INSTRUCTORS MANUAL - Market Entry Strategy Project Guide ..............

iii Contents

INSTRUCTOR’S MANUAL

Market Entry Strategy Project Guide ...........................................................1 Chapter 1 Globalization ..............................................................................................23 Chapter 2 Cross-Cultural Business .............................................................................40 Chapter 3 Politics, Law, and Business Ethics ............................................................58 Chapter 4 Economics and Emerging Markets ............................................................75 Chapter 5 International Trade .....................................................................................89 Chapter 6 Business-Government Trade Relations....................................................103 Chapter 7 Foreign Direct Investment .......................................................................117 Chapter 8 Regional Economic Integration ...............................................................132 Chapter 9 International Financial Markets ...............................................................150 Chapter 10 International Monetary System ................................................................167 Chapter 11 International Strategy and Organization ..................................................185 Chapter 12 Analyzing International Opportunities ....................................................200 Chapter 13 Selecting and Managing Entry Modes .....................................................216 Chapter 14 Developing and Marketing Products .......................................................234 Chapter 15 Managing International Operations .........................................................249 Chapter 16 Hiring and Managing Employees ............................................................264 International Business The Challenges of Globalization 7e John Wild Kenneth Wild (Instructor Manual All Chapters, 100% Original Verified, A+ Grade) 1 / 4

Copyright © 2014 Pearson Education, Inc.

CHAPTER 1

GLOBALIZATION

LEARNING OBJECTIVES:

1.Identify the types of companies that participate in international business.

2.Describe the process of globalization and how it affects markets and production.

3.Describe the two forces causing globalization to increase.

4.Summarize the evidence for each main argument in the globalization debate.

5.Describe the global business environment and identify its four main elements.

CHAPTER OUTLINE:

Introduction International Business Involves Us All Technology Makes It Possible Global Talent Makes It Happen Key Players in International Business Multinational Corporations Entrepreneurs and Small Businesses Globalization Globalization of Markets Reduces Marketing Costs Creates New Market Opportunities Levels Uneven Income Streams Local Buyers’ Needs Global Sustainability Globalization of Production Access Lower-Cost Workers Access Technical Expertise Access Production Inputs Forces Driving Globalization Falling Barriers to Trade and Investment The World Trade Organization Regional Trade Agreements Trade and National Output Technological Innovation E-mail and Videoconferencing The Internet Company Intranets and Extranets Advancements in Transportation Technologies Measuring Globalization Untangling the Globalization Debate Today’s Globalization in Context Introduction to the Debate Globalization’s Impact on Jobs and Wages Against Globalization Eliminates Jobs in Developed Nations Lowers Wages in Developed Nations 2 / 4

24 Ch 1: Globalization

Copyright © 2014 Pearson Education, Inc.Exploits Workers in Developing Nations For Globalization Increases Wealth and Efficiency in All Nations Generates Labor Market Flexibility in Developed Nations Advances the Economies of Developing Nations Summary of the Jobs and Wages Debate Globalization’s Impact on Labor, the Environment, and Markets Labor Standards Environmental Protection Future Markets Globalization and Income Inequality Inequality within Nations Inequality between Nations Global Inequality Summary of the Income Inequality Debate Globalization’s Influence on Cultures Globalization and National Sovereignty

Globalization: Menace to Democracy?

Globalization: Guardian of Democracy?

Why International Business Is Special The Global Business Environment The Road Ahead for International Business Bottom Line for Business

A comprehensive set of specially designed PowerPoint slides is available for use with Chapter 1. These slides and the lecture outline below form a completely integrated package that simplifies the teaching of this chapter’s material.

Lecture Outline

1. INTRODUCTION

Globalization is reshaping our cultures, our political, legal, and economic systems, and affecting our standards of living. It alters the global pattern of trade and investment by expanding markets and multiplying production possibilities.

• International Business Involves Us All
• Each of us encounters the result of international business transactions

every day whether we realize it or not.

• International business is any commercial transaction that crosses the

borders of two or more nations.

• Imports are goods and services purchased abroad and brought into a

country. Exports are goods and services sold abroad and sent out of a country.

• Technology Makes It Possible
• Technology is a remarkable facilitator of international business and

change. 3 / 4

Ch 1: Globalization 25

Copyright © 2014 Pearson Education, Inc.

• E-business (e-commerce) is the use of computer networks to purchase,

sell, or exchange products; service customers; and collaborate with partners.

• Global Talent Makes It Happen
• Development and production now regularly occur on a global basis for

many goods and services.

• Performing these globally increases firm efficiency and competitiveness.

2. KEY PLAYERS IN INTERNATIONAL BUSINESS

** This section now appears earlier than in previous editions. ** Large firms from developed nations once dominated, but firms from Brazil, China, and India now play a bigger role. Technological advancements allow small and midsize companies to better compete.

• Multinational Corporations

A multinational corporation (MNC) has direct investments abroad in multiple countries. They generate significant jobs, investment, and tax revenue for the regions and nations they enter.

• Profiling the Largest Multinationals
• Some MNCs have more employees than small nations have

citizens (e.g., Walmart has 2.2 million employees globally).

• If Walmart were a country, it would rank third behind Norway in

terms of economic power (Figure 1.1).

• Entrepreneurs and Small Businesses
• They are increasingly active in international business by exporting earlier

and growing faster with help from technology.

• A born global firm is a company that adopts a global perspective and

engages in international business from or near its inception.

• Some small Internet companies reach customers solely through the Web

(e.g., Vellus Products, Weekend in Italy).

3. GLOBALIZATION

Globalization is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies. It is marked by “denationalization,” which is not “internationalization.”

• Globalization of Markets
• Convergence in buyer preferences in markets around the world
• Reduces marketing costs by standardizing activities
• Creates market opportunities abroad if home is small or saturated
• Levels uneven income streams for global seasonal products
• Yet companies must not overlook buyers’ needs
• Need for global sustainability—development that meets the

needs of the present without compromising the ability of future generations to meet their own needs.

• The world’s 7 billion people live in three types of markets, yet all require

companies to act in a sustainable manner:

• Developed markets are solidly middle class and people can

consume almost any product desired. A firm may use the latest

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