandal. Throughout the chapter, current examples are interwoven with ethical theories to demonstrate the complex challenges that companies face.

"Another Cultural Perspective" boxes have been added to enhance the already popular "Another Perspective" boxes to further expand upon how culture is deeply embedded in the way companies operate internationally. For an example, see the Another Cultural Perspective box in Chapter 4, which highlights the importance of expatriate managers adhering to the cultural norms of the countries in which they work.

In every part, we have added a new feature called "Sustainability in Practice," compiled by Debra Rowe, professor of Environmental Systems and Behavioral Sciences at Oakland Community College. Dr. Rowe is also the Senior Fellow of University Leaders for a Sustainable Future. By offering this new feature on business and sustainable development, global business educators have a unique opportunity to help students understand how businesses are engaging in the solutions to sustainable development challenges. Sustainable development is about the triple bottom line—simultaneously fostering healthy economies, vibrant communities, and viable ecosystems. It requires using the best available knowledge and critical thinking about complex systems and how they can be maintained, even enhanced, over time. See Part 5 for a vignette
about a carpet and textile company that changed its entire business philosophy in order to function in a more socially responsible manner.

This edition welcomes the addition of new GlobalEdge™ Research Tasks. By using the text and the GlobalEdge Website, http://globaledge.msu.edu, students solve realistic international business problems related to each chapter. These exercises expose students to the types of tools and data sources international managers use to make informed business decisions.