Tw elfth

Edition

INTERNATIONAL BUSINESS
Environments and Operations

John D. Daniels
University of Miami

Lee H. Radebaugh
Brigham Young University

Daniel P. Sullivan
University of Delaware

Pearson Education International

Contents
Preface 29 About the Authors • PART ONE 39 BACKGROUND FOR INTERNATIONAL BUSINESS 44

1

Globalization and International Business
45
49

44

CASE: The Global Playground Introduction 48
W h a t Is International Business7.

The Forces Driving Globalization 50 Factors in Increased Globalization 51 What's Wrong with Globalization? 56 Threats to National Sovereignty 56
Economic Growth and Environmental Stress 57

Growing Income Inequality 57 s | Point ^J3ffi^S^^3 ' Offshoring Good Strategy? 58 Why Companies Engage in InternationaLBusiness
Expanding Sales 60 , Acquiring Resources 60 Minimizing Risk 60

60

Modes of Operations in International Business Merchandise Exports and Imports 62 Service Exports and Imports 62 Investments 63 Types of International Organizations 63 Why International Business Differs from Domestic Business 64
Physical and Social Factors 65 The Competitive Environment 67 Looking to the Future:

61

Three Ways of Looking at Globalization

68

C A S E : Carnival Cruise Lines: Exploiting a Sea of Global Opportunity 69

74 Summary Key Terms 75 Endnotes 75 An Atlas 78 Map Index 86

Contents

• 2

PART TWO

COMPARATIVE ENVIRONMENTAL FRAMEWORKS 90
91

90

The Cultural Environments Facing Business
94 95

C A S E : The Java Lounge—Adjusting to Saudi Arabian Culture Introduction The People Factor

Cultural Awareness

96
97

A Little Learning Goes a Long Way The Nation as a Point of Reference How Cultures Form and Change

The Idea of a "Nation": Delineating Cultures
98 99

98

Language as Both a Diffuser and Stabilizer of Culture

100 103

Does