As indicated by both scholars and practitioners, the role that the Asia–Pacific has played within international business operations has been a central component of record levels of growth prior to the global financial crisis. The World Investment Report 2008 shows that FDI flows to Asia and the Pacific are now at the highest ever points, reaching US$249 billion in 2007. Asia in particular has been growing at unprecedented levels, helped largely by significant regional economic integration, evidenced through various Free Trade Agreements, improved investment environment through greater transparency and political reforms aimed at opening up trade and promoting outward investment. Both China and India have cemented their respective positions as the manufacturing and business process outsourcing (BPO) capitals of the world, whereas Australia has played a key role both economically and politically through its considerable natural resource endowments and increasing world trade.

One of the most dramatic illustrations of the rise of the Asia–Pacific as a key player in international business has been the formation and rapid growth of multinational enterprises (MNEs) from the region. Foreign direct investment (FDI) outflows reached records levels in 2007 with US$253 billion being invested, largely attributed to outward expansion by Asian MNEs. This has seen Toyota become the third biggest multinational in the world if ranked by assets, while two other Asian-founded companies round out the top twenty-five.

The last four years have seen consecutive growth and record levels of investment, despite the current financial crisis. Although there are increased levels of uncertainty at the time of writing, one of the central components of the expansion of world trade and investment has been the part played by the Asia–Pacific. This book, building upon the success of the seven international and US editions of Charles Hill’s record selling international business textbook, aims to bridge a gap for both students and lecturers in the Asia–Pacific who have been hindered by a dearth of regionally adapted international business textbooks.

As you shall see throughout this textbook, there have been significant changes within this first edition text. Each chapter has retained its teacher- and student-friendly composition while being updated with the newest sources and readjusted towards Asia–Pacific issues and examples. Overall, the goals for the first Asia–Pacific edition have been fourfold:

1. To adapt the perspectives and content to incorporate both the Asia–Pacific and global elements of International Business.
2. To utilise new insights from the most recent scholarly research wherever appropriate.
3. To ensure that the content of the text covers all appropriate issues facing international business from an Asia–Pacific perspective.
4. To ensure that the text is as up to date as possible with regard to current events, statistics and examples.

In pursuing these goals, changes have been made throughout the book and have transformed this Asia–Pacific edition into a significantly more region-focused text. This has involved the incorporation of completely new in-chapter case studies with challenges faced primarily within Asia–Pacific countries. For the convenience of instructors and students, all cases are grouped in a stand-alone section at the end of the book.

As part of the overall revision process, this edition has seen all statistics updated to incorporate the most recently available data. New examples, cases, and boxes have been added and older examples updated to reflect new developments. Almost all chapter opening and closing cases are now focussed on the Asia–Pacific and some especially written for this edition. New material has also been inserted wherever appropriate to reflect recent academic work or important current events.